MARKETING

ASPECT
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INTRODUCTION

 “Neurologically, it has been demonstrated that exposure to something new and

unfamiliar increases the release of happy hormones in the brain,” from the research of the
University College of London.

In the current time’s innovative but tiresome environment, people will always want to
have a retreat in order to escape from the fog of deadlines, bills, and many other things that deter
them from being at ease. However, most of Baguio City’s top tourist destinations are starting to
turn into commonplaces where nothing is new. An aviary would be a new and relaxing place to
visit. There are many famous examples of aviaries like the Jurong Bird Park in Singapore and the
National Aviary in United States. Baguio is one of the most famous cities in the Philippines and
has been celebrated as the Summer Capital of the country for the past 99 years.

It was the playground of the Americans who built this city as their vacation spot in the
1900’s. It has since expanded, and now has different tourist spots.

The city has an abundance of forest reserves, parks, and pine trees, and the high elevation
provides many places – from the city center to the outskirts – with sweeping vistas.

Aside from its unique mix of natural and historical attractions, a combination of cultures
that incorporates Spanish, American, and native Ibaloi and other Cordilleran tribal influences
give the city a unique socio-cultural flavor.

As a retail and urban hub, Baguio boasts of an economic zone and a technology enclave
as well as a number of stores carrying imported and top brands. Co-existing with these
establishments are souvenirs and other shops selling goods distinctly Baguio such as strawberry
products, knitted wear, woodcraft, and silver jewelries.

These are some of the many reasons why the proponents pursue the study of putting up
an aviary in the city.
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INDUSTRY DEFINITION AND BACKGROUND

Baguio City has been celebrated as the summer capital of the Philippines for the past 99
years. It is well known for its different tourist spots regularly visited by tourists.

One of the rising industries of the Philippines is tourism with total earnings gained from
tourism activities from January to May 2016 amounted to about Php 106.61 billion. This recorded
a double-digit growth of 13.53% compared to Php 93.91 billion earnings for the same period in
2015.  For the month of May 2016, receipts amounted to an estimated Php 19.95 billion, posting a
significant increase of 18.97% versus the Php 16.77 billion earnings in May 2015. The month of
February recorded the biggest receipts of Php 27.49 billion as well as the highest growth of
42.09%. The industry is the 5th growth driver of the country next to manufacturing, trade, real
estate, and agriculture, according to the latest report by the Philippine Statistics Authority (PSA),
in response to worldwide demand for integrated tourism development.

With this, the proponents decided to propose an aviary within Baguio City not only for
the people to have a place of relaxation but also to build an educational ground as well. It
provides educational ground as well because the business will provide different species of birds
that will surely add knowledge for the customers. Moreover, we will satisfy the desires of those
bird enthusiasts through showcasing of rare kinds of birds and based on our research, ranges from
12%-26% of the total population in the Philippines are fond of birds. Bird enthusiasts are the ones
that are very much willing to visit and see different kinds of birds for experience and discovery of
all the birds living within the world.

We chose birds as our product because we have been inspired by the movie Rio, where
there was a Blue Macaw named Blue. We were amused on how they protected their sanctuary
from illegal loggers and natural disasters. Thus, the movie also recognizes that some Macaws are
truly endangered and running out lives. Since, based on our research, birds become more secure
and will have a longer life inside an aviary than the outside, we concluded to put up an aviary to
lengthen their lives. In addition the Pamana (legacy), a Philippine Eagle, was killed by a hunter
and shot her through her heart. We all knew that an eagle is threatened with extinction and
according from Department of Environment and Natural Resources (DENR) the Philippines has
only at least a hundred of eagles roaming around the country. This provokes us to pursue the
business, The Northern Nest, primarily to take good care of the birds and to lessen the possibility
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Marketing Aspect

of losing those endangered species. Add on would be the ease of adaptation in the environment
and long life span.

An aviary itself featuring birds alone cannot withstand the competition of profit therefore
we will feature new species of birds every year to encourage our customers to come back. Along
with, our avian trainers will teach the birds to perform in public to attract more customers and
show off their talents. We will also collect some large entities and enterprises to sponsor some of
our expenses for example Globe Telecomm – for they will provide for the internet services and
more.

PRODUCT DESCRIPTION

A. Company Name

The name of the company is “The Northern Nest”.  The word “North” is one of the
four cardinal directions or compass points in navigation and it signifies that Baguio City, The
City of Pines, is found in the northern side of the Philippines where the company will be
operating.

“Nest” is a structure built by certain animals to hold its eggs, its offspring, or

occasionally the animal itself. Animals build nests to protect their offspring and themselves from
danger. They are designed to hide eggs from predators, shield them from the sun or other
environmental factors, or simply keep them from being scattered in ocean currents. In some
cases, nests also help provide safety in numbers for egg-laying animals. Most nests are composed
of natural materials such as twigs, grass, and leaves. This is incorporated to one of the main
objectives of the business, which is to increase the passion to animals and to increase awareness
of the conditions of the environment and also to support the improvement of the environment, as
statement in the company’s vision mission.

