MARKET STUDY

Market research and analysis is important to successful businesses in order to stay

tuned to changing market trends and to retain the business in a competitive edge. Maize
Corporation just like any business in a start-up stage conducts this vital phase to
understand critical characteristics that will continue to the overall business success.
According to research and study, in most parts of the world, handkerchiefs have
fallen out of use and their function has been replaced entirely by tissue. Paper
handkerchief or commonly known as tissue paper has been a significant part of our part
day to day life for hygiene and personal purposes. More than just being as such, this one
of disposable types is now designed to alleviate and provide an easy and intuitive use.
With our concern towards contrasting demand between tissue paper products and
wasteful living from trees cut to make tissue paper, Maize has come up with an idea of
using corn husks as the solution. Corn-husks-made tissue paper and its variety have
successfully addressed the increasing demand of people to tissue products.

Target Market Description

On average consumer use, 8.6 sheet per trip a total of 57 sheets per day and an
annual total of 20,805 sheets. Undeniably, even an ordinary person uses tissue paper for
several purposes and even each can be the target market of the product.
Bataan, one of the provinces in the Philippines has 11 municipalities with a number
of residents to be marketed.

Table 3.1: Total Population by City Municipality

Bataan, 2010
Bagac

25,568

Morong

26,171

Samal

33,578

Abucay

37,719

Pilar

39,787

Orion

51,454

Hermosa

56,997

Limay

57,207

Orani

61,099

Balanga

87,920

Dinalupihan

97,275

Mariveles

112,707

Having a total population of 687,482, Bataan would be a great target for Maize
Corporation to market the tissue product.
Aside from its growing population, Bataan is also known for well-established
grocery stores, a number of fast food chains and restaurants and scattered pharmacies to
put on our product. In fact, to prove Bataan peoples increasing tissue paper consumption,
it is able to build and establish Bataan 2020 a leading manufacturer of fine quality
paper, board and tissue in the Philippines.
Maize Corporation has added in the list fast food chains and restaurants as the target
demand indicator. Fast food chains and restaurant has been consuming large amount of
paper handkerchiefs to cater the needs of their customers (aside from foods ordered and
served). It would be a great advantage for such chains and restaurants to be supplied with
corn husk-made tissue paper compared to chemicalcontained paper handkerchiefs

considering the nature of their business. With numerous existence of fast food chains and
restaurant in Bataan, Maize Corporation has been seeing its success in the future!
To effectively reach an average person as the target, a specific market where tissue
paper products can be availed is needed. Maize Corporation will also supply its product
to different grocery stores and pharmacies. Segmented into hypo-allergenic, kids, regular,
double-length tissue paper, Maize Corporation provides wide range of option for every
consumers.
Paper handkerchiefs have been part of everyones day-to-day life. Indeed, the market
to be targeted can be easily identified. According to tissue paper statistics, 49% of people
chose these paper handkerchiefs as their greatest necessity next to food. With this
demand, how can Maize Corporation resist not to supply people with what they need?

Table 3.2 TOTAL POPULATION DISTRIBUTION OF 12 MUNICIPALITIES: BATAAN 2010

TOTAL

MUNICIPALITIES

GROWTH RATE

Abucay
Bagac
Balanga

2.11
2.11
2.11

37, 719
25, 586
87, 920

5.49
3.72
12.79

Dinalupihan

2.11

97, 275

13.42

Hermosa
Limay
Mariveles

2.11
2.11
2.11

56, 997
57,207
112, 207

8.29
7.59
16.32

Morong

2.11

26, 171

3.81

Orani
Orion
Pilar

2.11
2.11
2.11

61, 099
51, 454
39, 787

8.89
7.48
5.79

Samal

2.11

33, 578

4.88

687, 482

100

TOTAL
Source: Bataan Socioeconomic Profile, 2010

POPULATION

PERCENTAGE

The total population of Bataan as of 2010 has a total residents of 687,482 of which
Mariveles is considered as the most occupied town with 16.32% of the total population.
Bagac, the least populous has only 3.72% of the entire population. This information
pertinent to the number of residents the Bataan has, will be the basis of the demand
analysis of the product.

