Chapter Two

MARKETING ASPECT
Market Description
The main product of Greenify. Inc. which is the rice husk chopstick is mainly for
restaurant use, specifically Korean, Chinese, Japanese restaurants. For this project
feasibility study, we elected to analyze the demand and supply of disposable chopsticks
in Angeles City.
Target Market
The target market is the specific group of consumers at which a business aims its
products or services.
The target market of the rice husk chopsticks are the Korean, Chinese, and
Japanese Restaurants in Angeles City. The proponents chose Angeles City because of
the presence of a Korean Town. Although named as Korean Town, you can also find
restaurants that offer different Asian cuisines like Chinese and Japanese other than
Korean. Outside the Korean Town, there are also a few Korean, Chinese, and Japanese
restaurants around Angeles City. These three Asian cuisines are known for the use of
chopsticks as part of the whole dining experience. The proponents of these project
feasibility study adapted the floating of questionnaires to determine the demand and
supply of disposable chopsticks.

Data Gathering Technique

The proponents of this project feasibility study elected the use of questionnaires
as method of acquiring information. We have determined that there are only seventy (70)
restaurants that are classified as either Korean, Japanese, or Chinese. We decided to
float questionnaires to all seventy (70) restaurants. The information needed to determine
the supply and demand of disposable chopsticks were identified through these
questionnaires.

Table 2.1 List of Korean, Chinese, and Japanese Restaurants in Angeles City
No.
1
2

4
5
6

Business Name
Hado Restaurant
Sea Hyun Jung Restaurant
Mr. Pang Pang Yi San
Restaurant
Yang Daepyo Inc.
Korsch Restaurant
Hangbok Jung Corporation

Galbi Sarang Restaurant

N & Kang San Ae Corporation

Po and Porridge Inc.

10

Ahua Dimsum
Sachicohirano Food
Corporation
Jang Eo Myung Ga Restaurant
Palgan Nakji Korean
Restaurant
Sing Guel Bang Guel
Corporation
Oppa Korean Restaurant
Korean Boom Chicken
Korean Crown Chicken House
Joomong International Inc
Moon Sung Chinese and
Korean Restaurant
Don-Don Tei Japanese
Restaurant
Youngmin Chinese Dining
Restaurant

11
12
13
14
15
16
17
18
19
20
21
22

Gokizip Korean Restaurant

24

Joung Youn Hotel and

Restaurant
Yutai Food Industry Inc.

25

Jinjja Korean Restaurant

26
27
28
29

Anmyundo Corporation
Dae Na Mu Jip Corporation
Manchoo Kutsara Corporation
Babsang Restaurant

23

Business Address
Block 2 Friendship Highway, Anunas
299 Friendship Highway, Anunas
1053 Fields Avenue, Balibago
Block 22, Friendship Highway, Anunas
Unit 6 Lot 2B Friendship Highway, Cutcut
Mac Arthur Highway, Balibago
Stall 111/112 Mugunghwa Building, Friendship
Highway, Anunas
Lot 47, Friendship Highway, Anunas
Stall 101 Mugunghwa Building, Friendship
Highway, Anunas
Don Juico Avenue, Anunas
SM Clark M. A. Roxas Street, Malabanias
256 Friendship Highway, Anunas
Stall 104 Mugunghwa Commercial Building,
Lot 3 Block 9 Friendship Highway, Anunas
231 Feliciano Building, Friendship Highway,
Anunas
193 Fields Avenue, Balibago
2210 Friendship Highway, Anunas
#3 Friendship Highway, Anunas
1240 Miranda Street, Santo Rosario
Lot 3 Block 9 #114 Mugunghwa Commercial
Building, Friendship Highway, Anunas
Stall #7 SM Clark M. A. Roxas Street,
Malabanias
105 Constantine Street, Balibago
Unit 1-6 Oklahoma Street, Villa Sol
Subdivision, Anunas
Lot 12 Block 12 Nile Street, Anunas
SM Clark M. A. Roxas Street, Malabanias
Stall 7 Harrison Building Corner Arayat
Severina Lim Street, Balibago
232 Friendship Highway, Anunas
294 Friendship Highwat, Anunas
G/F Galaxy Hotel 993, Balibago
Lot 3 12 Fil-Am Friendship Highway, Cutcut

30

Halmunee Jip Inc.

