SQ CONDIMENTS CORPORATION

A Feasibility Study
Presented to the Faculty of Chemical and Food Engineering
College of Engineering, Architecture and Fine Arts
Batangas State University
Alangilan, Batangas City

In Partial Fulfillment
Of the Requirements for the Degree in
Bachelor of Science in Food Engineering

By:

Antenor, Mary Anne C.

Baldivia, Jaica Marie M.
Mulingtapang, Artemis Roque M.

March 2019
 CHAPTER II
MARKET FEASIBILITY
This chapter, market feasibility, tackles about an in-depth understanding of the
market of SQ Condiments Corporation and a detailed analysis of the demand, supply,
market gap, and market analysis regarding the company’s products, Squash Ketchup
and Squash Paste. This also includes the description of industry, its current and future
market, marketing program and strategies, competition, and prospective consumers.

Objectives of the Study

The overall objective of the study is to determine the feasibility of Squash

Ketchup and Squash Paste in the market. To achieve this, the proponents set specific
objectives as follows:
1. To determine the market feasibility of Squash Ketchup and Squash Paste
through the demand and supply analysis situation;
2. To determine the technical feasibility of the product through identifying the
most appropriate manufacturing processes to be used, the production capacity,
and the best location site for the establishment of SQ Condiments Corporation;
3. To determine the management feasibility of the product by identifying the
appropriate form of business organization in its compliance with the legal
requirements for the business to operate;
4. To determine the company’s financial position and its earnings performance;
and
5. To determine the benefits of the business to the society.

Research Methodology
Research methodology is the specific procedures or techniques used to
identify, select, process, and analyze information about a topic (University of
Witwatersrand, 2019).
For every company, it is very important to evaluate new project or innovation.
This will enable company to understand whether innovation under consideration will
be beneficial and feasible. In this study, the proponents are working on a proposal
concerning the products, Squash Ketchup and Squash Paste under SQ Condiments
Corporation. In order to further comprehend the proposal may it be feasible or not, the
proponents prepared all the processes and data which will guarantee the future of the
company.
Research Design
The proponents constructed a food company proposal, SQ Condiments
Corporation, with Squash Ketchup and Squash Paste as its products.
A descriptive research was used wherein the proponents gathered data that
employed sensory evaluation by making survey questionnaires for fifty (50) untrained
panelists. Afterwards, the proponents described and interpreted the responses
given. The questions were constructed properly and easy to comprehend so that the
given survey could be appraised both reliable and valid.
Moreover, using sensory evaluation assured whether the proposed food
company was acceptable or not when it came to market study and the wants and
desires of consumers.
Subject of the Study
This study aims to determine the market potential of SQ Condiments
Corporation, most especially when dealing with popular companies that also
encompass the same products. The method used by the proponents was survey
method wherein fifty (50) untrained panelists were handed sensory sheets to answer
by evaluating the appearance, aroma, taste, texture and acceptability of Squash
Ketchup and Squash Paste. The responses were interpreted properly in order to
determine the feasibleness of the products and the company itself as well.
Statistical Treatment of Data
A sensory sheet was prepared and disseminated to fifty (50) untrained
panelists to be able to acquire data for demand and supply aside from the information
collected from the internet. The accumulated data will be tallied and tabulated
analytically. The survey questionnaires were distributed to specify target market.
For more comprehensible data and results, the researchers used statistical
methods such as mean and frequency distribution to encapsulate its interpretation and
presentation.
Data Gathering Instruments and Procedure
The instrument used in this study was survey questionnaires which were
disseminated to fifty (50) untrained panelists in order to discern their opinions and
suggestions regarding Squash Ketchup and Squash Paste. Sensory sheets were used,
mainly to identify the feasibility of the proposed products. The sensory sheets were
consisted of appearance, aroma, taste, texture, and acceptability to be marked 5 as the
most acceptable and 1 as the least acceptable.
The proponents prepared various formulations of Squash Ketchup and Squash
Paste so that the most numbered formulation will be rendered as the acceptable
quality of the mentioned products.
Major Consumer of the Product
The major consumer of Squash Ketchup and Squash Paste is the group of
consumers and buyers who will avail and purchase the services of SQ Condiments
Corporation.
The target market of the proposed company and products will be the
consumers who are using ketchup and base on daily basis e.g. breakfast, lunch and
dinner with certain fried foods, spaghetti and other foods that uses ketchup and paste
may it be as part of the ingredients or just a sauce to dip and enjoy with. Also,
restaurant owners who served foods with ketchup and paste are also part of the
company’s target market.
Additionally, for consumers who are curious as to why the usual tomato and
banana were replaced with squash.
Historical Local Demand
The historical demand of ketchup and paste was computed by multiplying the
population of the target market, percentage of the respondents that will buy the
product, and average annual consumption.
As calculated by the proponents, it had been found out that the demand for the
product increases as the growth of population around the urban areas in Dolores
Quezon also increases. Presented below are the computed values for historical
demand in tabular and graphical form.
Table 1
Historical Local Demand of Ketchup

