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CHAPTER II
MANAGEMENT ASPECT
The primary role of the management is to make every action or decision help achieve
careful chosen goals which are necessary to improve the capability of the organization to run its
operations smoothly. It includes the application of deliberate expertise and knowledge, logical
techniques and legal matters to put in considerations in accomplishing desirable results.
In general, the management functions to keep the subordinates are alert to what is
expected to them and, to know the strategies in achieving the companys goal, in particular.
Advantageously, the proposed business has a perfect monopoly type of market. In this case, it
has the ability to control the instability of supply and demand by identifying the complexities and
dynamics of the potentials customers. Thus, this aspect covers distinct stratagems to cope with
the competition along the nearest urban area. Basically, the strategy includes all management
practice such as preparing a master budget, organizing business agendas and controlling and
monitoring the business operations.
The management one important role as to customer service is to seek the customers
comments and suggestions in order to appraise the status of professionalism of the business.Setting priority is a key aspect of every business that is to give common and organized objectives
for every action it must addressed to the business entity. These managerial techniques take
account of owning real properties, acquiring essential machineries and equipments and the most
needed human resources as it suits the nature of the business as service entity.
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Business Description
A theatre is a center for arts and a collective source of entertainment where people love to
spend much of their time to unwind. The projected business is very common to each person and
it gives pursuit in nature. This brief sets out the aspirations to build a modern theatre and to offer
innovated services that can be achieved by working potential funding partners and delivery
organizations. The business that we proposed is involve in motion picture a series of pictures
projected on a screen in rapid succession so as to produce the optical effect of a continuous
picture in which the objects move whether the picture is in black and white or in color, silent or
with accompanying sound, on whatever medium, with whatever mechanism or equipment they
are projected for instant showing. It aims to reach a common understanding of the requirements
that will enable this new theatre to thrive in the century. It is a medium-large scale theatre with acapacity of 400 seats for each cinema. The structure of the building is rectangular, having oval
interior two sides facing each other. The 180 degree side of the proposed round theatre room has
a latent to act as a production house as well as receiving touring shows. Potentially it could host
orchestral and temporary music with flexible facilities in terms of staging, production space and
auditorium. The other 180 degree side is for film showing, media suite including studio space for
small scale productions, rehearsals, facilitate filming/web streaming. The exterior spaces of each
theatre rooms will be rented to interested persons who would like to install small snack stand.
New consumer patterns of behavior will be catered by setting a new pioneering venue where the
business can legally operate as a juridical entity separate from the personnels identity.
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Name of the Firm
Home for Entertainment & Arts Theatre is the planned name of the future firm. The
management desires the name to be short and easy to memorize. And such objective of the
organization is deemed accomplished since the name of the business has an acronym of H.E.A.T.
The word heat in connection with the proposed business is defined as the period or phase of
something at which activity and excitement is at its most intense. Since, the nature of the dealing
is to entertain people, the management wants to assure that its customers would feel new thrill
and excitement from the moment they enter the building.
The first letter H stands for HOME; it categorized the establishment as everybodys home
to feel at. Letter E stands for ENTERTAINMENT to expressly inform the people about the
nature of existence of the business that is to give quality entertainment by delivering excellent
facilities. Letter A is good for ARTS where people could appreciate the value of living. The last
letter T describes the establishment itself as a THEATRE, a place where people can find the
thrill by watching anticipated movies, and by experiencing the exceptional amenities of the
business.
Location
The Municipality of Mangaldan is the chosen locality of the business. It was agreed to be
situated at the said location for its suitability for the targeted market. The partnership believesthat the business can serve more customers in the area compared to other places. The said
location is very accessible to students, employees, office workers, businessmen and common
terminal passengers and also those who are roaming around the public market of Mangaldan.
The new theatre is seen as an integral catalyst in developing the Mangaldan from Municipal to
City. A location and cost of has been confirmed to move forward with the architectural design
plans for planning applications. Mangaldan is a perfect place for the proposed business as it lies
in the center of its target market. With excellent road connecting the City of Baguio and
Dagupan, the town is positioned as Growth Point by central government. The business will have
excellent and welcome contribution to the vision of the Municipal. The development of the
theater is one of the pieces in the jigsaw factors as rural community have progressed ahead to
forecast that it has the ability to become an urban society.
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Form of Business Organization
The business entity is in the form of partnership organization. Mendoza & Company,
Ltd. is the acquired name of the partnership. It will be more advantageous for the business
because it can generate greater investment than a sole proprietorship. There will be 6 partners
that are willful to contribute money and property to a common fund. But only 3 of them will take
a position in the organization to operate the business and the rest will be a limited partners. The 3
limited partners will only be liable to the extent of their capital contributions unlike the general
partner. Nevertheless, each must be entitled to have their share in profits and losses. The
conformity of partners agreement will be embodied in their Articles of Partnership. The
responsibilities and benefits of each partner must be in written and notarized. The management
will have a progressive and functional stability to operate because of concerted managerial skills
and efforts of the partners compared to proprietorship.
To give a short description of the partnership formation; the partnership has a juridical
personality separate and distinct from that of each of the partners.
As to its object, a partnership is particular. It will not refer to all the present property, that
in which the partners can contribute only a limited property which belongs to them to a common
fund with the intention of dividing the same among themselves as well as the profits which they
may acquire therewith, or to all the profits, that which comprises all that the partners may acquire
by their industry or work during the existence of the partnership.As regards the liability of the partners, the partnership is limited. It is one where one
partner is a general partner and the others are limited partners.
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ARTICLES OF PARTNERSHIP
KNOW ALL MEN BY THESE PRESENTS:
We, the undersigned, all of legal age and residents of the Republic of the Philippines,
have agreed to form a general partnership under the terms and conditions hereinafter set forth
and subject to the revisions of existing laws of the Republic of the Philippines.
AND WE HEREBY CERTIFY:
ARTICLE 1: That the name of the partnership shall be Mendoza & Company, Ltd.
ARTICLE 2: That the principal office of the partnership shall be located at Lot No. 428
Serrafica Street, Mangaldan Pangasinan.
ARTICLE 3: That the names, citizenship and residence of the partners of the said
partnership are as follows:
NAMES CITIZENSHIP RESIDENCE
CAOILE, DONNA MARIE A. FILIPINO #08 Labney, San Jacinto, Pang.
FERNANDEZ, KENNETH E. FILIPINO #226 Macayug, Mangaldan, Pang.
GARCIA, ARMY A. FILIPINO #01 Manaoag, Pangasinan
GUBA, ARDIE F. FILIPINO #06 Luyan, Mapandan, PangasinanJESS Z. MARQUEZ FILIPINO #038 Torres, Mapandan, Pangasinan
MENDOZA, MIKE GARRY V. FILIPINO #273 Malindong, Binmaley, Pang.