B. Company Logo

Figure 1.1 Company Logo

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Baguio City is not only known as the “Summer Capital of the Philippines” but also as the
“City of Pines”. The city is called the City of Pines because of the dominance of pine trees in the
city. In fact, it was even said before that the smell of pine trees will be a sign for people to know
that they are already close to the city. That is the symbolism of the pine trees found in the
company logo, it represents the location of the company. Since the Northern Nest is an aviary, the
company logo contains a bird. This bird is multicolored to signify the different kinds of birds that
will be found inside the aviary. Also, the bird is an abstract and it is actually a tree. This
represents the plants that will be seen inside the premises.

METHODOLOGY

To gather necessary and adequate information to be used for the analysis of the
marketability of the business and to gather additional information that might be useful to the
study, the researchers conducted three methods of gathering data: floating of questionnaires,
interview and inquiry.

Floating of Questionnaires

The proponents floated a total of 800 questionnaires for the residents of Baguio City and
also the tourists here in Baguio City. The 400 questionnaires for the Baguio residents are
randomly floated in different barangays within Baguio City. The questionnaires were also floated
to the students of the University of the Cordilleras where most of them were residents, people
who are living within the city for at least one year. The other 400 questionnaires, in which the
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tourists are the respondents, are randomly floated at the different tourist spots within Baguio City,
such tourist spots are Burnham Park, Botanical Garden, Wright Park, Mines View Park and
Lourdes Groto. Before we give the questionnaires to the respondents we first ask them if they are
tourists.

Interview

The proponents conducted an interview with one of the employees of DENR from the
Biodiversity Management Bureau wherein one of their concerns is the Protection of Wild Life,
this helped the proponents with the guidelines on the proper way of taking care of birds and their
habitat.

Inquiry

To get the correct data of the population of the respondents, which are the Baguio
residents and the tourists, the proponents asked for reliable information at different local
government offices. The proponents specifically inquired from the Philippine Statistics Authority
(PSA), and the Department of Tourism (DOT).

TARGET MARKET

The primary target market of this business is the tourists coming in Baguio including the
domestic, foreign and balikbayans and also the residents of this city because they are the one who
would mostly have the time to spend in their vacation. The proponents have delimited the target
market from ages 3 and above.

Determining the Sample Size

In determining the number of respondents that will represent the population of Baguio
residents and tourists, the proponents used the Slovin’s Formula with a confidence level of 95%
and a margin of error of 5%.

The Slovin’s formula is computed as:

Equation 1. 1 Slovin’s formula

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Marketing Aspect

n= N

1+Ne2

Where:

N = Total population of Baguio Residents and Tourists for the year 2015

n = Sample Size

e = Desired Margin Ratio (5%)

The formula will give the number of sample size which will serve as the number of
respondents for this study.
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Equation 1. 2 Sample Size for Residents

354,865
N =
1 + [354,865*(5%)2]
= 399.55
= 400 respondents

Equation 1. 3 Sample Size for Tourists

1,115,264
N =
1 + [1,115,264*(5%)2]
= 399.85
= 400 respondents

Historical Population

The population of the city for the year 2010 is 315,800 according to the census conducted
by the National Statistics Office (NSO) with the average growth rate of 2.36% per year. The
population data for tourists were an actual data from the Department of Tourism (DOT).

Table 1. 1 Population of Tourists and Baguio Residents for the past 6 years

TOURISTS
YEAR BAGUIO RESIDENTS
(ACTUAL)
2010 315,800.00 738,386.00
2011 323,253.00 552,497.00
2012 330,882.00 617,079.00
2013 338,690.00 843,473.00
2014 346,684.00 932,292.00
2015 354,865.00 1,115,264.00

GEOGRAPHICAL LOCATION

Baguio City is one of the few places in the Philippines blessed with cool climate. On
average, Baguio is at least eight degrees cooler than any place in the lowlands. Not surprisingly,
Baguio has become the “summer capital” of the country. It is gifted with a variety of cultural,
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historical and scenic attractions which make it an important and interesting destination. It is also
one of the easiest places to explore due to its inexpensive public transportation available.

Aside from the reasons stated above, the proponents chose a lot from Pacdal, Baguio City
as their location for the proposed business because it is more convenient for the town people and
the tourists to visit. It is also aligned with different tourist spot which makes it more fun and
adventurous for the visitors to go around as much as they want.

QUESTIONNAIRE ANALYSIS

The researchers used Questionnaire Method in order to conduct a survey regarding the
marketability of the proposed business. As compared to face-to-face interviews, questionnaires
are more cost-efficient and less intrusive, thus, it is a beneficent way to gather needed data.

