Republic of the Philippines

EASTERN VISAYAS STATE UNIVERSITY

Dulag satellite Campus
Dulag, Leyte

RRA SNACKS
A Market Research

Submitted by:

ROSELYN R. ADVINCULA
BSE-2A

Submitted to:

DANIEL C. PADUANO, Ph.D.

Instructor
1. NEW PRODUCT DEVELOPMENT

Before embarking on a new enterprise we must draw up a detailed business market

research. This is a document that sets-out and justifies our business idea in a logical framework.
It is a blueprint for the business and is vital if we are going to approach potential investors and
funders. Drawing up a business market research will help us to identify our strengths and
weaknesses, key areas where we need to develop expertise and the financial risk involved in
setting up the business. It represents the dynamic process of planning and reviewing the business
agenda over time, and it should be continually updated.
The business market research is best written by the proprietors. Once completed, a
business market research will make us feel more confident about our ability to set up and operate
the business.
Market research can identify how customers and potential customers might view your
business and identify gaps in customer expectations. This is powerful information to have when
completing your marketing strategy. Having good market intelligence helps to minimize risks
when making key business decisions.
My business goals are to provide our customers their needs. Fulfill their expectations, and
provide them a product equal to the amount they paid. This is where this business idea started.
During NPD products will go through eight stages and eventually will need to be replaced or
updated. By applying these stages companies can get a firm grasp on what is needed in order to
have success when creating new products. These stages are listed at Learnmarketing.net and are
discussed in brief below. (LearnMarketing.net, 2008)
Stage 1: Idea generation
New product ideas must be created from somewhere. Where do organizations get their
ideas for NPD? Some sources for new product can include the following:
ƒ Within the company, i.e. employees
ƒ Competitors.
ƒ Customers
ƒ Distributors, Supplies and others.
Stage 2: Idea Screening
 These is where organizations will look closer at the ideas generated in Stage 1 and find
ideas that are possible as well as removing poor or improbable ideas. It is important to take a
thorough look because accepting improbable ideas can cost the company many resources.
Stage 3: Concept Development and Testing
When the organization believes they have discovered a possible product they should take
the idea to the target audiences and ask some questions to gain a better understanding on how it
will be viewed. The organization should ask questions such as. What do they think about the
idea? Will it be practical and feasible? Will it offer the benefit that the organisation hopes it will?
Or have they overlooked certain issues? This will help companies to clarify weather they have a
good idea or not.
Stage 4: Marketing Strategy and Development
In this stage the organization will prepare a written marketing strategy to layout how the
new product idea will be launched in the market. The proposed marketing strategy will consist of
the organizations marketing mix strategy of the product, the segmentation, targeting and
positioning strategy sales and profits that are expected.
Stage 5: Business Analysis
Will this new product be a good idea in the long run? So far the idea is possible and the
strategy is feasible, but now it is time to look deeper into the cash flow the product could
generate, what the cost will be, how much market shares the product may achieve and the
expected life of the product.
Stage 6: Product Development
As we can see from the above steps it takes a long time before the organization can
consider producing a prototype of the product. It can be costly to go through all the testing
desired. This is why the steps listed previously are important and must always be considered
first. Now the prototype can be presented to the target audience to see if there are any changes
need to be made.
Stage 7: Test Marketing
Test marketing means testing the product within a specific area or segment. The product
will be launched within a particular region so the marketing mix strategy can be monitored and if
needed, be modified before national launch.
Stage 8: Commercialization
 If the test marketing stage has been successful then the product is ready for launch. Some
factors need to be taken into consideration before a product is launched. These factors include
timing, how the product will be launched, where the product will be launched, will there be a
national roll out or will it be region by region? (LearnMarketing.net, 2008)

2. THEORETICAL FRAMEWORK
The theoretical knowledge describe in this market research is line with the market
research analysis created for All Eyes on Ice. I believe these ideas to be the most important tools
for relating the practicality of my report along with the supporting theory to justify the actions
taken for completing this market research.