ARTICLE 4: That the term for which said partnership is to exist is Ten (10) years from
and after the recording of the said partnership by the Securities and Exchange Commission.
ARTICLE 5: That the purpose for which said partnership is formed are as follows: To
form a partnership that would engage for theatrical film showing and other services that the
business is legally capable of doing so.
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ARTICLE 6: That the capital of this partnership shall be ELEVEN MILLION, FIVE
HUNDRED THOUSAND Pesos, Philippine currency contributed in cash by the partners as
follows.
NAME AMOUNT CONTRIBUTED
CAOILE, DONNA MARIE A. P1, 750, 000.00
FERNANDEZ, KENNETH E. P2, 000, 000.00
GARCIA, ARMY A. P1, 750, 000.00
GUBA, ARDIE F. P1, 750, 000.00
MARQUEZ, JESS Z. P2, 000, 000.00
MENDOZA, MIKE GARY V. P2, 500, 000.00
TOTAL = P11, 500, 000.00
That no transfer of interest which will reduce the ownership of Filipino citizens to less than the
required percentage of capital shall be allowed to be recorded in the proper books of the
partnership.
ARTICLE 7: That the profits and losses shall be divided among the partners as follows;
NAME PROFIT/LOSS SHARE IN PERCENTAGE (%)
CAOILE, DONNA MARIE A. 14%
FERNANDEZ, KENNETH E. 18%
GARCIA, ARMY A. 14%
GUBA, ARDIE F. 14%
MARQUEZ, JESS Z. 18%
MENDOZA, MIKE GARY V. 22%
ARTICLE 8: That the firm shall be under the management of MR. MIKE GARY V.
MENDOZA as General Manager and such as he/she shall have charge of the management of the
affairs of the partnership.
ARTICLE 9: That the General Manager will receive 5% bonus after bonus based on net
income and he is entitled to receive a salary of P25, 000.00 monthly plus allowance of P10,
000.00. The Operation Managers will be given P17, 500.00 each and interest of 2% based on
their average ending capital. The payment for share of profits will be at end of the year only.
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IN WITNESS WHEREOF, we have hereunto set our hands this _________ day of
________, 200__ at __________________________________, Philippines.
Signed in the presence of:
______________________________
______________________________
A C K N O W L E D G E M E N T
REPUBLIC OF THE PHILIPPINES)
CITY OF _________________) S.S.
Before me, a Notary Public for and the City of Makati, Philippines, on this _____ day of
_________, 200__, personally came and appeared the following persons with their Community
Tax Certificates as follows:
Name CTC No. Date of Issue/Place of Issue
CAOILE, DONNA MARIE A. 32038456 May 4, 2010 / San Jacinto, Pang.
FERNANDEZ, KENNETH E. 28849384 May 28, 2010 / Mangaldan, Pang.
GARCIA, ARMY A.______ 02513058 July 28, 2010 / Manaoag, Pang.
GUBA, ARDIE F._________ 02503739 July 28, 2010 / Mapandan, Pang.
MARQUEZ, JESS Z.______ 02503748 July 28, 2010 / Mapandan, Pang.
MENDOZA, MIKE GARY V. 05747079 July 28, 2010 / Binmaley, Pang.
Known to me and to me known to be the same persons who executed the foregoing articles of
Partnership, and they acknowledged to me that the same is their voluntary act and deed.
WITNESS MY HAND AND SEAL on the date and place first above written.
Doc. No. ________; NOTARY PUBLIC:
Page No. ________;
Book No. ________;Series of 2010 _______;
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HOME FOR ENTERTAINMENT & ARTS THEATRE
ORGANIZATIONAL CHART
8
GENERAL
MANAGER
ACCOUNTANT
OPERATION
MANAGER
TECHNICAL OPERATORCASHIER JANITOR
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ORGANIZATION STRUCTURE
The success of the business lies logically by categorizing the specific line of authority
that integrates through the existence of an organizational chart. The business as service entity
aims to stipulate the clarity of management functions. In this case, an organizational chart is
highly needed to visualize the line of authority vested among employees. The organization is not
as complicated as big ventures, so it will adopt the line organizational chart to simply understand
to whom a certain employee must report. The organization is divided into two sectors composed
of the top and bottom management. Each of this team will have their definite goal and
contributions for their accomplishment.
The top management includes the general manager and the operation managers. The
general manager will serve as a representative in all business matters outside the organization.
He carries the responsibility of being a front-liner, decision-maker and over-all brain of the
business. As one of the contributing partner, he will perform his duties and responsibilities with
corresponding benefits he is entitled to receive embodied in the Articles of Partnership. The
general manager has the most important role in safeguarding the interest of the business.
The operation managers chief responsibility is to ensure that the business is running on
its intended capacity. He has the power decide and rule over the employees regarding but he
must seek first the guidance of the general manager if such resolution he has to make would
affect the usual operation of the business. Moreover, they will serve as the representative of theteam in the absence of the general manager. They have to work dependently but in due process
and subject to restrictions with the accountants. The accountants as independent body of the firm
should perform in accordance with the established professional ethics of their certified
organization. They must insure the confidentiality of the business information. They should
prepare financial reports for top management evaluation distinct from that of the external users.
Next to the top management is the bottom composed of the cahiers, ticket inspectors and janitors.
The cashiers must manage the cash she is able to receive from the customers, secure it and
reimburse the same to the Accountant for cash counting every end of the day.
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JOB SUMMARY
POSITION DESCRIPTIONS QUALIFICATIONS
General Manager - Over-all in-charge of the - Male / Female
business operations - 27 to 30 years old
- Implements established general - Graduate of any
policies; directs their administration 4 year business
and execution related course
- Plans, develops, and approve specific - A degree holder in
operational policies, programs, Master of Business
procedures and methods in concert Administration
with the internal policies - Must have excellent
- Coordinate development of operating, oral and written
and capital budgets according to the communication
budget calendar; monitors monthly - With at least 3 years
and other financial statement; of experience
takes effective corrective
action as required
Operation Managers - Helps manage the daily operation - Male / Female
of the business - 20 to 30 years old
- Responsible for implementing the - Must be CPA
internal policies - With at least 1 year
- Helps in making minor decisions of administrative
resolving problems concerning experience
employees work performance and - Must have strong
evaluating the applications of certain accounting skills,
business policies excellent written and
- Supervises employees on a certain oral communication
job tasks skills
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Accountants - Responsible for controlling financial - Male / Female
data of the business. - At least 20 years old
- In-charge of preparing all financial - Must CPA
reports to all concern - Must have 1 year
- Establish, maintain, and coordinate the experience in any
implementation of accounting control field of endeavor
and procedures - With technical skills
- Interact with the external auditors in in accounting
completing audits software
-Willing to work with
flexible schedules
Cashiers - Ensure that each customer receives - Female
outstanding service which includes - At least 18 years old
greeting and acknowledging every - High school
customer graduate or
- Maintain an awareness of all college level
promotions and advertisements - Must be resident of
- Accurately and efficiently maintain all Mangaldan
cash on hand. - Trustworthy
- Communicate customers request to and Hardworking
management
Technical Operators - Responsible for giving technical - Male
assistance - 20 to 35 years old
- Inspect & repair theater rooms - Resident of
electrical wiring problems Mangaldan
- At least Vocational
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Electrical Mechanics
Ticket Inspectors - Responsible in classifying tickets for - At least high school
control graduate or college
level
- Responsible in the inventory of the - Willing to work with
Issued tickets for accounting purposes flexible schedules
-Male / Female
-22 - 27 years old
Janitor / Cleaners - Provides cleaning and light handyman - At least high school
work for a business usually on a daily graduate or college
basis level
- Cleans sinks and toilets - Hardworking and
- Responsible for cleaning floors and trustworthy
facilities - Male / Female
-25 - 35 years old
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INTERNAL POLICIES
The success of this business is vested upon the management and the people working on it. The
following guidelines are expected to be adhering by the following personnel mentioned above:
Employees must observe respect and decency towards customers and colleagues.