Year Supply (MT)

2014 10,034.41
2015 11,575.32
2016 12,388.94
2017 12,851.00
2018 13,343.49
Source: Philippine Statistics Authority, 2018
Table 1 shows the historical demand of Ketchup from the year 2014 with a demand of
10,034.41 and in the year 2018 with a demand of 13,343.49 MT.

Historical Local Demand of Ketchup

16,000.00
12,851.00 13,343.49
14,000.00 12,388.94
11,575.32
12,000.00 10,034.41
10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
0.00
2014 2015 2016 2017 2018

Figure 1
Historical Local Demand of Ketchup

Figure 1 shows that there is large increase in demand of Ketchup starting from
the year 2014 with an annual consumption of 10,034.41 and rapidly increases in the
year 2018 with an annual consumption of 13,343.49 MT.
Projected Demand
The projected demand was calculated using the arithmetic straight line method from
the year 2019 to year 2024.

Table 2
Computed Standard Deviation of Demand of Squash Ketchup

Method Standard Deviation

Arithmetic Straight Line Method 325.92
Arithmetic Geometric Curve 4,330.91
Statistical Straight Line 89,851.96
Statistical Parabolic 4,696.58

As shown in the table, arithmetic straight line was used in computing the projection
since it has the lowest standard deviation.
 Table 3
Projected Local Demand of Ketchup

Year Demand (MT)

2019 13,981.81
2020 14,620.12
2021 15,258.44
2022 15,896.75
2023 16,535.07
2024 17,173.38

Source: Philippine Statistics Authority, 2018

The table above shows the projected demand of Ketchup from the year 2019
with a demand of 13,981.81 and in the year 2024 with a demand of 17,173.38 MT.

Projected Local Demand of Ketchup

20,000.00 16,535.07 17,173.38
15,258.44 15,896.75
13,981.81 14,620.12
15,000.00

10,000.00

5,000.00

0.00
2019 2020 2021 2022 2023 2024

Figure 2
Projected Local Demand of Squash Ketchup
Figure 2 graphically shown the projected demand for the next six years starting from
the year 2019 up to year 2024. The data had generated an increasing inclination
starting from 2019 with 13,981.81up to 17,173.38 MT in the year 2024.

Table 4
Historical Local Demand of Paste

Year Supply (MT)

2014 9,999
2015 10,579
2016 11,106
2017 11,560
2018 12,111

Source: Philippine Statistics Authority, 2018

 Table 4 shows the historical demand of Paste from the year 2014 with a
demand of 9,999 and in the year 2018 with a demand of 11,560 MT.