2.1 NEW SNACKHOUSE DEVELOPMENT

In today’s highly competitive industry, it is becoming increasingly difficult to find a job.
Since we are young undergraduates we found that it is our responsibility to create job
opportunities and offer good business to the target market. Especially for communities who have
less chance to get a job because the competitors from other races. Despite we are creating our job
we are also giving others the opportunities to work.
Apart of that we are starting this business by introducing traditional snack which is “RRA
SNACKS” that will be our main product. As it is not very recognizable we try to put forward
with this idea. We would like to compete with other snacks that already in market and make our
snacks be the choices are the choice of youngster nowadays. Despite, youngster choose to eat
junk food which not healthy for our body. Junk food contains a lot chemicals and additional
flavour such as “ajinamoto”. The aim for creating this business is to promote and develop the
market of traditional cookies in Dulag, Leyte.
The location of this company is in Dulag. Dulag is a place where become the crossroads
for the public. The order can make from our correspondence address. Our business will be
expected to commence on January of 2021 and our “RRA Snack” vision is to develop the
opportunities among employees as a part of our family in food industry, to produce traditional
food as daily sneak and to be one of the biggest names in industry snacks in our company and
also is to be the best among the best innovators and producer of the products..
 Apart of this, objectives of this business are to contribute to the development and growth
of the country, economy and to increase the percentage of EVSU Students involve in business, to
help entrepreneurship assess business performance and also to provide the best quality of “RRA
Snack” every time in order to attract more customer.
For the mission, we hope we can make our customer satisfy and pleasure with our
product and help to drop the percentage of people had being obesity in EVSU Dulag, but in the
town itself. We also hope the percentage of people getting a heart attack because of high
cholesterol in blood will decrease by 5%-10%. This is because Dulagnons are gaining in obesity
rates. To prevent this from being a serious case, we take an alternative to innovate from a not so
healthy snack become a healthy snack with high nutrient content and at the same time a delicious
taste.

2.2 ENTERING NEW MARKET & COMPETITION

The business has indirect competitors since here in Eastern Visayas State University-
Dulag Campus it is the only business entity that offers this kind of product which is traditional
snacks. But in the market place of Dulag, Leyte, there are eatery and small restaurants who offers
similar to what we offer in the business. As such, I will be implementing the business in EVSU-
Dulag Campus where the university is a kilometer away to the market place of Dulag. It would
be favorable to the business, but we still have indirect competitors inside and outside the campus
who offers variety of snacks.
Anyhow, as entrepreneurs we used creativity by offering something to customers that is
appealing and new to them, assuming that they will buy and patronize our product.
2.3 MARKET RESEARCH

Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large. Marketing is used to identify the customer, satisfy the customer, and keep the customer.
With the customer as the focus of its activities, marketing management is one of the major
components of business management. Marketing evolved to meet the stasis in developing new
markets caused by mature markets and overcapacities in the last 2-3 centuries.
Marketing is basically an exchanges activity that takes place between a business entity
and customers. The customers can include retailers and wholesalers, individual and support
organization. Marketing is more than just the process of selling a product or service. Marketing
is an essential part of business, and without marketing, even the best products and services fail.
The marketing’s concept of our company is to make the new generation know about the
traditional snack. We want to introduce and popularize back the Dulagnon traditional snacks. It
is usually produced for daily sales and also in festive days. Then, our concept wanted to
introduce this traditional snack to people outside of our initial target market. This will help to
increase the sales and also help to introduce our product to the bigger stage. Our product is very
suitable for all people because this snack does not have a chemical which can allow a health
hazard. Marketing is the best way in gaining more sales. There are different marketing strategies.
Through market research, a business will be able to distinguish what are the needs and wants at
the same time, expectations of a certain target market help a lot in the business because through
market research, the company will have collected data’s and information’s for the target market.
 As to this business “RRA Snacks” I conducted a market research to be able to recognize
the needs and wants of the population of Eastern Visayas State University. The market research I
conducted turns out positive. I got a positive feedback from the 150 respondents inside the
campus which is composed of students, faculties and staffs. After conducting a market research,
I formulated strategies on how I am going to create the product according to our costumer’s
desires.
Market research helped the business distinguished how many percent the product will be
salable. The result of the study conducted will be very useful in time that I am going to
implement the business plan. In every beginning of the business, the very first consideration is to
conduct market research. This is in way also in informing the target market about the upcoming
business.

