Market Feasibility is essential and indispensible in every business establishments. It involves collecting and gathering information about a potential market that can be used in deciding how a product service should be designed, delivered, priced, marketed, how to extend the image of the business, who are the competitors, demand and analysis and who are the potential customers. Conducting market feasibility can provide a reality check on your idea as well as help define product or service development to ensure its appeal to customers.
To identify the preference and trends of its market.
To perform demand analysis and identify its competitive position in the market.
To identify the factors affecting the marketability of the services being offered by the business and established a program to be used as a tool for promotion.
To formulate and gain knowledge of some strategic techniques in the world of trade and commerce.
GENERAL MARKET DESCRIPTION
The general market of the proposed business, Casa de Cómodo, is composed mostly of students from Dipolog City Institute of Technology (DCIT) located in National Highway, Minaog, Dipolog City. The school has college and highschool students but since COZY Home is a boarding house, it would only accommodate the college students ranging from 16 years old and above, with monthly income/allowance of at least Php 1200. As to gender, most of the prospective customers are males since DCIT is the only school offering Maritime Courses that had passed the requirements of Commission on Higher Education and International Standard Organization in the whole province. As to status, most of the students are supported by their families and relatives and the rest are independent individuals. DEMAND ANALYSIS
DCIT is one of the educational institutions offering the lowest tuition fees in the whole province, ZamboangaDel Norte and this is the very reason why most of their students are non- Dipolognons who need security and shelter and that must be accessible to the school. Thus, they need a boarding house, like Cozy Home, where they could temporarily live during their education years.
In connection with this, the researchers of Cozy Home surveyed two hundred eighty four (284) students in order to get the probable demand of the proposed boarding house by using SLOVIN’S FORMULA. SLOVIN’S FORMULA:
where: n= sample size
N= total population
e= error assumed
* To derived first at the total population of students, we get the average population of the two semesters in the school year 2012-2013. School Year 2012-2013:
Divided by 2 semesters _2__
Ave. Total Population
962.5 or 963
* To get the confidence level, we considered the following possible boarders not included in the total population: a. High School students who need to rent a room
b. Workers from outside the school
c. Students from other schools
d. Workers from the school
Total Percentage of error
e = 5%
To finally solve the sample size:
1 + 963 (5%)^2
n = 282.61 or 283
Thus, the sample size is 283 students which represent the total population of the school. Survey questionnaires were distributed to them randomly in order to gather information about the market of Casa de Cómodo.
Figure 1: OCCUPATION OF RESPONDENTS
The figure above shows that most of the respondents are students with a rate of 94.72%, followed by students with sideline work with rate of 4.58%, others with rate of 0.7% and the office worker with rate of 0%. The survey implies that the prospective customers of Casa de Cómodo are students and there are no office worker...
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