Table 3.3 HISTORICAL NUMBER OF HOUSEHOLD IN BATAAN

MUNICIPALITIES

GROWTH
RATE

2010

Abucay
2.70
8,619
Bagac
2.72
5,681
Balanga
3.21
18,885
Dinalupihan
4.05
21,024
Hermosa
3.90
12,015
Limay
3.73
12,174
Mariveles
1.96
26,106
Morong
3.10
5,735
Orani
2.07
13,404
Orion
2.49
10,950
Pilar
2.90
8,355
Samal
2.25
7,049
TOTAL
150,090
Source: Bataan Socioeconomic Profile

2011

2012

2013

2014

8,851
5,836
19,491
21,875
12,484
12,628
26,617
5,913
13,681
11,223
8,597
7,208
154,404

9,090
5,995
20,117
22,761
12,971
13,099
27.138
6,096
13,964
11,502
8,846
7,370
158,948

9,355
6,158
20,763
23,683
13,477
13,588
27,670
6,285
14,253
11,788
9,103
7,536
163,659

9,608
6,325
21,429
24,642
14,002
14,095
28,212
6,480
14,548
12,082
9,367
7,706
168,496

Actual number of household in Bataan is computed based on the growth rate in each
municipality and based on 2010 number of households. The number arrived in each
municipality in Bataan divided by 1 plus the growth rate in each municipality to get the
total population in each year. Dinalupihan has the highest annual growth rate of
household in the province with 4.05% while Mariveles has the lowest annual growth rate
of household with 1.96%
Table 3.4 PROJECTED HOUSEHOLD IN BATAAN
MUNICIPALITIES

Abucay
Bagac

GROWTH
RATE

2.70
2.72

2016

2017

2018

2019

2020

10,134
6,674

10,408
6,856

10,689
7,042

10,978
7,234

11,274
7,431

Balanga
Dinalupihan
Hermosa
Limay
Mariveles
Morong
Orani
Orion
Pilar
Samal
TOTAL

3.21
4.05
3.90
3.73
1.96
3.10
2.07
2.49
2.90
2.25

22,827
26,678
15,115
15,166
29,329
6,888
15,157
12,691
9,918
8,057

23,560
27,758
15,704
15,732
29,904
7,102
15,471
13,007
10,206
8,238

24,316
28,882
16,316
16,319
30,490
7,322
15,791
13,330
10,502
8,423

25,097
30,052
16,952
16,928
31,088
7,549
16,118
13,662
10,807
8,613

25,903
31,269
17,613
17,559
31,697
7,783
16,452
14,002
11,120
8,807

17863

18394

18942

19507

20091

Source: National Statistics Office

The projected household in Bataan is computed based on the growth rate in each
municipality and based on 2010 number of households. The number of household in each
municipality in Bataan multiplied by 1 plus the growth rate on each municipality to get
the projected population for the year 2016-2020.

Demand and Supply Analysis

Through demand analysis it will help to identify the needs of consumers as well as to
their preferences, which is an important task when planning to enter into the market with
well-known and established competitors.
Demand Analysis
Continuous improvement of technology creates more developed and useful products with
high quality that partially sustains people endless wants and needs. This also leads to a

higher expectation to newly created products that should please humans especially when
it comes to hygiene and personal care that a lot of consumers were known for.
Its natural to Filipinos to be neat and conscious, thats why more hygienic products
were emerging because of this. Among those products is tissue, either in kitchen, for
eating or cleaning as well as in the bathroom it is barely needed. Through this it can be a
way to support Filipinos daintiness, with the help of promotions in different ways of
advertising that will boost more consumers. Plus the fact that it supports environment
preservation for it is made out of a corn husk to corroborate human needs and also the
environment.
The major consumers considered are the population of human specially females,
household, and restaurants in Bataan according to the latest Census which is the year
2010.
Table 3.5 HISTORICAL DEMAND OF TISSUE FOR HOUSEHOLD IN BATAAN (per roll)
YEARS

NUMBER OF
HOUSEHOLDS

PERCENTAGE OF

AVERAGE ANNUAL

HOUSEHOLD USING

CONSUMPTIONPER

TISSUE

ROLL

TOTAL ANNUAL
CONSUMPTION

2010

150,090

.028

72

302,581

2011
2012

154,404
158,948

.028
.028

72
72

311,278
320,439

2013

163,659

.028

72

329,936

.028

72

340,595

2014
168,496
Source: National Statistics Office

According to Charmin tissue research average household consume 1 roll of tissue in

five days. The historical demand for tissue was based on the data gathered from the NSO
and through the internet.
360 days/5 = 72 rolls
COMPUTATION
Year
2009
2010