Historical Local Demand of Paste

14,000 12,111
11,106 11,560
12,000 10,579
9,999
10,000
8,000
6,000
4,000
2,000
0
2014 2015 2016 2017 2018

Figure 3

Historical Local Demand of Paste

Figure 3 shows that there is large increase in demand of Paste starting from the
year 2014 with an annual consumption of 9,999 and rapidly increases in the year 2018
with an annual consumption of 12,111 MT.
Projected Demand
The projected demand was calculated using the arithmetic straight line method
from the year 2019 to year 2024.
Table 5
Computed Standard Deviation of Demand of Squash Paste

Method Standard Deviation

Arithmetic Straight Line Method 260.26
Arithmetic Geometric Curve 3,728.57
Statistical Straight Line 83,276.70
Statistical Parabolic 4,123.37

As shown in the table, arithmetic straight line was used in computing the
projection since it has the lowest standard deviation.
 Table 6
Projected Local Demand of Paste

Year Demand (MT)

2019 12,553.88
2020 12,996.75
2021 13,439.63
2022 13,882.50
2023 14,325.38
2024 14,768.25

Source: Philippine Statistics Authority, 2018

The table above shows the projected demand of Paste from the year 2019 with
a demand of 12,553.88 and in the year 2024 with a demand of 14,768.25 MT.

Projected Local Demand of Paste

15,000.00 14,768.25
14,325.38
14,500.00
13,882.50
14,000.00 13,439.63
13,500.00 12,996.75
13,000.00 12,553.88
12,500.00
12,000.00
11,500.00
11,000.00
2019 2020 2021 2022 2023 2024

Figure 4

Projected Local Demand of Squash Paste

Figure 4 graphically shown the projected demand for the next six years starting from
the year 2019 up to year 2024. The data had generated an increasing inclination
starting from 2019 with 12,553.88 up to 14,768.25 MT in the year 2024

Supply
Supply is a fundamental economic concept that describes the total amount of a
specific good or service that is available to consumers. Supply is the amount of a good
a producer is willing to make at a given price.
Local Historical Supply
Historical supply is needed in order to determine if the proposed product is
still needed to introduce in the market. Local historical supply of ketchup and paste
are presented.
 Table 7
Historical Local Ketchup Supply
Year Supply (MT)
2014 8063.26
2015 8645.31
2016 9147.68
2017 9639.17
2018 10,243.49

Source: Philippine Statistics Authority, 2018

The table above shows the historical supply of Ketchup from the year 2014
with a supply of 8063.26 and in the year 2018 with a supply of 10,243.49 MT.

Historical Local Supply of Ketchup

12000
10,243.49
9147.68 9639.17
10000 8645.31
8063.26
8000
6000
4000
2000
0
2014 2015 2016 2017 2018

Figure 5
Historical Local Supply of Ketchup

Figure 5 shows that there is large increase in supply of Ketchup starting from
the year 2014 with an annual consumption of 8063.26 and rapidly increases in the
year 2018 with an annual consumption of 10,243.49 MT.
The Projected supply were calculated using the arithmetic straight line method
from the year 2019 to year 2026.
Table 8
Computed Standard Deviation of Supply of Squash Ketchup

Method Standard Deviation

Arithmetic Straight Line Method 132.18
Arithmetic Geometric Curve 10,410.99
Statistical Straight Line 1,399.61
Statistical Parabolic 3,520.45
 As shown in the table, arithmetic straight line was used in computing the
projection since it has the lowest standard deviation.
Table 9
Projected Local Ketchup Supply

Year Supply (MT)

2019 10,757.10
2020 11,270.72
2021 11,784.33
2022 12,297.94
2023 12,811.55
2024 13,325.17

Source: Philippine Statistics Authority, 2018

The table above shows the projected supply of Ketchup from the year 2019 with a
supply of 10,757.10 and in the year 2024 with a supply of 13,325.17 MT.

