CHAPTER II

MARKETING ASPECT

This chapter will discuss all the marketing aspects of the cafeteria. The discussion will

include the industry profile, description and uses of the product, consumer behavior, demand

analysis, projected demand, supply analysis, projected supply, demand and supply consolidation,

other market consolidation, competitors, market share, purchases, projected purchases, marketing

strategy, promotional strategy, pricing strategy, cost per unit, selling price and terms of sales.

Industry Profile

Food is a basic necessity. The industry which deals with preparing food items/products

refers to the food service industry. The food service industry is and will always remain in high

demand because of its genre. These industries include restaurants, fast foods, school and hospital

cafeterias, catering operations, food carts and food trucks etc. Restaurants and fast foods mainly

contribute to the food service industry.

Restaurants and fast foods are meant for same services except that restaurants offer a

large menu including a variety of cuisines as compared to fast foods, which usually offers a

small menu with quick service. Another difference between a restaurant and fast food is,

restaurants offer meals that are cooked and prepared and is eaten at the premises while fast food

usually is pre-cooked meals or serves meals that are cooked easily. Diners may eat it inside the

store or they can order their food to-go. In fast foods you usually pay before eating unlike full

service restaurants.
Description and Uses of the Product

Most people would agree that, like having a good taste, good nutrition food are important

to ones well being, since many hours are spent bearing weight on them. Yet people frequently

buy delicious yet has low-nutrition meals depends on price, or other reasons, and then keep eating

it till they are lost interest, because they just eat the same food many times.

Bad nutrition can be prevented or reduced from buying healthy meals and proper exercise.

Our cafeteria also can protect us from direct contact on germs. Thats why as being engage in

this business, we are offering different meals that are suited to anybody.

Consumer Behavior

The cafeterias consumers are those individuals who make food decisions everyday based

on their need and wants. In short, the target market of the cafeteria is everyone because everyone

needs to eat. The researchers need to consider the factors that affect or contribute to the buying

behavior in order to satisfy the customers needs and wants and also to help them identify the

best marketing strategy to promote the business.

The study of consumer behavior plays an important role in marketing which need to

study in how individuals, groups and organizations select, buy, use and dispose of goods,

services, idea or experiences to satisfy the needs and wants of the consumers. Factors that may

influence consumer purchase decisions are the cultural influences, social influences, personal

factors and psychological factors. Those of the factors are vital when using them to apply as the

marketing strategies. It affects peoples life in a way that their perspectives in my buying habits
and in decision making were changed. Also, consumer behavior shows how consumers are

motivated in buying preferences and how to come up with a better decision strategies differ

between products that differ in their level of importance or interest. As a result, this impact will

surely bring about certain changes in behaviors based on positive or negative aspects of learning,

which more explicitly, positive or negative experiences in a situation that they will encounter in

the market place.

Demand Analysis

Table 2.0 shows the target market of the proposed cafeteria. Based on the summary of

our survey results, we prefer that 22% of the total population is in the age bracket of 5-15 years

old, 27% of the total population is in the age bracket of 16- 25 years old, 35% of the total

population is in the age bracket of 26- 35 years old, and 16% of the total population is in the age

bracket of 36 years old- above.

Table 2.1

Profile Total % Equivalent

Population

Students 37, 528 22% 8, 256

Workers 37, 528 27% 10, 133

Bystander 37, 528 35% 13, 135

Other Residences 37,528 16% 6, 004

Projected Demand

Projected demand is the activity of estimating the quantity of a product or service that

consumer will purchase. Demand forecasting may be used in making pricing decisions, in

assessing future capacity requirements or in making decisions or whether to enter a new market.

Table 2.2.1

Year Population Growth Rate Total Population

(Students) (1.7% annually)

2015 7,179 122 7,301

2016 7,301 124 7,425

2017 7,425 126 7,551

2018 7,551 128 7,679

2018 7,679 130 7,809

Note: 22% of the total population is in the age bracket students

Table 2.2.2

Year Population Growth Rate Total Population

(Workers) (1.7% annually)

2015 8, 811 352 9,163

2016 9,163 367 9,530

2017 9,530 381 9,911

2018 9,911 396 10,307

2019 10,307 412 10,719

Note: 27% of the total population is in the age bracket of workers

Table 2.2.3

Year Population Growth Rate Total Population

(Bystander) (4% annually)

2015 11, 422 457 11,879

2016 11,879 475 12,354

2017 12,354 494 12,848

2018 12,848 514 13,362

2019 13,362 534 13,846

Note: 35% of the total population is in the age bracket of bystander

 Table 2.2.4

Year Population(Residences) Growth Rate Total Population

(4% annually)

2015 5, 221 209 5,430

2016 5,430 217 5,647

2017 5,647 226 5,873

2018 5,873 235 6,108

2019 6,108 244 6,352

Note: 16% of the total population is in the age bracket of residences

Supply Analysis

A detailed review of the inputs and outputs of a process that is employed to assess how

the available quantity of a product is affected by changes in demand, input factors by changes in

demand and production technique. Supply analysis is often used to make key policy

decisions by manufacturing business managers since it gives them insight into how shifts in

production are likely to influence market supply.