X
-3
-1

Y
302,581
311,278

xy
-907,743
-311,278

X2
9
1

2011
2012
2013
N=5

0
1
3

320,439
329,936
340,595
1,604,829

0
329,936
1,021,785
132,700

Y=a+bx

b= xy / X2

a=y/n

=132,700/ 20

=1,604,829/ 5

=6,635

=320,966

For the year

2014:

2015:

Y=a+bx

Y=a+bx

=320,966+6,635 (5)

=320,966+6,635 (7)

=320,966+ 33,175

=320,966+ 46,445

=354,141

=367,411

2016:

2017:

Y=a+bx

Y=a+bx

=320,966+6,635 (9)

=320,966+6,635 (11)

=320,966+ 59,715

=320,966+ 72,985

=380,681

=393,951

2018:

2019:

Y=a+bx

Y=a+bx

=320,966+6,635 (13)

=320,966+6,635 (15)

=320,966+ 86,255

=320,966+ 99,525

=407,221

=420,491

0
1
9
20

2020:
Y=a+bx
=320,966+6,635 (17)
=320,966+ 112,795
=433,761

Table 3.6 PROJECTED DEMAND OF TISSUE FOR HOUSEHOLD IN BATAAN

(per roll)
YEARS

ANNUAL

2016
2017
2018
2019
2020

DEMAND
380,681
393,951
407,221
420,491
433,761

Table 3.7 Historical Demand of Tissue Paper for Business Enterprise in Bataan
(per roll)
Years

Number of Hotels, Motels

Average Annual

and Restaurants
Consumption
2009
135
7,200
2010
138
7,200
2011
142
7,200
2012
145
7,200
2013
150
7,200
Source: Department of Trade and Industry (Bataan)

Total Annual
Consumption
972,000
993,600
1,022,400
1,044,000
1,080,000

The number of registered business enterprise using tissue paper are gathered from the
office of Department of Trade and Industry. The statistic show that there is a 3% annual
increase on number of business enterprise that uses tissue paper in Bataan, with an
average of 25 rolls of tissue paper per day, a total of 7,200 rolls a year.
Year
2009
2010

X
-3
-1

Y
972,000
993,600

XY
-2,916,000
-993,600

X2
9
1

2011
2012
2013
N=5
COMPUTATIONS:

0
1
3

1,022,400
1,044,000
1,080,000

0
1,044,000
3,240,000
405,000

0
1
9
20

Y=a+bx

b= xy / X2

a=y/n

=405,000/ 20

=4,744,800/ 5

=20,250

=948,960
For the year
2014:

2015:

Y=a+bx

Y=a+bx

=948,960+20,250 (5)

=948,960+20,250 (7)

=948,960+ 101,250

=948,960+ 141,750

=1,050,210

=1,090,710

2016:

2017:

Y=a+bx

Y=a+bx

=948,960+20,250 (9)

=948,960+20,250 (11)

=948,960+ 182,250

=948,960+ 222,750

=1,131,210

=1,171,710

2018:

2019:

Y=a+bx

Y=a+bx

=948,960+20,250 (13)

=948,960+20,250 (15)

=948,960+ 263,250

=948,960+ 303,750

=1,212,210

=1,252,710

2020:
Y=a+bx
=948,960+20,250 (17)
=948,960+ 344,250
=1,293,210

Table 3.7 PROJECTED DEMAND OF TISSUE FOR BUSINESS ENTERPRISE IN

BATAAN (per roll)
YEARS
2016
2017
2018
2019
2020

ANNUAL DEMAND
1,131,210
1,171,710
1,212,210
1,252,710
1,293,210

Table 3.8 PROJECTED DEMAND OF TISSUE IN BATAAN (per roll)

YEARS
2016
2017
2018
2019
2020

ANNUAL DEMAND
1,511,891
1,565,661
1,619,431
1,673,201
1,726,971

The total projected demand of tissue paper is computed through adding the annual
demand of household and business enterprises of each respective year.

