Module 5

Preparation of Chapter 2

Market Study

Write an introductory paragraph that will describe the contents of

the chapter. Each heading for this chapter is written in boldface font.

Objectives of the proposed project

State the purpose of the chapter and give the general and specific
objectives.

Respondents of the project

Identify the respondents by:

 naming the area covered by the study (ex. U-belt, Manila),

 describing the demographic profile of the respondents (ex. age,
gender, etc.), and
 describing the psychographic profile of the respondents (ex.
behaviours on buying habits)

Sample size determination

Compute for the number of respondents by using the Sloven’s

formula

N
n= ----------
1+Ne2
where:

N = population (number of people that qualify in the area of study)

e = margin of error (5%)

n = sample size (number of respondents)

Example for computing sample size

The College of Engg and Tech of UDM has a population of 3,000

students. The margin of error to be used is 5%.

3000
n = --------------------------------
(1 + [(3000)* (0.05) ^ 2)]

3000
n = ------------------------
1 + (3000*0.0025)

3000
n = --------------
1 + 7.5

n = 352.94 = 353
Sampling technique
Choose one method that is most applicable from the list shown
below:

Probability sampling
 Random sampling by lottery

 Systematic sampling

 Stratified sampling

 Multi-stage sampling

 Use of random table

Non-probability sampling

 Convenience sampling

 Purposive sampling

Questionnaire formulation

A sample of questionnaire must be placed in the Appendix and

should contain the following:

 Introduction

Write a cover letter which contains the introduction of the

researchers to the respondent, the presentation of the survey, request
for cooperation in answering the questionnaire and an assurance on the
confidentiality of the responses.
Example of a cover letter

__________, 20__

Dear respondent/s,

Peace!

We are 3rd year students taking up BS IT program at Universidad De

Manila and enrolled in the subject Project Management. At present, we
are conducting a “ Project Management Proposal on XXXXXXXX”.

May we request some of your time to accomplish our survey

questionnaire. Rest assured that all data will be treated with strict
confidentiality.

Thank you very much.

Ronnie Magsanoc
Group Leader

Member 1 Member 2 Member 3

Member 4 Member 5

Noted by:

Prof. ReyM. Caranguian

Project Management Professor
 Demographic profile of the respondent like age, sex, social class,
and other things as needed. (number of siblings, family size, ordinal
rank in the family)

 Psychographic profile of the respondent like perception, attitude,

and other things as needed.

 Behavioral characteristics of the respondent like product purchase

and product usage.

 Cover the P’s of Marketing

 Product

 Price

 Place

 Promotion

 People
 Example of a questionnaire

Name (optional) _______________________________

Put a check for your answer.

Age Gender

___ 18 – 20 ___ Male

___ 21 – 23 ___ Female

(sample layout)

1. Are you familiar with ______?

2. How did you learn about the _______?

3. How often do you buy _______?

4. How much do you usually pay?

5. What are things/features that you look for in a product?

6. If a new product will be introduced, are you willing to buy?

 Conduct a Pre-test on five persons outside the sample size. This is
done to validate the questions. Give appropriate instructions on how
the questionnaire will be answered.

 Analysis of the data gathered

In this part, define and use descriptive analysis method of research.

Present an in-depth analysis using tables and graphs and draw
conclusions from the information obtained. Your primary consideration
here is to determine whether there is market demand and if it is enough.

 Market Description

In this part, give a brief description of the target market to include

the following:

 market size and composition (ex. 4200 people, male and female)
 population and age group (ex. 4200 students, 16-22 years old)
 location and area (ex. Manila, University Belt in Mendiola)
 job category and income level (ex. employees, average salary)
 growth (ex. number of siblings in the family)
 segments in relation to the total (ex. CAS versus the entire SBC
size)
 family size (ex. Number of members in the family)
 gender

Research for the Demand

After the data analysis part, summarize the Market Research by

doing the following:

 State the demand situation of your product or service.

 What was the annual volume of the domestic demand for
the past 10 years ?

YEAR PAST ANNUAL DOMESTIC

DEMAND (UNITS)
2012
2011
.
.
.
.
2003

Table #. Past Annual Domestic Demand

 Give the major consumers of your product or service.

 Make a demand projection for five years, indicating the method of
projection used and the reason in choosing such method.