 Table 2.3

Silogs:

Products 2015 2016 2017 2018 2019

Tapsilog 50.00 55.00 60.00 65.00 70.00

Bangsilog 50.00 55.00 60.00 65.00 70.00

Chicksilog 55.00 60.00 65.00 70.00 75.00

Hotsilog 35.00 40.00 45.00 50.00 55.00

Liemposilog 60.00 65.00 70.00 75.00 80.00

Porksilog 50.00 55.00 60.00 65.00 70.00

 Longsilog 40.00 45.00 50.00 55.00 60.00

Lugaw:

Products 2015 2016 2017 2018 2019

Lugaw Plain 10.00 12.00 14.00 16.00 18.00

Lugaw with Egg 16.00 18.00 20.00 22.00 24.00

Goto 20.00 22.00 24.00 26.00 28.00

Goto with Egg 26.00 28.00 30.00 32.00 34.00

Beverages:
 Products 2015 2016 2017 2018 2019

Coke 8 oz. 8.00 9.00 10.00 11.00 12.00

Coke Litro 21.00 22.00 23.00 24.00 25.00

Pepsi 8 oz. 8.00 9.00 10.00 11.00 12.00

Pepsi Blue 8 oz. 8.00 9.00 10.00 11.00 12.00

Projected Supply

When population grow, the supporters of target market need to increase its supply to

satisfy the increasing needs of the customer by projecting supply. The projected supply for five

years increase year by year due to the increasing demand of the customers.
 Table 2.4

Tapsilog 7,300

Bangsilog 4,380

Chixsilog 6,570

Hotsilog 2,920

Liemposilog 6,570

Porksilog 6,570

Longsilog 2,920

Tocilog 3,285

Lugaw 53,620

Lugaw w/ egg 45,870

Goto 50,250

Goto w/ egg 42,160

Coke 8 ounces 32,850

Coke Litro 2,190

Pepsi 8 ounces 30,610

Demand and Supply Consolidation

Table 2.5

Year Demand Supply Gap

2015 37, 528 20, 500 17, 028

2016 43, 157 30, 000 13, 157

2017 49, 631 40, 500 9, 131

2018 57, 076 50, 000 7, 076

2019 65, 638 60, 000 5, 638

Competitors

Any person or entity which is a rival against another. In business, a company in the

same industry or a similar industry which offers a similar product or service. The presence of one

or more competitors can reduce the prices of goods and services as the companies attempt

to gain a larger market share. Competition also requires companies to become more efficient

in order to reduce costs.

 Direct Competitors:

Gemas Lugawan
Olys Tapsihan
Matys
Ate Fes Kitchen
Reymon Eatery
Tapsilogan ni Mama Leng

Indirect Competitors:

Chowking
Inasal Chicken Bacolod
Iskul Buko
Hot Chicks
Siomai House
Hen Lin,
Dimsum Frito Express
Oyster Bar - The Pearl Manila
Seven Seas Cafe - The Pearl Manila

Market Share

The percentage of an industry or market's total sales that is earned by a particular company

over a specified time period. Market share is calculated by taking the company's sales over the

period and dividing it by the total sales of the industry over the same period. This metric is used

to give a general idea of the size of a company to its market and its competitors.
 Table 2.6

15%

55%
30%

Silogs Lugaws Beverages

Purchases

Table 2.7

Silogs Rice Egg Hotdog Tapa Porkchop Tocino Longganisa Chicken Liempo

Lugaws Rice Egg Pork

Beverages Coke Coke Pepsi Pepsi Blue

Litro
8 oz 8oz 8 oz

Projected Purchases

Table 2.8

Silogs:
 Raw Materials Price Quantity Total Price

Rice 1, 600 per sack 40 sacks 64, 000.00

Egg 60 per dozen 30 dozens 1, 800. 00

Hotdog 182 per kilo 30 kilos 5, 460. 00

Tapa 235 per kilo 50 kilos 11, 750. 00

Porkchop 182 per kilo 50 kilos 9, 100. 00

Tocino 165 per kilo 30 kilos 4, 950. 00

Longganisa 140 per kilo 30 kilos 4, 200. 00

Chicken 160 per kilo 50 kilos 8, 000. 00

Liempo 180 per kilo 20 kilos 3, 600. 00

Total 112, 860. 00

Lugaws:

Raw Materials Price Quantity Total Price

Rice 1, 600. 00 per sack 5 sacks 8, 000.00

Egg 60 per dozen 10 dozens 600.00

 Pork 175 per kilo 10 kilos 1, 750. 00

Total 10, 350. 00

Beverages:

Raw Materials Price Quantity Total Price

Coke 8 oz. 6.65 per piece 100 pieces 665. 00

Coke Litro 17.35 per piece 50 pieces 867. 50

Pepsi 8 oz. 5.50 per piece 50 pieces 275.00

Pepsi Blue 8oz. 5.50 per piece 50 pieces 275. 00

Total 2, 082. 50

Total Projected Purchases = 125, 292. 50

Marketing Strategy

The first strategy is market penetrate. The cafeteria is committed to improving the

customer experience in ways they believe few in the industry have done. This business plan to

execute a broader marketing strategy, not simply to build name recognition and awareness but

also to build deeper relationships with the target customers whom they believe will help promote
the brand. The next strategy is market development. The expansion into Filipino has made them

subject to Filipino economic conditions, particularly currency exchange rate fluctuations and

political factors, either of which could have an adverse effect on the financial condition and

results of operations. If the cafeteria, expands into other foreign markets, will be subject to other

foreign economic conditions and political factors including taxation.

Promotional Strategy

Proper promotion of goods can increase sales and lead to higher business profits.

Products can be promoted through a variety of methods, which typically fall into two categories.

Promotion can be based on a "push strategy," which utilizes promotional activities and

employees to establish product demand, or a "pull strategy," which encourages customer

purchases through advertisements. The most successful strategies tie the method of promotion to

the type of product for maximum sales and business impact. To reach the target customer group,

we use a mix of the following marketing methods: radio, billboards, social networking, television

and in-store sampling. Expect to continue to increase media impressions as they strive to build

deeper relationships with their customers. We believe marketing represents an opportunity to

create additional competitive advantage and brand awareness.

Pricing Strategy
 A penetration pricing strategy is used as a loyalty-building or market-entry tool.

The penetration pricing strategy offers a high-quality product at a much lower than expected

price. This combination helps the business enter a new market even when strong competitors

exist, and it builds loyalty with new customers from the beginning. The penetration strategy can

dramatically increase the lifetime value of customers, because they're "hooked" with the

outstanding first product offering and--assuming future products are just as high quality--they are

more willing to buy additional products from the company long into the future.

Cost per Unit

Table 2.9

Silogs:

Products Unit Cost

Tapsilog 35.00

Bangsilog 35.00
 Chicksilog 35.00

Hotsilog 28.00

Liemposilog 42.00

Porksilog 35.00

Longsilog 30.00

Lugaws:

Products Unit Cost

Lugaw Plain 4.00

 Lugaw with Egg 9.00

Goto 11.00

Goto with Egg 16.00

Beverages:

Products Unit Cost

Coke 8 oz. 6.65

Coke Litro 17.35

Pepsi 8 oz. 5.50

 Pepsi Blue 8. oz 5.50

Selling Price

Table 2.10

Silogs:

Products Selling Price

Tapsilog 50.00

Bangsilog 50.00

Chicksilog 55.00

Hotsilog 35.00
 Liemposilog 60.00

Porksilog 50.00

Longsilog 40.00

Lugaws:

Products Selling Price

Lugaw Plain 10.00

Lugaw with Egg 16.00

Goto 20.00
 Goto with Egg 26.00

Beverages:

Products Selling Price

Coke 8 oz. 8.00

Coke Litro 21.00

Pepsi 8 oz. 8.00

Pepsi Blue 8. oz 8.00

 Terms of Sales

I. Definitions
In this document the following words shall have the following meanings:
1. "Buyer" means the organization or person who buys Goods.
2. "Goods" means the articles to be supplied to the Buyer by the Seller;
3. "Intellectual Property Rights" means all patents, registered and unregistered
designs, copyright, trademarks, know-how and all other forms of intellectual
property wherever in the world enforceable;

II. General
1. These Terms and Conditions shall apply to sales of Goods by the Seller to the
Buyer to the exclusion of all other terms and conditions referred to, offered or
relied on by the Buyer whether in negotiation or at any stage in the dealings
between the parties, including any standard or printed terms tendered by the
Buyer, unless the Buyer specifically states in writing, separately from such
terms, that it wishes such terms to apply and this has been acknowledged by the
Seller in writing.
2. Any variation to these Terms and Conditions (including any special terms and
conditions agreed between the parties) shall be inapplicable unless agreed in
writing by the Seller.