SUPPLY ANALYSIS
Supply Analysis is important for the company in order to assess the competitors
position in the market and determine whether the product would have a competitive share
in the market. The subsection includes the major suppliers, their production capacity and
corresponding market share.

Major Competitors
Knowing the supply of the major producers of the product helps the proponents to
know if the project would have a competitive market position. The related information
was gathered through the different distributors of the product in Bataan.
There are different kinds of tissue paper available in the market. It shows that
Femme, Sanicare and Tisyu obtain the majority target share in Bataan.
The proponents take into consideration their competitors. The first table for the supply
shows the manufacturer or distributors of the product that exist in Bataan, their brand
names, location, product line and sizes.

Company
& Location

Brand Name

Product Line

Available
Sizes

Bathroom Tissue

1 ply

Table Napkin

2 ply

Facial Tissue

4 ply

Kitchen Towel
Makati City

Rolls
Pulls in box
Bathroom Tissue

2 ply

Facial Tissue

3 ply
4 ply

USA

Rolls
Pulls in Box
Bathroom Tissue

2 ply

Facial Tissue

3 ply

PAPERTECH
INC.,

Rolls
Pulls in Box

Table 3.7 Market Competition

Tissue Market Share in Bataan

Femme

20%

28%

Sanicare
Tisyu
18%

9%
12%

Joy
Kleenex

13%

Others

Based on the conducted survey, the market share of different tissue products was
arrived. The Femme Tissue has the highest market share of 20%, the second highest
Sanicare with 18%, on the third rank, Tisyu with 13% market share. Kimberly-Clark has
the fourth and fifth rank with their products Joy and Kleenex with 12% and 9% market
shares respectively and the remaining with 28% market share of the other brands. The top
three leading tissue products are manufactured by the Sanitary Care Products Association
(SCPA).

Table 3.9 Historical Supply of Tissue Paper in Bataan

Average Philippine Supply

Bataan Supply of

Average Supply in

of Tissue Products (in rolls)

Tissue Products

Bataan (in rolls)

2009

143,870,708

0.53%

762,515

2010

159,856,342

0.53%

847,239

2011

175,841,976

0.53%

931,962

2012

193,426,174

0.53%

1,025,159

Year

0.53%
212,768,791
1,127,675
2013
The market size for the year 2009 reaches up to 143,870,708 rolls which SCPA products

have a market share of 51% resulting a supply of 73,374,061.08 that was sold all over the
Philippines. Bataan receives about 0.53% of overall product distribution of the country.
The annual increase in supply is 10%.
COMPUTATIONS:
Year
200
9
201
0
201
1
201
2
201
3
5

X
-3
-1
0
1
3
N

XY

529,524

588,573)

X2
(1,
9
(

582,477

582,477)

640,724

704,797

704,797

1
2,

775,277

325,830

859,577

20

3,
232,799

Y=a+bx
a=y/n
=3,232,799 / 5
=646,560

b= xy / X2
=859,577 / 20
=42,979

For the year 2014

Y=a+bx
=646,560+42,979 (5)
=646,560+ 214,894
=861,454

2015:
Y=a+bx
=646,560+42,979 (7)
=646,560+ 300,852
=947,412

2016:
Y=a+bx
=646,560+42,979 (9)
=646,560+ 386,810
=1,033,369

2017:
Y=a+bx
=646,560+42,979 (11)
=646,560+ 472,767
=1,119,327

2018:
Y=a+bx
=646,560+42,979 (13)
=646,560+ 558,725
=1,205,285

2019:
Y=a+bx
=646,560+42,979 (15)
=646,560+ 644,683
=1,291,242

2020:
Y=a+bx
=646,560+42,979 (17)

=646,560+ 730,640
=1,377,200

Table 3.10 Projected Supply of Tissue Paper in Bataan (in tons)

Year

Annual Supply (in rolls)

2016
2017
2018
2019
2020

1,033,369
1,119,327
1,205,285
1,291,242
1,377,200

Demand-Supply Gap Analysis

Year

2016
2017
2018
2019
2020

Demand

Supply

Unsatisfied

(per roll)

(per roll)

Demand

1,511,891
1,565,661
1,619,431
1,673,201
1,726,971

1,033,369
1,119,327
1,205,285
1,291,242
1,377,200

(per roll)
478,522
446,334
414,146
381,959
349,771

Percentage

32%
29%
26%
23%
20%

The unsatisfied demand can be associated with the growing population of tissue
paper users and the manufacturers inability to satisfy this demand due to increase in the
cost of production and the unstable economy.

