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University of San CarlosSchool of Business and Economics

Department of Accountancy

March 2, 2012


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The initiative to conduct this study on aninnovative product engagement involvingthe all-time favourite burger began whenthe proponents grew tired of eating thesame burger with the same taste andname on it.

INTRODUCTION


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General Objective:

To investigate and determine the

marketability of Chz It: Burger Joint inAyala Center Cebu.

STATEMENT OF THE RESEARCH OBJECTIVES


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Specific Objectives:

To identify customer preference withregards to:o Burger Featureso Burger joint set-up

To identify pricing strategy:o Customers willingness to spend o Costs and price of the products

STATEMENT OF THE RESEARCH OBJECTIVES


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EXISTING MARKET SITUATIONUses and Users of Product

The Identified CompetitorsChannels of Distribution used by CompetitorsCompetitors Product and their Prices

Promotional Activities of Competitors


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Uses and Users of Product

The users of the product are the Ayalacustomers.

Male 157 44%

Female 202 56%

Total 359 100%

Gend er of Respon dents

Majority of the respondents belong to thefemale gender.


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Respon dents w ho eat bu rgers

The survey showed that respondents are akin

to eating burgers.It can be seen that burgers are found to beeaten by the majority and will create a goodmarket.

YES 349 97%

NO 10 3%

Total 359 100%


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Respondents Burger Consumption

35% of the respondents eat burger at least

once a week.Some respondents even answered that theyeat burgers at more than once a week withthe reason of just liking to eat one.

Daily 10 3%

Once a week 123 35%

Once a month 102 29%

Others 114 33% Total 349 100%


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Respondents' preferred burger bun

Most preferred the Poppy Seed Bun, or theNormal Bun for their burgers with apercentage of 59%.

Poppy Seed Bun(Normal Bun)

200 57%

Wheat Bun 122 35%

Oatmeal Bun 26 7% Others 1 0% Total 349 100%


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Respondents' preferred burger patty

The respondents showed that they prefer tohave Beef as their burger patty as it was whatthey grew up with given the conventionalburger that most fast food restaurants usuallyoffer.

Beef 286 82% Chicken 56 16%

Tofu 5 1% Others 2 1%

Total 349 100%


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Respondents' preferred burger sauce

77% of the respondents prefer theconventional ketchup and mayonnaisesauce compared to the other sauces thatare available in the market.

Ketchup andMayonnaise

258 74%

BBQ Sauce 57 16%

Teriyaki 22 6% Others 12 3%

Total 349 100%


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Respondents' preferred non-meat add-ons

The Lettuce, Tomato, Coleslaw were thetop three choices followed by theCucumber, Onion, Pickles and Pineapple.

Lettuce 217 1 Tomato 194 2

Coleslaw 145 3 Cucumber 140 4

Onion 133 5 Pickles 95 6

Pineapple 95 6 Total 1019


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Respondents' preferred special add-ons

The top choice of the respondents ischeese, followed by Bacon, Egg and Ham.

Cheese 249 1

Bacon 208 2

Egg 191 3 Ham 173 4

Total 821


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Uses and Users of ProductRespondents' preferred Beverage

Softdrinks have gained most preference with a 66%

result, followed by Smoothies/Milkshakes and Shakeswith 15% and 14%, respectively.While some respondents answered Others andindicated that they want Water, Fruit Juices and Icetea for their beverage.

Softdrinks 229 66%

Smoothies/Milkshakes 53 15%

Shakes 50 14%

Others 17 5% Total 349 100%


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Respondents' side dish preference

Respondents prefer to have french fries as theirside dish. It had an 80% outcome as compared toBuffalo wings, Onion Rings and Tortilla with 11%,9% and 0%, respectively.

French Fries 279 80% Buffalo Wings 37 11% Onion Rings 30 9%

Others 2 1% Tortillas 1 0%

Total 349 100%


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The Identified Competitors

The researchers have identified fivecompetitors for its product in Ayala Center:

JOLLIBEEMCDONALDSKFCCASA VERDEFLAME IT! BURGER


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The Identified Competitors

Competitors LIKERT SCALE RANKING(1 hig hest , 5 lowest)

1 2 3 4 5

Jollibee 108 67 52 39 24

McDonalds 82 94 53 30 25

Flame It! Burger 45 29 22 113 65

KFC 39 49 125 35 33 Casa Verde 18 40 27 59 115

Resp ond ents ' Preferred B urger Restaurants in A yala

Most of the respondents prefer Jollibee as their top choicefor a burger restaurant followed by McDonalds, KFC,Flame It! Burger and Casa Verde.