Projected Local Supply of Ketchup

15,000.00 12,811.55 13,325.17
11,784.33 12,297.94
10,757.10 11,270.72
10,000.00

5,000.00

0.00
2019 2020 221 2022 2023 2024

Series 1

Figure 6

Projected Local Supply of Ketchup

Figure 6 graphically shown the projected supply for the next six years starting
from the year 2019 up to year 2024. The data had generated an increasing inclination
starting from 2019 with 10,757.10 up to 13,325.17 MT in the year 2024.
 Table 10
Historical Local Supply of Paste
Year Supply (MT)
2014 9,663
2015 10,257
2016 10,808
2017 11,017
2018 11,387

Source: Philippine Statistics Authority, 2018

The table above shows the historical supply of Paste from the year 2014 with a
supply of 9,663 and in the year 2018 with a supply of 11,387 MT.

Historical Local Supply of Paste

12,000
11,387
11,500
11,017
11,000 10,808

10,500 10,257

10,000 9,663
9,500
9,000
8,500
2014 2015 2016 2017 2018

Figure 7
Historical Local Supply of Paste

Figure 7 shows that there is large increase in supply of Paste starting from the
year 2014 with an annual consumption of 9,663 and rapidly increases in the year 2018
with an annual consumption of 11,387 MT.

The Projected supply were calculated using the arithmetic straight line method
from the year 2019 to year 2024.
 Table 11
Computed Standard Deviation of Supply of Squash Paste

Method Standard Deviation

Arithmetic Straight Line Method 243.69
Arithmetic Geometric Curve 10,410.99
Statistical Straight Line 1,399.61
Statistical Parabolic 3,951.04

As shown in the table, arithmetic straight line was used in computing the
projection since it has the lowest standard deviation.

Table 12
Projected Local Supply of Paste

Year Supply (MT)

2019 11,879.13
2020 12,371.25
2021 12,863.38
2022 13,355.50
2023 13,847.63
2024 14,339.75

Source: Philippine Statistics Authority, 2018

The table above shows the projected supply of Paste from the year 2019 with a
supply of 11,879.13 and in the year 2026 with a supply of 14,339.75 MT.

Projected Local Supply of Paste

20,000.00

13,847.63 14,339.75
15,000.00 12,863.38 13,355.50
11,879.13 12,371.25

10,000.00

5,000.00

0.00
2019 2020 2021 2022 2023 2024

Figure 8
Projected Local Supply of Paste
 Figure 8 graphically shown the projected supply for the next six years starting
from the year 2019 up to year 2024. The data had generated an increasing inclination
starting from 2019 with 11,879.13 up to 14,339.75 MT in the year 2024.
Supply and Demand Analysis
One of the basic foundations in economics is supply and demand. To
understand the analysis of supply and demand, it is important to look at supply and
demand individually. Then consider the factors that shift supply and demand.
Market Gap

Market gap was obtained from the difference of projected demand and projected
supply of a certain product. Market gap shows need for the product to be introduced
in the market. The demand and supply gap is presented in Table 13 and 14.

Table 13
Market Gap of Ketchup

Projected Projected
Year Market Gap (MT)
Demand (MT) Supply (MT)
2019 13,981.81 10,757.10 3,224.71
2020 14,620.12 11,270.72 3,349.40
2021 15,258.44 11,784.33 3,474.11
2022 15,896.75 12,297.94 3,598.81
2023 16,535.07 12,811.55 3,723.52
2024 17,173.38 13,325.17 3,848.21

Table 14
Market Gap of Paste

Projected Projected
Year Market Gap (MT)
Demand (MT) Supply (MT)
2019 12,553.88 11,879.13 674.75
2020 12,996.75 12,371.25 625.50
2021 13,439.63 12,863.38 576.25
2022 13,882.50 13,355.50 527.00
2023 14,325.38 13,847.63 477.75
2024 14,768.25 14,339.75 428.50
Market Share

Table 15
Local Market Share of Ketchup

Year Supply (MT)

Local Market Gap (2024) 3,848.21
Total Annual Production 100.00
Market Share 1.80%

Table 15 shows the local market gap, total annual production, and market
share of 1.80%.