31

Noe Donghae Korean

Restaurant

32

Daehyun Corporation

33

Sarangbang Story Inc.

Nombe Japanese Sushi
Restaurant

34
35

Keundae Moon Corporation

38

Sigol Baboy Samgyopsal

Restaurant
Samgyupsal Galbi Pilipino and
Korean Restaurant
KoreanPhil World Inc.

39

Hoa Mai Restaurant

40

Sempai Sushi Bar and

Japanese Restaurant Inc.

41

Siam House Restaurant

42

45

Sumpan Dimsum Kitchen

Fortune Fook Yuen Tea
House Inc.
Puning Hot Spring and
Restaurant
Niji Japanese Restaurant

46

Chung Jae Corporation

36
37

43
44

50

Yufuin Yakiniku & Japanese

Restaurant
Yu Ganne Car Guksoo
Restaurant
Il Mi Korean Food & ShabuShabu
KorPhil Secret Garden Inc.

51

South Park Noodle House Inc.

52

North Park Noodle House Inc.

53

Sin Sun Jo Corporation

54

Mr. Wang Chinese Restaurant

47
48
49

Block 6 Lot 28 Lina Street, Riverside

Subdivision, Anunas
1283 Hallmark Building Miranda Street, Santo
Rosario
Mugunghwa Building Friendship Highway,
Anunas
258 Friendship Highway, Anunas
Cluster III-A The Quad @ Nepo Plaridel Street,
Santo Rosario
Unit 101 G/F Will Building 256 Friendship
Highway, Anunas
Lot 3 Block 6-A Friendship Highway, Anunas
Friendship Highway, Anunas
Lot 5 Block 4 Real Street, Balibago
1009 Teodoro Street Sta. Maria Village,
Balbago
Lot 30 Cor. Luna Street, Friendship Highway,
Anunas
550 C. Don Juico Avenue Clarkview,
Malabanias
Mac Arthur Highway, Balibago
SM Clark M. A. Roxas Street, Malabanias
Sitio Target, Sapangbato
Don Juico Avenue, Anunas
Block 18 Lot 1 Volga Street Riverside
Subdivision, Anunas
1st Street, Balibago
Stall 1-B Don Melton Avenue, Anunas
Friendship Highway, Anunas
Lot 9 No. 307 Vien Street, Balibago
Space-3085 Level-3 Marquee Mall Francisco
G. Nepomuceno Avenue, Pulung Maragul
Space-1146B Level-1 Marquee Mall Francisco
G. Nepomuceno Avenue, Pulung Maragul
Stall-2 Don Juico Avenue, Friendship Highway,
Anunas
Don Juico Avenue, Friendship Highway,
Anunas

55

Dainty Asian Cuisine

56

Joung KorPhil Inc.

57
58
59
60
61
62

Shinsun Sulungtang
Corporation
Jang Soo Seafood Restaurant
Manchoo Restaurant Inc.
Guyiga Korean Grill House
Sinsun Seolnongtang
Restaurant
Meilee Samgyupsal and
Yakiniku House

63

Hyeum Jeong Restaurant

64

Mongkok Dimsum House

Angeles Fortune Hongkong
Seafood Restaurant Inc.
Dainty China House
Heaven Korean Restaurant
Mr. Ramyun Korean
Restaurant
Jung Won Korean Restaurant
Yamashita Korean Restaurant

65
66
67
68
69
70

Mac Arthur Highway, Balibago

Don Melton Avenue, Riverside Subdivision,
Anunas
Block 22 lot 16 Friendship Highway, Anunas
Friendship Highway, Anunas
G/F Galaxy 993 Friendship Highway, Anunas
Block 12 Lot 19 Friendship Highway, Anunas
TS Annex 1 Rizal Extension, Santo Rosario
Stall 1 Clarkhauz Building, Mitchell Highway,
Balibagp
Riverside Subdivision, Friendship Highway,
Anunas
Mac Arthur Highway, Balibago
#305 Diamond Rd. Mac Arthur Highway,
Balibago
Henson Street, San Nicolas
Mac Arthur Highway, Angeles City
Mac Arthur Highway, Angeles City
Friendship Highway, Anunas
Santo Rosario, Angeles City

The table above lists all the Korean, Chinese, and Japanese restaurants
provided by the Angeles City Hall. These are the respondents to our survey
questionnaire.

