Chapter II
MARKET STUDY
An overview of the business is provided through a Marketing Study. To run a lucrative business we need to know our customers, what they want, what they need, and how we can best serve them. The market study will assist you in obtaining accurate, reliable, and precise information about your clients and competitors which is a crucial aspect of the start-up process and or expanding your business. All aspects of the enterprise activities are influenced and guided by market expectations. This will determine whether your organization succeeds or fails.
A market study is a method of evaluating the suitability of a new service or product by doing independent research with potential customers. It enables the enterprise to locate its target market and receive feedback from purchasers of the products.
The goal of this research was to assess and evaluate the efficacy for growth potential in producing Banana Balls.
Objectives of the Study
The general objective of the study is to determine the market feasibility of the proposed product which is the Banana Balls. To attain this, the proponents set out the following objectives:
1. To identify suitable data-gathering instruments and procedures to be used in this study;
2. To identify the target market of the proposed business and the method to be used;
3. To determine the demand and supply of the product and to establish the desired market share after analyzing the demand and supply situation;
4. To use the SWOT analysis in identifying the advantages and disadvantages of the product; and
5. To originate the appropriate marketing strategies and programs in order to go through the market.
Methodology
The methodology should justify the design choices, by showing that the chosen methods and techniques are the best fit for the research aims and objectives, and will provide valid and reliable results ( Jansen & Warren, 2020).
The descriptive method of research was used in the research design. In the subject of the study the individuals from Bulacnin, Lipa City were selected as the target market of the business. In the data gathering instrument, survey questionnaires through google forms were created to collect information. The proponents used the statistical straight-line method to project data of the product’s potential demand and supply.
Research Design
A research design is the ‘procedure for collecting, analyzing, interpreting, and reporting data in research studies (Creswell & Plano Clark, 2007). As explained by Robson (2002), there are three possible forms of research design: exploratory, descriptive, and explanatory.
The proponents used a descriptive method of research in determining the viability of the proposed product “Banana Balls”. Descriptive research is a good choice when the goal is to determine characteristics, frequencies, trends, and categories aim to accurately and systematically describe a population, situation, or phenomenon. It can answer what, where, when, and how questions, but not the why question. The research design should be carefully developed to ensure that the results are valid and reliable (McCombes,2019).
Subject of the Study
The subject of the study was composed of 7,369 people from all of the barangays in Bulacnin Lipa City. The proponents chose their target market because the area can easily attract potential customers and is expected to have minimal competitors. On the other hand, the proponents prepared survey questionnaires that were distributed online to 100 respondents within and outside Lipa City. According to the study conducted by In B Enterprise, the majority of respondents were from Lipa City and are teenagers and adults since the product is suitable for anyone. The location has a significant advantage because it has numerous structures and a large population.
Data Gathering Instrument
The proponents prepared survey questionnaires as data collection instruments to determine the feasibility of producing “Banana Balls”. These will be the key tool for gathering data, and these will provide the researchers the information on the purchasing power of consumers and preferences for the proposed product, and to calculate demand and supply analysis.
The researchers prepared and submitted an online survey questionnaire to their consultants and research teacher to validate it.
The online survey includes the respondents’ profiles (names are optional), as well as how much it cost them to buy relevant products on the market and their concerns about the price they wish to pay.
Data Gathering Procedure
The proponents take time and effort to create their survey questionnaires. They sought help to ensure that the questionnaires were intelligible. After the questionnaires were approved and validated. The proponents distributed the survey questionnaire to one hundred (100) total individuals.
They distributed online survey questionnaires to gather data and determine whether respondents willing to buy or sell the product. They sent the link of their survey questionnaire to their respondents through social media. After the proponents completed the 100 respondents the google forms automatically generate the result then the information gathered was examined.
Demand
Demand is an economic principle referring to a consumer’s desire to purchase goods and services and willingness to pay a price for a specific good or service. Holding all other factors constant, an increase in the price of a good or service will decrease the quantity demanded and vice versa (Investopedia staff, Charles Potters 2021).
To determine the demand for the proposed product, cautious analysis is necessary and required. To determine the number of customers who have purchased afternoon snacks for the previous years. The proponents used an online survey questionnaire to 100 individuals. Proponents utilized this to estimate Banana Balls’ expected demand.
Major Consumer of the Product
Market segmentation is an increasingly important part of a strong marketing strategy and can make all the difference for companies in competitive market landscapes, such as e-commerce. When up against a range of online competitors, effective communication is the best way to differentiate your business. Market segmentation offers an opportunity to pinpoint exactly what messaging will drive your customers to make a purchase (Thomas,2020).
