Chapter 2

MARKETING ASPECT

Luscious Ice cream is made with its finest ingredient such as pandan,

laxative for children; carrots that is a rich in vitamins

A,C,K,B8,potassium,chocolate which can boost energy; ginger which can help to

improve respiratory conditions and milk which offers rich calcium. Luscious ice

cream has (I) cashier and (I) sales assistant to accommodate all the customers.

The station uses scoops to measure the quantity of the ice cream according to its

price

It shows that having an ice cream business with unique yet nutritious

flavoring is an effective way of helping the health of many Tagumeños. It can

also provide good profit to the business because many Tagumeños fond to eat

ice cream

Market

The target markets of the business are the people who live within Tagum

City. The proposed business will operate 6days/week. It is a new product

innovation which is unique in the eyes of many people at very affordable prices

where the other competitor doesn’t have. The Luscious Ice Cream is scooping

station where customers can easily afford. The entrepreneur maintains the
quality of the product that will satisfy the needs of the consumers and to maintain

the cleanliness of the said product.

Location ( discuss why you select this location, be specific)

The proposed business will be located at Tagum Trade center. The

location of the business is very accessible to the public and gives more

convenient to the customers.

Demand

Through the data gathered using the google form survey, it shows that out

of 51,733 populations of Poblacion Tagum City ages from 13 to 82 not including

the children below 12 years old, there are many teenagers most likely to eat ice

cream and they are willing to spend at least P9.00 pesos a day. It is very

demandable because everyone would really love to eat ice cream it gives

refreshment to your body.

Historical Demand

Table 1 presented the population of Poblacion of Tagum City in which the

population is increasing yearly. It shows that having a business in downtown of

Tagum is more potential than other location. The proponents came up with the

estimated average of client through online survey using google.doc.

 Table 1

Historical Demand of Luscious Ice Cream

Average percentage of Average Total of serving

Year Population client consumption of of ice cream in

13-82 yrs.old ice cream in scoop scoop per year

(32%) per month

2014 51,733 16,555 4 794,640

2015 52,768 16,886 4 810,528

2016 53,823 17,223 4 826,704

Projected Demand

Table 2 Shows the projected demand is increasing in the next 3 years.

There is an average increase of 1.9% per year based on the average method

used.
 Table 2

Projected Demand of Luscious Ice Cream

Total Projected No. of serving of

Average
Year Based year Ice Cream in scoop demanded
Increase
per year

1 826,704 1.9% 842,411

2 842,411 1.9% 858,416

3 858,416 1.9% 874,725

Historical Supply

Table 3 presents the historical supply of the Competitors where the

proposed businesses Luscious Ice Cream base the supplies demanded per year.

The supply is increasing from 2014, 2015, 2016.

 Table 3

Historical Supply of Lucious Ice Cream

Competitors 2014 2015 2016

(in scoop) (in scoop) (in scoop)

Selecta 74,880 86,400 97,200

Charisse 75,600 76,507 77,425

Dona 64,400 65,578 66,365

Magvilla 86,400 87,437 88,486

Total 301,680 323,922 329,476

Projected Supply

Table 4 Shows the projected supply of Ice Cream in scoop where the

average increase is 4.5% yearly.

Table 4

Projected Supply of Lucious Ice Cream

Average Projected Supply

Year Based Year
Increase In scoop per year

1 329,476 4.5% 344,302

2 344,302 4.5% 359,795

3 359,795 4.5% 375,985

Demand and Supply Analysis

Table 5 Shows the demand and supply analysis of Luscious Ice cream.

The demand is increasing per year. It shows that this kind of business has a big

impact in market.

