SECTION VI

MARKETING RESEARCH
A market is consists of all the consumers who purchase a particular type of good

or service. The market may be sub-divided into separate segments each of which can

be considered to be a separate market in its own right. It is very important for a

business to be able to define its market to be able to identify its growth.

Identifying a target market helps a company develop effective marketing

communication strategies. A target market is a set of individuals sharing similar needs

or characteristics that a company hopes to serve. These individuals are usually the end

users most likely to purchase your product.

Market research is the process of assessing the viability of a new good or service

through research conducted directly with the consumer which allows a company to

discover the target market and record opinions and other input from consumers

regarding interest in the product. Market research may be conducted by the company

itself or by a third-party company that specializes in the market research field.

The purpose of market research is to examine the market associated with a particular

good or service to determine how the audience will receive it. This can include

information gathering for the purpose of market segmentation and product

differentiation, which can be used to tailor advertising efforts or determine which

features are seen as a priority to consumers.

RESEARCH DESIGN
The research design refers to the overall strategy that you choose to integrate

the different components of the study in a coherent and logical way, thereby, ensuring

you will effectively address the research problem; it constitutes the blueprint for the

collection, measurement, and analysis of data. The research problem determines the

type of design you should use.

Regarding the product with accordance to the information’s gathered, we would

have to analyze the data accurately for us to come up with the appropriate research

design so that the major purpose which is to establish that the independent and

dependent variables are causally related would be achieved.

RESEARCH LOCALE
Research Locale discusses the place or setting of the study. It describes in brief

the place where the study is conducted. Only important features which have the bearing

on the present study are included and also shows the target population.

Our business is to be installed in between Quarry District and Sta. Cruz St.

wherein many people are passing by. Eastern Visayas University will be our

experimental target market—the students, faculty, all its other constituent plus outsiders

who are visiting the vicinity. According to our conducted research, there will be a great

possibility that the proposed product will be patronized since the population is quite big.
RESEARCH RESPONDENTS

In customer satisfaction surveys that ask customers for their opinion about a

recent purchase or their experience with a service, it is important that respondents give

information or feedback regarding the product.

A total of 100 students/respondents coming from the different departments of the

university have been surveyed regarding the marketing mix of the business. Since the

target location offers a large amount of consumers, it automatically mean that we are

going to deal with the different identity and behavior of the consumers. In anyway, the

company’s main target is the students of the university alongside with the different

constituent of the location.

DATA PROCESSING AND ANALYSIS

PROFILE OF THE RESPONDENTS

FIGURE 1

GENDER
52%

51%
51%

50%

49%
49%

48%
Male Female

The figure represents the gender profile of the respondents. As it shows, female

got the highest percentage of 51% while male got 49%.

This means that most of the participative residents in the market research

survey are females.

 FIGURE 2

The figure represents the age profile of the respondents. As it shows, those who

belong to the range of 18 years and below got 30%; the majority of the respondents’

age are ranging from 19-22 years old; and those age ranging from 23-25 got the lowest

percentage of 10%.

It implies that the most participative respondents who will likely buy the product

belongs to the age bracket of 19-22 years old.

FIGURE 3

OCCUPATION
80% 75%
70%

60%

50%

40%

30% 25%
20%

10%

0%
Inside the Campus Outside the Campus
 The figure shows that all respondents are students. It just implies that the main

target market of the business is the students.

FIGURE 4

MONTHLY INCOME/ALLOWANCE
80% 75%
70%

60%

50%

40%

30% 25%
20%

10%

0%
Inside the Campus Outside the Campus

The figure above shows that majority of the respondents have a monthly

income/allowance of 1,000 below (92%), those with 1,001-3,000 (2%), 3,001-5,000

(1%), and those respondents with 5,000 and above (2%).

This implies that most of the respondents who will likely to purchase the product

have the monthly income/allowance of 1,000 and below.