Marketing Program and System

Marketing program and system is one of the most important factors in project
feasibility. It gives information on existing marketing product and strategies of the
competitors product and marketing program. This can also be a basis in making an
intelligent decision and help in developing marketing strategies.
Some of the factors that need to be considered are marketing objective, sales
force/personnel, terms and condition of sales, pricing strategy, chanel of distribution,
branding and packaging, promotion and advertising, marketing activities, strength and
weakness of the company.

Marketing Objective
The companys marketing objective is to offer an environment friendly product that
will meet consumers satisfaction at affordable price.

Sales Force/ Personnel

The employees of the company shall receive a compensation, allowances, benefits
and incentives based on the company conditions, terms and policies. This include the
minimum wage rate as of Nov. 30, 2014 calculated by the wage order current in Region
III multiplied by the actual working hours spent. On the other hand the compensation of
each employee changed according to their expertise, knowledge, skill, ability and
responsibility they put into work. Benefits will be given to the employees such as
healthcare benefits, retirement benefits, life insurance, and also dental insurance.
Incentives will also be awarded to employees such as salary increase, stock options and
bonuses. This benefits would be helped the employees to perform their best way and to
exert more effort.

To make the program would be possible; the company should hire the most qualified
personnel that would administer the marketing program.

Sales Marketing Manager

Qualifications:

Male or Female at least 27-35 years of age

Graduate of BS Marketing
With working experience at least 3 years
With good communication skills, English literate

Duties of Sales Marketing Manager

Accomplishes marketing and sales human resource objectives by recruiting,
selecting, orienting, training assigning and enforcing of policies and procedures.
Protects organizations value by keeping information confidential.
Accomplishes marketing and sales objectives by planning, developing,
implementing, evaluating and developing field sales action plans.
Marketing Supervisor
Qualifications:

Male or Female at least 27-35 years of age

Graduate of Bs Marketing
With working experience at least 4 years
With good communication skills, English literate

Duties of Marketing Supervisor:

Develop and execute advertising programs and external marketing
Prepare marketing strategy and write actions plan to attain specific objectives
Develop and maintain promotional relations with local; schools, community
organizations and businesses
Helper

Qualifications:

Male or Female at least 25 years of age

At least High School graduate
Can follow restrictive instructions

Duties of Helper
Responsible for assisting with the production process in factories
Moves carts and dollies with items on them.

Driver
Qualifications:

Male at least 35 years old

With driver license
At least 2 years experience
Must be physically fit

Duties of Driver
Deliver the goods to the customer safely
Help with the loading and unloading of the product of the products and
maintained in good working order

Table 3.10 Marketing Development Personnel

Position
Sales Marketing Manager
Marketing Supervisor
Sales Marketing Staff
Helper

Salary per Month

16, 000
14, 000
13, 000
8, 000

Salary per Year

192, 000
168, 000
156, 000
96, 000

Driver

8, 000

96, 000

Pricing Strategy
Launching a new product requires detailed thought and planning. A critical piece of
that planning is deciding how should price the products. Pricing strategies have a great
impact to the profit margins of business and it determines the pace at which business can
grow. Putting a product on a sale is time-honored tactic. The more customers think they're
saving, the more they might be tempted to buy. The proponent sets a low price based on
variable production cost plus minimum mark-up to increase sales and market share.

Terms and Condition of Sales

The product will be sold either cash or on account. The term of credit sales will be
2/10 & n/30 which means that 2% discount from the purchase if paid in full within ten
(10) days of the receipts of the bill and no discount after 10 days or paid beyond the
discount period. Sales on cash basis will also give 2% discount.

Table 3.11 Channel of Distribution

MAIZE CORPORATION

SUPERMARKETS AND GROCERIES

RESTAURANT

HOTELS AND MOTELS

CONSUMERS

PHARMACY

The products will deliver from Maize Corporation directly to the restaurants, hotels,
motels, and also to consumers through supermarkets, groceries, and pharmacy using land
transportation.