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Channels of Distribution used by Competitors

The distribution channel used by thecompetitors is direct selling.

l lus tra t ion of th e Direct Sel ling Stra tegy u sed by Com peti tors


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Competitors Products and their PricesCompetitor Competitors Product Prices

MCDONALDS Chicken Fillet SandwichRegular burgerBig Mac Meal (with regular fries and drinks)Big Mac Meal (with large fries and drinks)Quarter Pounder with Cheese Meal (with regularfries and drinks)Quarter Pounder with Cheese Meal (with large friesand drinks

Double Cheeseburger Meal (with regular fries anddrinks)Double Cheeseburger Meal (with large fries anddrinks)Cheeseburger Meal (with regular fries and drinks)Cheeseburger Meal (with large fries and drinks)Burger McDo Meal (with regular fries and drinks)Burger McDo Meal (with large fries and drinks)McChicken Burger Meal (with regular fries anddrinks)McChicken Burger Meal (with large fries and drinksChicken Fillet Sandwich Meal (with fries and drinks)CheeseburgerCoke FloatFrench Fries (Regular, Large, Extra Large)

Softdrinks

Php 39Php 25Php 137Php 157Php 137Php 157Php 135Php 115

Php 84Php 104Php 66Php 88Php 135Php 115Php 50Php 39Php 25Php 25, 45, 56


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KFC

Chik'n Burger Wow Burger Chicken Fillet Burger Meal Chik n Fillet Meal (with regular drinks) Chicken Burger Meal (with regular fixin

and drinks) Zinger Zinger Meal (regular fixin and regular

drinks) Krushers Softdrinks Ice Tea French Fries (regular, large, bucket)

Php 48 Php 29 Php 50 Php 80 Php 65 Php 105 Php 135 Php 105 Php 135 Php 65, 75, 45 Php 29, 40 Php 29, 40 Php 29, 46, 58


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FLAME IT! BURGER Flame Burger Flame Burger with Cheese Flame Half Pounder Flame Half Punder with Cheese Bacon Mushroom and Cheese Burger Cream Cheese and Garlic Burger Garlic Mayo Burger Chili Con Carne and Cheese Burger Tuna burger French Fries Onion Rings Twistee Fries Potato Wedges (chili con carne and

cheese, cheese overload and garlicmayo) Ice tea Softdrinks in can and Dispenser Flame Burger with Cheese Meal (withregular fries and drinks) Flame Half Punder with Cheese (withregular fries and drinks)

Php 78 Php 88 Php 115 Php 125 Php 108, 145 Php 95, 132

Php 95, 132 Php 95, 132 Php 69 Php 37 Php 40 Php 45

Php 58

Php 23, 25 Php 30, 23, 25 Php 145 Php 179


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CASA VERDE Burger BitesBig Bang BurgerEx calibur BurgerSwiss Mushroom BurgerChicken BurgerCasa Burger Classic

Php 475Php 377Php 228Php 198Php 178Php 195


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Promotional Activities of Competitors

Jollibee, McDonalds and KFC are large fastfood chains. Currently, they are usingtelevision advertisement and posters inpromoting their product.

The Local competitors such as Flame It! Burgerand Casa Verde have also used posters ,

internet (e.g. Facebook page) and print ads tocater to local citizens.


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Supply Data for the past 5 years

Year Supply2011 75,1172010 73,5222009 72,7872008 70,6032007 69,897

Quantitative Supply Data for the past 5 years

The table shows the estimated quantitativesupply data for the past five years in thePhilippines to meet the demands of McDonalds customers based from the research done.


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Projected Supply for the next 3 5 years

Quantitative Data for the Projected Supply for the next 3-5 years

YEAR Number of

Burgers

Percentage

increase(decrease) 2012 50,000 2013 59,300 18.60%

2014 63,400 6.91% 2015 69,600 9.78% 2016 78,500 12.79%


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Demand AnalysisThe demand for the personalized burger is aprimary demand in which consumers will haveinterest in purchasing it on hand.

YEAR BURGERS Percentage increase 2011 71,540 3% 2010 70,021 2% 2009 69,321 1%

2008 67,241 3% 2007 66,569 1%

Consumption Pattern in the past 5-year period

The consumption pattern is then recognized basedon consumers behavior in terms of foodexpenditure.


