MARKET STUDY I. Introduction This study is the lifeblood of every project feasibility study.

It represents the demands whereby the business can evaluate its profitability. The question of demand is the most basic issue as there can be no discussion of the profitability or of other aspects of the feasibility study if there is no demand. The market study shows the feasibility of jackfruit tofu to exist in the market. It considers the factors of demand and supply to determine whether the product can be successfully competitive and will survive in the market. Having an effective and efficient marketing program and different strategies will help in the improvement of the product.

II.Product Description A. Name of the product The researchers chose jackfruit tofu as the name of their product because it is closely related to the fruit itself and can be easily identified and remembered.

B. Properties of the product Knowing the properties of a certain product is one of the most important factors to be considered. We have to know if it is beneficial for our health or will it be harmful. This is one of the things also that we have considered in producing the Jackfruit Tofu. Our product is in block form and dirty white in color. It contains polynutrients such as complex carbohydrate, dietary fibers, and vitamins like A, B, C and minerals like calcium, zinc and phosphorous. Their health benefits are wideranging from anti-cancer to anti-hypertensive, anti-aging, anti-oxidant, anti-ulcer, etc. Jackfruit seed powder has the ability to relieve discomfort due to indigestion.

C. Major users of product This tofu product caters to different users or consumers. In particular, the target markets are individual households, taho vendors, public market,

restaurants, supermarkets, canteen and eateries. These establishments use tofu in their menus but the researchers consider only households as their target market.

D. Uses of the product Jackfruit tofu can be used for a variety of purposes. It can be used as a substitute for the soybean tofu that is used as an ingredient in salad dressings, sauces and desserts, baking, stir-frying and grilling. Tofu can also be a substitute for the meat of vegetarians. It is an excellent source of protein for vegetarian with over 10 grams per half-cup serving, and is also a great source of calcium and iron.

E. Geographical areas of dispersion Our plant is located at Lower Brookside, Baguio City. The finished product will be distributed in the public market here in Baguio.

I. DEMAND-SUPPLY ANALYSIS DEMAND ANALYSIS In any business, one fundamental aspect to be considered is the demand. The concept of demand is coextensive with the profitability of the business enterprise which refers to the level of desire or needs that exist for particular goods or service that is being offered in the market. Moreover, high demand is a good sign indicative of a chance of obtaining a place or sustainable share in the market. In order to acquire the needed data, the researchers decided to use the indirect or questionnaire method.

Past demand was based on the information gathered from the population within the target market that demands for the product.

Questionnaires were given to sample units, which are representatives of the population. The computed demand is based on the target market of the company. In this case, the target market is originally defined as Baguio City.

MS Table 1 TOTAL NUMBER OF HOUSEHOLD IN BAGUIO CITY Year 2007 2008 2009 2010 2011 Number of household 72,568 75,463 78,358 81,253 84,149

The total number of household was provided on table 1. In order to determine the sample size needed for the study, the researchers adapted the Slovins formula.

COMPUTAION OF SAMPLE SIZE n= N -------------1+ Ne2

Where: n= sample size N= total projected population E= standard error at 0.05 level

n=84,1491+(84,149 0.0025)

n= 398.11 400

DEMAND QUESTIONNAIRE RESULTS The questions were designed in a manner where results and projections can be made readily available concerning product demands. They are expected to facilitate and provide convenience and ease to the researchers. FINAL TALLY OF QUESTIONNAIRES The results of the questionnaires are presented in the succeeding tables: MS Table 2.1 FREQUENCY DISTRIBUTION OF POPULATION EATING TOFU Respondents YES NO TOTAL 335 65 400 Percentage 83.75% 16.25% 100%

The table above shows that out of the total respondents of 400 persons, 335 or 83.75% eats tofu. This indicates that most of the people of Baguio City consider bread as part of their food intake.

MS Table 2.2

FREQUENCY OF CONSUMPTION Respondents Daily Weekly Once in two weeks Monthly Others TOTAL 27 46 77 129 56 335 Percentage 8.06% 13.73% 22.99% 38.51% 16.72% 100%

The data presented in the table tells that out of the 335 respondents who eat tofu, 8.06% or 27 consume tofu daily, while 13.73% or 46 respondents eat tofu weekly, 22.99% or 77 persons buy tofu once in 2 weeks, 16.72% or 129 consumes tofu once a month and the remaining 16.72% or 56 respondents answered others such as occasionally.