Two sets of questionnaires were prepared. The first set was floated to tourists and the
other one is to residents.

A. RESIDENTS

1. Which tourist spots in Baguio City do you often visit?

The first question gave the researchers an idea in determining the location of the aviary.
Since most of these tourist destinations have a common turning point which is near Pacdal,
Baguio City.
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Table 1. 2 Visited Tourist Spots-Residents

Number of
Tourist Spots Percentage
Respondents
Minesview Park 148 24%
Botanical Garden 138 22%
Burnham Park 310 50%
Wright Park 14 2%
Camp John Hay 3 0%
PMA 2 0%
Lourdes Grotto 2 0%
Total 617 100%

The survey resulted to hundred seventeen responses which favored the Burnham Park
with fifty percent of the responses. Next to it was Minesview Park which garnered one hundred
forty eight marks equivalent to twenty four percent of the total responses and the Botanical
Garden with twenty four responses. The remaining two percent belongs to the other spots -
Lourdes Grotto, Wright Park, Camp John Hay and the Philippine Military Academy.

2. How often do you visit such tourist spots?

This question helped the researchers in knowing whether residents come back to the same
places even if the said spots have no developments over the years.

Table 1. 3 Frequency of Visits -Residents

 How often? Number of Percentage

Respondents
Monthly 190 48%
Every 2 months 57 14%
Quarterly 136 34%
Twice a year 3 1%
Annually 14 4%
Total 400 100%

Nearly half of the respondents, constituting one hundred ninety of them, say that they
visit such places monthly. Thirty four percent of them or one hundred thirty six respondents visit
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quarterly, whilst fifty seven scored every 2 months and the remaining percentages consists of
twice a year and annually.

3. If we are to put up an aviary in Baguio City, would you be willing to go?

Table 1. 4 Willingness to Visit the Aviary-Residents

Responses Number of Percentage

Respondents
Yes 348 87%
No 52 13%
Total 400 100%

Referring from the above table, only thirteen percent or fifty two respondents negated
their willingness of going to the aviary. Consequently, the remaining eighty seven percent of
them agreed to visit the place which implies that the aviary is acceptable for residents.

4. How often will you visit the aviary?

Table 1. 5 Frequency of Visit to the Aviary-Residents

How often? Number of Respondents Percentage

Monthly 153 44%
Every 2 months 55 16%
Quarterly 129 37%
Annually 9 3%
Semiannually 2 1%
Total 348 100%

Similar to the second question, most respondents prefer to visit the greenhouse once a
month, thirty seven percent of them will go every quarter, and fifty five out of four hundred say
that they would go every two months. The residual percentage will go annually and semiannually.

5. How much are you willing to pay for the entrance fee?

**KIDS (3-12 years old)

Table 1. 6 Proposed Entrance Fee- Kids: Residents

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How much? Number of Percentage

Respondents
20-30 226 65%
30-40 60 17%
40-50 47 14%
10-20 3 1%
5-15 5 1%
Free 7 2%
Total 348 100%

Two hundred twenty six out of the four hundred respondents favored the lowest price
range which is twenty to thirty pesos. Whilst seventeen percent or sixty people preferred to pay
thirty to forty pesos; fourteen percent or forty seven marked the forty to fifty price ranges. Other
respondents, however, prefer the price to be free or five to twenty pesos.

**ADULTS (13 years old and above)

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Table 1. 7 Proposed Entrance Fee-Adults: Residents

 How much? Number of Percentage

Respondents
30-40 193 55%
40-50 89 26%
50-60 50 14%
80-100 3 1%
10-25 9 3%
Free 4 1%
Total 348 100%

Similar to the preceding table, more than half of the respondents favored the least price
range. Twenty six percent and fourteen percent, however, preferred to pay forty to fifty and fifty
to sixty pesos, respectively. Residually, one percent preferred to enter for wanted to pay eighty to
one hundred pesos.

B. TOURISTS

1. Which tourist spot in Baguio City do you often visit?

The first question gave the researchers an idea in determining the location of the aviary.
Since most of these tourist destinations have a common turning point which is near Pacdal,
Baguio City.
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Table 1. 8 Visited Tourist Spots by Tourists

Number of
Tourist Spots Percentage
Responses
Minesview Park 260 32%
Botanical Garden 269 33%
Burnham Park 269 33%
Bell Church 2 0%
Lourdes Grotto 4 0%
Mansion 2 0%
Wright Park 3 0%
Diplomat Hotel 1 0%
Strawberry Farm 3 0%
‘La Presa’ 4 0%
Good Shepherd 1 0%
PMA 5 1%
Total 823 100%

The survey resulted to eight hundred twenty-three (823) responses which favored the
Botanical Garden and Burnham Park equally with thirty-three percent of the responses. Next to
them was Minesview Park which garnered two hundred sixty marks equivalent to thirty two
percent of the total responses. The remaining two percent belongs to the other tourist spots - the
Bell Church and the Mansion which had two checks each; the Lourdes Grotto and La Presa with
four points each; Wright Park and Strawberry Farm, each scoring three; the Diplomat Hotel and
the Good Shepherd with one check each; and lastly, the Philippine Military Academy scoring five
marks.
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2. How often do you visit such tourist spots?