Table 5

Demand and Supply Analysis of Lucious Ice Cream

Unsatisfied
Historical
Historical Supply Demand
Year Demand
(in scoop) (in scoop)
(in scoop)
2014 794,640 301,680 492,960

2015 810,528 315,922 494,606

2016 826,704 329,476 497,228

Projected
1 842,411 344,302 498,109

2 858,416 359,795 498,621

3 874,725 375,985 498,740

Production Capacity

Table 6 presented the production capacity of Luscious Ice Cream in

consecutive 3 years. It shows that the capacity in scoop per year is increasing.
 Table 6

Production Capacity of Lucious Ice Cream

Production in
Year Daily Weekly Monthly capacity in scoop
per year
1 360 2,160 8,640 103,680
2 480 2,880 11,520 138,240
3 600 3,600 14,400 172,800

Market Share

Table 7 presented the market share of the proposed business Luscious

Ice Cream. To come up with the average market share, the annual production

capacity divided by the unsatisfied demand.

Table 7

Market Share of Lucious Ice Cream

Unsatisfied Production Capacity Average

Year Demand In scoop per year market share

1 498,109 103,680 20.8%

2 498,621 138,240 27.7%

3 498,740 172,800 34.6%

Projected Sales Income

Table 8 presents the projected sales of the business which is the sales

revenue in the first year operation. As per assumption, a total estimated sale in

year 1 is P 933,120. It is based on the quantity demand of Ice Cream flavor of

LUSCIOUS ICE CREAM multiplied by the selling price.

Table 8

Projected Sales Income Year 1

Percentage Quantity
Particular Selling Price Total Sales
Share (in scoop)

Pandan 35% 36,288 9.00 326,592.00

Carrot 30% 31,104 9.00 279,936.00
Chocolate 20% 20,736 9.00 186,624.00
Ginger 15% 15,552 9.00 139,968.00
Total 100% 103,680 P933,120.00

Projected Sales Income

Table 9 shows the projected sales in Year 2, the sales is increasing from

P933,120 to P1,244,160. This only appears that the proposed business is

flourishing.
 Table 9

Projected Sales Income Year 2

Particular Percentage Quantity Selling Total Sales

share (in scoop) Price
Pandan 35% 48,384 9.00 435,456.00
Carrots 30% 41,472 9.00 373,248.00
Chocolate 20% 27,648 9.00 248,832.00
Ginger 15% 20,736 9.00 186,624.00
Total 100% 138,240 P1,244,160.00

Projected Sales

Table 10 shows the total projected sales of Ice Cream in scoop for the

next 3 years. Prices remain the same to give a quality yet affordable product.

Table 10

Projected Sales Income Year 3

Particular Percentage Quantity Selling Total Sales

share (in scoop) Price
Pandan 35% 60,480 9.00 544,320.00
Carrots 30% 51,840 9.00 466,560.00
Chocolate 20% 34,560 9.00 311,040.00
Ginger 15% 25,920 9.00 233,280.00
Total 100% 172,800 P1,555,200.00
Channel of Distribution
The channel of distribution shows the flavoring of ice cream came from the

Supplier to Luscious Store to make it a final product and sell directly to Final

Consumer.

Luscious Ice Cream Final Consumer

Store

Promotional strategy

During the opening, the most effective way of promoting the product is to

give a free taste to everyone budgeted of 1\2 gallon per flavor. The strategy can

help in order that the product will be known. For freebies there are limited key

chains with the name of “Luscious Ice Cream” for the first 50 customers who will

buy ice cream worth ₱ 30.00 pesos and above, for advertisement there are

tarpaulin placed in front of the station to attract customers.

 Table 11

Promotional Expense

Particular Quantity Price Total

Tarpaulin size:3x4 1pc 350.00 350.00

Keychains 50 pcs. 12.00 600.00
Pandan 1/2 gallon 98.00 98.00
Carrot Ice Cream 1/2 gallon 104.00 104.00
Chocolate Ice Cream 1/2 gallon 105.00 105.00
Ginger Ice Cream 1/2 gallon 118.00 118.00
Tester Cup 4 packs 18.00 72.00
Wooden spoon 2 packs 75.00 150.00

Total 1,597.00