MS Table2.3 DISTRIBUTION OF POPULATION AS TO HOW MANY PIECES OF TOFU THEY PURCHASE Respondents 1-5 5-10 10 or more Others Total 174 98 56 7 335 Percentage 51.94% 29.25 16.72% 2.09% 100%

From the result above, there are 174 or 51.94% of respondents who usually purchase 1 to 5 blocks of tofu. On the other hand, there are 98 or 29.25% of respondents

who regularly purchase 5 to 10 blocks of tofu, 56 or 16.728% of respondents said that they buy tofu in 10 or more blocks, and the rest of the population which is 7 or 2.09% of respondents answered others like in quantities more than 10 blocks.

MS Table 2.4 DISTRIBUTION OF POPULATION WILLING TO BUY JACKFRUIT TOFU Respondents YES NO Total 345 55 400 Percentage 86.25% 13.75% 100%

The above results tell that out 400 respondents, there are 345 or 86.25% who are willing to buy Jackfruit Tofu. From the number, most were already eating tofu and wants to try a new and exciting variety which is the Jackfruit Tofu. Moreover, a certain percentage who responded positively is not eating tofu and is willing to try Jackfruit Tofu. This represents a possible addition to the demand for the product. With this, the business is assured to cater a number of customers in the market.

MS Table 2.5 DISTRIBUTION OF POPULATION AS TO WHAT PRICE THEY WOULD BE WILLING TO PURCHASE PER BLOCK OF JACKFRUIT TOFU

Respondents P15.00-P18.00 P19.00-P21.00 P22.00-P25.00 Others Total 159 94 73 19 345

Percentage 46.09% 27.25% 21.16% 5.51% 100%

The data shown depicts that most of the population (46.09%) are willing to spend P15-P18 per block of Jackfruit Tofu.

MS Table 3.1 Historical Demand Percent of Respondents who Responded YES (b) 83.75% 83.75% 83.75% 83.75% 83.75%

Year

Historical Population (a)

Annual Consumption Rate (c) 47.46 47.46 47.46 47.46 47.46

Annual Historical Demand (d)=a*b*c 2,884,415 2,999,484 3,114,554 3,229,624 3,344,733

2007 2008 2009 2010

72,568 75,463 78,358 81,253 84,149

Computed as:

Annual Consumption Rate=Total Annual Consumption of Tofu MS Table 3.2Total Number of Respondents who Consume Tofu (MS Table 2.1)

Annual Consumption=15899335
Annual Consumption Rate = 47.4597 per individual All given values are represented in singles or per serving. The values were derived by getting the Total Number of Population of each year and multiply it by the percentage of respondents who consume tofu to get the Historical Population then multiply it to Annual Consumption Rate to derive at the Historical Demand who consumes or purchases tofu. This will be the basis for the determination of the projected demand.

MS Table 3.2 Frequency (a) Number of Respondents Who Consume Tofu (b) Daily Weekly Once weeks Monthly Others Total in two 77 129 56 335 38.5 32.25 N/A 305.75 52 52 52 2.002 1,677 15,899 27 46 189 46 52 52 9,828 2,392 Total Weekly Consumption (c) = (a*b) or (b/a) Week in a Year (d) Annual Consumption of Tofu (e)= (c*d)

PROJECTED YEARLY DEMAND

MS Table 4 presents the summary of the computed deviation for each statistical method, followed by MS Table 5 for the solution of the right method of projection for the study. MS Table 4: Summary Table of Statistical Methods for Demand Method Arithmetic Straight Line Arithmetic Geometric Curve Statistical Straight Line Statistical Parabolic Curve Standard Deviation 15.24 32,636.55 11.19 30000.60

*Computations will be shown in Appendix 1 Statistical Straight Line method will be used in the projection for the upcoming years because it yields the smallest standard deviation and therefore has less significant risk compared to the three methods, this serves as the basis to provide reliable forecast for the future.

MS Table 5: Projected Demand Year x a b Yc % of people willing to avail 2011 2012 2013 2014 2015 5 6 7 8 9 2,769,328 2,769,328 2,769,328 2,769,328 2,769,328 115,078 115,078 115,078 115,078 115,078 3,344,718 3,459,796 3,574,874 3,689,952 3,805,030 86.25% 86.25% 86.25% 86.25% 86.25% 2,884,819 2,984,074 3,083,329 3,182,584 3,281,838 Projected Demand

2016

10

2,769,328

115,078

3,920,108

86.25%

3,381,093

DEMAND OF TOFU The above projection shall now be applied to determine the yearly projected demand from 2011-2016 MS Figure 1.1

The chart above shows the trend of projected demand for tofu. It shows that the demand for tofu increases every year.