YEAR PROJECTED ANNUAL

DOMESTIC DEMAND
(UNITS)
2014
2015
2016
2017
2018

Table #. Projected Annual Domestic Demand

Straight Line Method of Projection
This is a very simple tool of projection. It assumes that the annual
increase in the future will be the same although the rate of increase in
percent will keep on going down. This may be used in making quick but
rough estimates. In formal studies, this method may be used only if the
annual increments in the figures are always positive and do not vary
greatly.

Actua Projecte
Year l d
2001 1500  
2002 1600 1583.33
2003 1300 1683.33
2004 1100 1383.33
2005 1200 1183.33
2006 900 1283.33
2007 1000 983.33
2008 800 1083.33
2009 900 883.33
2010 2250 983.33

Steps:
1. Obtain the difference between the first year and the last year figures of
the historical data.
2250
-1500
750

2. Subtract 1 from the number of years of the historical data

2001to 2010 = 10 years - 1 = 9

3. Divide the difference obtained in Step 1 using the number of years

obtained in Step 2 to get the average annual increase

Average Annual Increase : 750 / 9 = 83.33

4. Add the average annual increase (Step 3) to the recorded figures in

the previous year to get the projected figures.

Yp for 2002 = 1583.33

Research for the Supply

For this part, which is a very vital part in the realization of the
product or service, perform the following tasks:

 Give the supply situation of your market (source, frequency of ordering

items, storage method, re-order level)

 Obtain information on the supply for the past 10 years if available. It

may consist of locally produced or imported items.

 Get the names of the companies producing them, their production

capacity, brands and market share.

 Make a projection of supply for the next 5 years. Indicate the method
of projection used and the reason for use of such projection.

 Make an in-depth analysis and draw conclusions.

Demand and Supply Analysis

After determining the demand and supply, analyze both by doing

the following:

 Prepare a table showing the supply and demand gap.

Deman
Year d Supply
2012 900 983.33
2013 1000 983.33
1083.3
2014 800 3
2015 900 883.33
2016 2250 983.33
 State the portion of the gap which is intended to be supplied or
satisfied. This can be presented through a chart which could be any of
the following: column, line, bar and area charts.

Demand Demand
Supply Supply

Supply Supply
Demand Demand

Marketing Program

To realize profit for the proposed product or service, a sound

marketing program should be developed. The marketing program should
have the following contents:

 Quality, brand, packaging alternatives. Provide illustration if necessary,

 Pricing and discounting scheme,

 Advertising and promotion,

 Distribution set-up,

 Budget for salaries, allowances, advertising and promotion, and

 Organizational set-up of the Marketing Department

 Module 6
Preparation of Chapter 3

Technical Study

After the market study, the technical aspect of the project

management should be analyzed.
Write an introductory paragraph that will describe the contents of
the chapter. Each heading for this chapter is written in boldface font.

The Product (or Service)

This part of the project management describes the product or
service to be produced. The description should clearly describe the
product as regards specifications like color, materials to be used,
packaging, and appearance.

Manufacturing Process

Describe the manufacturing process and complement text with a

flowchart. After the flowchart has been drawn, provide a step-by-step

explanation.

Office or Shop Size / Schedule of Production and Operation

Provide an illustration of the office or shop size where the business

will operate.

State the production capacity of the company and both the schedule

of production and operation.

Machinery and Equipment

 Provide an illustration of the layout of the machines and pieces of

equipment.

Location of the business

Provide a location map of the business. Indicate the desirability of

the location chosen in terms of accessibility and other factors.

Office / Shop Layout

Illustrate and give the description of the office/shop layout.

Building and Facilities

Indicate the floor area and show a picture of the building if

necessary.

Raw Materials

If applicable, give a description and the specifications of the raw

materials. Discuss the availability, continuity of supply, and current and

prospective sources. Indicate the names and addresses of the suppliers.

Utilities

Indicate the uses, availability, quantity required and sources of

electricity, fuel, water, phone and internet connection.

Waste Disposal

Discuss comprehensively the waste disposal

system that you will employ.

Production Cost

Provide a detailed breakdown of production costs and this should be

presented in tabular form.

Labor Requirements

Give a detailed breakdown of the direct and indirect labor needed.