market study juanforallbuffetrestaurant

8/11/2019 Market Study JuanForAllBuffetRestaurant

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MARKET STUDY

Part 1. Market Study

Business Name: Juan-For-All Buffet Restaurant (The name of the restaurant implies that it is a

Filipino style eat all you can restaurant).

Business Type: Service

Brief Description: This is a new version of an eat-all-you-can restaurant that offers Filipino

cuisines and desserts. It highlights the high culinary expertise of Filipinos and the distinctiveness

of Filipino food. It intends to serve the customers with fresh healthy and mouth watering

cuisines.

Target Market: Students from universities, residents and by-passers along Claro M. Recto

Avenue

Location: 1773 Quezon Boulevard Corner Recto Avenue, Sta. Cruz Manila

Objectives:

To identify the respondents and select the appropriate sampling to use.

To formulate a questionnaire and present the result accurately.

To describe the target market.

To analyze the demand and supply regarding the establishment of a buffet restaurant.

To describe the products to be marketed.

Market Description

The proposed subject, which is the Juan-For-All Buffet Restaurant, will cater people

around the site that includes students, residents and by passers. It will be a self service type of

restaurant since it is much applicable to our target market.


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Market Size

The total population of the Sta. Cruz Manila in the year 2014 is estimated to be 115,886*

and the total target market in the area is 75,596.

Location

The business will be located at 1773 Quezon Boulevard Corner Recto Avenue, Sta. Cruz

Manila because area is surrounded by schools and establishments. Also, the market that will

supply the ingredients needed for the business is close to the chosen location. The said location is

a commercial place in the City of Manila.

Growth

Based on the analysis of historical population, the projected total growth of Sta. Cruz,

Manila is 0.03%.

Segments

Demographic profile

Age: 15 to 59 years old

Sex: Male and Female

Socio economic Status: Students and Income earners

Research on Demand

The growth in the food industry can be attributed to the rapid growth of the population.

As the population grows, new demands and products are created and introduced in the market.

Along with the growth comes the introduction of new and better products and services that will

satisfy the existing needs and wants of customers.


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Table 1. Population

Year Population

2011 115,781

2012 115,816

2013 115,851

2014 115,886

Table 2. Estimated Population By Age Group and By Sex Manila City, 2014

Age Group Male Female Total

Below 1 16,719 15,766 32,485

1-4 66,885 63,004 129,889

5-9 80,811 75,465 156,276

10-14 76,903 73,383 150,286

16-19 80,041 86,350 166,391

20-24 84,593 90,717 175,310

25-29 79,059 82,234 161,293

30-34 68,923 68,404 137,327

35-39 56,100 55,858 111,958

40-44 49,738 51,829 101,567

45-49 42,458 45,130 87,588

50-54 35,595 38,670 74,265

55-59 26,325 29,678 56,003

60-64 18,786 22,700 41,48665-69 9,500 13,227 22,727

70-74 6,626 10,797 17,423

75-79 3,759 7,257 11,016

80 above 2,750 6,842 95,92

TOTAL 805,571 837,311 1,642,882

In considering the total target market in the area, the researchers considered the factors to be

specified from the target market specifically age and sex. The researchers shows below the

computation of the target market and will be the basis of collecting respondents in conducting

survey on the said area of business.

Target market = (Estimated population by age/Total population of Manila City) x Total

population by District


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Total market in the year 2014 = (1,071,702/1,642,882) x 115,886 = 75,596

In order to distinguish the need for sampling and determined the appropriate sample size for the

study, the researcher apply the Slovensformula so that the data collected from the survey could

get more comprehensive information. The data collected from the sample will apply the whole

target market and will be a useful presentation of facts about the business status, which includes

interpretation.

Slovens Formula:

n = N/(1+N)(e2)

N = total population

E = Marginal error (6%)

n = number of respondents

n = 75596/(1+75596)(0.06)2

n = 277.77 or 278 respondents

Table 3. Projected population and demand by Sta. Cruz, Manila

Year Projected Population Demand

2011 115,782 75,528

2012 115,816 75,550

2013 115,851 75,573

2014 115,886 75,596

Market Share

The researchers assumed the total percentage of market share by those competitors from

target market and also the market share of Juan-For-All Buffet Restaurantin the market. To be


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able to come up with the market share of Juan-For-All Buffet Restaurant, the researchers applied

computation for the total market share of all the existing restaurants in the area. Juan-For-All

Buffet Restaurantassumed 2% market share from the unfilled market to come up with the basis

for target sales of the business.

Percentage x unfilled market = number

2% x 11,329 = 226

Juan-For-All Buffet Restaurantcame up with 226 customers from the target market and this will

be used as a basis for forecasting the target sales of the business. In this case, the researchers may

acquire the net sales each day by multiplying the market share of the business from the average

spending of customers in eating in a restaurant based on survey results.