Avoid unpleasant practices. (e.g., texting, gossiping) during work hours.
No employee is allowed to use business properties for personal use.
Smoking is strictly prohibited in the business premises.
Making unnecessary transactions with the customers are intensely prohibited.
Employees must not carry offensive weapons such as firearms (except the security
officers), explosive materials and corrosive chemicals within the business premises or
keep them in their personal lockers.
First Come, First Serve rule shall be followed in dealing with the customers, except if
expressly informed so by the partnership.
No Loitering, proper disposal of trashes must be observe.
Restricted Areas are for specific personnel use only.
Personnel must always pin their ID inside the business premises.
All employees, except the partners, shall be in complete uniform every Fridays to
Mondays of the week.
NO FROWNING
Discretion of the business operations shall be kept confidential by the employees.
No Liquors allowed inside the commercial building.
NO VIP Treatment to all employees relatives except the partners family
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CHAPTER III
MARKETING ASPECT
To uplift the status of the business is one of the most priorities being emphasized by any
organization involved in commerce. Since, profit is an enthusiasm to every business; a vast
popularity for the establishment is needed. In applying this motivation for our planned business,
the marketing aspect will certainly evolve from the very moment of introducing the
establishment to the public. The market feasibility studies goal is to provide definitive evidence
of entrenched demand for our proposed business in Mangaldan, Pangasinan. Home for
Entertainment and Arts Theatre utilizes a comprehensive approach to each assignment -
providing reporting detail on sales revenues, services and amenities schedules, project staffing,
operating costs, occupancy/operating capacity schedules and related elements. The marketing
aspect is the most important document in the continuum of commercial real due diligence
documents that are required to support a capital funding request as all other documents are based,
to one extent or another, the market feasibility study.
Home for Entertainment and Arts Theatres approach is to undertake those steps and
measures that would provide sufficient documentation to allow the partnership to obtain the
project. The purpose of this aspect is to evaluate the significance of the demand and supply of the
target market. It aims to give voice for the respondents of which are capable to be a loyalist of
the business. As such, this aspect gives more emphasis on the potential customers categorical
responses. Theoretically, it is more on the economic analysis both the part of the business and on
its external factors considering that the proposed is a beginner.
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MARKET DESCRIPTION
Home for Entertainment & Arts Theatre market is parted with medium-large scale of
population that would maximize the profit of the business. The relationship of the business as
supplier and the potential customer as source depends on the growth of market. Thus the
business development will depend entirely on its market. In view of the proposed business,
market is the systematic and well-planned considerations that the business will executes that
means the communication between the customers and the entity itself. In addition, it considers
the participation of the business in economics and with all matters that matters.
POTENTIAL MARKET
The growth of the business is basically dependent upon considering its potential market.
The population of the nearby towns is a contributory factor to reach such goal. The location of
the business is wholly suited for its target markets. Our target market are divided into two
segments, (1) the residents of District IV Pangasinan ages 15 - 79 which consists the
populations of Mangaldan, Mapandan, San Fabian and San Jacinto aging 15 to 79; and, (2)
establishments located only in Mangaldan. Geographically, the potential markets comprised
large surrounding areas considering their population. Thus, the organizations solution is to adopt
effective and efficient marketing strategies. Moreover, it is wise to break down the list of the
prospective customers that will contribute much to achieve the managements objective as awhole.
The potential patrons are: a) students from different schools of those mentioned
municipalities; b) employees of different establishments; c) walk-in customers, and; d) company
owner whose business situs in Mangaldan, Pangasinan.
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DEMAND
To forecast the possibility of earning profits, demand must be considered in order for our
proposed business to withstand the leeway of competing to our direct & indirect competitors. An
analysis of demand is to relate the amount of products or services that business is capable of
rendering/selling to the potential customers wants and willing to pay so as to avail or obtain it.
The projected demand for the service is based on the result of the survey conducted,
concluded through the use of comprehensive questionnaires.
(1) Residents of District IV Pangasinan
Since there is no available data from the actual population of District IV Pangasinan
aging 15-79 in the year of 2005-2006 and 2008-2010, we used the data from the 2007 population
taken from the website of National Statistics Office which gives proportion according to age.
The actual residents of District IV Pangasinan aging 15 to 79 are composed of 63.63% of its
total 2007 population. In addition to the given percentage, we also used the average annual
growth rate of each municipality wherein we get the actual population of all ages of each
municipality in the year of 2007 which are 90,391(Mangaldan), 32,047(Mapandan), 72,075(San
Fabian), 34,663(San Jacinto). Whereas, to get the previous population of each municipality from
2007 way back to 2005, we added 100% to each municipality average annual growth rate and
divide it to their respective actual 2007 population and so with 2006 population and so forth.
With all the numbers computed thereon, we multiply the 63.63% to get the actual population of
each municipality ages 15 to 79.
NOTE: All figures computed herein are not rounded off; we used the Microsoft excel in computing necessary
calculations especially the tables shown wherefrom.