Demand Analysis

Figure 2.1 Chopstick Usage of Korean, Chinese, and Japanese Restaurants in Angeles City

Uses chopsticks (100%)

Does not use chopsticks (0%)

The figure above depicts the use of chopsticks of Korean, Chinese, and
Japanese restaurants. The survey questionnaire floated provided that all of the
restaurants surveyed offers the use of chopsticks for their customers as part of their
dining experience. Seventy (70) out of seventy (70) restaurants or one hundred percent
(100%) answered that they provide chopsticks for their costumers use. This provides
information about the need for chopsticks.

Table 2.2 Chopstick usage according to type of chopsticks

Type of Chopstick
Plastic
Metal
Wooden
Disposable

Frequency
10
6
4
65

The table above shows the use of chopsticks of Korean, Chinese, and Japanese
restaurants according to the type of chopsticks. The survey questionnaire provided the
above results. Out of the seventy (70) Korean, Chinese, and Japanese restaurants
surveyed, ten (10) of them provides customers the use of plastic chopsticks, six (6) of
them provides customers the use of metal chopsticks, four (4) of them provides
customers the use of wooden chopsticks, and sixty-five (65) of them provides customers
the use of disposable chopsticks.

Figure 2.2 Usage of Disposable Chopsticks

Uses disposable chopsticks (93%)

Does not use disposable chopsticks (7%)

The figure above shows the use of disposable chopsticks among Korean,
Chinese, and Japanese restaurants. The survey questionnaire provided the above
results. Out of the seventy (70) Korean, Chinese, and Japanese restaurants surveyed,

sixty-five (65) of them provides customers the use of disposable chopsticks. They
constitute ninety-three percent (93%) of all Korean, Chinese, and Japanese restaurants
in Angeles City. Only five (5) out of seventy (70) said that they do not provide disposable
chopsticks for customers use. They constitute seven percent (7%) of all Korean,
Chinese, and Japanese restaurants in Angeles City. These provides information about
the wide use of disposable chopsticks among Korean, Chinese, and Japanese
restaurants in Angeles City.

Figure 2.3 Daily Usage of Disposable Chopsticks

50 pairs or less (9%)

51 - 100 pairs (22%)

101 - 150 pairs (63%)

151 - 200 pairs (6%)

The figure above shows the daily usage of disposable chopsticks among Korean,
Chinese, and Japanese restaurants. The survey questionnaire provided the above
results. Out of the seventy (65) Korean, Chinese, and Japanese restaurants surveyed
that provides customers the use of disposable chopsticks, six (6) of them use fifty (50) or
less pairs of chopsticks. They constitute nine percent (9%) of all Korean, Chinese, and
Japanese restaurants in Angeles City that provides customers the use of disposable
chopsticks. Fourteen (14) out of sixty-five (65) use fifty-one (51) to one hundred (100)
pairs of disposable chopsticks and they constitute twenty-two percent (22%). Forty-one
(41) out of sixty-five (65) use one hundred one (101) to one hundred fifty (150) pairs of
disposable chopsticks and they constitute sixty-three percent (63%). Only four (4) out of
sixty-five (65) use one hundred fifty-one (151) to two hundred (200) pairs of disposable

chopsticks and they constitute six percent (6%). These provides information about the
existence of demand for disposable chopsticks among Korean, Chinese, and Japanese
restaurants in Angeles City.

