MARKET FEASIBILITYINTRODUCTIONThe heart of your business lies in its marketing. It involves getting the right product at the right price, promoted using the right messages/media and sold in the place (the 4ps). At the core of affective marketing is the requirements to satisfy customers needs precisely, the closer the marketing mix of product, price, place, and promotion are to customers requirements, the more likely is that a business will be successful. Marketing has to determine what customers need now and anticipate future needs in order to design appropriate products to meet these needs.The topic covers the following aspects; demands, supplies, demand and supply gap analysis, marketing programs and the projected sales.Every business is practically aspiring for productivity but practicality. In order to last in the business world, the first thing to take into consideration is the target market. The customers will be the key factor to achieve the objectives of the organization. Finding opportunities and spotting the right target market are both important in establishing a business. Knowing customers demand and supplying them with the right product at reasonable prices.

GENERAL OBJECTIVES To determine the feasibility of the business. To analyze the market demand and supply of the business. To define the target customer of the business through market segmentation. To determine the marketing strategy to be applied in the business. To determine the market potential of the business.

SPECIFIC OBJECTIVES:

INDUSTRY ANALYSISGrocery stores are traditional destination for consumers looking to stock up on many of the items they use on a day-to-day basis. The need for shoppers to replenish their pantries and refrigerator typically results in frequent trips to the supermarket. Consumers typically have a variety of options to choose from when deciding where to purchase items. Not only do they often have a choice between competing neighborhood supermarkets, but they can also shop at alternative retailers. Because of this, individuals, parents or mostly sari-sari store owner find supermarket or grocery stores at great convenience. The rise of merchandise industries as often been linked with urban development, this kind of notion can be typically seen in Filipinos. A growing wholesale retail industry

Over the past decade, the countys retail industry has grown significantly, benefiting from the steady economic and population growth, higher disposable incomes, and increasing urbanization. This trend is expected to continue growing forward.

KEY SUCCESS FACTORS IN THE INDUSTRYIn a company such as Puregold Supermarket, innovation is important because competition in the merchandising industry is very tight. Product innovation is a must as it add value to the company since products are being offered to the market for attention, acquisition or consumption that may satisfy the need and want (e.g. packaging, promotional tools). In this case products innovation is done to get the attention of customers and most especially the non-customers market share of their competitors.It is imperative for Puregold Supermarket, being in the merchandising industry, to offer its customers with good quality products. They grow accustomed, should be maintained and standardized, to keep the customers hooked and coming back for more.Pricing also is an important to consider given that the largest target market of Puregold Supermarket is considered to be price sensitive. Any sudden and drastic changes in price might push the customers to find other grocery stores. And in the industry that Puregold Supermarket is in, there are many others that can provide Puregold customers with other alternatives. It must then be ensured that products of Puregold are priced in a way that highlights value at the same time, still affordable to its customers.

RESEARCH METHODOLOGY

The researchers used different techniques in gathering information to support the study.

A. SURVEYThe proponents conducted survey among 400 respondents to get their opinion regarding the establishment of PUREGOLD here in Talavera. These respondents came from the total number of population of different barangays in Talavera, Nueva Ecija. The survey was distributed among individual household and Sari-Sari store owners.B. SAMPLING TECHNIQUESThe researchers used Random Sampling Technique to gather information from the target market. Through the use of Sloven Formula, proponents came up with the number of respondents which is 400.Slovens formula:n = where:n=sample sizeN =sampling populatione=margin of errorComputation for the sample sizeThe population of Talavera last 2013(latest) is 117,752 as total. To compute for the sample size of this population we used a 5 margin of error. Using Slovens formula:n = n = =398.64By using the Slovens formula we came up to the sample size of 399 respondents which is rounded up but to increase our level of confidence we made it 400 respondents to be exact.C. SURVEY QUESTIONNAIREIn order to have an accurate information data, the researchers agreed to used questionnaire.The researchers used the check-list format. Questions are made for the respondents in order to get their personal opinions and willingness regarding the proposed project. The group provided 400 copies of survey questionnaire written in English language.D. INTERVIEWThe researchers interviewed relevant people who is relatively fitted to the study in addition to the information gathered in survey questionnaires. It includes individual household and Sari-Sari store owners.E. RESEARCHIn conducting the study, the proponents used libraries, internet and websites as an additional source of information for the project.