RESEARCH RESULTS AND DISCUSSION

FIGURE 5

R ESPON DEN TS WHO B ELIEVE THA T ORGA N IC

PRODUCTS A RE HEA LTHIER
80% 75%
70%

60%

50%

40%

30% 25%
20%

10%

0%
Inside the Campus Outside the Campus

The figure shows that we have asked the respondents whether they

believe that organic products are healthier. Since all of the respondents have answered

yes, it means that there is a great possibility for them to purchase the product and this

may serve for as the basis for the product to be made.

 FIGURE 6

RESPONDENTS WHO ARE FOND OF COFFEE/

COFFEE PERSON
80% 75%
70%
60%
50%
40%
30% 25%
20%
10%
0%
Inside the Campus Outside the Campus

This figure with the survey question of those respondents who are fond of

coffee/coffee person will help us determine whether we continue the product or not.

Since majority are coffee person, it means that the product is most likely to be

purchased.

FIGURE 7
 HOW LIKELY ARE THE RESPONDENTS TO
CONSUME ORGANIC COFFEE MIX
80% 75%
70%
60%
50%
40%
30% 25%
20%
10%
0%
Inside the Campus Outside the Campus

The figure above with the survey question of how likely are the respondents to

consume organic coffee mix serves as the key on how we will plan to make the product

new since there is nothing like it in the market. The respondents who are extremely

likely to consume the product got 24%; respondents who are moderately likely to

consume the product got 33%; and 44% of the respondents are slightly likely to

consume the product.

FIGURE 8
 RESPONDENTS' SUGGESTED PRICE FOR ORGANIC
COFFEE MIX
80% 75%
70%
60%
50%
40%
30% 25%
20%
10%
0%
Inside the Campus Outside the Campus

The figure with the survey question regarding the respondents’ price

suggestion for organic coffee mix helps us to determine the proper price range in which

respondents are willing to pay in purchasing the product. Out of 100, 87 of the

respondents have chosen the price ranging from 5-10 pesos/pc; 12 have chosen 11-15

pesos/pc and only 1 respondent has chosen 16 pesos and above/pc. This result of the

survey will be the basis of our pricing strategy.

FIGURE 9
 RESPONDENTS' PREFERED PLACE FOR PUR-
CHASING THE PRODUCT
80% 75%
70%
60%
50%
40%
30% 25%
20%
10%
0%
Inside the Campus Outside the Campus

This survey question will help us determine the appropriate location where

our product can be best distributed to the consumers. Out of 100, 25 of the respondents

have chosen our business to be inside the school campus while 75 wanted the business

to be outside the campus. This result of the survey will give us better idea on choosing

the most suitable location for our products’ distribution.

SUMMARY OF RESULTS AND CONCLUSION

For the market research survey, Herbs to Nerves Company has established

questions that will determine the respondents’ view to our proposed product which is the

‘organic Coffee Mix’. The questions asked will help us determine the possible actions or

revisions if ever there unforeseen error occurs regarding the products’ marketing mix

variables.

As for the product, the very first question asked from the respondents was “Do you

believe that organic products are healthier?” Based on the survey, all 100 respondents

do believe that organic products are healthier. The second question asked was “Are you

a coffee person?” Out of 100, 75 of the respondents are coffee person while 25 of them

are not. The third question was “How likely are you to purchase and consume organic

coffee mix?” The survey shows that 24 of the respondents are extremely likely to

consume the product, 33 of them are moderately likely, and 43 of them answers slightly

likely.

As for the price, two questions have been asked from the respondents. First one was

“What would be your price suggestion for the organic coffee mix?” The result shows that

87 out of 100 want the product to be sold at price ranging from 5-10 pesos/pc, 12 of

them want it from 11-15 pesos/pc, and 1 wants the product to be 15 pesos above/pc.

Last question was “If the price of organic products continue to rise, would you still

continue to purchase?” The result shows that 63 of the respondents answered ‘Yes’

while 37 answered ‘No’.