Table 2.3 Rating scale results on factors in choosing disposable chopsticks

Factors
Price
Durability
Reusability
Raw Materials
Used
Impact on
Environment
Recyclability
Biodegradability

Extremely
Important
(4)
65
-

Moderately
Important
(3)
21
-

Slightly
Important
(2)
39
-

Not
Important
(1)
5
65

22

36

3.2308

24

41

2.3692

41

14
21

39
3

12
-

2.0308
3.5846

Weighted
Average
4.0000
2.2462
1.0000

The table above shows the results of tabulations of the rating scale that is part of
the questionnaires floated to the respondents. The rating scale listed several factors in
choosing the disposable chopstick to buy, and the respondents classified the level of
importance of each factor. All of the respondents classified price as extremely important.
This just means that price is the main consideration of Korean, Chinese, and Japanese
restaurants in choosing the disposable chopstick to buy. Durability received a relatively
low score because disposable chopsticks are for one-time use only and that durability
rarely arise as a problem. The results for reusability are expected because disposable
chopsticks should never be reused for this will very unsanitary. Raw materials used in
the production of disposable chopsticks is significant to the respondents because the
quality of the chopstick will depend mainly on the raw materials used. The impact on
environment received a relatively low rating due to the absence of alternatives to
wooden disposable chopsticks. Recyclability of chopsticks are deemed to be not really a
significant factor in choosing chopsticks but still there are few who look into it.

Table 2.4 Rating scale results on statements regarding impact on

environment of business operations

Statement
Many trees are being cut
down to support the
production of wooden
disposable chopsticks.
The production of wooden
disposable chopsticks is
harmful
to
the
environment.
A
company
or
establishment
should
always
consider
the
effects of its conduct of
business
to
the
environment.
A
company
or
establishment
should
strive
towards
having
positive
environmental
impact.
I am interested in a
product that will be a good
alternative to wooden
disposable chopsticks that
will have no detrimental
effect to the environment.

Agree
(3)

Disagre
e
(2)

Strongly
Disagre
e
(1)

Weighted
Average

23

42

3.3539

10

55

3.1539

13

52

3.2000

19

46

3.2923

58

3.8923

Strongly
Agree
(4)

Figure 2.4 Willingness to use rice husk chopsticks

Willing to use (91%)

Not willing to use (9%)

The figure above shows the willingness of Korean, Chinese, and Japanese
restaurants to use our rice husk chopsticks as an alternative to wooden disposable
chopsticks. The survey questionnaire provided the above results. Out of the seventy (65)
Korean, Chinese, and Japanese restaurants surveyed that provides customers the use
of disposable chopsticks, only (6) of them are not willing to use rice husk chopsticks as
an alternative and they constitute nine percent (9%). Fifty-nine (59) out of sixty-five (65)
answered that they are willing to use our rice husk chopsticks as an alternative to
wooden disposable chopsticks and they constitute ninety-one percent (91%)

Average Annual Demand of Disposable Chopsticks

Table 2.5 Average Annual Demand of Disposable Chopsticks
Disposable
Chopstick
Usage
50 pairs or less
51-100 pairs
101-150 pairs
151-200 pairs
TOTAL

Median

Percentage of
Frequency

Average Daily
Demand

25
75.5
125.5
175.5

9%
22%
63%
6%

2.25
16.61
79.065
10.53

Average
Annual
Demand
821
6,063
28,859
3,843

100%

108.455

39,586

The table above shows that the average annual demand for disposable
chopsticks is 39,586 pairs per restaurant. In arriving at this result, the median is
calculated for each usage range given. The median is then multiplied to the percentage
of frequency to each respected usage ranges which results to the average daily
demand. The average daily demand is multiplied to 365, which is the number of days in
a year, to arrive at the average annual demand.

Average Annual Demand of Rice Husk Chopsticks

Table 2.6 Average Annual Demand of Rice Husk Chopsticks

Average Annual Demand

of Disposable Chopsticks

Percentage of Restaurants
that are willing to use rice
husk chopsticks

Average Annual Demand

of Rice husk chopsticks

821
6,063
28,859
3,843

91%
91%
91%
91%

747
5,517
26,262
3,497

TOTAL

36,023

The table presented above shows that the average annual demand for rice husk
chopsticks is 36,023 pairs per restaurant. The proponents arrived at these result by
multiplying the average annual demand of disposable chopsticks in each usage range to
the percentage of Korean, Chinese, and Japanese restaurant that are willing to use rice
husk chopsticks. The summation of the results represents the average annual demand
for rice husk chopsticks.