2.3.1 Research Locale

The study was conducted at Eastern Visayas State University-Dulag Campus. Surveyed
respondents were composed of different students from each Departments that serves as the
representatives of each Department. Provided that the population in Eastern Visayas State
University Dulag Campus will be our market where I am going to implement the business for the
coming semester.
It is my preference where to gather information and select data that would be essential to
our research, through information that gathered from survey, all of these feedbacks will be
recorded and analyzed, then will serve as basis in preparation of RRA Snacks. Through this
research also can be able to narrow the population of EVSU, who will be the target? How many
percent would be the share in the market? What would be the edge towards other entities?

2.3.2 Research Respondents:

I conducted the market research School Year 2019-2020, and the population of EVSU-
Dulag Campus were composed of 400+ students from different departments. It has been
surveyed 150 respondents from different Academic Departments provided the questionnaires
regarding different options of would-be product.

2.3.3 Research Questionnaire:

Name: (Optional)
Age:
Position:

Do you like snacks:

______ YES
______ NO

What snacks do you prefer?

______ Cookies
______ Salad
______ Spaghetti
______ Pansit
______ Burger
______ Other Suggestions

How many percentage is your willingness to buy for a snack?

______ 10-30% (1-3 per week)
______ 31-50% (4-6 per week)
______ 51-70% (7-9 per week)
______ 71-100% (10-15 per week)

What additional drink do you prefer?

______ Fresh Juice
______ Buko
______ Tea

2.3.4 Result and Discussion

GENDER OF THE RESPONDENTS

SEX FREQUECY NO. PERCENTAGE

MALE 58 38%

FEMALE 92 62%

TOTAL 150 100%

In a survey we have conducted, female has large percentage than male where male is only
385 percent compared to the number of females who got 62%. In this table shows that females
are more dominant and active than males.
2.3.5 COMPETITORS ANALYSIS / SWOT ANALYSIS

A. Strengths
1. Very known in the market
2. Commonly ordered by customers
3. Lots of options to choose
B. Weaknesses
1. No presentable environment for customers
2. Lacks manpower
3. Sometimes lack supply
C. Opportunity
1. Get innovations from the business
D. Threats
1. Customer will be divided
2. Customers prefer the product just out of curiousity

Our competitor’s analysis, is illustrated above in the lay out. Shown that these Strengths,
weaknesses, opportunities and threats is a factor that may affect in our business operation. We
don’t have a direct competitor but still this indirect competitor will somehow affect us because
they also offer similar product as we offer which is food product.

2.3.6 MARKET SHARE:

Total target market population is 50000(100%) Indirect competitors (Sari-Sari stores

offering different variety of soft drinks) 40 percent market share is for the business RRA
SNACKS while 60% is to the indirect competitors who offers food for customers.

2.4 MARKETING ANALYSIS

Market analysis is to determine the attractiveness of market and the dynamics of a special
market within a special industry. Market analysis also known as a documented investigation of a
market that is used to inform a firm's planning activities, particularly around decisions of
inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital
equipment, promotional activities, and many other aspects of a company.
Our company chooses to open this business because we want to introduce and to make
the “traditional cookies” which is “RRA Snack” popularize back among the new generation. This
is because the traditional snacks were being forgotten.