Market share of the business x ave. spending of customers

226 x Php 299.00 = 67,574 per day

Table 4. Competitors and their market share from the total target market

Name of the business Market Share from the total target market

Food Chains 62% 46,827

Food Stalls 13% 9,819

Carinderias 10% 7,553

Unfilled Market 15% 11,329

Total 100% 75,528

.

Figure 1.Shows the market share of the proposed project in comparison with the total market

shares of competitors. Food chains having the largest percentage of share, 62% followed by Food

Stalls having a share percentage of 13%, Carinderias with 10% share in the market and the

remaining 15% belongs to the unfilled market.


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Figure 1.

Research on supply

Recto Ave, Sta. Cruz Manila is one of the busiest places in the city. It is a commercial

place surrounded by different commercial establishments such as malls, universities and schools,

banks, etc. It is also a place where you can find different food service business like, food chains

and food stalls. The company does not foresee these establishments to be a big threat to the

expectations of the customers in bringing good quality foods and services but rather to assist in

the further development of the product and its identity. The researchers considered those food

service businesses as competitors, but not to the extent of the kind of food offered, which satisfy

the consumers expectation with regardsto the affordability and good quality of food.

The researchers also consider the presence of carinderiasthat are located near the area of

the proposed business since there is a difference among the establishments especially in terms if

services, prices and ambiance and food.

Table 5. Projected Population and Supply

Year Projected Population Supply

2011 115,782 64,141

2012 115,816 64,160

62%13%

10%

15%

Market share

Food Chains

Food Stalls

Carinderias

Unfilled Market


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2013 115,851 64,180

2014 115,886 64,199

Analysis on Demand and Supply

Table 6. Demand and supply

Year Projected Population Demand Supply

2011 115,782 75,528 64,141

2012 115,816 75,550 64,160

2013 115,851 75,573 64,180

2014 115,886 75,596 64,199

Currently, demand for products particularly food is normally not enough to match the

supply. More often, demand is greater that the supply that is available in the market. The

researchers considered the two basic elements of demand, which is the willingness of the desire

to buy, and the ability to buy which pertains to the purchasing power of the customers because

absence of one of these elements would mean no demand at all. The researchers considered those

food services offered by the competitors in order to establish a marketing plan for the

consumers tastes and preferences for goods in terms of style, quality, and personal views on

consumption.

Marketing program

Pricing

Eat-all-you-can for Php 299, good for 2 hours.

Advertising and Promotion

For market and consumer awareness, the company will adopt some of the various

promotional strategies available and being used by other restaurant businesses. The streamers


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and banners will be utilized in the opening of the restaurant. There will be a distribution of

leaflets and fliers for two days prior to the propose opening date. Fliers and leaflets would carry

the following information:

Price of the product

Location of the restaurant

Meal served

Special offer i.e. discounts gifts, etc.

Opening day blitz

On the opening day of the restaurant, the company will tap the services of a mobile

sound system to attract customers and walk-in patrons.

Free balloon for children diners

Discount coupons (mechanics may based on the previuolsy mentioned promo type)

Promotional Campaign

To beef up costumers patronage and attendance, the company will offer the following

promotional strategy:

Group of five

First fifty couple to dine

Family with two kids (boy and a girl)

Birthday celebrant (must present a proof)

Survey analysis

Respondents


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Respondents will be coming from individuals in the area where the new business is to be

established which is located at Quezon Boulevard Corner Recto Avenue, Sta. Cruz Manila these

respondents are by-passers, students and employees beside the vicinity. The target market relies

with individual ages ranges from 16 to 59 years old.

Sample size determination

Slovins Formula

n = N/(1+N)(e2)

N = total population

E = Marginal error (5%)

n = number of respondents

n = 75596/(1+75596)(0.06)2

n = 277.77 or 278 respondents

2.4 Sampling design

The proponents have decided to use random sampling method of gathering data. Random

Sampling is the process of taking samples in which every member of the population has an equal

and independent chance of being.

It is considered as the best sampling method because of its convenience and reliability.

With this, all of the populations have a chance of being part of the required sample in order to

gather the data needed for the study.

2.5 Questionnaire Formulation


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The survey was made in questionnaire form so that the respondents may feel a greater

sense to express their views and opinions with privacy and convenience. The survey checklist

form allows respondents to have freewill. It is composed of 7 questions regarding preferred place

of stay while away from home. Also, it includes age, gender, address and name of the university

attending.

2.6 Rationalize/Identify the choice of Analysis

Survey result that are used in the computation

The survey analysis used graphical presentation to show the results in percentage and

to present statistical value and the likes and dislikes of the target market.

1.

If you were to choose, where do you want to stay while youre away from home?