Trend in the Increase of Korean, Chinese, Japanese Restaurants in Angeles City

One of the needed information for this project feasibility to materialize is the
identification of the projected increase of Korean, Chinese, and Japanese restaurants in
Angeles City. The trend is determined by solving for the average increase per year.
Korean, Chinese, and Japanese Restaurant in Angeles City (2016)

70

Korean, Chinese, and Japanese Restaurant in Angeles City (2010)

14

Difference

56

Increase in a year

56 / 6 = 9

Table 2.7 Projected Increase of Korean, Chinese, and Japanese Restaurants in Angeles
City

YEAR
2017
2018
2020
2021
2022

Number of Korean, Chinese, and Japanese

Restaurants in Previous Year
70
79
88
97
106

Increase

TOTAL

9
9
9
9
9

79
88
97
106
115

The table shown above presents the projected increase in the number of Korean,
Chinese, and Japanese restaurants in Angeles City for the next five years. Given the
average increase, which is 9 (nine) per year, we project that in 2017 there will be a total
of seventy-nine (79) Korean, Chinese, and Japanese restaurants, a total of eighty-eight
(88) in 2018, a total of ninety-seven (97) in 2019, a total of one hundred six (106) in
2020, and a total of one hundred fifteen (115) on the year 2022.

Table 2.8 Projected Number of Willing Customers

YEAR
2017
2018
2019
2020
2021

Projected number of
Korean, Chinese, and
Japanese restaurants
79
88
97
106
115

Percentage of
willing customers

Number of willing
customers

91%
91%
91%
91%
91%

72
80
88
99
105

The table illustrated above shows the number of willing customers in each of the
next five year. In arriving at these results, the projected number of Korean, Chinese, and
Japanese restaurants for the next five years is multiplied to the percentage of willing
customers which is 91%.

Projected Demand
Table 2.9 Projected increase in average annual demand

YEAR
2017
2018
2019
2020
2021

Average annual
demand from
previous year
36,023
37,824
39,715
41,701
43,786

Assumed
increase

Increase in
demand

5%
5%
5%
5%
5%

1801.15
1891.21
1985.77
2085.06
2189.31

Projected average
annual demand for
the year
37,824
39,715
41,701
43,786
45,975

The table above shows that projected average annual demand for rice husk
chopsticks for the next five (5) years. The proponents assumed an annual increase in
average demand of five percent (5%)

Table 2.10 Projected total demand for rice husk chopsticks

YEAR

Target Market

2017
2018
2019
2020
2021

72
80
88
99
105

Projected average annual

demand
37,824
39,715
41,701
43,786
45,975

Projected demand for

the year
2,723,328
3,177,200
3,669,688
4,334,814
4,827,375

The table presented above shows the projected total demand for rice husk
chopsticks in each of the next five years. This is computed by multiplying the projected
number of target market to the projected average annual demand.

Supply Analysis
The floated questionnaires provided information of the total supply. The
proponents of these projected feasibility study examine the results of the floated

questionnaires and arrived at the average monthly order that the supplier of each
Korean, Chinese, and Japanese restaurants can only provide 2,235 pairs of wooden
disposable chopsticks to each restaurant.
Table 2.11 Projected Supply
YEAR
2017
2018
2019
2020
2021

TOTAL SUPPLY
1,830,465
1,921,988
2,018,088
2,118,992
2,224,942

The table above displays the total projected supply for the next five years. Total
supply for the first year is computed by multiplying the average monthly supply to the
number of months in a year, then multiplying it again to the number of disposable
chopstick users. Total supply for 2017 is
Demand Supply Gap Analysis
Table 2.12 Analysis of Demand Supply Gap

YEAR
2017
2018
2019
2020
2021

Target
Market
72
80
88
99
105

Total Demand

Total Supply

Gap

2,723,328
3,177,200
3,669,688
4,334,814
4,827,375

1,830,465
1,921,988
2,018,088
2,118,992
2,224,942

892,863
1,255,212
1,651,600
2,215,822
2,602,433

Percentage
Unsatisfied
33%
40%
45%
51%
54%

The table above presents the gap between the demand and supply of disposable
chopsticks in the Angeles City. The gap signifies the capacity to be put up by the
proponents of this feasibility study.
Table 2.13 Projected unit sales
YEAR
2017
2018
2019