Table 16
Local Market Share of Paste

Year Supply (MT)

Local Market Gap (2024) 428.50
Total Annual Production 100.00
Market Share 1.80%

Table 16 shows the local market gap, total annual production, and market
share of 1.80%.

Table 17
Average Sensory for Ketchup
Properties Weighted Mean Interpretation
Appearance 8.34 Like very much
Taste 7.92 Like very much
Mouthfeel 8.24 Like very much
Aroma 7.88 Like very much
Over-all Acceptability 8.16 Like very much
Refer to Exhibit 5
 Table 18
Average Sensory for Ketchup
Properties Weighted Mean Interpretation
Appearance 8.34 Like very much
Taste 7.92 Like very much
Mouthfeel 8.24 Like very much
Aroma 7.88 Like very much
Over-all Acceptability 8.16 Like very much
Refer to Exhibit 5

As presented from table 17, Ketchup had 8.16 average in its over-all

acceptability which is interpreted as Like Very Much by the sensory panelists.

Appearance: 8.34

Aroma7.88 Over-all Acceptability: 8.16

Taste: 7.92 Texture: 8.24

s
As presented from table 18, Ketchup had 8.16 average in its over-all
acceptability which is interpreted as Like Very Much by the sensory panelists.

Figure 9
Radar Chart of Average Evaluation for Ketchup
 Appearance: 8.34

Aroma7.88 Over-all Acceptability: 8.16

Taste: 7.92 Texture: 8.24

s
Figure 10
Radar Chart of Average Evaluation for Paste

Packaging

The final product will be packaged in PET bottles. The package size

will be 250 mL just like the average size of other commercial beverages. The

label will consist of company logo, product name and logo, product

description, nutrional information, ingredients, manufacturing address and

contact informations, expiry date, product code, storage information and

instruction for product consumption.

Figure 11
Vita-Juice’s Label
 Presented in Figure 8 is Vita-Juice’s Label, it has nutritional information,

barcode and few description about Vita-Juice.

Figure 12
Vita-Juice in PET bottles

As shown in Figure 9, the researchers decided to put Vita-Juice in a

250-mL PET bottle.

Promotion

The proponents decided to promote the product by social networks or

online, brochure or flyers and free taste are also used.

Figure 13
Social Media Sites for Promotion of Product

In social networks like instagram, facebook and twitter, the proponents

decided to make a page that will exhibit the product’s information (features,

packaging, price etc.). The page will allow feedbacks or comments from the

purchaser who already tried and bought the Ketchup and Paste.
 The researchers will also use an infomercial to the social media in

promoting the product, the infomercial has a quick thoughts about the product.

The researcher will also produce brochures in promoting the product,

the brochure contains brief summary of the company’s objective, Vita-Juice’s

health benefits and few information about what Vita-Juice contains. Brochure

is presented in the next page.

Figure 14.a
Front Layout of Brochure for Promotion of Product
 Figure 14.b
Back Layout of Brochure for Promotion of Product

Company Logo

SQ Condiments Corporation was from the objective of the company to

produce Nutritious Innovative condiments for Filipinos.

Figure 15
Company Logo
Place of Distribution

Distribution network is the channel on how the proposed product will be

made available to the retailers and ultimately to the consumers. Choosing the
proper business location is one of the significant factors to be considered in

this study.

Place, more commonly called distribution, includes the organizations,

locations, and processes that support the creation and fulfillment of costumer

demand, and provide any required post-purchase service. Effective

distribution provides consumer with convenience in the form of availability,

access, and support.

The company will be located at Diversion Road, Brgy. Bolbok,

Batangas City. Delivery of raw materials from suppliers as well as

manufactured products to retailers could easily be done because the location

is just few meters away from the national road.

The proponents believe that the existing retail are established, the

manufactured products will be also distributed to the consumers through them

other than of the direct consumers that will buy in the company outlet. The

product is primarily intended to consume by the consumer or end users

through the help of retailers. Distribution of the products to the retailers will be

every Monday and Friday. This includes Citimart stores, SM City Batangas,

stores in Old Market and New Market, and other retailers. Figure 13 shows

the flow of distribution of the product.

