III.
Market Study Objectives of the Study The following are the objectives that should be met by the
marketing study. To find out the sample size needed in conducting the survey. To device an effective marketing program for our business. To establish the price of our service. To know the potential demand for our business. To identify the possible needed supply for the operation of our business. To forecast the sale of the service through the next five years.
Methodology All study should use relevant and reliable information as its basis. With this regard, we employ different methods to collect needed information. We use the descriptive method in the form of questionnaires to identify and understand customer’s needs and wants with regard to our proposed business. We first determined the total population of Taguig City, where the proposed business will be located. The City Hall of Taguig, Planning Office, provided us a copy of the Physical and Socio-Economic Profile of Taguig City. They also gave us the total population projection from the year 2001-2010. Taguig City has a total population of 613,343 as of August 01, 2008. We chose to segment this population according to their age. The population only covered
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ages 20-60, which is the age bracket of our business’ target market. The population size would be: 307,962. N= n
1 + n(e)2 Where: N = sample size n = population size e = margin of error
N=
307,962
1 + 307,962 (.05)2 N= 307,962 1 + 307,962 (0.0025) N= 307,962 1 + 769.905 N= 307, 962 770.905 N = 399.48 or 400 (no. of respondents) We handed out 400 questionnaires for the respondents using “Sloven’s Formula” with a 5% margin of error. Researchers from SPA magazines, internet sites, books and other published materials were used as our references in order to complete this study. Personal interview with other SPA establishments were also done to gather related information.
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Demand We have to consider the different factors in determining the demand of our business. The given population size is about 50.21% of the whole population of Taguig City. Table 1. Population Growth Rate Pop. Of Target Year Total Population Market (Ages 2060) 2003 2004 2005 2006 2007 2008 TOTAL 507,069 528,164 550,135 573,021 596,858 613,343 265,191 276,222 287,714 299,682 307,962 254,599 ------4.16% 4.16% 4.16% 4.16% 2.76% 19.4% Growth Rate
= 19.4/5 Average Growth Rate = 3.88 or 4% Obtaining the average growth rate is vital in getting projected population. In our survey, no. 6 question resulted to the following customer’s frequency of availment.
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Table 2. Frequency of Availment No. of Frequency Respondents Everyday 2 – 3 times a 118 week Once a Week Once a Month TOTAL 160 102 400 (1/1)(30/7)(12/1) (1/1)(30/7)(12/1) 51 51 616 (3/1)(30/7)(12/1) 154 20 Months (7/1)(30/7)(12/1) Frequency 360 Days x Weeks x Annual
Frequency of Availment = annual frequency / no. of respondents = 616 / 400 FOA = 1.54 or 2
The market acceptability of the product is 96% based on our survey.
3.3.1 Consumption for the past years Consumption for the past years can be computed by the population for the past years multiplied by the gross market acceptability to obtain the target market. The target market then will be multiplied by the customer’s annual frequency of availment.
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Table 3. Demand for the Past Years Year Population Gross Market Acceptability Target 254,583 Market Frequency 2 of Availment Total 509,166 Demand 530,346 552,410 575,390 591,288 2 2 2 2 265,173 276,205 287,695 295,644 96% 96% 96% 96% 96% 2004 265,191 2005 276,222 2006 287,714 2007 299,682 2008 307,962
3.3.2
Major Consumers of the Service
Geographic Factors Bonifacio Global City, Taguig City
Demographic Factors Ages 20 – 60 years old Male and Female College, Businesspeople, Professionals and Homemakers. Upper Class (A)
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Psychographics Factors Exciting Adventurous Enthusiast Beauty Conscious Spa Connoisseurs
3.3.3 Projected Demand In order to find out the projected demand, we considered the population of Taguig City since changes in population size is directly proportional to the consumption rate. Population of Taguig City was illustrated below.