Table 1.1

Choices Frequency Percentage

a. Dormitory 49 24%

b. Condominium 98 49%

c. Apartment 55 27%


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Table 1.1Shows that most of the respondents prefer living in a condominium while away

from home with 49%, others prefer apartment with 27% and dormitory with 24%.

2. Where would you prefer your residence near at (not limited to one answer)?

Table 1.2

Choices Frequency Percentage% over no. of

respondents

a. School 173 49% 87%

b. Workplace 33 9% 16%

c. Church 50 15% 25%

d. Food and Entertainment 89 226% 44%

e. Others 5 1% 2%


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Table 2.2Shows that from the 202 respondents 87% wants their residence near the school, 16%

in workplace, 25% in church, 44% near the food and entertainment and the other 2% includes

basketball court, spa & gym, terminals, amusement parks, and malls & supermarkets, . Since the

questionnaire is not limited to one answer, each respondent choose more than one of the choices

that explains why the frequency equals to 350.

3. What are the amenities you want in the residence (not limited to one answer)?

Table 1.3


respondents

a.

Study room (with WIFI) 175 32% 87%

b. Visitors Lounge 85 16% 42%

c. Laundry Place 98 18% 49%

d. Cheap Restaurant 80 15% 40%

f. Television 96 18% 48%

g. Others 3 1% 2%


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Table 1.3Shows that from the 202 respondents 87% wants their residence with a study room

(with WiFi), 42% with visitors lounge, 49% with laundry place, 40% with cheap restaurant,

48% with television and the other 2% includes library, swimming pool area. Since the

questionnaire is not limited to one answer, each respondent choose more than one of the choices

that explains why the frequency equals to 534.

4. What are the amenities you want in the residence (not limited to one answer)?

Table 1.4


respondents

a.

Environment 147 16% 73%b. Cleanliness 155 17% 77%

c. Safety and Security 177 20% 88%

d. Curfew Hours 76 8% 38%

e. Price 129 14% 64%

f. People Living in the area 116 13% 3%

g. Amenities 105 12% 52%


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Table 1.4 Shows that from the 202 respondents 73% considers the environment as a factor.

Cleanliness 77%, Safety and Security 88%, Curfew Hours 38%, Price 64%, People Living in the

area 3% and Amenities 52% Since the question is not limited to one answer, each respondent

choose more than one of the choices that explains why the frequency equals to 905.

5. What kind of room you want to have?

Table 1.5


a.

Air-conditioned 154 76%

b. Non-Air-conditioned 20 10%

c. Deluxe 28 14%


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Table 1.5Shows that most of the respondents prefer living in an air-conditioned room with

82%, others prefer a deluxe room with 14% and non-air-conditioned room with 10%

6. The capacity of your room would be?

Table 1.6

air-

conditioned

76%

Non-Air-

conditioned

10%

Deluxe

14%

Figure 1.5


a.

Good for 1 to 3 persons 141 70%b. Good for 4 to 6 persons 59 29%

c. Others 2 1%


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Table 1.6 Shows that most of the respondents prefer living in an room good for 1 to 3

persons with 70%, others prefer living in a room good for 4 to 6 persons with 29% and the

other 1 % wants to be in a good for one person room.

7. Would you like the residence be open for both Male and Female?

Table 1.7

Good for 1 to

3 persons

70%

Good for 4 to

6 persons

29%

Others

1%

Figure 1.6

Choices Frequency Percentagea. Yes 137 68%

b. No 65 32%


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Table 1.7 Shows that most of the respondents a residence with is open for both sexes with

68% and the 32% do not want it.

8. How much rent can you afford in a month?

Table 1.8

Yes

68%

No

32%

0%

Figure 1.7

Choices Frequency Percentagea. above P2000 but below P3500 107 53%

b. above P3500 but below P5000 52 27%

c. above P5000 but below P6500 24 12%

d. above P6500 but below P10000 10 4%

e. above P10000 9 4%


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Table 2.7 Shows that most of the respondents can afford a monthly rent from above P2000

but below P3500 with 53%. Others with 27% can afford above P3500 but below P5000 only,.

The other 12% can afford a payment above P5000 but below P6500. The 4% says that they

can afford to pay above P6500 but below P10000 and the other 4% says that they can afford

to pay above P10000.

9.

Would you try living in a Condominium-Dormitory?

\

above P2000

but below

P3500

53%

above P3500

but below

P5000

26%

above P5000

but below

P6500

12%

above P6500

but below

P10000

5% above P100004%

Figure 1.8


a. Yes 153 76%

b.

No 49 24%


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Table 2.9 Shows those 76% respondents would try living in a Condominium-Dormitory while

the other 24% of the respondents says that they will not.

market study juanforallbuffetrestaurant

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