MARKET SEGMENTATIONSEGMENTATION

DEMOGRAPHIC

Gender:Male, Female

Education:All types of educational attainment

LIFE STAGE

Age:15 55 years old

Status:Single, Married, Separated, Widowed

GEOGRAPHIC

Individual Household and Sari Sari Store owner operating in Talavera

PSYCHOGRAPHIC

Social Class:Middle Class (C-Class) and Lower Class (D-Class)

Lifestyle:These are individuals whose purchasing decision is made upon its personal and family needs and consumer preferences in terms of a Sari Sari Store Buiness.

Personality:HousewifeStudentsEmployedUnemployed

BEHAVIORAL CHARACTERISTICS

PriceQuantityQualityConvenience

MARKETING STRATEGYThe most critical element of Puregolds success will be its marketing and advertising. Supermarkets or grocery stores serve the entire purchasing population of its geographical area but focusing on customers who need to purchase items with lower cost and a wide variety of commodities. In order to capture customers. Many of the initial customers will be drawn to the unique nature of the store and will then have the opportunity to realize the cost savings of Puregold. Puregold will also use Tarpaulin in its introductory stage as well as transit advertising, which means the use of vehicles to carry the advertising materials for the customers to be aware of the existence of the proposed business. Puregold will also reach out to different charitable institutions such as orphanage, churches and organizations. Help will be extended to those chosen charity by means of goods and financial help.

MARKETING MIX STRATEGYPRODUCT STRATEGYPuregold Talavera engages in retail of sale of food and non-food products. It offers food products such as dairy products, meat and sea food products, vegetables and fruits, beverages such as wines and liquir, and other products used for personal consumption; and non-food products including clothing, shoes, household chemicals, appliances, toys and sports items. These food and non-food products are arranged in shelves corresponding to its uses and consumption.PRICING STRATEGYPLACE/DISTRIBUTION STRATEGYLocation is one of the major factors to be considered in starting up a business. It must be assured that it is accessible to the target market. If location is later found to be incompatible to the situation as to give consideration to its target market, it may lead the company to failure. Right choice of location means reaching your target customers and you respond correctly to their market needs. Puregold Talavera will be located in an open area at blank street, Matias, Talavera, Nueva Ecija in front of the Basketball Court and beside Friendship Supermarket. (Kulang pa)

PROMOTION STRATEGY

TV ADVERTISEMENT

Puregold will use TV Advertisement that could attract and encourage consumers to patronize their products. One way to increase brand popularity is to use an effective endorsers. Eat Bulaga host Vic Sotto and Joey De Leon are the endorsers of Puregold because they are well-known comediennes and has the ability to portray different roles and characters effectively.

BILLBOARDS/POSTERS/TRANSIT MEDIA/FLYERS

As a franchisee of Puregold, outdoor advertisement like billboards, posters, transit media and flyers are taking considerations to grab attention of consumers and potential customers; it can also be cost effective for it reaches thousands of people of Talavera on their daily basis, and message is delivered continuously and frequently.

SALES PROMOTION

Sales promotion is another tool used by Puregold in capturing the attention of their customers such as giving up to 50% off products, promo packs and bonuses.

RAFFLE PROMO

Raffle ticket is another way to urge thecustomers to buy products. Customer will purchase an additional product until they avail a raffle ticket. This strategy has a great impact on the company whereas it create an increase in demand of a product.

