INTRODUCTION/BACKGROUND OF THE STUDY
1.1 Rationale of the Study
“Hungry?” Everyone knows how important food consumption is to an individual. Without food, one may get totally insane and may revert to destroying people’s lives, including their own. As our country continue to battle with the worsening poverty problems and non-stop increase in oil and fuel prices, many Filipinos today rely on wood charcoal for cooking to save money. Metro Cebu, with its four (4) cities of Cebu, Mandaue, Lapu-Lapu and Talisay; and six (6) municipalities of Compostela, Lilo-an, Consolacion, Cordova, Minglanilia and Naga; has an average of about 2,000,000 in population as of 2001. It has an approximate total land area of 79,209 hectares making it the second gateway and the second largest urban area in the Philippines. With a rapid growing population and increasing urbanization, Metro Cebu is a great business spot. This is true for small-time food entrepreneurs like owners of barbecue stalls since Cebu is already synonymous to the word “barbecue”. The booming barbecue industry in Cebu uses mostly, if not all, wood charcoal as their main source of heat in cooking. Also, based on a 1994 study, three fourths of low-income households in Metro Cebu rely on charcoal as their primary cooking fuel and over 80% in the highest-income category use LPG. But as the gross domestic product of Metro Cebu grows, so does one of its major gross domestic by-product—garbage or solid waste. Where only 60% of the garbage or solid wastes generated in Metro Cebu is collected and brought to open dump sites. The rest have been burned or buried in the household or end up into the canals/rivers and eventually to the open sea.Considering that most of our trash is used papers in the form of newspapers, old notebooks, newsprint magazines, manila papers, and others, the researchers came up with the idea that these oddments should be recycled into something beneficial instead of ending up not properly disposed. It is with this knowledge that the researchers have dealt deep to think of something that would both answer for the sky high fuel costs and environmental problems of our country. Thus, the idea of offering to the public an alternative biomass fuel- the paper charcoal came in. It would basically be used as a substitute fuel in cooking for households, and small-time businesses, which may not be able to afford the sky rocketing prices of LPG. It would also be an alternative for the traditional charcoal since it would be much cheaper and environment friendly. Moreover, it produces less smoke and lasts longer than the ordinary charcoal. Urban living entails having to nail down a stable job or a business. Daily survival is a struggle and one has to be financially wise to be able to get through the day. The researchers, through this study aim to know the market feasibility of this product to the Cebuanos.
1.2 Statement of the Problem
The purpose of this study was to verify the feasibility of selling Paper Charcoal to the localities of the cities within Metro Cebu namely; Mandaue City, Lapu-Lapu City, Cebu City and Talisay City. Specifically, this study seeks to:
1. Determine if there is a market for the product
2. Propose a Marketing Strategy for:
2.1 Target Market
2.2 Product Enhancement
2.3 Market Price
2.4 Proposed Promotional Activities
3. Have a supply and demand analysis:
3.1 Projected Supply for the first 3 years.
3.2 Demand Analysis
3.3 Supply Analysis
1.3 Significance of the Study
The result of this study will be of significant value to the following: * Researchers would be able to broaden their knowledge regarding the making of paper charcoal as part of new innovation in the market. This will serve as a springboard for future researchers as their point of reference for any further investigation. * Faculty Members this includes business administration...