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HISTORICAL DATA
MS Table 1
Population of District IV Pangasinan (Aged 15 - 79)
Year Municipality
Total Population
per Municipality
(All age)
Municipal
Population
(Aged 15 79)
Total Population
(Aged 15 79)
2005
MANGALDAN 88,034 56,014
144,320MAPANDAN 32,047 20,391
SAN FABIAN 72,075 45,860
SAN JACINTO 34,663 22,055
2006
MANGALDAN 89,205 56,759
146,240MAPANDAN 32,473 20,662
SAN FABIAN 73,034 46,470
SAN JACINTO 35,124 22,349
2007MANGALDAN 90,391 57,514
148,185MAPANDAN 32,905 20,937
SAN FABIAN 74,005 47,088
SAN JACINTO 35,591 22,646
2008
MANGALDAN 91,592 58,278
150,126MAPANDAN 33,210 21,131
SAN FABIAN 75,140 47,810
SAN JACINTO 36,001 22,906
2009
MANGALDAN 92,809 59,053
152,093MAPANDAN 33,518 21,327
SAN FABIAN 76,292 48,543SAN JACINTO 36,415 23,170
2010
MANGALDAN 94,042 59,837
154,086MAPANDAN 33,829 21,525
SAN FABIAN 77,462 49,288
SAN JACINTO 36,834 23,437*Average Annual Growth Rate: Mangaldan (1.33), Mapandan (0.93), San Fabian (1.53), San Jacinto (1.15)
**Source: Pangasinan Provincial Planning and Development Office (Lingayen - Capitol)Pangasinan Population Commission (Lingayen - Capitol)
National Statistics Office (www.nso.gov.ph)
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Projection of population (District IV Pangasinan)
Arithmetic Straight Line Method
To compute for the projection of the population of the target market using the Arithmetic
Straight Line Method, the formula should be: Yc = a + Yi - 1
Where: Yc = Projected or Estimated Population
Yc = Initial Value (1st year) = 1953.18
Yn = Final Value (last year) N = Number of Years
Yi = Value for the last year = Standard Deviation
MS Table 2Computation of Standard Deviation (2005-2010)
Population of District IV Pangasinan (Aged 15 79)
Year Population (Y) a +Yi-1 Yc Yi-Yc (Yi-Yc)2
2005 144,320
2006 146,240
1,953.1
8
144,32
0
146,27
3 -34 1,137
2007 148,185
1,953.1
8
146,27
3
148,22
7 -42 1,756
2008 150,126
1,953.1
8
148,22
7
150,18
0 -54 2,925
2009 152,093
1,953.1
8
150,18
0
152,13
3 -40 1,619
2010 154,086
1,953.1
8
152,13
3
154,08
6 0 0
TOTAL 895,049 7,437
= 35.29
MS Table 3Projected Population of District IV - Pangasinan (Aged 15 to 79)
(2011 2016)
Year a +Yi-1 Yc
20111,953.1
8154,08
6 156,039
20121,953.1
8156,03
9 157,992
a =
Yn
Yc
N - 1
a =154, 086 144, 320
6 1
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2013
1,953.1
8
157,99
2 159,946
2014
1,953.1
8
159,94
6 161,899
2015
1,953.1
8
161,89
9 163,852
Target Market
Home for Entertainment and Arts Theatre aims to create market from the residents of
District IV Pangasinan ages 15-79 which comprises the populations of Mangaldan, Mapandan,
San Fabian and San Jacinto in the total of154, 086 for the year 2010.
The sample size of the population was derived using the Slovins Formula:
Where:
n = Sample size
N = Population size
E = Desired Margin of Error
From the given formula, the total respondents for the questionnaire that will be provided
in District IV - Pangasinan would be:
= 398.96 or 400 respondents
Using the pro-rata method, the sample size of the residents for each municipality and business
owner in Mangaldan are derived by the following computations:
Mangaldan:
Mapandan:
= 155 respondents = 56 respondents
n = N1 + Ne2
n =154, 086
1 + 154, 086*(0.052)
n =59, 837
x 400154, 086 n =
21, 525x 400
154, 086
n =49, 289
x 400154, 086
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San Fabian: San Jacinto:
= 128 respondents
= 61 respondents
n =23, 437
x 400154, 086
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DATA GATHERED BASED ON THE QUESTIONNAIRES:
Question #1: In what category do you belong?
This question was asked to determine the distribution of respondents. On the
Table 4 below, Out of 100%, Mangaldan has the highest number of respondents which has
38.75% and San Fabian garnered the second place which is 32% of total respondents. Mapandan
has the lowest total number of respondents.
MS Table 4
Result of Question #1 for Residents of District IV - Pangasinan
Municipalities No. of Respondent Percentage (%)
Mangaldan 155 38.75%
Mapandan 56 14%
San Fabian 128 32%
San Jacinto 61 15.25%
TOTAL 400 100%
Question #2: What is your age?
This question was asked to determine the age of respondents. An age bracket was
used to simplify the summary of proportioning.
MS Table 5
Result of Question #2 for Residents of District IV - Pangasinan
Age Range No. of Respondent Percentage (%)15 to 29 years old 234 58.50%
30 to 49 years old 99 24.75%
50 to 64 years old 39 9.75%
65 to 79 years old 28 7%
TOTAL 400 100%
Based on the result, Table 5 shows that out of 400 respondents, 234 or 58.50% are from
15 to 29 years of age. Next is 24.75% which comprise 99 persons of the total respondents. 7% ofthe total respondents is the lowest which covers the age of old dependents.
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Question #3: How do you like to see/watch a premiere movie?
This question was asked to determine the respondents means of seeing/watching a
premiere movie. The relevance of this is to figure out the market share of the proposed business.
MS Table 6
Result of Question #3 for Residents of District IV - PangasinanMeans of Seeing/Watching
Premiere MovieMangaldan Mapandan
San
Fabian
San
JacintoTotal
Percentage
(%)
Rent CD/DVD in Videocity 10 3 7 5 25 6.25%
Buy Original CD/DVD
Somewhere45 14 40 21 120 30%
Download through Internet
Connection34 12 19 15 80 20%
Watch via Cable
Subscription28 12 34 12 86 21.50%
None of the Above 38 15 28 8 89 22.25%TOTAL 155 56 128 61 400 100%
Based on the Table 6, the respondents are not preserving their self of watching/seeing a
premiere movie in any of those medium that was asked in the questionnaires. Out of 400
respondents, 89 or 22.25% favored that another means of such entertainment is capable of
satisfying their needs. This data gathered will be use as a percentage of our target market.
Question #4: What improvements you would like to experience in a theatre?
(You may choose more than one)
This question was asked to determine the area that the respondents would like to improve
in a theatre. Technically, it aims to maximize the potential customers personal needs with
respect to the ambiance of the proposed business. Based on the Table 7 below, Its the
Ventilation System that people would like to be improved which has 31.63%, second priority is
the Security system which is 23.47% and Comfort rooms for 19.59% and Chairs for 18.57% and
the last is the sound effects that garnered 33 out of 400 respondents or 6.74%.
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MS Table 7
Result of Question #4 for Residents of District IV - Pangasinan
Spots to be
ImprovedMangaldan Mapandan
San
Fabian
San
JacintoTotal
Percentage
(%)
Ventilation
System65 17 46 27 155 31.63%
Comfort Rooms 28 24 23 21 96 19.59%
Chairs 37 11 29 14 91 18.57%
Security System 42 20 38 15 115 23.47%
Sound Effects 10 8 6 9 33 6.74%
TOTAL 182 80 142 86 492 100%
Question #5: Would you want a theatre room covered by a Transparent Glass?