COMPETITORS PROFILEMAIN COMPETITORSDIRECT COMPETITORSI. CVC- An air-conditioned supermarket which has TV monitors endorsing their products inside the store. They are offering different variety of products such as groceries, meats, fruits and vegetables and some appliances. CVC have DFL (Definite Fun Lifestyle) inside the store in which they are offering garments, accessories and other personal uses. One of their weakness is that the most of their products are quite expensive.II. Savemore Supermarket- An air-conditioned Supermarket with a wide and convenient to shop commodities. They play quite music for their customers. It is also like one stop shop because they are not offering grocery products but also vegetables, fruits, meats, fishes, appliances, garments, cosmetics and they also have Watsons inside. They have a comfort room inside the building for their customers, they are also offering different cards for discount. The said supermarket has many customers because they offered variety of products. The groceries they offering is more expensive than other grocery/supermarket near them.III. Friendship Supermarket Friendship are offering school supplies/ office supplies, toys/stuff toys, furniture, accessories, garments, kitchen utensils, gadgets, and a little car toy where a kid can ride it to the corner of the building. Friendship Supermarket is a second floor and have elevator when you can go up and down. The size of it is wide but dont have air condition. They have many customers, because the price of their products is cheap. Some of the retailers bought their commodities here to resale.IV. Myra Grocery Store Myra is not a supermarket but only a grocery store. The grocery store is not too large in terms of space inside. Not too convenient to shop because they only have two (2) counters and they only have few electric fans. They offered grocery products. Even thought they have a little problem to their equipments or the satisfaction of the customers, they also have many customers. It is compatible to those retailers who buy commodities or their business because the price of their products is cheap.V. 7MM Grocery Store Some of the time, when we say grocery stores the customers are one who get the products they buy. But in this kind of grocery store, they are the one who gives you the products you want to buy because the customers are not allowed to go inside. The products they sell is limited not like the others. They have only few customers. The price of their products is cheap you would see this grocery store at the front of Friendship and beside 7MM Drugstore.

COMPETITIVE EDGEPuregold is currently one of the largest and fastest growing hypermarket and supermarket chains in the country. With the success of Puregold, competitors might decide to replicate the companys business model. Puregolds current scale, extensive experience and established brand name are some of the advantage over other players. Puregold focuses on resellers; targeting the lower income segments.

BARRIERS TO ENTRY BARGAINING POWER OF CONSUMERSThe prices of the products and services have become the standard of how consumers would want to spend on groceries. Anything above the price range would be considered expensive, while anything lower would mean its cheap. Most consumers think that the prices by the grocery stores are reasonable and affordable because they offer value products and other pricing strategies. This just goes to show that the consumers in this industry really do not have much bargaining as they think they do.

BARGAINING POWER OF SUPPLIERSThis force represents the power of suppliers that can be influenced by major grocery chains and that fear of losing (influenced by major) their business to the large Supermarket. Therefore, this consolidates further leading positions of stores like Puregold in negotiating better promotional prices from suppliers that small individual chains are unable. In return, Philippine based suppliers are also threatened by the growing ability of large retailers source their products from abroad at cheaper deals. The forces of competitive rivalry have reduced the profit margins for Supermarket chain and suppliers.

THREAT OF SUBSTITUTE PRODUCTSGreat substitution is able to reduce demand for a particular product, as there is a threat of customers switching to the alternatives. In the grocery industry this can be seen in the form of product for product or the substitute of needand is further weakend by new trends.