 Manufacturer

Retailer Consumer
Figure 16
Flow of Distribution
Pricing

Cost based pricing was used by the proponents in the product instead

of survey based pricing method. Both variable, fixed costs and percent

markup was put into consideration; thus coming up to the consumer’s price of

24.69 pesos per 250 mL of the product, when correlated to the leading

brand’s price, Vita-Juice was half the price. The pricing of the product

depends on the cost of the direct material, direct labor, and factory overhead.

Table 19
Selling Price
Particular Cost
Direct Material 3.57
Direct Labor 4.01
Factory Overhead 3.73
Total Manufacturing Cost 11.3
Mark-up (50%) 5.65
Selling Price Retailers (VAT Exc.) 16.9
Input VAT 2.03
Selling Price Retailers 18.9
Mark-up to Consumers (30%) 5.70
Selling Price to Consumers 24.7
Refer to Exhibit 6
 As shown in the table above, the selling price of Vita-Juice to retailers

is Php 18.99 while the selling price of Vita-Juice to consumers is Php 24.69.

This price is feasible compared to other brands of Fruit Juice in the market.

One example of this is Locally where the estimated consumer price per 250

mL is Php 33.00.

Generalization

In order to assess the feasibility of the proposed product, the

researchers analyzed the market local supply and demand of fruit juice. The

researcher calculated the projected demand and supply, which uses the

statistical straight line method, to determine the market gap. The market gap

shows that there is still some needs on the part of the consumer that are still

not met by the current supply of fruit juice. Therefore, there still a possibility

that the proposed product has the opportunity in the market.

The researcher also explore the SWOT Analysis, to determine its

strengths, weaknesses, opportunities and threats of the proposed product.

The researcher come up in a marketing strategy based on the identified

strengths and weaknesses of the proposed plant.

Strengths
Strength is one of the greatest attributes that a company can possess. It will
determine the upper hand among the competing producers of certain products, which
in this study are ketchup and paste. Also, strengths are the basis of one’s company
which will help it in operating at its best and more efficiently than its competitors.
Availability of Raw Material - Squash is commonly grown fruit-vegetables
in the Philippines throughout the year. Although it is not as popular as its relatives in
the Cucurbitaceae family are, it has its own fair share of the market. In recent years,
processing has added value to this vegetable. Fresh fruits are no longer simply cooked
and served in households. Squash is now served as soup and pies in hotels, cafes and
restaurants. Not only that, squash soup is now being canned and fruits are even
processed into noodles. Even the roasted seeds are popular as snack food (Pinoyentre,
2015).
Health and Medicinal Benefits - Now that natural sources of vitamins and
minerals are in great demand, squash being a good source of Vitamin A is now slowly
finding its way to the consumers’ table. And not just the fruits, even the squash
flowers are found to contain lutein, a plant phytochemical that prevents cataracts
(Pinoyentre, 2015).

Because of its variety of uses as food and the potential health benefits from eating
squash fruits and flowers, demand for this vegetable may continue to increase and
farmers should be prepared to meet this demand (Pinoyentre, 2015).

Affordability – Squash’s costing is at P25 per kilo (Honestbee, 2019).

Weaknesses

A company weakness is any resource or process that a business lacks, but needs
to succeed. Weaknesses limit a company's ability to reach its full potential. Also,
knowing the business’ weaknesses is critical to SWOT analysis.

Limited Fund – Capitalization can also be one of the weaknesses that the
proponents may face in manufacturing a food company. The continuous increase in
prices of vegetables e.g. squash is quite alarming since it is the raw material of SQ
Condiments Corporation despite having partnerships of some sort.

Being a New Competitor – SQ Condiments Corporation is not yet known in the

market and the consumers are unaware of its products, Squash Ketchup and Squash
Paste. A lot of competitors of the same product are already existing in the market, and
a better quality that can outdone their existences is a wise way to present.