This question was asked to determine the preference of the respondents with regards to
the cover wall of the theatre room. It aims to justify the management proposal for the unique
architectural design of the theatre room. Based on the Table 8, out of 400 respondents, 184
persons or 46% favored that the theatre room must be covered by transparent glass which is
lower than the 54% of the negative side of the respondents. Using this percentage tallied from
the questionnaires, it is advisable that theatre room would be in its usual building structure same
to others movie room.
MS Table 8
Result of Question #5 for Residents of District IV - Pangasinan
Municipalities Yes Percentage No Percentage (%)
Mangaldan 66 16.50% 89 22.25%Mapandan 30 7.50% 26 6.50%
San Fabian 52 13.00% 76 19.00%
San Jacinto 36 9.00% 25 6.255
TOTAL 184 46.00%21
654.00%
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Question #6: Are you willing to pay P95.00 for balcony seat and/or P80.00 for orchestra seat to
watch a premiere movie?
This question was asked to estimate the possible price of the ticket for the proposed
business. Based on this inquiry, out of 400 respondents 274 persons or 68.50% are willing to
pay the stated amount and 126 persons or 33.50% are not.
MS Table 9
Result of Question #6 for Residents of District IV - Pangasinan
Municipalities Yes Percentage No Percentage (%)
Mangaldan 105 26.25% 50 12.50%
Mapandan 33 8.25% 23 5.75%
San Fabian 97 24.25% 31 7.75%
San Jacinto 39 9.75% 22 5.50%
TOTAL 274 68.50%12
631.50%
Question #7: If a place with those improved spots will be provided in Mangaldan,
Would avail of it?
This question was asked to conclude that the proposed business is feasible to its target
market. In reference to Table 10, the respondents are favored for the establishing of a theatre in
Mangaldan, Pangasinan which garnered 87.25% compared to 12.75% of the negative part of the
respondents. Mangaldan which is the location of the business garnered that highest affirmative
percentage of supporting the proposed business which gives 35% of the total percentage of
affordance.
MS Table 10
Result of Question #7 for Residents of District IV - Pangasinan
Municipalities Yes Percentage No Percentage (%)
Mangaldan 140 35% 15 3.75%
Mapandan 43 10.75% 13 3.25%
San Fabian 110 27.50% 18 4.50%
San Jacinto 56 14% 5 1.25%
TOTAL 349 87.25% 51 12.75%
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Question #8: If yes, how often do you intend to visit such place in a month?
MS Table 11
Question #8 for Residents of District IV - Pangasinan
No. of Times Mangaldan MapandanSan
Fabian
San
FabianTotal
Percentage
(%)
Once 57 10 34 35 136 38.97%
Twice 43 17 40 12 112 32.09%
Thrice 13 9 13 6 41 11.75%
4 Times (Once a week) 11 3 14 2 30 8.60%
8 Times (Twice a week) 3 1 0 0 4 1.15%
12 Times (Thrice a week) 2 2 3 1 8 2.29%
Others 30 Times (Daily) 2 1 1 0 4 1.15%
5 Times 5 0 3 0 8 2.29%
6 Times 4 0 2 0 6 1.72%
TOTAL 140 43 110 56 349 100%
This is question was asked to calculate the projected or estimated frequency or the
average times of visiting the proposed business. On the Table 11, the highest possible times of
visiting the place is once a month which is 38.97%, next is 32.09% for twice a month. The
lowest possible times of visiting the proposed business is 8 times & 30 times, 6 times, 12 times
& 5 times and 4 times which has 1.15%, 1.72%, 2.29%, 8.60% respectively.
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(2) Business Establishments in Mangaldan
HISTORICAL DATA
MS Table 12
Population of Business Establishment in Mangaldan
YearNo. of Business Establishment
in Mangaldan
2005 2,247
2006 2,184
2007 2,103
2008 1,988
2009 1,794
2010 1,167
*Source: Business Permit and Licensing Section
Table 12 shows that the actual numbers of establishments up righted in Mangaldan,
Pangasinan is diminishing. The proponent have tried to used the statistical straight line method
of projecting the declined of establishments in Mangaldan but it has been observed that in the
aftermath a negative figures resulted on the calculation. In this case, we used arithmetic straight
line method as it gives more reasonable projection of the declining numbers of concerned target
market.
Projection of Population (Business Establishment in Mangaldan)Arithmetic Straight Line
To compute for the projection of the population of the target market using the Arithmetic
Straight Line Method, the formula should be: Yc = a + Yi - 1
Where: Yc = Projected or Estimated Population
= - 216
Yc = Initial Value (1st year) = - 216
Yn = Final Value (last year)
N = Number of Years
Yi = Value for the last year
a =
Yn
Yc
N - 1
a =1, 167 - 2, 247
6 1
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MS Table 13
Computation of Standard Population (2005 2010)
(Historical Figures of Establishment in Mangaldan, Pangasinan)
Year Population (Y) A +Yi-1 Yc Yi-Yc (Yi-Yc)2
2005 2,247
2006 2,184 -216.08 2,247
2,03
1 153 23,385
2007 2,103 -216.08 2,0311,81
5288 82,670
2008 1,988 -216.08 1,8151,59
9389 151,203
2009 1,794 -216.08 1,5991,38
3411 168,858
2010 1,167 -216.08 1,3831,16
70 0
TOTAL 11,483 426,116
= 266.49
MS Table 14
Projected Trend of Establishment in Mangaldan, Pangasinan
Year A +Yi-1 Yc
2011 -216.08 1,167 951
2012 -216.08 951 735
2013 -216.08 735 519
2014 -216.08 519 303
2015 -216.08 303 87
Target MarketHome for Entertainment & Arts Theatres secondary source of finance will come from
the rent income of Gathering Hall. Since the business will provide a separate hall for its potential
tenants, it is necessary to allocate a separate number of respondents, but using the same formula,
base on its total current number of establishment in Mangaldan. The current number of operating
establishment located in Mangaldan, Pangasinan is 1, 167.
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The sample size of the population was derived using the Slovins Formula:
Where: n = Sample size
N = Population size
E = Desired Margin of Error
From the given formula, the total respondents for the questionnaire that will be providedfor business owners in Mangaldan, Pangasinan would be:
= 297.89 or 298 respondents
DATA GATHERED BASED ON THE QUESTIONNAIRES:
The respondents are business owners from Mangaldan, Pangasinan.
Question #1: In what category do you belong?
MS Table 15
Result of Question #1 for Business Owners
Category No. of Respondent Percentage (%)
Business Owners
in Mangaldan298 100%
TOTAL 298 100%
Question #2: What is your age?