Table 4. Projected Population for the Next Five Years Year Current Year Population *2008 2009 2010 2011 2012 2013 307,962 320,280 333,091 349,925 363,922 378,478 Average Growth Rate .04 .04 .04 .04 .04 .04 Increase in Population 12,318 12,811 13,323 13,997 14,556 15,139
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Growth Rate – 4% After getting the projected population, we determined the total demand using the following: Formula for Projected Annual Population Demand [(recent year’s population) (growth rate) + (recent year’s population)]
Table 5. Projected Demand of “The Haven Plunge” Year Target Population Gross Market Acceptability Target Market Frequency of Availment Total Demand 614,936 639,534 671,856 698,730 726,676 2 2 2 2 2 307,468 319,767 335,928 349,365 363,338 96% 96% 96% 96% 96% 2009 320,280 2010 333,091 2011 349,925 2012 363,922 2013 378,478
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3.4
Supply 3.4.1 Supply for the past years Supply here pertains to the number of services the company can accommodate. Competitors are settled with theirs as follows:
Table 6. Supply for the Past years Average Year 2004 2005 2006 2007 2008 increase in supply BODY TUNE THE TRADITIONAL THAI MASSAGE CALIFORNIA NAILS & DAY SPA, INC. LE GRANDE SPA AND BEAUTY CARE THE SPA FORT BONIFACIO Total 123,445 127,751 130,482 132,271 136,953 3.5%
126,392 130,684
134,517 136,334 137,931
1.17%
134,503 137,827
139,551 141,515 142,909
1%
136,965 138,384
141,905 146,414 147,888
1.01%
521,305 534,645
546,455 556,533 565,680
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3.4.2 Projected Supply of Competitors Table 7. Projected Supply for the Next Five Years Average Suppliers 2008 Supply Increase in supply BODY TUNE THE TRADITIONAL THAI MASSAGE CALIFORNIA NAILS & DAY SPA, INC. LE GRANDE SPA AND BEAUTY CARE THE SPA FORT BONIFACIO Total Supply 136,953 3.5% 141,746 146,707 151,842 157,157 162,657 2009 2010 2011 2012 2013
137,931
1.17%
139,545 141,178 142,830 144,501 146,191
142,909
1%
144,338 145,782 147,240 148,712 150,199
147,888
1%
149,367 150,860 152,369 153,892 155,431
565,680
574,996 584,527 594,281 604,262 614,478
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3.5
Demand and Supply Analysis
Table 8. Demand Supply Analysis. Demand Supply Gap and Market Share
Year
Projected Demand
Projected Supply 574,996 584,527 594,281 604,262 614,478
GAP
Available Market Share
2009 2010 2011 2012 2013
614,936 639,534 671,856 698,730 726,676
39,940 54,707 77,575 94,468 112,198
6.5% 8.6% 11.55% 13.52% 15.44%
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3.6
Projected Sales
Table 9. Monthly Sales Projection:
JANUARY Type of Bath Service Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge FEBRUARY Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge MARCH Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge APRIL Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge 0.15 0.16 0.22 0.19 0.15 0.13 135 144 198 171 135 117 1,325.00 1,406.00 1,466.00 1,151.00 1,488.00 1,568.00 178,875.00 202,464.00 290,268.00 196,821.00 200,880.00 183,456.00 0.15 0.16 0.22 0.19 0.15 0.13 139 149 205 177 139 121 1,325.00 1,406.00 1,466.00 1,151.00 1,488.00 1,568.00 184,175.00 209,494.00 300,530.00 203,727.00 206,832.00 189,728.00 1,294,486.00 0.15 0.16 0.22 0.19 0.15 0.13 126 134 185 160 126 109 1,325.00 1,406.00 1,466.00 1,151.00 1,488.00 1,568.00 166,950.00 188,404.00 271,210.00 184,160.00 187,488.00 170,912.00 1,169,124.00 Rate of Consumption 0.15 0.16 0.22 0.19 0.15 0.13 Expected Sales in Units 139 149 205 177 139 121 Price 1,325.00 1,406.00 1,466.00 1,151.00 1,488.00 1,568.00 Monthly Sales (Php) 184,175.00 209,494.00 300,530.00 203,727.00 206,832.00 189,728.00 1,294,486.00