Branding and Packaging

One of the main factors to be considered in purchasing new products is the
packaging. Packaging is an important factor because it helps to maintain the quality of
the product in any possible way and also a good packaging can attract to generate more
customers. Even more it also includes the product name, company logo, company
address,

and

contact

number,

direction

manufacturing and expiration date.

Promotion and Advertising Plan

for

use,

The primary focus of sales promotion and advertising is to positively impact on sales
but it can also impact on wider elements of marketing strategy, working to drive loyalty
to the brand itself, through communication and demonstration, giving consumers a much
better idea of brand, and the quality of these products ahead of making any purchase.
Sales promotion can also be utilized to drive consumers to separate channels, through
Facebook, Twitter or other sites within the social space, promoting offers through specific
brand-coined terms and phrases, and indeed, driving to the brands website itself.
The launching of the product will conducted at Balanga City, the center of the
civilization in Bataan. Presentation of the product to the public and giving free samples
are also part of the program. Giving discounts, coupon, and flyers, posting banners and
tarpaulin will include in launching for consumer to patronize the product. The proponents
also conduct seminars to different Schools and Organization within Bataan to promote
the advocacy of the company for producing this product.

Table 3.12 Marketing Activities

Period
Distribution of
free samples
Distribution of
flyers

Posting tarpaulin

Conducting
seminars
Total cost

Personnel
Involved

1 month

Marketing staff

1 month

Helper

Objectives
To promote the
usage of product
To promote the
awareness of the

Estimated Cost
Php.44, 000

34, 000

product
To make the
1 week

1 month

Helper

Sales
Representative

product popular

22, 056

to individuals
To promote the
purpose of the

148, 000

product
Php.248, 056

Strength of the Company

Maize Corporation will be the first manufacturer of tissue paper from corn
husk.
Company promotes corn husk as alternative for wood trees in making
tissue paper.
Companys products are more affordable than competitors.
Companys products contain less chemical than competitors products.

Weakness of the Company

Competitors brand has been established name in the industry.

Competitors products are scattered and available nationwide.
Competitors products have been earned trust of consumers.
Well marketing strategies of competitors brought by their experiences.

Projected Sales
This section shows the expected annual volume of sales for the next five years. It
also provide information whether the company could get the return in investment in the
said years.
Out of the resulting demand and supply gap, the proponents decide to fill in 20% of
the gap.
Based on the computed demand and supply gap and population, the forecasted
market sales are presented as follows.

Table 3.14 Desired Ouput

Year

Demand-Supply

Desired Percentage

Total Output

2016
2017
2018
2019
2020

Gap (per roll)

478,522
446,334
414,146
381,959
349,771

To Fill
75%
75%
75%
75%
75%

(per roll)
358,892
334,751
310,610
286,469
262,328

Total Output

Desired Percentage

Total Output To Be

358,892
334,751
310,610
286,469
262,328

To Be Produced
100%
100%
100%
100%
100%

Produced
358,892
334,751
310,610
286,469
262,328

Total Output To Be

Desired Percentage

Total Output to be

Produced (per roll)

358,892
334,751
310,610
286,469
262,328

to be Sold
80%
80%
80%
80%
80%

Sold (per roll)

287,113
267,800
248,488
229,175
209,863

Table 3.15 Projected Output

Year
2016
2017
2018
2019
2020

Table 3.16 Projected Sales

Year
2016
2017
2018
2019
2020

Table 3.17 Projected Sales in rolls

Year

Bathroom

2016

Tissue
143,557

2017

133,900

Kitchen Towel

Facial Tissue

Total Rolls

86,134

57,423

287,113

80,340

53,560

267,800

2018

124,244

74,546

49,698

248,488

2019

114,588

68,753

45,835

229,175

2020

104,931

62,959

41,973

209,863

The total output was multiplied to the assigned percentage of sale on each product
variation. Fifty percent (50%) of the total production is allotted for bathroom tissue, 30%
for kitchen towel and 20% for facial tissue production.

MAIZE
CORPORATION
Corny Tissue

Product proposed by:

Dela Torre, Mary Aissel
Diwa, Airra Shane
Guillermo, Lynn- Gel
Marquina, Mary Crysel
Ordonia, Green Julita
Pacaba, Connie
Padlan, Le Anne
Zosimo, Erica Rose