2.3.1 Importance of Marketing Analysis

Research and analysis is the process of gathering information to learn about something
that is not fully known, but also is used for making important decisions. If the research is done
well it can gives good insight to what is going on in the market or what might occur in the future.
It could may give options or lead to the discovery of new products or even entering new markets.
According to KnowThis.com “Market research can be viewed as the foundation of marketing.
Just as a well-built house requires a strong foundation to remain sturdy, marketing decisions
need the support of research in order to be viewed favorably by customers and to stand up to
competition and other external pressures.” (KnowThis.com 2008)
When talking abut marketing research it is important not to confuse it with market
research. Market research is research into a specified market. It is not as wide of a concept as
marketing research is. Marketing research is much broader. It includes market research, and
much more. The American Marketing Association defines marketing research as: "Marketing
research is the function that links the consumer, customer, and public to the marketer through
information - information used to identify and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions; monitor marketing performance; and improve
understanding of marketing as a process. Marketing research specifies the information required
to address these issues, designs the methods for collecting information, manages and implements
the data collection process, analyzes, and communicates the findings and their implications."
(Marketing Teacher.com 2008) When attempting to gather marketing research you must go
through a series of steps that are found in the marketing research process. The first step is to
define your problem. This should be about the information you need. Once you develop the
problem of your research, it then becomes the focus point of the process. After the problem is
defined you must plan how you collect the data you need. There are two main sources of data,
which are secondary and primary sources. Secondary research, or desktop research, is data that
has already been collected for another purpose. Primary research is needs to be made from
scratch. It can be created in a unique way that is constructed to fit your research problem. The
third step in the research process is selecting the sampling method; some examples you can use
are random samples, stratified samples, cluster samples. In the fourth step we must decide how
we will analyze the data collected. You will need to know the degree of accuracy desired for
your results before this can happen.
Sometimes this may require complicated software. Now that the decisions involving data
have been made you can set the timeframe needed along with your budget. The sixth step is go
back to the person requesting the research and make sure you agree on the focus and problem of
the research. Once this is done you can start collecting the data, which is step number seven. Step
eight requires you to analyze the data. After you have analyzed it, check it for errors. It is
common to find small errors but these can have major effects on the accuracy and interpretation
of the results. The final step is to write the report. This should give an answer to the original
problem. It is important that you keep in mind the focus of the problem throughout the research
process. By doing this it will keep you on the right path and assist you when you have questions
concerning what is to be done next. (Marketing Teacher.com 2008).

Target Market
Target market is group of customers that the business has decided to aim its marketing
efforts such as a good in services. The beauty of target marketing is that it makes the promotion,
pricing and distribution of our products or services easier and more cost-effective. Target
marketing provides a focus to all of our marketing activities. The more we know about the target
market, the more precisely that we can develop in the marketing strategy. Then, target market
involves breaking a market into segments and then concentrating our marketing efforts on one or
a few key segments. Listed below shows some example of market segmentation that have
involved.

Demographic Segmentation
Based on the measurable statistic such as an occupation, age, gender, social class or
income. Snack appeal to everyone. Adult or children, rich or poor. Everyone like it.
Psychographic Segmentation
Based on lifestyle preferences, such as lifestyle or attitude.

Geographic Segmentation
Based on location of our customer such as home addressed.

Our company has produces the product that were appeal to everyone, adults or children,
poor or rich, fat or thin, female or male. Our product have distributed to students, hypermarket,
school canteen, retailers and wholesalers and also to individual. Our product is also very suitable
for the days of celebration and festivities. This snack has a great size for serving when
celebrating various festivities. This is because it would be acceptable to all communities
according to the special taste of this snack.
Market Size
Market size is the number of buyers and sellers in a particular market. This is especially
important for companies that wish to launch a new product or service, since small markets are
less likely to be able to support a high volume of goods. Large markets could bring in more
competition. Our customers are always from the nearest area of our company.
As for our business, the target market size is 400+ population of EVSU Dulag Campus.
We also plan to increase to the passers by, visitors, and orders for delivery who patron our
product.

Competition
Based on our survey, there are several competitors that operate similarly like our
company. We have to analyze the strengths and weakness of our company based on the price of
our product, the size of our product and its packaging, experience, years in business, financial
ability to compete together.

Strength
Our price is very suitable for the quantity of the product that we are produce. Our
company produces three choices of the product such as chocolate flavour, spicy flavour and
sugar flavour. We very care about quality, quantity and hygiene of product sells to buyers. We
have a good promotion. Located at industries area.

Weakness
Our company does not have loyal customers. We need a long time to extend our products
to customers to make it more popular because we still new in this business.

Place Strategy
We have chosen Teluk Intan, Perak as our company area based on. The placed is located
at Eastern Visayas State University Dulag Campus. It is near the target market, and passersby
too.
It is near to the supplier area. This area is very easy for the customer to find it. Our company also
are located at very strategic area because the rent of land is reasonable. Our products sell directly
to wholesaler and retailer.