III. Price and Payment

1. The price shall be the Recommended Retail Price less agreed discount, unless
otherwise agreed in writing between the parties. The price is exclusive of VAT
or any other applicable costs.

IV. Description
Any description given or applied to the Goods is given by way of identification only
and the use of such description shall not constitute a sale by description. For the
avoidance of doubt, the Buyer hereby affirms that it does not in any way rely on any
description when entering into the contract.
 V. Sample
Where a sample of the Goods is shown to and inspected by the Buyer, the parties
hereto accept that such a sample is representative in nature and the bulk of the order
may differ slightly as a result of the manufacturing process.
VI. Delivery
1. Unless otherwise agreed in writing, delivery of the Goods shall take place at the
address specified by the Buyer on, or as close as possible to the date required
by the Buyer. The Buyer shall make all arrangements necessary to take delivery
of the Goods whenever they are tendered for delivery.
2. If the Seller is unable to deliver the Goods because of actions or circumstances
under the control of the Buyer, then the Seller shall be entitled to place the
Goods in storage until such times as delivery may be effected and the Buyer
shall be liable for any expense associated with such storage.

VII. RISK
Risk in the Goods shall pass to the Buyer upon receipt of the goods. Where the Buyer
chooses to collect the Goods itself, risk will pass when the Goods are entrusted to it or
set aside for its collection, whichever happens first.

VIII. TITLE
Title in the Goods shall not pass to the Buyer until the Seller has been paid in full for
the Goods.

IX. RETURN OF UNUSED GOODS

1. All goods are sold on a firm sale basis, i.e. the Seller will not take back any
goods not required or sold by the Buyer, unless otherwise agreed, in which case
the following terms apply.

X. LIMITATION OF LIABILITY
1. The Seller shall not be liable for any all loss or damage suffered by the Buyer
in excess of the contract price.
2. Nothing contained in these Terms and Conditions shall be construed so as to
limit or exclude the liability of the Seller for death or personal injury as a result
of the Seller's negligence or that of its employees or agents.

XI. INTELLECTUAL PROPERTY RIGHTS

 All Intellectual Property Rights produced from or arising as a result of the performance
of this Agreement shall, so far as not already vested, become the absolute property of
the Seller, and the Buyer shall do all that is reasonably necessary to ensure that such
rights vest in the Seller by the execution of appropriate instruments or the making of
agreements with third parties.

XII. FORCE MAJEURE

The Seller shall not be liable for any delay or failure to perform any of its obligations if
the delay or failure results from events or circumstances outside its reasonable control,
including but not limited to acts of God, strikes, lock outs, accidents, war, fire,
breakdown of plant or machinery or shortage or unavailability of raw materials from a
natural source of supply, and the Seller shall be entitled to a reasonable extension of its
obligations. If the delay persists for such time as the Seller considers unreasonable, it
may, without liability on its part, terminate the contract.

XIII. RELATIONSHIP OF PARTIES

Nothing contained in these Terms and Conditions shall be construed as establishing or
implying any partnership or joint venture between the parties and nothing in these
Terms and Conditions shall be deemed to construe either of the parties as the agent of
the other.

XIV. ASSIGNMENT AND SUB-CONTRACTING

The contract between the Buyer and Seller for the sale of Goods shall not be assigned
or transferred, nor the performance of any obligation sub-contracted, in either case by
the Buyer, without the prior written consent of the Seller.

XV. WAIVER
The failure by either party to enforce at any time or for any period any one or more of
the Terms and Conditions herein shall not be a waiver of them or of the right at any
time subsequently to enforce all Terms and Conditions of this Agreement.

XVI. SEVERABILITY
If any term or provision of these Terms and Conditions is held invalid, illegal or
unenforceable for any reason by any court of competent jurisdiction such provision
shall be severed and the remainder of the provisions hereof shall continue in full force
and effect as if these Terms and Conditions had been agreed with the invalid, illegal or
unenforceable provision eliminated.
XVII. GOVERNING LAW AND JURISDICTION
This Agreement shall be governed by and construed in accordance with the laws of
England and the parties hereby submit to the exclusive jurisdiction of the courts.