Our target customers are those who enjoy sweet snacks. We wish to sell our banana balls to a variety of people, including children, teenagers, and adults. Although these banana balls may not be the greatest product on the market, we guarantee the quality and taste of our food.
SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is an incredibly simple, yet powerful tool to help you develop your business strategy, whether you’re building a startup or guiding an existing company (Parsons,2021).
Strengths
Strengths are internal, positive attributes of your company (Parsons,2021). Strength refers to the things that your organization does particularly well or in a unique characteristic that distinguishes you from your competitors particularly in determining the feasibility of the business. The following are the strengths of IN B Enterprise.
Low Price. Someone who sees a low price may feel they will get a better deal. Buyers are frequently duped by stores promoting ‘reduced price’ merchandise. As a new entrant in the business, Banana balls have a low price of Php 20.00 per pack. The cost of the product is reduced because the ingredients are locally found.
Availability of Resources Locally. The availability of resources locally provides us an advantage to readily raw materials for the product.
Skilled Workers. Personnel has the skills and experience to do the job and keep the clients happy and satisfied. To help the business grow, the proponents will look for people who are skilled and capable of producing the proposed product.
Unique Brand Name. Developing a strong brand identity is essential. A strong and unique brand name is the greatest asset of a business, this will attract the customers and pique the client’s interest in our product.
In demand. The demand is high because food is food. It will always be consumed and the demand just keeps increasing.
Weaknesses
Weaknesses are negative factors that detract from your strengths (Parsons,2021). Weaknesses, as strengths, are intrinsic aspects of our organization, but concentrate on our staff, tools, structures, and processes. Dream of what we should change and what kind of activities we can stop. The following are the weakness of IN B Enterprise.
Lack of Experience. Though the proponents will be new graduates of Accountancy, Business, and Management Strand, they are lack experience and profitability can diminish, leading to slower production times, higher operational expenses, and other performance issues.
Limitation of funds. A business relies greatly on its sales, we must sell products, get paid, reload inventories, expand and grow. To shore up our resources our current assets must be greater than our liabilities.
Customer Dissatisfaction. Customers will not patronize brands they do not trust, therefore consumer unhappiness has far-reaching consequences. This may damage more than just sales and revenue and lead to negative brand reputation and have a long-term impact on business.
Opportunities
Opportunities are external factors in your business environment that are likely to contribute to your success (Parsons,2021). In every endeavor, there are opportunities. The company needs to improve to be more successful in this line of business. The opportunities of the enterprise are as follows.
High Exposure Location. Location is very important for businesses because they rely on a great deal for visibility and exposure to their target markets.
Business Expansion. Business Expansion is a stage where the business reaches the point for growth and seeks out additional options to generate more profit. Expanding is essential in running a business without continued growth, operations will stagnate.
Threats
Threats are external factors that you have no control over (Parsons, 2021). They’re anything that could cause damage to your organization, venture, or product. This could include anything from other companies (which might interfere with your market) to supply shortages (which might prevent you from manufacturing a product. The threats are both negative and external. The following are the threats to the proposed business.
Potential Entrants. These are new or existing organizations that are not currently competitors, but could potentially enter the market that your business operates in. Some entrants are related to the product and or maybe a threat to the business because there are instances that consumers will like it better than the proponent’s product.
Poor Brand or Reputation. Finding better ways to manage enterprise brands or reputations can help ensure that businesses have a higher chance of succeeding. Customers who have had a bad experience in the past, bad press, and poor word-of-mouth reviews are all issues that businesses should avoid. Businesses rely on reviews online and should be treated as an important channel.
Competition. The potential actions of a competitor are the most common threat in a business context. The proponents considered the high rate of competition, especially in a food business.
Marketing Strategies and Programs
A marketing strategy is important for all businesses because it clearly outlines how they will find new customers and promote their products and services to ultimately get more sales. You can use the marketing strategy as a stand-alone tool, as part of a marketing plan, or as part of a business plan all with slightly different components. The marketing strategy section of your business plan builds upon the market analysis section. The marketing strategy outlines where your business fits into the market and how you will price, promote, and sell your product or service. It can also act as a source of important information for potential investors who are analyzing your business ( Gregory,2020).
A good marketing strategy will help you in defining clear, attainable, and measurable marketing goals. Marketing has an impact on how you manage your business.
Product
The product itself is a method of marketing to generate sales. The product fills an important role in marketing because it is the core of the exchange.
IN B Enterprise product will be introduced to the market as “Banana Balls”, categorized as a food product. The ingredients are Saba Banana, Cheese, Cocoa Powder, All-purpose flour, and Condensed Milk. It comes with labels that include the product name, manufacturer, ingredients, and contact information. This way the consumers can easily identify the proponent’s product.