Soursop Market Aspect

Chapter 2

MARKET ASPECT

        This aspect determines and analyzes the present demand and supply of the product and in making projections of demand and supply in the future, assuring its competitive position in the industry, analyzing the target market and designing the marketing plan of the product.

        This aspect deals on the product as well as the quantification of demand, analysis of supply, quantification of target market and formulation of marketing strategies.

A. Product Description

Soursop pie envisions to be the top producer in the Philippines of high quality, delicious and nutritious pie that would be healthy to the customers.

Many people love to eat yet not all loves to eat nutritious food, specially the children. They tend to ignore the fruits for their dessert or even in snacks. Children would choose junk foods and instantly-prepared foods over those nutritious fruits. Due to this situation, Guyabano pie gives a new taste and new look on Guyabano that will attract the children to eat it. The main ingredients of Guyabano pie are Guyabano(sour sop), sugar, flour and butter.

        Consumers do not only consider the quality and the taste of the product but also the price as well. Guyabano pie sets its initial prices at reasonable and affordable prices taking into consideration the acceptability to the customers, level of competition as to product of the like, changing prices of materials, advancement of technology and economic condition.

Table 1 below presents the forecasted prices of Guyabano pie per box containing six pieces for the first three years of operation. There will be a five percent increase in the prices of guyabano pie due to the increase of prices of raw materials and labor costs.

Table 1

Price List Per Box

B. Quantification of Demand

        Analysis of demand is required to determine the needs of consumers and their ability and willingness to pay for a certain product.

        Table 2 on page 12 shows the total population of Urdaneta City, Villasis, Rosales, Calasiao and Dagupan City. Ten percent of the population shall be the basis for the demand for the product.

Table 2

Total Number of Population

Table 3 below shows the number of registered grocery stores in Urdaneta City, Villasis, Rosales, Calasiao and Dagupan City in 2013.

Table 3

Total Number of Grocery Stores

C. Analysis of Supply

        There are only few businesses who offer mochi ice cream in the market. Mochiko Mochi and Sophie’s Mom are two of the suppliers of mochi ice cream. There is no existing supplier of mochi ice cream in Pangasinan.

        Since the product of the proposed business is a type of pie, the proponents of this study considered the different suppliers of ice cream in the market as its competitors as well. There are many existing products of pie in the market namely; Selecta, Magnolia, Cornetto and Nestle Sorbetes, Milko and Creamline. For the first three years of operations, KangChi Ice Cream will be distributed to five particular target markets specifically Urdaneta City, Villasis, Rosales, Dagupan City and Calasiao.

Strength, Weakness, Opportunity and Threat Analysis

The strength of the proposed business is it offers a unique product to the market at an affordable price as compared to other suppliers of mochi ice cream. Mochiko Mochi and Sophie’s Mom offer the same product at a price of P70.00 and P45.00-48.00 per piece, respectively. However, Kangchi Ice Cream is new to the market. This is considered as the weakness of the proposed business. The opportunity for the business is it shall be the first to deliver mochi ice cream to the different grocery stores in Pangasinan. The threat to the proposed business is the competitors that will enter the same industry.

D. Quantification of Target Market

        Figure 1 on page 16 shows the vicinity map of Pangasinan where the selected target cities and municipalities such as Urdaneta City, Villasis, Rosales, Calasiao and Dagupan City are located. The grocery stores in the mentioned cities and municipalities are the target market of KangChi Ice Cream and shall be the basis of forecasting sales from 2015 to 2017. Figure 2 on page 17 shows the vicinity map of Urdaneta City where the proposed business shall be situated.

Table 4 below shows the three-year forecasted number of grocery stores which shall be the target market of KangChi Ice Cream.

Table 4

Estimated Number of Target Market

The target market for grocery stores is based on Table 3 on page 11 wherein sixty (60) percent of which shall be the target market of KangChi Ice Cream. Such projected number shall be multiplied by fifteen (15) percent on the second year of operation and its succeeding years. Estimated demand in each grocery store per delivery of KangChi Ice Cream is twenty-four (24) packs. Each pack contains five (5) mochi ice cream.