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    DEMAND

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    anithaeden40
    The document analyzes the market for snacks among students at Eastern Samar State University. It finds that 1st year students make up the target market since they are more likely to purchase snacks with their limited expenses. Based on a survey of 387 respondents, there is high demand for snacks but insufficient supply from local competitors. The analysis projects increasing demand but a persisting supply gap over the next three years, with over 90% of demand going unmet each year.

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    DEMAND

    Uploaded by

    anithaeden40
    26 views6 pages
    The document analyzes the market for snacks among students at Eastern Samar State University. It finds that 1st year students make up the target market since they are more likely to purchase snacks with their limited expenses. Based on a survey of 387 respondents, there is high demand for snacks but insufficient supply from local competitors. The analysis projects increasing demand but a persisting supply gap over the next three years, with over 90% of demand going unmet each year.

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    Demand market data

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    The document analyzes the market for snacks among students at Eastern Samar State University. It finds that 1st year students make up the target market since they are more likely to purchase snacks with their limited expenses. Based on a survey of 387 respondents, there is high demand for snacks but insufficient supply from local competitors. The analysis projects increasing demand but a persisting supply gap over the next three years, with over 90% of demand going unmet each year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    26 views6 pages

    DEMAND

    Uploaded by

    anithaeden40
    The document analyzes the market for snacks among students at Eastern Samar State University. It finds that 1st year students make up the target market since they are more likely to purchase snacks with their limited expenses. Based on a survey of 387 respondents, there is high demand for snacks but insufficient supply from local competitors. The analysis projects increasing demand but a persisting supply gap over the next three years, with over 90% of demand going unmet each year.

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    You are on page 1of 6

    MARKET ANALYSIS

    I. Target Market

    The segmentation strategy of the business is based on their year level. The business is targeting the 1 st
    year students in Eastern Samar State University since they are the one who are into snacks considering
    less expenses in academic requirements unlike the upper year level who are just rarely into buying
    snacks. The respondents comprised of 26.9% 1st year students, 25.1% 2nd year students, 32.8% 3rd year
    students who got the highest percentage and 15.5% of 4th year students.

    II. Sample Size

    To get the sample size, the proponents use Slovin’s Formula.

    n= N(1+Ne^2)

    N (Total Population) = 10,080

    e (Margin of Error) = 5%

    = 10,080/ (1+10,080*0.0025)

    = 10,080 / 30

    = 387 Respondents

    Table 1

    Population Growth Figure

    YEAR TOTAL POPULATION OF NO. OF TARGET CUSTOMERS


    EASTERN SAMAR STATE (1st Year Students)
    UNIVERSITY STUDENTS
    2023 10,080 3,693
    Table 2

    Historical Population

    YEAR TOTAL POPULATION 1ST YEAR POPULATION


    2019 6,038 1,905
    2020 6,084 1,489
    2021 7,744 2,223
    2022 9,186 2,911
    2023 10,080 3,693

    We now have our historical population of EASTERN SAMAR STATE UNIVERSITY.

    III. Demand

    Based on the survey conducted by the proponents, 93.3% of the respondents are willing to buy
    the product once it is already available in ESSU. Total respondents comprised of 26.9% 1 st year students,
    25.1% 2nd year student, 32.8% 3rd students and 15.5% 4th year students. The average consumption of
    snack per piece of the respondents is 3 times a week basing on the survey as it has a highest percentage
    of 53%.
    To determine the number of respondents, the proponents used the Slovin’s formula in
    determining the sample population size which is 387. The demand on the survey conducted by the
    proponents in Eastern Samar State University.

    Table 3

    Historical Demand of Snacks

    YEAR TOTAL DEMAND


    2019 255,940
    2020 200,050
    2021 298,664
    2022 391,098
    2023 469,161

    To get the historical demand, the total population (1st year students) has been multiplied by the
    percentage of the respondents who are willing to patronized the proposed business. Then, the answer
    obtained was multiplied by the annual average snack consumption of the respondents.
    TO GET THE PROJECTED DEMAND

    COMPUTATION:

    Take the actual demand for last year: 469,161

    Less: Demand for 1st year (2019): 255,050

    Difference/Increase: 214,111

    Take the average increase/decrease over the same number of years in question:

    214,111 / 4 = 53,527

    Table 4.

    Projected Demand for Snacks

    YEAR DEMAND
    2024 469,161 + 53,527 = 522,688
    2025 522,688 + 53,527 = 576,215
    2026 576,215 + 53,527 = 629,742

    IV. Supply

    Based on the survey and actual interview conducted by the proponents, 100% of the respondents
    answered that they are producing an average of 10 snacks per day. Approximately they supply the
    market by making 16,800 pieces of snacks annually. Lastly, the competitors also assumed their
    production increase for the past 5 years. In 2019, the average production they stated was 4 pieces a day.
    In 2020, they don’t have any product offered to the market due to the COVID 19 Pandemic schools are
    temporarily closed. In 2021, we got an average of 5 pieces of snack per day in each competitor,
    approximately they are making 8,400 pieces in annual basis. In 2022, we got an average production of 8
    pieces of snack in a day per competitor as what they’ve stated on the actual interview, making 13,440
    pieces of snacks in annual basis.
    Table 5.

    Historical Supply for Snacks

    YEAR INDIRECT COMPEPTITORS SUPPLY IN QUANTITY


    2019 6,720 6,720
    2020 0 0
    2021 8,400 8,400
    2022 13,440 13,440
    2023 16,800 16,800
    (Source: Actual Interview)

    TO GET THE PROJECTED DEMAND

    COMPUTATION:

    Take the actual demand for last year: 16,800

    Less: Demand for 1st year (2019): 6,720

    Difference/Increase: 10,080

    Take the average increase/decrease over the same number of years in question:

    10,080 / 4 = 2,520

    Table 6.

    Projected Supply of Snacks

    YEAR SUPPLY (QUANTITY)


    2024 16,800 + 2,520 = 19,320
    2025 19,320 + 2,520 = 21,840
    2026 21,840 + 2,520 = 24,360
    V. Demand and Supply Analysis

    YEAR DEMAND SUPPLY DEAMAND - SHARE OF


    SUPPLY GAP UNFILLED
    DEMAND
    2024 522,688 19,320 503,368 96%
    2025 576,215 21,840 554,375 96%
    2026 629,742 24,360 605,382 96%

    This resulted to a very high Demand and Supply Gap due to the huge amount of the population.
    The Businesses in line with snacks is not enough to supply the target market. According to survey, the 8
    Indirect competitors only produce an average of 10 pieces snacks each of them per day, having 16,800
    pieces of snacks annually. Hence, we have high percentage of unfilled demand for the 3 consecutive
    projected years.

    COMPETITIVE ANALYSIS

    Computation of Market Share

    Indirect Competitors

    Market Share = Supply 2023/Demand 2023 x 100

    = 16,800/469,161 x 100

    = 4%

    Mango Chips

    No. of Mango Chips No. of Days Available Total Supply


    (per piece)

    36,000 365 36,000

    Market Share = Supply 2023/Demand 2023 x 100

    = 36,000/469,161 x 100

    = 7%
    MARKET SHARE

    Indirect Competitor Unfilled Demand Mango Chips Bites

    7% 4%

    89%

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