EXTERNAL ASSESSMENTPESTEL ANALYSISPolitical FactorsFor employment legislations, the government encourages wholesalers and retailers to provide or mix of job opportunities from flexible, lower-paid and locally-based jobs to highly skilled, higher paid and centrally-located jobs. Puregold Supermarket understands that wholesaling and retailing has a great impact on jobs and standard living of people within the community being on inherently local and labor-intensive sector. Puregold employs High School Graduate that could be in qualified for the position such as cashier, bagger, clerk and others.Political factors include possible difficulties in obtaining regulatory or local government approvals and distributing or transporting inventories. Puregold also experienced difficulty in building its brand and location. While the risk maybe substantial, PUREGOLD believes that the risk are worth taking given its growth potential.Economic FactorsEconomic factors are of concern of PUREGOLD because they are likely to influence demand, cost, prices and profits. Increase in unemployed people create decrease demand for many goods, adversely affecting the demand required to produced such goods. These economic factors are largely outside the control of the company, it affects food market, and are exposed to market concentration risk. PUREGOLD overcome this economic factors by improving standing living of people through employment.Social/Cultural FactorsFilipino customers considered one-stop and bulk shopping, which is due to a variety of social changes. Therefore, PUREGOLD increase the amount of non-food items available for sale such as kitchen utensils, household appliances, and apparels. Also, the types of goods and services demanded by consumers is a function of their social conditioning and theyre attitudes and beliefs. These are the reasons why PUREGOLD focuses towards the own-label share of marketing strategy which can drive costs of the business.Technological FactorsAnother major macro-environmental variable to consider is the development of new technologies which have great benefit both in customers and the company: customer satisfaction rises because goods are readily adapted new technologies such as Electronic Point of Sale (EPOS), Electric Funds Transfer Systems (EFTPOS) and Electronic Scanners.Environmental FactorsAs a manager of a company, various responsibilities will occur, such as responsibility to its employees, suppliers, and the company responsibility to its society. The major societal issue threatening food industry has been environmental issues, a key for company to act in a socially responsive way. PUREGOLD sets various regulation and corporate governance in order to accompany this corporate social responsibility.

TECHNICAL STUDYINTRODUCTION

OBJECTIVES

A. PRODUCT DESCRIPTIONPRODUCT NUMBERTITLEDESCRIPTION

1AAppliances

1BFurnitures

2ALinen

2BSoft and Hard CandiesLocal ChocolatesMallows/Jellies

3AImported Cookies and BiscuitLocal Cookies and Biscuit

3BNative BiscuitWafersPretzels

4ALocal SnacksImported Snacks

4BPopcornDried mangosRaisins

5ALocal SnackNuts

5BCanned VegetablesCanned FruitsNative Preserves

6ACanned Meat

6BCanned Fish

7AInstant Noodles

7BCup NoodlesSoupPansit

8ACatsupSaucesPasta

8BSeasonings

9AToysLadies WearMens Wear

9BBagsFootwear

10ABaby Diaper

10BAdult DiaperAlcoholFeminine CareCottonBaby Toiletries

11ADental Care

11BHealth Care

12ABath Soap

12BLaundry

13AHousehold Maintenance

13BTissue Disposables

14ADoy and Tetra Packed Juices

14BCanned JuicesPowdered Iced TeaPowdered Juice

15ACreamerCoffee

15BChoco DrinkRegular Milk

16AAll-purpose creamCulinary MilkCerealsOats

16BBread fill

A.1 PRODUCT PRICING

A.2 PRODUCTION/OPERATIONAL PROCESSINDIVIDUAL HOUSEHOLDSARI-SARI STORE OWNERRETAILERDISTRIBUTOR (INTERMEDIARIESMANUFACTURER

A.3 FLOW CHART OF SERVICERECEIVINGPAYMENTPUNCHING THE PRODUCTFALLING IN LINEACCOMODATION AND PRODUCT SELECTIONGREETINGS

PROCESS FLOW DIAGRAMSTEP 1: Anyone who walks in by the store is considered as a customer and will be treated special and welcomed by the employees with a smile and respectSTEP 2: Salesperson will accommodate the customer and will guide her to her destination and tell her where she can get the productSTEP 3: After the selection of the products, the customer will fall in line to the counterSTEP 4: The cashier will punch the productSTEP 5: The customer will pay the priceSTEP 6: After accepting the payment, the bagger will place the products according to the customer wants, either a box or a paper bag

B. BUSINESS PROCESSThe start of the stores operation will be 8:00 am in the morning to 6:00 pm in the afternoon, Monday to Sunday. The personnel and assigned salesperson must be on time, at least thirty (30) minutes before the opening of the store.

C. BUSINESS LOCATIONC.1 Vicinity MapC.2 Floor Plan

D. MACHINERIES AND EQUIPMENT

E. OFFICE SUPPLIES

F. STORE UNIFORM

G. UTILITIES REQUIREMENTS