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1,252,764.00 MAY Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge JUNE Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge JULY Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge AUGUST Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge SEPTEMBER Chocolaté El Grande Café Prima 0.15 0.16 135 144 1,325.00 1,406.00 178,875.00 202,464.00 0.15 0.16 0.22 0.19 0.15 0.13 139 149 205 177 139 121 1,325.00 1,406.00 1,466.00 1,151.00 1,488.00 1,568.00 184,175.00 209,494.00 300,530.00 203,727.00 206,832.00 189,728.00 1,294,486.00 0.15 0.16 0.22 0.19 0.15 0.13 139 149 205 177 139 121 1,325.00 1,406.00 1,466.00 1,151.00 1,488.00 1,568.00 184,175.00 209,494.00 300,530.00 203,727.00 206,832.00 189,728.00 1,294,486.00 0.15 0.16 0.22 0.19 0.15 0.13 135 144 198 171 135 117 1,325.00 1,406.00 1,466.00 1,151.00 1,488.00 1,568.00 178,875.00 202,464.00 290,268.00 196,821.00 200,880.00 183,456.00 1,252,764.00 0.15 0.16 0.22 0.19 0.15 0.13 139 149 205 177 139 121 1,325.00 1,406.00 1,466.00 1,151.00 1,488.00 1,568.00 184,175.00 209,494.00 300,530.00 203,727.00 206,832.00 189,728.00 1,294,486.00
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Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge OCTOBER Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge NOVEMBER Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge DECEMBER Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge
0.22 0.19 0.15 0.13
198 171 135 117
1,466.00 1,151.00 1,488.00 1,568.00
290,268.00 196,821.00 200,880.00 183,456.00 1,252,764.00
0.15 0.16 0.22 0.19 0.15 0.13
139 149 205 177 139 121
1,325.00 1,406.00 1,466.00 1,151.00 1,488.00 1,568.00
184,175.00 209,494.00 300,530.00 203,727.00 206,832.00 189,728.00 1,294,486.00
0.15 0.16 0.22 0.19 0.15 0.13
135 144 198 171 135 117
1,325.00 1,406.00 1,466.00 1,151.00 1,488.00 1,568.00
178,875.00 202,464.00 290,268.00 196,821.00 200,880.00 183,456.00 1,252,764.00
0.15 0.16 0.22 0.19 0.15 0.13
139 149 205 177 139 121
1,325.00 1,406.00 1,466.00 1,151.00 1,488.00 1,568.00
184,175.00 209,494.00 300,530.00 203,727.00 206,832.00 189,728.00 1,294,486.00
TOTAL SALES IN A YEAR ADDITIONAL RATES REVENUE NET YEARLY SALES
16,410,706.00 6,570 208.25 1,368,202.50 17,778,908.50
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In order to get the annual projected sales capacity for the year, we calculated the monthly expected sales per day and multiplied it to the number of days the business will be operating within a year. Expected Sales per Day Days of Operation per year Projected Annual Sales Capacity = 30 unit service = 365 days = 30 (365) = 10,950 Average monthly sales are determined by summing up all the monthly sales divided by the number of months within a year. Average Monthly sales = 17,778,908.50/ 12 = P 1,481,575.71
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Table 10. Annual Sales (2009-2013)
Sales Capacity (Unit per Year) Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge Sales Per Variant Chocolaté El Grande Café Prima Honey and Milk Melangé Milk Deluxe Green Tea Luxury Five-Star Plunge TOTAL SALES 10,950 1,643 1,752 2,408 2,081 1,643 1,424 11,315 1,697 1,810 2,489 2,150 1,697 1,471 11,680 1,752 1,869 2,570 2,219 1,752 1,518 12,045 1,807 1,927 2,650 2,289 1,807 1,566 12,410 1,862 1,986 2,730 2,358 1,862 1,613
2,176,313 2,463,312 3,050,013 2,394,656 2,444,040 2,232,048 14,760,381
2,248,856 2,545,422 3,151,900 2,474,650 2,525,136 2,306,450 15,252,414
2,321,400 2,627,533 3,253,054 2,554,069 2,606,976 2,380,851 15,743,883
2,393,944 2,709,643 3,355,014 2,634,121 2,688,444 2,455,253 16,236,419
2,466,488 2,791,754 3,456,681 2,713,943 2,769,912 2,529,654 16,728,432
RATES REVENUE PER YEAR NET SALES
6,570 8,760 10,950 13,140 15,330 208.25 208.25 208.25 208.25 208.25 1,368,202.50 1,824,270.00 2,280,337.50 2,736,405.00 3,192,472.50 16,128,583.5 17,076,684.3 18,024,220.5 18,972,824.1 19,920,904.3
3.7 Marketing Strategies/Programs After the projection of demand and supply as well as their interaction, marketing management follows to complete the market study. 3.7.1 Product/Service The service is specifically intended for the exchange market and not for consumption on the part of the producer that’s why it should possess certain desirable requisites which are highly essential for its effective marketing.
