The target market of the said business is the college students of the Ateneo de Zamboanga University located at La Purisima St., Zamboanga City. The segment and its description are:
Students – These are the college students of the university, heterogeneous when it comes to defining their courses and in terms of demographics, there is no limit on the age bracket and there is no gender bias.
With this market, the proposed business would have an advantage, since the target market is readily available and has the buying power, thus, with significant calculations and marketing strategies, the business would be profitable.
But the proponents are not limiting the possibilities of having other markets such as walk in clients like parents of grade school, faculty and staffs and others.
Nature of Demand
The total population of the desired market is 3,598 based from the enrolment data of 2nd semester, S.Y. 2012-2013 for ADZU College students. The proponents of the business surveyed a hundred individuals from the total population; derived from the Slovin’s formula to get the required basis and reference for the study. Chart 1.1
Based from the conducted survey 56% of the sample population which is 2,015 have already been to a spa and 44% which is 1,583 have not been to a spa. Comparing the two percentages, we can see that there is a demand of a spa service in Ateneo main campus. Projected Demand
The projected demand of the proposed spa business was derived from multiplying the 56% which represents those respondents who have already been to a spa to the total population of the target market. For the succeeding operating years a 2% average increase in population growth rate of the college students was applied (this is based on a 10-year average increase, see Annex A for the computation).
Chart 1.2 – Willing to Avail
Chart 1.2 describes how many of the target market are willing to avail the different spa services if there would be a spa in the university. Out of the hundred respondents, seventy three are willing to patronize the spa in Ateneo.
After arriving at the total population of the target market who avail spa services, we compute for the 73% of that population which represents those respondents who are willing to avail a spa service of the proposed business.
Below are the computations:
Table 1.1 – Projected demand for 3 years
Year | 2012-2013| 2013-2014| 2014-2015| 2015-2016|
Total population| 3,598| 3,670| 3,743| 3,818|
Percentage of the sample population who avail spa services| X 56%| X 56%| X 56%| X 56%| Total target market population| 2,015| 2,055| 2,096| 2,138| Percentage of the target market who would like to avail body massage for the year.| X 73%| X 73%| X 73%| 73%| Projected Demand| 1,471| 1,500| 1,530| 1,561|
Table 1.1 illustrates how the proponents arrived at annual projected demand for three years.
The current trend to a healthy lifestyle is on the rise, a steady increase on different type of businesses that promotes health and wellness, much of this, is attributed to spa. The proponent of the business sees a growth in this sector and it is pretty much in the introduction stages in Zamboanga City.
Table1.1 shows us the actual demand of a spa in the Ateneo Campus. The proponents only applied the average growth rate because there can be fluctuations in the population of the college students. So whether there will be an increase or decrease, the proponents are assured of the 2% steady increase in the population. In this way, the figures are not over optimistic which can negatively affect demand forecasts and eventually in the projected sales.
There are can also be potential demands from other markets like the faculty, staff and parents of the grade school since they also share the same location and because the proponents do not limit the services to the target...