As for the place, respondents were first asked “Where would you want to purchase the

product?” Results showed that 39 want the product on supermarkets, 25 of them want

to purchase the product on sari-sari stores, 2 respondents want it from online shops,

and 34 preferred it to be on generic stores. Respondents were also asked “Where do

you prefer the business to be located?” Survey shows that 75 of the respondents want

the business inside the EVSU Campus while 25 want it to outside the Campus.

As for the promotion, respondents were asked “What type of promotion would you want

to see/hear about the product?” Results show that 14 answered Word-of-Mouth, 55

prefers to see the product in Social Media sites, 15 want to see and hear about the

product on TV Ads and 16 respondents have preferred Brochures.

RECOMMENDATIONS

Herbs to Nerves Company is likely to accept suggestions or

recommendations that will be of big help for further improvement of our product in order

to satisfy our valued customers.

As for the product, it has been recommended that we add some more

organic ingredient so that the very aim of the company which is to maintain and promote

healthy living through patronizing organic products will be highly achieved. Also,

respondents highly recommend that the products’ packaging be improved into a more

creative one since packaging is one of the common basis of the consumers purchase

statement.
 As for the price of the product, it has been assumed and suggested by the

respondents to be very affordable since organic products are the main ingredients. It will

not be a burden to our company to polish this suggestion since it is one of our main

objective and goal to innovate this product with its corresponding affordable range of

prices.

As for the promotion, it has been revealed by the survey that the most

preferred way is to engage in social media. As of today, because of the presence of

modern and advanced technology and internet involvement, social media is a powerful

way for businesses of all sizes to reach prospects and customers.

As for the marketers, it would be better if we would enhance the convincing

power to maximize profits through developing sales strategies that match customer

requirements. The heart of a business success lies in its marketing. Most aspects of the

business depend on successful marketing. The people behind the successful

penetration of our product lies on our marketing executives with which provides our

business with a chance of being discovered and patronized by prospective customers. 

COMPETITORS ANALYSIS

“Competition in business is a blessing, for without it, we wouldn’t be motivated to

improve.”

― Nabil N. Jamal

Competition is an inevitable part of the business world, for businesses of

any size. It is an important part of the business ecosystem. In fact, competition can be

an effective tool for growing and improving your business since it leads to increased

efficiency.

Organic coffee mix is a combination of healthy and pure organic ingredients

that is meant to be a substitute for the accustomed class coffee with toxic chemicals.

This will be the answer for the people to go back to nature of maintaining and living a

healthy life. Since no organic mix has been introduced by any company, it would be a

very great opportunity to be the very first company to innovate and create this very

healthy and affordable organic coffee mix.

 TABLE 2

COMPETITORS PROFILING

NAME OF

COMPETITORS PROFILE

Products/Services: Coffee

Location: Inside the campus

Strengths:

1. Coffee price is comparatively cheaper

2. Offers choices of flavor

College Departments
3. Automated/Controlled
with vending 4. Offers ready to drink coffee

machines Weaknesses:

1. Machine is sometimes not functioning well

especially when it is old

Opportunities:

1. Prospect customers inside the vicinity can

easily access

Threats:

1. The power of operation is not consistent since it

depends to electricity and constant supply of

water.

Products/Services: Snacks, drinks, different variety of

 coffee mix, readily available coffee

Strengths:

1. Large number of potential customers

2. Offers many choices of products

Stores outside the
Weaknesses:

campus with vending 1. Store owners/assistants’ absence or less

machines attentivity to customers

2. Increasing price

Opportunities:

1. Loyal customer base

Threats:

1. Increasing number of competitors

STRENGTHS IN THE COMPETING INDUSTRY

The purpose of the competitive analysis is to determine the strengths and

weaknesses of the competitors within your market, strategies that will provide you with a

distinct advantage, the barriers that can be developed in order to prevent competition

from entering your market, and any weaknesses that can be exploited within the product

development cycle.

Determining the strengths of the business will help to boost the power to

compete with other related businesses. Strengths are a business’ greatest advantage

toward other competitors.