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3.7.1.1 Service Category/Quality and Style Essentially, bah service is a kind of spa service. It is popularly known in northern and western countries. This is so because it is the origin of those races that practices luxurious hygienic personal care. The service we offered is classified as fashion goods – those commodities or services which are purchased for their quality, style and distinctiveness. Being the first to render such service, we can be distinguished by our market against other spa establishments. Since our main objective for every transaction between our clients is to provide intense moisturization, we can assure that every bath sessions gives optimum results, from the moment they enter the store vicinity until they left the center. 3.7.1.2 Brand Competition is further increased by the struggle to brand leadership. A further stimulus to this competition and a factor in itself in making certain service identification necessary is the tremendous growth in advertising of all kinds. The producer advertises to the consumer is inevitably forced to adapt and perhaps exploit a brand that will easily identify his business. The business will have the following logo:
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Name of the Business
Symbol for Clients Symbol Concoctions Symbol for the Bath Tub for the Bath
Nature of the Business
Note: See Appendices for Larger Image View. “The Haven Plunge” is derived from the thought of pampering oneself by plunging in a tub which serves as one’s haven. The photo illustrated a woman, which signifies the majority of the client but not necessarily means that the business is for women only. The lady in the cup exudes an emotion which illustrates the nature of vanity. The five circles of color stands for the five major bath concoctions of the business. The center loop which is white in color represents the milk bath. The next one, which is orange in color, portrays the honey and milk bath. The third loop, which is rich brown in color, represents the
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chocolate bath. The green one stands for the green tea bath. Lastly, the dark brown in color symbolizes the coffee bath. The cup embodies the bath tub itself. The “bath services” phrase which is indicated in the logo helps everyone to easily comprehend the nature of the business.
3.7.1.3 Packaging The Haven Plunge offers the following Packages:
Package 1 ‘Concentrated’ The Chocolaté El Grande
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The Café Prima
The Milk Delux
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The Green Tea Luxury
Offerings:
1. 2. 3. 4. 5. 10 mins. of Steam Shower 10 mins of Microdermabrasion with Alum Crystal 30 mins. of plunge in the Haven Tub of desired concoction 10 mins. of Rain shower Dressing up with body moisturizer (lavender oil or vanilla oil)
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Package 2 ‘Blended’ The Honey-Milk Mélange
Offerings:
1. 2. 3. 10 mins. of Steam Shower 10 mins of Microdermabrasion with Alum Crystal 30 mins. of plunge in the Haven Tub of Honey and milk mixed concoction sprinkled with the rose petal sensation 4. 5. 10 mins. of Rain shower Dressing up with body moisturizer (lavender oil or vanilla oil)
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The Five Star Plunge
Offerings:
1. 2. 3. 10 mins. of Steam Shower 10 mins of Microdermabrasion with the spa salt body scub 30 mins. of plunge in the Haven Tub of combined concoction(chocolate,
coffee, milk, honey and tea) 4. 5. 10 mins. of Rain shower Dressing up with body moisturizer (lavender oil or vanilla oil)
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NOTE: All packages are rated per hour, if the client wish to extend his/her time, additional fees will be required depending on the duration of stay of the client.
