ms business.docx

7/29/2019 MS BUSINESS.docx

1/4

The Market Study

MARKET STUDY

A. GENERAL STATEMENT ABOUT THE CURRENT MARKET

The government and the private sector are both making efforts to increase

local coffee production, in order to reduce the reliance on imports. In 2012,

however, local production in the Philippines still did not meet coffee demand in

the country. The country imports the rest of its coffee requirements from Vietnam,

Indonesia and other Asian countries. In 2012, the key player in the coffee

industry, Nestl Philippines Inc, opened a new coffee centre in Batangas City

that will increase access to new coffee farming techniques in a bid to increase

the number of coffee producers and production in the Philippines.

The more widespread health and wellness trend in the forecast period will

encourage various brand manufacturers to produce organic and decaffeinated

coffee variants to prevent a decline in the consumer base and capture a greater

share of health-conscious consumers. There might be more marketing activities

that will highlight the benefits of coffee, as manufacturers attempt to counter any

negative perception about the drink. The positive economic outlook in the

forecast period will benefit both the instant and fresh coffee categories.

Philippine coffee consumption has shown steady growth, with gourmet

coffee having the strongest growth. Coffee drinkers in the Philippines are among

the most demanding ones. They favour gourmet coffee drinks and demand for

great service. Coffee Break: Not Just Your Ordinary Coffee will strive to build

loyal customer base by offering a great taste and varieties of coffee in relaxing


2/4

environment of its own coffee stall located at the Pamantasan ng Lungsod ng

Maynila President Ramon Magsaysay Entrepreneurial Center (PRMEC), 2nd

floor

B. COMPETITIVE DISTRIBUTIONS

The group resolute to put Coffee Break: Not Just Your Ordinary Coffee at

President Ramon Magsaysay Entrepreneurial Center (PRMEC) 2ND floor of

Pamantasan ng Lungsod ng Maynila (Intramuros, Manila) where there are many

food stalls inside the University that offers different kinds of foods and drinks such

as pizzas, tofu products, siomai, burgers, pica pica, fried noodles, shakes and other

beverages.

Their prices range from ten pesos to twenty pesos for the pastries, and twenty

pesos to forty pesos for the beverages.

Stalls offered foods to students, faculties and staffs that contain preservatives

and the process of preparing of foods are hasty thats why foods are not cooked well

and properly. The drinks that kiosks and stalls sell are not hale and hearty and not

properly fit for those people who are on a diet and with absorption struggle.

C. Proposed Market Plan (Business Logo)

With our business location inside the President Ramon Magsaysay

Entrepreneurial Center (PRMEC) of Pamantasan ng Lungsod ng Maynila (Intramuros,

Manila), the students of the said university are our target market to be our primary

customers in our coffee stall business named Coffee Break: Not Just Your Ordinary


3/4

Coffee. It will be situated specifically in the 2nd floor area of the mentioned building

where the students take their beverages (Swirly Bitz) and where they use the comp

shop for school purposes during their free time.

Satisfying the gaps in the market, through our objective of providing a variety of

coffee with different pair ups of pastries like bread, doughnuts, brownies we also aim to

situate these products on suitable and affordable prices so that our target market would

afford to taste and buy it. And for this type of business, we will be distributing our

products all the way through 'direct selling', because it is wherein face to face

transaction with the customers are involved. In relation with our aim to sell these

products with affordable prices, we set a range of P10.00-P20.00 for our food and

P20.00-P40.00 for beverages.

The reason behind this is because of the use of coffee as the main product of

our business that will turned it to different variety of beverages using coffee and paired

up to pastries like breads, doughnuts and brownies. Knowing its dietary and nutritional

value, it is also a great alternative for rice products and for juices because it is cheaper

than them. We have already conducted our survey and the suggestions of the

respondents are also an added factor for the suggested retail price and products.

For customers to be familiar with the quality of products and services, we have

come up to promotional strategies on our first two days for our business opening:

1. First 50 customers will get 50% discount on our coffee products

2. For every purchase of the second coffee product, they will get a 1 free pair up


4/4

ms business.docx

Documents