Feasibility Study of Internet Cafe

Only available on StudyMode
  • Download(s) : 1371
  • Published : October 17, 2012
Open Document
Text Preview
III.Marketing Aspect

Name of the Product
The Internet is a global network connecting millions of computers. More than 100 countries are linked into exchanges of data, news and opinions. According to Internet World Stats, as of December 31, 2011 there was an estimated 2,267,233,742 Internet users worldwide. This represents 32.7% of the world's population. Singko (5) Net is the name of our business. For only P5.00, the customer can surf the internet. We choose this business to help students of University of Mindanao Digos Campus to use the internet in a most convenient way. Computer and Internet connection is very important and useful for the students specifically for their research papers. They can use the computer by inserting P5.00 coin on the coin slot to avail at least 20 minutes of service. Properties of the Business

The properties of the business are computer set and internet connection. These properties will be used to render services.
Location of the Business
Since our target market is the University of Mindanao Digos Campus students, the location of the business will be infront of the institution, specifically, infront of the first gate of the said institution.

Uses of the Product
For just P5.00 the students can surf the net, play online games/Local Area Network (LAN) games, chat, upload/download pictures, music, videos, documents, games, they can also transfer files from the computer to their computer device such as USB Flash Drives. Customers can also use the computer for their personal purposes. Users of the Service

The expected major users of the service are the students of University of Mindanao Digos Campus. Moreover, the walk-in customers and residents of nearby houses are expected to use the services. 1. Demand and Supply Data

Table 1
Year| Population| Demand Daily (Percentage)| Historical Demand (Daily)| Historical Demand (Yearly)| 2007| 3, 176 | 5%| 159 | 45, 792| 2008| 3, 080 | 5%| 154 | 44, 352| 2009| 3, 268 | 6%| 196.1 | 56, 477| 2010| 4, 368 | 8%| 349.4 | 100, 627.2| 2011| 4, 674 | 9%| 421 | 121, 248|

*Based on survey, only 5% - 9% of the students are using the services in a day. To get the historical demand (yearly), this formula will be used: Historical Demand (Yearly) = Historical Demand (daily) * 24 days (month) * 12 months (year)

Projected Demand
Table 2
Year| Projected Demand|
2012| 140, 112|
2013| 158, 976|
2014| 177, 840|
2015| 196, 704|
2016| 215, 568|

To get the projected demand, this formula will be used:

Projected Demand = historical demand last year (2011) – historical demand first year (2007)
(no. of years) 5 – 1

= 121, 248 – 45, 792
4
Projected Demand = 18, 864
* So, each of the projected year we will add 18, 864 as the increase, to get the projected demand annually. It is very important to recognize how much would be the projected demand for us to be able to know the possible sales itself for the next 5 years.

Supply
Past Supply
Table 3
Year| No. of Supplier| Combination of 2 Suppliers’ Supply| Total Suppliers’ Supply| 2007| 2| 22, 176 + 26, 496| 48, 672|
2008| 2| 20, 160 + 25, 920| 46, 080|
2009| 2| 17, 280 + 25, 344| 42, 624|
2010| 2| 21, 600 + 25, 920| 47, 520|
2011| 2| 25, 632 + 28, 224| 53, 856|

In order to know the past total suppliers’ supply, the two suppliers’ supply is added. In this sense, we will be informed how...
tracking img