Product Strategy
Our company, “RRA Snack” produce traditional snacks as our product. We have outlined
several aspects as a special attention to attract the customer such as many choices, quality,
packaging and labelling.

Many choices
Our company produces many choices for customer, such as chocolate flavour, spicy and
sugar. This “RRA Snack” with chocolate flavour is very suitable for the kids and people who
like to eat chocolate. Then, our product also makes a spicy of “RRA Snack”. This is very
different with other company that also made traditional snacks. This is because our spicy “RRA
Snack” is made up with chilli powder. Furthermore, our “RRA Snack” also has the coated-sugar
and it also in mini size.

Quality
 The quality of our product is using less oil. We use healthy cooking oil such as palm oil.
This palm oil can keep your metabolism working more efficiently. The cooking oil was made
from our country and this shown our company has given support to our country’s product.
Furthermore, our company is very concerned about cleanliness. So our worker must wear glove
to make sure no direct contact happen.

Packaging
In mini size - when the packaging is in mini size, it make people easy to bring it
anywhere. They can put it in the hand bag, and eat our RRA snack while waiting for the bus, and
also when they are going to picnic or watch sport’s game at stadium.

3. PRACTICAL RESEARCH REPORT

Our target market is the population of the Eastern Visayas State University- Dulag
Campus. As of school year 2019-2020 the population of students is composed of 400+ students
across Departments.
We assume that the population of EVSU-Dulag will grow for the school year 2020-2021
because there might be new enrollees for freshmen since there will be a graduating student from
Senior High Schools. We also considered the faculty and staffs as our market. EVSU-Dulag
Campus is composed of different demographic sets. Sets such as; age, gender, education and so
on.
When it comes to market segmentation it talks about the demographic sets such as age,
gender, occupation, education and income that are segmented based on the customer’s
preferences. Eastern Visayas State University-Dulag Campus has a population of nearly 400+
including the student, faculty & staff that are segmented including to their courses, income and
allowances of every individual.
According to our market survey, we segmented them according to their gender.
Assuming that females are more likely into buying flavored snacks instead of the males who
prefer other flavors. As the result were tabulated, turns out that the number of male student is
twice the number of the female students.
We also included the faculties and staff gender segmentation since we also counted the
faculties and staffs as our target customers. As we conduct our research, we have decided to sell
a product that most students can afford to buy. Since our product is all about snacks, we have
come to sell a different flavored snacks that can statisfy hunger of every individual who are
buying our product. We all know that this product exists already in the market but as we
observed, our store would be more convenient to students, faculty and staff of Eastern Visayas
State University – Dulag since the existing product is located far from the University, it is no
longer far from their school and workplace and while our competitors is located at the proper
area of Dulag.
Since this product is already existing and also known in the market by the customers, our
strategy would be, we will offer affordable price but can give satisfaction to the customers
through fulfilling their needs and expectations. Our business is more accessible to our target
market since our location is at EVSU – Dulag than our competitors where they are located at the
proper area.
At the same time, we offer some promotions to the customers to encourage them to buy
more. We will be giving discounts to our valued customers and we offer different promotional
activities that surely our customers will like.
When we are planning to venture a business, we conduct a market research first so that
we all know what particular product we are going to sell in that area. The crucial part of having a
business is to know how you can sell your product. We, as an entrepreneur student we are
familiar w/ the term “Strategy” In promotion strategy we are going to create different strategies
to promote our product so that our target customers will be aware about the product we are
selling.
In operating a business, some business owners are giving their best just to make their
product shine in the market. They use social media for advertising Banners, fliers and any other
promotional activities with the help of these promotional materials, we can say that we will have
a good position in the market and one target customers are aware about our product. We are
going to distribute in the market.
This image will be printed in our flyers and tarpaulin for our advertisement and
promotional activities. Flyers will be distributed all over the campus of EVSU-Dulag. It has been
assumed that through this strategy we’ll be able to gain sales and increase share in the market.

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