Total Sales
554,202
729,699
810,520

2020
2021

867,673
918,907

The table above shows the projected sales in units for the next five (5) years.
This is based on the estimated production capacity of 985,248 pairs a year. In the first
year of operations, the business will be operating at 75% capacity, and an increase of
5% per year 80% for 2018, 85% for 2019, 90% for 2020, and 95% for 2021. Inventory
at the end of each year will be 25% of the total available goods for the year.
Projected Sales
Table 2.14 Projected Sales
YEAR
2017
2018
2019
2020
2021

Unit Sales
554,202
729,699
810,520
867,673
918,907

Selling Price
P1.7
P1.7
P1.7
P1.7
P1.7

Total Sales
P942,143.40
P1,240,488.30
P1,377,884.00
P1,475,044.10
P1,562,141.90

Market Share
Table 2.15 Market Share
z
2017
2018
2019
2020
2021

Unit Sales
554,202
729,699
810,520
867,673
918,907

Gap
892,863
1,255,212
1,651,600
2,215,822
2,602,433

Market Share
62%
58%
49%
39%
35%

Marketing Mix
Product
In the development of a marketing mix, the foremost thing to be refined is the
product concept. This is concomitant to the fact that the product itself is indispensable
with the marketing concept.

The introduction of a waste material into the production of our own version of
disposable chopsticks is our main selling point. Rice husk is a costless waste material
which can be added to the production of chopsticks. Rice husk chopsticks will in turn be
an inexpensive choice that can meet the tight budgets of different restaurants that will
choose to use them. Greenify Inc., as showcased by our rice husk chopsticks, is gearing
towards innovative and forward-thinking in coming up with environment friendly products
that adds the value to the company from a consumers perspective. According to the
Nielsen Corporate Social Responsibility Report (2014), 55% are willing to spend more
for products and services from businesses that are pursuing positive social and
environmental impact.
Rice husk chopsticks should be promoted as the replacement for disposable
wooden chopsticks in the market. This also intends to have a bigger production of rice
husk chopsticks per day to satisfy customers demand and preferences.

Price
Price is an essential part of a product. It is almost always the first consideration in
deciding whether to buy or not. Setting the product price is not only concerned with
having it high enough to earn profits, or having it low enough that is competent with other
products in the same line of business. In the development of a sound pricing policy, it is
important to put into consideration different internal and external factors such as cost,
market demand, competition and the market itself. The price to be set must complement
other elements of the marketing strategy.
An effective pricing strategy assists you in establishing the price point at which
you can maximize profits on sales of your products or services. When strategizing a
price point, a business owner has to recognize and scrutinize a vast spectrum of factors
including product costs, competitive pricing, strategic positioning and the business target
market. The ultimate goal is to strike a balance between a high price, where customers
will not consider buying your product or service, and a low price, where the company
doesnt earn enough profit to sustain its operations and cover its cost. Along with other
marketing strategies, the product price will ultimately contribute on the progress of your
growing business.

Listed here are different strategies a company can implement in the

establishment of their product prices.
1. Pricing at a Premium This entails setting a price higher than that of the
competition. These strategy will only work for unique products and the premium
in price must be justified and supported by a continuing program of the company
that will aim to create value perception, making the products worthy of the extra
price.
2. Pricing for Market Penetration Market penetration is goal of almost all
small business that has just started. This strategy will help in the objective of
many businesses which is to lure or entice buyers through the establishment of a
price lower than that of the competition. This strategy might have unfavorable
initial results in the short run, but in the long run, it will surely reap all the benefits
of increased product awareness by the market that will be derived by this
strategy.
3. Economy Pricing This strategy desires the attention of the most price
conscious of consumers by offering low price on products by minimizing or
sometimes eliminating other marketing or production costs. These will be
applicable only to large businesses that has already captured a large share in the
market. Economies of scale plays a big role in this strategy. It is very dangerous
for small businesses to engage in this strategy because the lack of sales volume
will amplify the unfavorable effects of the price cuts offered by the business.
4. Price Skimming This strategy involves a flexible price throughout the
product life cycle. Usually, products in the introductory stage and priced higher to
cover business costs. Gradually, the price will decrease as it gains market share
and also to play the competition. This strategy allows businesses to still gain
profits in the preliminary stages of the product life cycle to help small businesses
survive. And then it lowers the price to capture an even larger share of the
market which includes the price sensitive consumers.
5. Psychology Pricing Psychology pricing suggests techniques that marketers
are adopting to persuade customers to respond on emotional factors rather than
logical facts. Setting the price at P299 is confirmed to draw more attention to
more consumers than selling it at P300, disregarding the fact that the difference