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Demand Analysis

Factors affecting the pattern of consumption forthe future:

The willingness of the consumers inbuying burgers

Interest on the said location of ourburgers in Ayala Center

Taste, appearance, packaging, and price

Ingredients used


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Demand Analysis

Projection of the future demand of the product

It is anticipated that 91% or majority of the respondentsare willing to purchase and eat the personalized burgerwhile 9% are not willing to purchase and eat the offeredproduct.

91%

9%Willing to eatpersonalizedburgers

Not willing to eatpersonalizedburgers


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Supply and Demand Analysis

The Supply and Demand Gap Analysis

The burger manufacturers established a 5% gap basedfrom demand as to prepare them for increased burgerconsumption.

60000 65000 70000 75000 80000

2011

20102009

2008

2007

demandSupply


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Supply and Demand Analysis

The market share that the firm wishes to target

91% of the total respondents were interested inpersonalized burgers since the researchers wereintroducing an innovative burger concept in which willbe new to burger consumers.

YES91%

NO9%

Interest o f Ayala-go ersin purchas ing the

personal ized bu rger


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PROPOSED MARKETING STRATEGYTarget MarketProposed Product / ServiceProposed Promotion ActivitiesPlacement

PriceProjected Sales Volume and Peso Sales


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Target Market

Primary Target Market:

Ayala-goers

The age of the target market ranges fromadolescent to young adults.


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Proposed Product / ServiceUnique Selling Proposition

Quality

Service

Cleanliness

Pleasure

Value for money

Positioning Strategy

Chuz It: Burger Joint a place where theycan customize their burgers and enjoyburgers in a rare opportunity


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Proposed Product / ServiceFeatures of the Product

Offer best tasting burgers

Opportunity to customize own burger

Accompaniment of side dish and drinks


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Proposed Promotion Activities

Chuz It: Burger Joint will be using threeways of letting the people know about thebusiness:

1. Distribution of flyers2. Online advertising

3. Newspaper advertising


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Proposed Promotion Activities

ACTIVITY BUDGET

Flyers, Coupons, etc. Php500,000

Online Advertising Php250,000

Newspaper

Advertising Php250,000

Total Php1,000,000

Proposed Promotion Activities with theCorresponding Budget


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PlacementProposed Channel of Distribution:

Exclusive distribution

Direct Selling

FOOD AND DRINK SUPPLIERS (INGREDIENTS, DRINKS)

SELLER / PRODUCER (MAIN OUTLET OF DISTRIBUTION)

CONSUMERS Produc t D is t r ibu t ionFlow o f Chuz It:

Burg er Jo in t


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Price

Price Schemes for Chuz It: Burger JointOptional Product Pricing

Product Bundle Pricing

Penetration Pricing


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List of Prices that will be offered Description Cost Selling Price

Main Product Burger P20.41 P45.00

Burger with side dish P25.79 P55.00

Special Add-ons Egg P5.00 P10.00 Ham P6.00 P10.00 Bacon P5.63 P10.00 Cheese P3.08 P10.00

Vegetable Add-ons Tomato P0.22 P5.00 Pickles P2.41 P5.00 Pineapple P0.30 P5.00

Onions P0.80 P5.00 Lettuce P0.40 P5.00

Drinks Pepsi P8.00 P10.00 Mirinda P8.00 P10.00 Mountain Dew P8.00 P10.00 7UP P8.00 P10.00


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Projected Sales Volume and Peso SalesYear Product Price/unit

Projected Sales(Volume)

ProjectedSales (Peso)

1 Burger Php45 15, 500 units Php697,500 Burger with side dish 55 13,000 units 715,000

Special Add ons 10 57,000 units 570,000 Vegetable Add ons 5 57, 000 units 285,000

Drinks 10 28,500 units 285,000

2 Burger Php45 17,050 units Php767,250 Burger with side dish 55 14,300 units 786,500

Special Add ons 10 62,700 units 627,000 Vegetable Add ons 5 62,700 units 313,500

Drinks 10 31,350 units 313,500

3 Burger Php45 19,700 units Php886,500 Burger with side dish 55 16,500 units 907,500

Special Add ons 10 72,400 units 724,000 Vegetable Add ons 5 72,400 units 362,000 Drinks 10 36,200 units 362,000


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Upon thorough investigation on the datagathered and compiled the results, theresearchers concluded that Chuz It: BurgerJoint is indeed feasible and profitable to beoffered in the market.


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Since the product is new in the market, greateffort should be made with regards to advertisingand making a name.

In addition, there is a need to thoroughly studythe behavioral consumption of the consumers.

The burger joint should continually make

innovations of the main product to enhance itsmarketability and to further leave mark amongthe consumers that will make them come backfor more.


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