This question was asked to proportion the age of the respective respondents. An age
bracket was used to simplify the summary of data. Out of 400 respondents, on the Table 16, the
respondents are from the 15 to 29 years of age for 54.36% and the lowest is the 65 to 79 years of
age for 1.34%.
MS Table 16
Result of Question #2 for Business Owners
Age Range Total Percentage (%)
15 to 29 years old 162 54.36%
30 to 49 years old 95 31.88%
50 to 64 years old 37 12.42%
65 to 79 years old 4 1.34%
TOTAL 298 100%
n =N
1 + Ne2
n =1, 167
1 + 1, 167*(0.052)
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Question #3: How do you like to see/watch a premiere movie?
This question was asked to determine the respondents means of seeing/watching a
premiere movie. The relevance of this is to figure out the market share of the proposed business.
On the Table 17 below, out of 100% - 22.49% says that none of those stated means of
watching/seeing a premiere movie satisfied the respondents. In addition to this conclusion, the
percentage computed herein will be used for market share of the business.
MS Table 17
Result of Question # 3 for Business Owners
Means of Seeing/Watching Premiere
MovieTotal Percentage (%)
Rent in CD/ DVD Videocity 95 31.88%
Buy Original CD/DVD Somewhere 40 13.42%
Download through Internet Connection 65 21.81%
Watch via Cable Subscription 31 10.40%None of the Above 67 22.49%
TOTAL 298 100%
Question #4: What improvements you would like to experience in a theatre?
(You may choose more than one)
This question was asked to determine the area that the respondents would like to improve
in a theatre. Technically, it aims to maximize the potential customers personal needs with
respect to the ambiance of the proposed business. Based on the Table 18 below, out of 100%
its the Ventilation System that people would like to be improved which has 23.04%, second
priority is the Comfort rooms which is 22.34% and Sound Effects for 20.41% and Security
system for 17.98% and the last is the Chairs that garnered 16.23%.
MS Table 18
Result of Question #4 for Business Owners
Spots to be
ImprovedTotal Percentage (%)
Ventilation System 132 23.04%
Comfort Rooms 128 22.34%
Chairs 93 16.23%Security System 103 17.98%
Sound Effects 117 20.41%
TOTAL 573 100%
Question #5: Would you want a theatre room covered by a Transparent Glass?
This question was asked to determine the preference of the respondents with regards to
the cover wall of the gathering hall. It aims to justify the management proposal for the unique
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architectural design of such hall. Based on the Table 19, out of 298 respondents, 152 persons or
51% favored that the gathering hall must be covered by transparent glass which is higher than the
49% of the negative side of the respondents. Using this percentage tallied from the
questionnaires, it is advisable that theatre room would be in its usual building structure same to
other movie room of the direct competitors.
MS Table 19
Result of Question #5 for Business Owners
TOTAL
YesPercentage
(%)No Percentage (%)
152 51%14
649%
Question #6: Are you willing to pay P95.00 for balcony seat and/or P80.00 for orchestra seat to
watch a premiere movie?
This question was asked to estimate the possible price of the ticket for the proposed
business. Based on this inquiry, out of 298 respondents 208 surveyed business owners or
70.13% are willing to pay the stated amount and 89 of the business owners persons or 29.87%
are not.
MS Table 20
Result of Question #6 for Business Owners
TOTAL
Yes Percentage
(%)
No Percentage (%)
209 70.13% 89 29.87%
Question #7: If a place with those improved spots will be provided in Mangaldan, would avail
of it?
This question was asked to conclude that the proposed business is feasible to its target market. In
reference to Table 21, the respondents are favored for the establishing of a theatre in Mangaldan
which garnered 82.21% compared to 17.79% of the negative part of the respondents.
MS Table 21Result of Question #7 for Business Owners
TOTAL
Yes Percentage
(%)
No Percentage (%)
245 82.21% 53 17.79%
Question #8: If yes, how often do you intend to visit such place in a month?
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This is question was asked to calculate the projected or estimated frequency or the
average times of visiting the proposed business. On the Table 22, out of 100% the highest
possible times of visiting the place is once a month which is 26.94% next is 38.37% for twice a
month. The lowest possible times of visiting the proposed business are 5 & 6 times, 12 times, 8
times and 4 times which has 2.04%, 2.86%, 3.67%, 7.75%, 16.33% respectively.
MS Table 22
Result of Question #8 for Business Owners
No. of Times Once Twice Thrice4
Times
8
Times
12
Times
Others
TOTAL5
Times
6
Times
Total 66 94 40 19 9 7 5 5 245
Percentage
(%)
26.94
%
38.37
%
16.33
%
7.75% 3.67% 2.86% 2.04% 2.04% 100%
The following data gathered from the questionnaires were asked only from the business
owners respondents. These are summarized in numerical order as presented to the
respondents.
Question #1: If there were any other services you would like to be offered in such place for your
establishment, what would it be?
This question was asked to determine other possible services that the business would
offer for the needs of business owners with regards to their business needs primarily the venue tohold their gatherings. On the Table 23 shown below, Out of 298 respondents for business
owners, 146 persons says that venue for special occasions is their needs for
MS Table 23
Results of Question #1 for Business Owners
Services to be Provided Total Percentage (%)
Venue for General Assembly 39 13.09%
Venue for Lectures and
Seminars68 22.82%
Venue for Special Occasions 146 48.99%
Educational Film Showing 45 15.10%TOTAL 298 100%
Question #2: If such place could accommodate/reserve your needs for your business gatherings,
would you avail of it?
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Respondents were asked if they would avail the services offered by the proposed business. This
question measures the demand of availing such services. It turns out that out of 298 respondents,
268 or 89.93% agreed and only 30 or 10.07% disagreed.
MS Table 24
Results of Question #2 for Business Owners
TOTAL
YesPercentage
(%)No Percentage (%)
268 89.93% 30 10.07%
Question #3: How often do you plan/intend to avail such service/s in a year?
This question was asked to find out the frequency of availing such services in a year to
arrive at estimated amount of income. On a table shown below out of 268 respondents 132 or
49.25% would avail it once, 27.24% or 73 business owners would avail it twice, 33 or 12.30%
would plan to avail such services thrice, 8 out of 268 or 2.99% would avail it for six times,4.48% would intend to enjoy the services monthly, and the others are 1.87% .
MS Table 25
Results of Question #3 for Business Owners
No. of Times Once Twice Thrice 6 Times MonthlyOthers
TOTAL5 Times 6 Times
Total 132 73 33 8 12 5 5 268
Percentage
(%)
49.25
%
27.24
%
12.30
%2.99% 4.48% 1.87% 1.87% 100%
Question #4: How much would you budget per reservation/accommodation?