at the two price points in quite immaterial. Psychology justifies this phenomena
and it explains how consumers invest greater emphasis on the first digit of the
price tag rather than the last digit. The objective of psychology pricing is to create
greater demand by tricking the perception of increased value for the consumer.
6. Bundle Pricing This pricing strategy is applicable to businesses that offer
not only a single product, but several complementary products. It involves selling
products in a bundle that will be priced less than when each product in the
bundle in purchased individually.
Pricing strategies are very important, and so the price itself. Along with the
pricing strategies, these are additional factors that should be considered in the
establishment of product price.
1. Cost You want to ensure that the price of your product generates enough
revenue to cover your costs. So, heres the question: How much does it cost to
take your product from manufacturing to consumption? When calculating this
figure, make sure to include the price of raw materials, assembly, labor, rent,
shipping and any other overhead costs you incur. Add these up and divide by the
number of products you produce in the given time period. Once youve
pinpointed the average cost per product, youll see precisely the revenue you
need to cover all of your expenses. Of course, youre probably not trying to just
break-even you want to make a profit. The percentage that youd like to make
off of each item is called your gross profit margin target. When you plug in your
target percentage and cost, the equation will result in the price. Creating a simple
Excel spreadsheet with this formula will help you calculate these figures as you
add together all of your costs. How much profit should you aim for? Target
percentage varies based on the type of business.
2. Customers Learning a much as you can about your customers will help you
accurately price your products. Are they bargain hunters? Do they splurge on
tech products? Do they value quality over mass consumption? While we can
(and should) continue testing after setting a price, there are a few simple ways to
predict your target markets behavior and preferences beforehand. Conducting
market research will outline the demographics and psychographics of your target
audience and reveal their purchasing behavior. Basic database, survey and

internet research (which you can do in-house) will expose common traits among
your customer base. If you want a more in-depth understanding of the groups
tendencies, consider hiring a third-party market research company. This type of
research demonstrates trends like how crucial your product is to their lifestyle. If
your product provides a function that they cant live without, a higher price point
will not deter them. For example, smartphones have become such a critical
staple for millennials that even a high price tag will not keep them from
purchasing a new one every few years.
3. Competition How is your competition pricing their products? This number is
great jumping off point. You want your price to be competitive, but also reflect
your products value. You will need to find out if their product has the same
perceived value as yours. How do customers compare the products? What types
of reviews is each product getting? Again, conducting market research and even
performing your own internet searches will provide useful insight on this topic.
When researching the competition, dont just settle for the prices you can find on
their website. Do some digging on review sites, or even as a secret shopper. If
your product clearly provides more value than the competition, a higher price
point will help indicate to your audience that its a superior product. If the
competitions product proves more valuable, try pricing your product just below
theirs as a less expensive, but high-quality option.
Pricing your product integrates the economics of your business and the
psychology of your customers. Employing simple market research and competitor
analysis will help you find your pricing sweet spot.
In this feasibility study, we are going to incorporate different pricing strategies.
We are going to set a price lower than that of the competitors while at the same time
keeping the cost at a minimal point. This applies the penetration pricing strategy and the
economy pricing strategy. Setting a low price is difficult when costs are too high.
Achieving lower costs is viable in this study because of the use of rice husk in the
production of chopsticks. These are almost of no cost at all. In this way, we can achieve
the low price that we are trying to set without compromising the profitability of the
project. At the same time, setting a price lower than the of the competitors or products
that are substitutes to what we are offering, we can obtain a greater share of the market
demand therefore increasing our sales and ultimately our profit