SUPPLY ANALYSIS Supply is defined as a basic economic concept that describes the total amount of a precise good or service that is available to customers. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are eager to supply when receiving a certain price. The relationship between price and how much of a good is supplied to the market is known as the supply relationship. Supply is determined by different factors such as the development or complements of products where direct competitors may devise more effective promotional activities that may cause the detriment of the competitors.

MS Table 6: Summary Table of Statistical Methods for Supply Method Arithmetic Straight Line Arithmetic Geometric Curve Statistical Straight Line Statistical Parabolic Curve Standard Deviation 254.02 1789.09 212.52 13,416.68

Statistical Straight Line method will be used in the projection for the upcoming years because it yields the smallest standard deviation and therefore, has less significant risk compared to the three methods. This serves as the basis to provide reliable forecast for the future.

MS Table 6.1: Projected Supply of Tofu Year x a b Yc % of people willing to avail 86.25% 86.25% 86.25% 86.25% 86.25% 86.25% Projected Supply

2011 2012 2013 2014 2015 2016

5 6 7 8 9 10

386,255 386,255 386,255 386,255 386,255 386,255

10,298 10,298 10,298 10,298 10,298 10,298

437,745 448,043 458,341 468,639 478,937 489,235

377,555 386,437 395,319 404,201 413,083 421,965

MS Figure 1.2

The chart above shows the trend of projected supply for tofu. Supply increases every year.

DEMAND-SUPPLY ANALYSIS

MS Table 7 Demand-Supply Analysis Year Demand Supply Unsatisfied Demand 2012 2013 2014 2015 2016 2,984,074 3,083,329 3,182,584 3,281,838 3,381,093 386,437 395,319 404,201 413,083 421,965 2,597,637 2,688,010 2,778,383 2,868,755 2,959,128

UNSATISFIED DEMAND The unsatisfied demand table represents the respondents willingness to buy the product but is not supported by enough supply. The unsatisfied demand can be used as the basis of market share of the product. The unsatisfied demand can be derived by deducting the projected demand and the projected supply.

II.FACTORS AFFECTING THE MARKET

1. DEMAND A. POPULATION GROWTH The main factor expected to affect the market is the increase in household population. Normally, an increase in household population would mean an increase in the demand for the product. B. CONSUMER PREFERENCES The relative preference of the people would be another determining factor that would gradually affect the market. Nowadays, the eating crowd would prefer to have personalized Jackfruit Tofu compared to what has been offered as owned available. C. URBAN AND RURAL DEVELOPMENT Development is unavoidable for every community. Roads and other infrastructure improvements affect positively the target market area. Needs of the market could be provided easily through this developments.

1. FLAVOR The peoples flavour preferences vary from one individual as contrasted to another. It is another factor that should be considered since the satisfaction of the consumer is the ultimate concern of our business. 2. PRICE Every consumer is not only after the name that has been built but also after the reasonableness of the price that has been imposed on it.

3. INFLATION RATE

Inflation rate is the fast-paced currently. This fact affects the price of commodities in the present market. Thus, consumers would eventually be more practical in their spending habits.

I. MARKETING PROGRAM The success of an enterprise relies on its marketing strategies and program established. Our marketing program examines the target market and applies the appropriate and effective steps towards its goal of high profitability. PRICE Customers assume that they are given a high quality product in exchange for reasonable price. Thus, we developed tofu equipped with an innovation that is jackfruit flavoured. The raw materials used, direct labor cost and overhead cost consumed in producing the product served as bases in coming up with the price of the product. With such, the business decided to sell at Php15.00 per block. PRODUCT The product is specially manufactured. It is named as Jackfruit Tofu since they are patterned after the fruit they represent. It is produced in block form which measures 4 by 3 inches and dirty white in color. PLACE We are manufacturing enterprise and distributor at the same time. We have our own manufacturing building and office located at Lower Brookside, Baguio City. PROMOTION

We advertise our product through print advertisements and transfer of words through mouth. Print advertisements consist of fliers and tarpaulins. The flier contains the name, picture of the product, place where it could be availed and contact numbers for comments. The tarpaulin contains same information as with the flier. We also consider the transfer of word through mouth process as the major promotion of our product. Most especially our product is primarily produced for the satisfaction of the consumers as the fast contributor in this promotion.