The business owners set their budgets regarding the reservation/accommodation of the
services being offered, 252 or 94.03% would have a budget of P 8,843 30,000 and 5.97% or 16
respondents would spend P 34,000 300,000.MS Table 26
Results of Question #4 for Business Owners
Price P 8,843 P9,254 P14,516 P27,500 P38,095 P30,000 Total
No. of Respondents 115 67 31 16 21 2 252
Percentage (%) 42.91% 25% 11.57% 5.97% 7.83% 0.75% 94.03%
Price P34,000 P40,000 P100,000 P150,000 P200,000 P300,000 Total
No. of Respondents 2 4 5 2 2 1 16Percentage (%) 0.75% 1.49% 1.86% 0.75% 0.75% 0.37% 5.97%
TOTAL117 71 36 18 23 3 268
46.43% 28.17% 14.29% 7.14% 9.13% 1.19% 100%
COMPUTATION OF ANNUAL FREQUENCY OF VISITING
HOME FOR ENTERTAINMENT & ARTS THEATRE
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MS Table 27
Frequency of Visiting H.E.A.T. (Movie Theatre)
Frequency (in a Month) Number of Respondents Total Frequency
Once 202 202
Twice 206 412
Thrice 81 243
4 Times (once a week) 49 196
8 Times (2x a week) 13 104
12 Times (3x a week) 15 180
30 Times (daily) 4 120
5times 13 65
6times 11 66
TOTAL 594 1588
Frequency (in a Month) * Number of Respondents = Total Frequency
The total monthly frequency is computed by multiplying the surveyed frequency of
visiting Home for Entertainment & Arts Theatre in a month to the number of respondent. Thus,
the average frequency in a month is computed by dividing the total frequency by the total
number of respondents.
Average Frequency in a Month = 1,588
594
= 2.673400673
Average Annual Frequency = 2.673400673 x 12
= 32.08 or 32
MS Table 28
Frequency of Renting H.E.A.Ts Gathering Hall
Frequency (in a Month) Number of Respondents Total Frequency
Once 132 132
Twice 73 146
Thrice 33 99
6 Times (every 2 months) 8 48
12 Times (monthly) 12 144
5 Times 5 256times 5 30
TOTAL 268 624
Frequency (in a Month) * Number of Respondents = Total Frequency
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The total monthly frequency is computed by multiplying the frequency in a month to the
number of respondents. Thus, the average frequency in a month is computed by dividing the total
frequency by the total number of respondents.
Average Frequency in a Month = 624
268
= 2.328358
Average Annual Frequency = 2.328358 x 12
= 27.94 or 28
COMPUTATION OF PROJECTED ANNUAL DEMAND
HOME FOR ENTERTAINMENT & ARTS THEATRE
MS Table 29Projected Annual Demand of H.E.A.T. (Movie Theatre)
Year ResidentsBusiness
Owners
Total
Potential
Customer
Estimated
Annual
Frequency
Total
Demand
Demand
Rate
Projected
Annual
Demand
2005 144,320 2,247 146,568 32 4,702,005 85.10% 4,001,420
2006 146,240 2,184 148,424 32 4,761,557 85.10% 4,052,099
2007 148,185 2,103 150,287 32 4,821,340 85.10% 4,102,974
2008 150,126 1,988 152,114 32 4,879,928 85.10% 4,152,833
2009 152,093 1,794 153,887 32 4,936,808 85.10% 4,201,238
2010 154,086 1,167 155,253 32 4,980,643 85.10% 4,238,5422011 156,039 951 156,990 32 5,036,371 85.10% 4,285,966
2012 157,992 735 158,727 32 5,092,099 85.10% 4,333,390
2013 159,946 519 160,464 32 5,147,826 85.10% 4,380,815
2014 161,899 303 162,201 32 5,203,554 85.10% 4,428,239
2015 163,852 87 163,939 32 5,259,281 85.10% 4,475,664
Table 29 shows the projected annual demand of the proposed business. On the first column a
historical years and projected life of the business is shown and on the fourth column, the projected total
customers per year is computed by adding the number of residents and business owners. The estimatedannual frequency was computed in Table 27. The total projected demand is the product of the total
potential customer and estimated annual frequency. The demand rate was computed by adding the total
respondents from residents of District IV Pangasinan and Business owners divided by the total number
of respondents that which is 698 persons. In totality, the total projected annual demand was computed by
multiplying the demand rate with the total demand.
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MS Table 30
Projected Annual Demand of H.E.A.T. (Gathering Hall)
YearTotal Potential
Customer
Estimated Annual
Frequency
Total Projected
Demand
Demand
Rate
Projected Annual
Demand
2005 2,247 28 62,792 89.93% 56,471
2006 2,184 28 61,028 89.93% 54,8842007 2,103 28 58,752 89.93% 52,837
2008 1,988 28 55,545 89.93% 49,954
2009 1,794 28 50,125 89.93% 45,079
2010 1,167 28 32,606 89.93% 29,324
2011 951 28 26,569 89.93% 23,894
2012 735 28 20,532 89.93% 18,465
2013 519 28 14,495 89.93% 13,035
2014 303 28 8,457 89.93% 7,606
2015 87 28 2,420 89.93% 2,177
Table 30 shows the projected annual demand of the proposed business. On the first column a
historical years and projected life of the business is shown and on the second column, the projected total
customers per year are the business owners. The estimated annual frequency was computed in Table 28.
The total projected demand is the product of the total potential customer and estimated annual frequency.
The demand rate was computed by dividing the total business owners respondents who are willing to
rent the gathering hall of the business building. In totality, the total projected annual demand of the
H.E.A.T Gathering Hall was computed by multiplying the demand rate with the total demand.
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SUPPLY
The proposed business, though it has all the indirect competitors with in its target market,
has some probable reasons to participate on marketing its products and services with the direct
competitors outside its potential market. On our questionnaires, we did not ask if the respondents
are patronizing the cinemas outside the four municipalities stated therein. However, as part of
analytic study of our target patrons behavior, we assumed that they might still travel to Dagupan
City to watch/see movies in an available theatre of such place. Supply on this point of view is
shown on Table 30 that has been estimated on a 360 business days but the actual account of each
cinemas is exact.
MS Table 31
Direct Competitors of Home for Entertainment & Arts Theatre
Competitors Daily Capacity Annual CapacityDagupan City Mall Cinemas 1,584 570,240
CSI Square Cinema 1,500 540,000
TOTAL 2,292 1,110,240*Source: Business & Licensing Section Dagupan City
SUPPLY-DEMAND ANALYSIS
Table 30 shows the combined results of computations from the projected demand in
Table 29 and projected supply in Table 30. Market share was taken from the question no. 3.
