marketing

~Target Market~

Based on the data from PhilAtlas [2020], Libmanan had a population of 112,994 during the year 2020 [1]. Due to no other data regarding the population of Libmanan can be found, rough estimations had to be done instead. Using its population during the year 2020 as a basis, the population of Libmanan during the year 2023 can be estimated by assuming that the growth rate of its population follows the same growth rate of the Philippines as a whole. According to Macrotrends [year], the Philippines had a growth rate of 1.51%, 1.47%, and 1.54% in the years 2020, 2021, and 2022 respectively [2]. Following this assumption, the calculated approximate population of Libmanan at the start of the year 2023 is 118,178, as shown in the figure below:

	[112,994][1.0151] = 114,700.2094 ~ 114,700 [Population as of 2021]
	[114,700][1.0147] = 116,386.09 ~ 116,386 [Population as of 2022]
	[116,386][1.0154] = 118,178.3444 ~ 118,178 [Population as of 2023]

However, not everyone within this population is capable of purchasing from the business. To prevent wrong assumptions from being made, only the residents that are within the age range of 15-64 will be considered to be part of the market size of this population. Based on the data from PhilAtlas [2020], 57.94% of the population are within this age range, making the current market size of this study to be 68,472, as shown in the computation below:

	[118,178][57.94%] = 68,472.3332 ~ 68,472

Though, it cannot be said that this is the actual market size of the business as there are two factors that need to be considered to arrive at the actual market size of the business: the portion of the population that will engage with the business and the barangays that will be served by the business, as not all barangays will be included in the scope of the business. Starting with the first factor, barangays that have a travel time of above 25 minutes will not be included as it will take the driver approximately an hour of travel time, including a ten-minute allowance for traffic and other possible external disturbances, to go back and forth between the food establishment and customer location as any more than that would reduce the frequency of deliveries of the establishment, decreasing the possible profit of the business. This estimated time was taken from Google Maps. Based on the data from PhilAtlas [2020], 78.14% of the population resides within these barangays that are within the travel time range, making it so that the business only caters to 53,504 of the total population, as shown in the computation below:

	[68,472][78.14%] = 53,504.0208 ~ 53,504

As for the second factor, the penetration rate of online food delivery in the Philippines will be used to narrow down the population that will avail the service of the business. According to the Statista Research Department [2023], the penetration rate of meal delivery specifically is 10.47%. With this information, the narrowed-down market size would be 5,601, as shown in the computation below:

	[53,504][10.47%] = 5,601.8688 ~ 5,601

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~Market Demand~
[Due to the lack of past data regarding the potential demand the business could generate, a short-term demand analysis will be done rather than a long-term analysis, as the latter requires past data for it to be used.]

[Divide into 3 parts, depending on the distance, thus increasing price]

Due to long distances requiring a higher usage of gasoline, the delivery fee of each order will vary, depending on the distance between the food establishment and customer location. Orders that have a distance of below five kilometers have a delivery fee of 29PHP, a distance of five to below nine kilometers have a delivery fee of 39PHP, a distance of nine to thirteen and below kilometers have a delivery fee of 49PHP, and a distance of thirteen and above kilometers have a delivery fee of 59PHP.

It was also found out from a survey conducted by Ra
As for the usage of food delivery apps

Q = nqp

n = 7,169
q = Once a week [Source: https://www.statista.com/statistics/1140739/philippines-frequency-of-using-food-delivery-apps/]
p = 50PHP

Q = [71,345][4x3][50PHP]
Q = 42,807,000PHP

Source:
[1] https://www.philatlas.com/luzon/r05/camarines-sur/libmanan.html
[2] https://www.macrotrends.net/countries/PHL/philippines/population-growth-rate#:~:text=The%20population%20of%20Philippines%20in,a%201.64%25%20increase%20from%202019.
[3] https://www.statista.com/forecasts/1270984/segment-online-food-delivery-philippines-penetration-rate
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*Competitive Situations
*Production Cost
*Supply and Demand Situation
*Financial Projection
 -SCI
 -SFP