COPING STRATEGIES

As a coping strategy for our business’ strengths, we must make sure to

consider it as a very important ingredient as to the success of our business. Every

business must not be complacent upon knowing their advantages against their

competitor for it will be possible to be converted to a weakness due to lack of attention.

As to our product, since it a strength that no other related product has been

presented to the public, we would make sure that the satisfaction level of the target

market would be achieved along with the company’s main goal.

WEAKNESSES IN THE COMPETING INDUSTRY

A company weakness is any resource a business lacks or restriction to your

ability to achieve business goals. Companies often analyze their weaknesses as part of

a strategic planning process. In some cases, weaknesses are areas for improvements.

Other times, they are natural tradeoffs of operational strategies.

A better view of a business’ weaknesses is one of the key to success. It will

be the company’s driving motivation to make improvements and desire for an exemplary

betterment towards competing to the entire world.

COPING STRATEGIES

One of the many options to overcome a weakness is to find a new way to

approach it that utilizes one of your core strengths.

 Weaknesses in our product and service portfolio, skills, and distributor

network or supply chain can increase the vulnerability and make it difficult to respond to

external threats. It would really be very important to identify any weaknesses and

prioritize actions to deal with the factors that represent greatest risk. We must make use

of the analysis to develop investment, recruitment or training strategies to overcome the

problems.

OPPORTUNITIES IN THE COMPETING INDUSTRY

A business opportunity, in the simplest terms, is a packaged business

investment that allows the buyer to begin a business. 

A business opportunity on the other hand is a proven concept that generates on-

going income. In other words, a business opportunity is a business idea that has been

researched upon, refined and packaged into a promising venture that is ready to launch.

While multiple business ideas may strike our company on a daily basis, only few will be

profitable in the long run based on market research and feasibility study conducted.

These few would be our real business opportunities.

COPING STRATEGIES

This time of the generation is much modernized. Rapid changes can easily

be observed as said by the notion ‘the only constant thing in this world is change’.
 With regards to our company, opportunities that are present and are yet to

come must be properly handled and grabbed. One sure opportunity for our product is

that it is new to the market as to what other businesses offer. It would also be a way for

the product to be patronized especially by those people who are health conscious.

THREATS IN THE COMPETING INDUSTRY

The operating plan of your business plan should include a component called

Business Threats.  A threat is an external factor (outside the business) that

may effect the performance of your business. The most obvious effect would be a

reduction in corporate sales. Often a business faces many threats, other than

competition, when operating its affairs.

Many threats can be seen or can come towards our business. The evolution

of other competitors, changing taste and preferences of the customers, inflation,

recession and many possible circumstances can greatly affect our business.

COPING STRATEGIES

Marketing threats are factors in the external environment that can inhibit a

business from achieving its marketing goals. Identifying these threats is part of the

strategic planning process called SWOT. SWOT analysis helps to develop strategies to

overcome marketing threats, either by using the strengths to reduce the vulnerability to

threats or by eliminating internal weaknesses that make an organization vulnerable to

threats.
 Threats can take a number of forms, including the emergence of new

competitors or low-cost competitors, new products that offer better performance, slow

market growth, barriers to market entry, changing customer needs or regulatory

changes that increase cost or make it difficult to comply. You may also face the impact

of changes in the political, economic, social or technological environment.

MARKET SHARE

Market share represents 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 in relation to its market and its competitors. A company's market

share is its portion of total sales in relation to the market it operates within.

Investors look at market share increases and decreases carefully, because they

can be a sign of the relative competitiveness of the company's products or services. As

the total market for a product or service grows, a company that is maintaining its market

share is growing revenues at the same rate as the total market. A company that is

growing its market share will be growing its revenues faster than its competitors.

Market share increases can allow our company to achieve greater scale in its

operations and improve profitability. Companies are always looking to expand their

share of the market, in addition to trying to grow the size of the total market by

appealing to larger demographics, lowering prices, or using advertising.