MS Table 32
Demand-Supply Analysis (Movie Theatre)
Year Projected Demand SupplyUnsatisfied
DemandMarket Share Targeted Market
2005 4,001,4201,110,24
02,891,180 22.35% 646,166
2006 4,052,0991,110,24
02,941,859 22.35% 657,493
2007 4,102,9741,110,24
02,992,734 22.35% 668,863
2008 4,152,8331,110,24
03,042,593 22.35% 680,006
2009 4,201,2381,110,24
03,090,998 22.35% 690,825
2010 4,238,5421,110,24
03,128,302 22.35% 699,162
2011 4,285,9661,110,24
03,175,726 22.35% 709,761
2012 4,333,390 1,110,24 3,223,150 22.35% 720,360
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0
2013 4,380,8151,110,24
03,270,575 22.35% 730,959
2014 4,428,2391,110,24
03,317,999 22.35% 741,559
2015 4,475,6641,110,24
0 3,365,424 22.35% 752,158
PRICE STUDY
The market of our proposed business has no direct competitors. This is a qualified
advantage where the price of the ticket will not be dependent upon the changes of the demand. In
other words, the price of the ticket will not be varied regardless of the seating capacity of the
theatre. The price of the ticket will be fixed in the amount of P90 for balcony seat and P75 for
orchestra seat. In reference to question no. 6 of the provided questionnaire, out of 100%, 68.5%
from the residents and 70.13% from the business owner agreed that price will be setup as stated.
Nonetheless, in contrary to the amount stated in the questionnaire, we will set the price of ticket
lower than of the direct competitors prices.
In addition to this particular, the price of the ticket will be to be varied according to the
quality and origin of the movies being offered by the business. If the origin of the movies will be
from foreign or local source and if it is happen to be demandable (blockbuster), an additional
P5.00 will be added to the cost of the ticket. Our target market consists primarily of the residents
of District IV-Pangasinan.and the business owners in Mangaldan. In view of the illustration
given below, differential prices of the ticket being offered by the same business is form part of
the analysis. Table 33 gives a comparative study of prices across products of our potential direct
and indirect competitors; for the duration of the study all cinemas located in Dagupan City are
considered to be direct competitors of the business.
MS Table 33
COMPARATIVE PRICE OF TICKET
Origin of the Film
Dagupan City Mall
Cinemas
CSI Square
Cinema
Home for Entertainment
& Art Theatre
Balcony OrchestraBalcon
y
Orchestr
aBalcony Orchestra
Local Film 100 95 95 80 90 75
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FACTORS AFFECTING THE MARKET
Interest of the Target Market
Our targeted market belongs to 1st class municipalities wherein they create every other
means of entertaining their self through movies. As such, one of the factors that affect the market
of our proposed business is the interest of its potential customers. Because the primary livelihood
of the municipalities we included as our target market is more on agricultural industry people
might spend their time and money on other means.
Local and National Government Rules and Regulations
The product that will be marketed by business is form part of the motion pictures which
is being regulated worldwide. In the Philippines, the MTRCB is one authorized to promulgate
the Presidential Decree No. 1986. The said regulating government body will have to approve all
films that the concern business will offer to the public. To give a few factors, projected demand
might be affected by the age discretions of such government agency. In Mangaldan where the
business will be located have also some rulings that restrict students from going to such place
during school hours which might decrease the favorable margin of sales of the business.
Economic Condition (Growth and Inflation)
Inflation affects the market because if the price of common cost of goods and services
increase, a possibility of decreasing the spending behavior of the customers will occur. Since our
proposed business is more on wants, customers will choose to satisfy their basic needs first rather
than their wants. Therefore, the demands of our proposed business might decrease.
Population Instability
Population growth has positive effects on societies. These includes economic benefits
such as increased in consumer spending and local business as well as innovations by cultures
seeking to keep up with growing populations. It is therefore utmost important to consider such
effect in business. Considering the fast growing population of Mangaldan and nearby towns, we
rest assure that demands will increases as well as the supply of our establishment. Basically, the
success of our business highly depends on it.
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MARKETING PROGRAMS
In business, creativity can help you launch major innovative products and services. Home
for Entertainment and Arts theatre aims to commence its people-friendly services that will
certainly captured the attention of its target markets. Potential customers will get information in
a simple way that can positively influence them to use our services. The promotion of the
business embraces the advertisement through local radio and television commercials, posting
tarpaulin in close proximity to crowded areas such as schools and public markets.
Radio Advertisement
Listening to radio stations is the most frequent past time of the people. The management
will opt to disseminate the existence of the business on the radio advertisement than to local
televisions. Home for Entertainment & Arts Theatre market information will be aired on Hot
FM. The said radio station is officially proclaimed as the one in Central Pangasinan. Since the
acronym of the name of the business is H.E.A.T. that is complimentary name of the radio station
it would be easier to create a unique slogan. The entity will have a 4 months contract with Hot
FM and the information will be aired 6 times a day that will costs P5, 000.00 per month.
Newspaper
Home for Entertainment & Arts Theatre will be advertised in the Pangasinan Star, the
official newspaper Pangasinan Province. For 3 months contract starting on the first month of
operation, the business market information will be published on a page advertisement which
costs P500.00 a week.
Flyers
That public even beyond the target market of the business would be informed about the
new market if flyers would be used as one promotional strategy. Aside from the fact that it much
easier to perform, it requires minimal effort and costs smaller than those of the other means
stated above. The distributions of this will start one before the business will officially
commenced on its operations. It will be done for 2 months where the place is in the crowded
areas such as public market and schools.
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S.W.O.T. ANALYSIS
S.W.O.T. Analysis (Strengths, Weaknesses, Opportunities and Threats), is a method of
assessing a business, its resources and its environment. Doing analysis of this type is a good way
to better understand a business and its markets, and can also show potential investors that all
options open to, or affecting a business at a given time have been thought about thoroughly
The following is an outline of Home for Entertainment & Arts Theatrestrengths,
weaknesses, opportunities, and threats. Currently our strengths overshadow our weaknesses;
however, our weaknesses interpose our need for more of the following resources: time,
employees, and funding.
STRENGHT: These are the internal factors that provide sympathetic situations to the
business as compared with other firms.
Dedication of management
Creative organization staff
Convenient amenities for work environment
Personnel are well-educated in areas of expertise
New physical facilities are to be introduced
Low overhead and designed to adapt to the market's needs
Offer an affordable theatre experience
WEAKNESSES: These are internal factors that are considered disadvantageous to the
business.
Reputation is not yet established
Limited number of employees
Limited financial resources
Internal control is not yet proven efficient and effective
Films being marketed may not meet customers satisfaction
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OPPOTUNITIES: These are potential favors and benefits coming from external factors.
Capable of creating new market
Greater chance to withstand direct competition within its market
Local Governments supports are well-provided
Customers behavior as to entertainment is highly appreciated
THREATS: These are risks of the business arising from external factors.
Loss of government grants
Unfavorable results of reviews from Optical Media Board
Change in audience attendance
Competitors market experiences
Challenges securing performance facilities
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