Our corporation will set a price that is reasonable. The proponents will use Costplus Pricing in setting the product price and this will include the labor, utility, materials,
profit and other expenses. Cost-plus pricing is a cost-based method for setting prices of
goods and services. Under this approach, the company can add together the direct
material cost, direct labor cost, and overhead cost of a product, and add to it a markup
percentage in order to create a profit margin. The advantages of cost-plus pricing are as
follows:

Simple It is quite easy to derive a product price using this method, though you
should define the overhead allocation method in order to be consistent in

calculating the prices of multiple products

Assured contract profits Any contractor is willing to accepts this method for a
contractual agreement with a customer since it is assured of having its costs

reimbursed and of making a profit.

Justifiable In cases where the supplier must persuade its customers for the
need of a price increase, the supplier can point to an increase in its costs as the
reason for the price increase.

Place

GREENIFY INC.

Korean, Chinese, and

Japanese Restaurants

The marketing mix place strategy is about how an organization will distribute their
product or service to the end user. The organization must distribute the product to the
user at the right place at the right time. Efficient and effective distribution is important if
the organization is to meet its overall marketing objectives. If an organization
underestimates demand, profitability will be affected.
Marketing Mix place and distribution strategy is about how effectively a firm gets
its product to consumers and end users. Firms can sell their products directly to the
consumer (direct distribution) or through intermediaries (indirect distributions). The best
marketing mix place method will depend on the product needing to be distributed and

the "wants and needs" of the firm's customers. The product sales volume and its
characteristics will influence what inventories you should maintain and also how the
products should be transported. You may opt to ship in large volumes across countries
or do it via retail to single individuals. If youre into manufacturing, you need to carefully
monitor the total costs by considering every factor required in production like the
acquisition of the materials and the distribution strategy you choose to use. Each of the
distribution strategies has its own characteristics, advantages, and disadvantages.
Choose one that best applies to your product and business.
In this feasibility study, we want to implement direct distribution or distribution
directly to consumers in our sales to our target market, which are the Korean restaurants
around Angeles City. Direct selling can be a good starting point, especially because our
product supply is limited. One advantage of selling your products directly is you get a
more personal feel of the market because you interact directly with the customers so you
can easily adapt to the changes. Another is that you control your products pricing and
the methods on which it should be sold.
Promotion
Product promotion is one of the necessities for getting your brand in front of the
public and attracting new customers. There are numerous ways to promote a product or
service. Some companies use more than one method, while others may use different
methods for different marketing purposes. Regardless of your company's product or
service, a strong set of promotional strategies can help position your company in a
favorable light with not only current customers but new ones as well. A successful
product or service means nothing unless the benefit of such a service can be
communicated clearly to the target market. An organizations promotional mix strategy
can consist of many things.
One of the promotional strategies that our company will employ is having a
competition. Contests are a frequently used promotional strategy. Many contests don't
even require a purchase. The idea is to promote your brand and put your logo and name
in front of the public rather than make money through a hard-sell campaign. People like
to win prizes. Sponsoring contests can bring attention to your product without company
overtness. We will emphasize one of the characteristic of our product through this
contest. Our rice husk chopsticks are recyclable and can be turned into different useful

creations thus helping in the reduction of waste. In this competition, there will be a
search for the most creative and useful creation that they can produce using our rice
husk chopsticks. We will award prizes to the winning creations.
Social media websites such as Facebook and Google+ offer companies a way to
promote products and services in a more relaxed environment. This is direct marketing
at its best. Social networks connect with a world of potential customers that can view
your company from a different perspective. Rather than seeing your company as "trying
to sell" something, the social network can see a company that is in touch with people on
a more personal level. This can help lessen the divide between the company and the
buyer, which in turn presents a more appealing and familiar image of the company. A
Facebook page will be established and this page will feature or very own rice husk
chopsticks. This will highlight all the outstanding characteristic our product has to offer in
order to convince consumers to shift to our product. Through Facebook, we will be able
to spread information about our product and be able to reach a lot more people at no
cost at all. A person will be in charge of the updating of the Facebook page and also the
answering of the queries it receives from viewers and other users.