3.7.2 Pricing The assumption of prices adapts the following basis: Labor Cost Total monthly salary per employee SSS (Employer Share) Phil Health (Employer Share) PAG-IBIG (Employer Share) Total: No. of Employees Labor cost per month Labor cost per year = = = = = = = 8,869.91 375.00 75.00 50.00 9,369.91 x 12 112,438.92
= 1,349,267.00
Additional Labor Cost (8) Holidays= 47.75 Php/hour Hours per day Minimum Range Total No. of Employees = Holidays x = = = x 8.00 47.75 382.00 12 4,584.00 8
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Holiday Expense Labor Cost per Year Total Labor Cost per Month Maximum monthly capacity Labor Cost per Unit Service
=
36,672.00
1,385,939.00 = 115,494.92 = 913
=
127
Electric Cost Electric Cost per Unit service = monthly electric cost/maximum monthly capacity Electric Cost per Unit = 24,880.5 / 913 = 27.25
Water Cost Water cost per Unit service = monthly water consumption/ maximum monthly capacity Water Cost per Unit service = 20,145 / 913 = 22
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Table 11. Pricing Material Labor Electric Water Overhead Markup Cost Cost/Unit Cost/Unit Cost/Unit amount (35%) Chocolaté El Grande =805.00 Café Prima =865.00 The Milk Deluxe =676.00 The Green Tea Luxury =926.00 The HoneyMilk Mélange =910.00 The FiveStar Plunge =985.00
Selling Price Php
127
27.25
22
981.25
343.45
=1324.7 1,325.00
127
27.25
22
1041.25
364.44
=1405.69 1,406.00
127
27.25
22
852.25
298.29
=1150.54 1,151.00
127
27.25
22
1102.25
385.79
=1488.04 1,488.00
127
27.25
22
1086.25
380.19
=1466.44 1,466.44
127
27.25
22
1161.25
406.44
=1567.69 1,568.00
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What if the Customer wishes to extend the time of his plunge? The total amount of the material cost, labor cost, electric and water consumption costs added to the 30% of its total amount is the actual selling price of each package per unit service as it is shown on the table above. Thus the prices of the service are fixed if the variable costs won’t also change. However, there will be an additional amount per unit service if a customer wishes to extend the time of the service specifically on the plunge to the tub haven. The following is the computation of the rate of the specific time extension in the tub haven.
Time of extension Labor cost 15 mins. 30 mins. 1 hour 20.05 40.11 127
Electric Cost overhead
Mark up amont (35%) Rate
6.81 13.63 27.25
38.57 77.13 154.25
13.50 27.00 54.00
P52.00 P104.00 P208.25
Note: A customer is advised to plunge into the tub up to 1 and a half hour because that is the maximum time where the penetration of a concoction to the skin is in its best. And as much as the company wants its customers to attain the real wellness and beautification, a customer is suggested to have an extension up to 1 hour. Beyond that is not advisable and recommended. However, if a customer really insists, the company has no
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other way but to fulfill his wants. He’s rated by the same rates per time extension. 3.7.3 Place of Distribution
Bonifacio High Street as one of the newest commercial area in Bonifacio Global City, Taguig City is a strip of trendy restaurants, bars, clubs and retail outlets. Next to Market! Market! and Serendra Piazza condo units, this is a perfect place for “The Haven Plunge”. As expected, this was another fancy place making an example of the extreme rich end of the wide wealth gap. It is another hot spot wherein upper masses are attracted into spending their money on expensive amenities. It is more of a high-end hang-out for aristocrats, yuppies and other rich folk.
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3.7.4 Promotions/Advertising Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. The ongoing activities of advertising, sales and public relations are often considered aspects of promotions. “The Haven Plunge” promotional strategy includes brochures, and posters and tarpaulins. Our brochures definitely enclosed all the services we will be rendering and offered. We will only going to provide brochures and posters as part of our advertising campaign. Our business slogan
BROCHURE
POSTER
Note: See Appendices for Larger Image View. The brochure includes the following information: Menu of Services Price List Company Address and Contact Number 40
-
Business Hours Benefits Overview Business Slogan The poster includes the following information:
-
The Haven Plunge Packages (Photos) Company Name, Address, Contact No. Business Logo Business Hours Business Slogan
Our staff uniforms and client bathrobes will be used also as promotional tools as they provide exposure of the business logo. This will help in encouraging familiarity of the business and also for customer retention.
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