Threats

Threats can either be external or internal and are anything that can unpropitiously
affect the company. External threats could be new legislation, inflation, or a new
competitor in market. Internal threats could include a skill or staff shortage within the
company itself.
 Direct Competitors – The unending development of technologies and various
strategies of the rival firms are the significant factors that could affect the operation of
the company.

Preference of the Consumers – The desires of consumers when it comes to food

products will always change considerably may it be the modern environment or
mainly just because of their personal tastes. Another factor that can affect the
preference of the consumers is trends or what is popular at a certain time.

Marketing Program and Strategies

SQ Condiments Corporation will use various approaches to introduce the

products to the market.

Direct Selling - The manufacturing plant will hire agents to sell the products
directly to the consumers. This approach is to simply demonstrate and establish the
products to people far from retailing enterprises.

Social Networks and Viral Marketing - Social media is an influencing and a

powerful approach in marketing since the world today has an advanced technology
consisting of people with personal accounts in different social media sites. With this,
information about Squash Ketchup and Squash Paste can be shared through the
internet itself.

Earned Media - The manufacturing plant will conduct programs thrice every
year consisting of free tastes on Squash Ketchup and Squash Paste to let the
consumers make optional testimonies regarding the products. This also includes
editorial writings, and radio and television advertisements.

Flyers/Pamphlets - The manufacturing plant will make flyers as well for a wide
distribution among the public. The flyers containing information regarding the
products will be handed out to people or sent via emails, gmails, etc.

Factors Affecting the Market

First factor is the supply – demand risks. Abrupt changes in the condiments
supply and demand status in the market are huge risks for the company. As the
demand increases, there will be always quest for alternative supply of condiments.
 A lot of ways and techniques of making good quality of condiments are
generated. But of course, these techniques are sophisticated that they are one of the
big aspects in determining the cost of the resulting product. Correspondingly,
industries may not do liberally what method or procedure in the production of
condiments. In the sense of regulation, legislative and regulatory laws governing the
industries affect the standing of the product in the market.
Internal Factors

Each department in an organization can affect marketing. For example,

the finance department can limit the marketing budget, making it difficult to
reach the target demographic. The production team can take too long to create
the products and possibly not be able to meet demand, which can result in
potential customers turning to competitive products.

Competitors

If your business has competitors with a similar product or service, it

can affect your marketing. You should tweak your marketing plan so that you
have a strategic advantage over your competitors while not losing sight of
your own marketing objectives. For competitors that are larger than your
organization, you need to carefully construct your marketing plan, because
they will likely be able to outspend your organization. A heavily competitive
marketing environment demands marketing survey and careful positioning of
your product or service in ways that set it apart from the crowd.

Economic Factors

The state of the current economy can have an effect on marketing,

since it is related to consumer spending. The four stages of the economy cycle
thorough prosperity, recession, depression and recovery. Consumers spend
more during the prosperity stage than in the depression stage, which is when
the lowest amount of consumer spending takes place. Your marketing
campaign, product offerings, and pricing must take into account the current
economic cycle to be successful.

Social-Cultural Factors
 Changes in the social-cultural environment can also affect marketing if
the marketer is not prepared. The social-cultural environment is the
relationship between the culture and means of marketing. Examples of such
factors include a rise in consumer activism, cultural diversity among various
demographics, and the rise in social media usage by baby boomers.

Demographics

If an organization is implementing a marketing strategy for a business

in a specific location, the demographics of the area can significantly affect
marketing. For example, if U.S. Census Bureau data for a marketing target
area does not show a large Hispanic population, it means that any planned
Spanish-language advertising is likely not a good use of marketing resources
in that space. The same principle applies to media buys, whether locally or
nationally. A product or service aimed at people in the 40 to 50 age range
shouldn't be promoted on media channels that have a primary audience in the
18 to 25 age range.