This question helped the researchers in knowing whether tourists come back to the same
places even if the said spots have no developments over the years.

Table 1. 9 Frequency of Visits-Tourists

Number of
How often? Percentage
Respondents
Once a year 118 30%
Twice a year 169 42%
Thrice a year 106 27%
Every month 4 1%
Every 2 years 2 1%
Every 5 years 1 0%
Total 400 100%

Only one respondent answered once in every five years, two individuals said they visit
the said places once in two years and four of the respondents stated that they go to these places
every month. Twenty seven percent of the respondents marked thrice a year and thirty percent of
them checked once a year. One hundred sixty nine of them, though, forming forty two percent of
the sample size, prefer to go to such places twice a year.

3. If we are to put up an aviary in Baguio City, would you be willing to go?

The third question aims to determine how many among the four hundred respondents are
interested to visit the aviary. This creates an idea about its future demand.
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Table 1. 10 Willingness to Visit the Aviary-Tourists

Number of
Responses Percentage
Respondents
Yes 338 85%
No 62 16%
Total 400 100%

Only sixty two of the four hundred respondents or sixteen percent of them negated their
willingness to visit the aviary, consequently raising three hundred thirty eight or eighty-five
percent affirmative responses. This implies that an AVIARY is feasible in Baguio City.

4. How often will you visit the aviary?

This question intends to know the frequency of the future demand.

Table 1. 11 Frequency of Visit to the Aviary-Tourists

Number of
How often? Percentage
Respondents
Once a year 117 34%
Twice a year 138 41%
Thrice a year 83 24%
Every month 6 1%
Total 338 100%

Similar to the second question, most respondents, one hundred thirty eight of them
constituting forty one percent, would visit the aviary twice a year. Thirty four percent of them
would go once a year and twenty four percent will be going thrice a year. The residual percentage
consists of monthly, every two years and every five years.

5. How much are you willing to pay for the entrance fee?

The last question aims to determine how much the respondents would be willing to pay
for visiting the aviary.

**KIDS (3-12 years old)

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Table 1. 12 Proposed Entrance Fee-Kids: Tourists

Number of
Price range Percentage
Respondents
25-35 145 43%
35-45 114 34%
45-55 63 19%
15-25 2 1%
5-15 9 3%
Free 5 1%
Total 338 100%

**ADULTS (13 years old and above)

Table 1. 13 Proposed Entrance Fee-Adults: Tourists

Number of
Price range Percentage
Respondents
35-45 156 46%
45-55 106 31%
55-65 57 17%
25-35 4 1%
15-25 3 1%
5-15 12 4%
Total 338 100%

For both kids and adults, most of the respondents preferred the least price range which is
twenty five to thirty five for kids and thirty five to forty five for adults.

DEMAND ANALYSIS

Annual Visit on the Aviary

RESIDENTS

The following tables show the computation for the average number of annual visits of the
Aviary.

Table 1. 14 Computation for average number of visits of the Residents

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Frequency Number of Respondents Total Annual Visits

Monthly 12 153 1836
Every 2 months 6 55 330
Quarterly 4 129 516
Annually 1 9 9
Semiannually 2 2 4
Total 348 2695

Average number of visits was determined by dividing the total number of annual visits by
the total number of the respondents.

Equation 1. 4 Average number of visits

Average number of visits = 2695/348

= 7.74

= 7 (Round down)
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TOURISTS

The following tables show the computation for the average number of annual visits of the
Aviary.

Table 1. 15 Computation for average number of visits of the Tourists

Frequency Number of Respondents Total Annual Visits

Once a year 1 117 117
Twice a year 2 138 276
Thrice a year 3 77 231
Every month 12 6 72
Total   338 696

Average number of visits was determined by dividing the total number of annual visits by
the total number of the respondents.

Equation 1. 5 Average number of visits

Average number of visits = 696/338

= 2.06

= 2 (Round down)

Demand Projection

Demand projection of a company is the expected level of demand during a specified

future period of time which gives businesses a valuable information about the markets in which
they operate and the markets they plan to pursue. The proponents made use of the Statistical tools
which are Arithmetic Straight Line, Arithmetic Geometric Curve, Statistical Straight Line, and
Statistical Parabolic Curve. Among these four methods, the method yielding the smallest standard
deviation will be the most reliable forecast. Residents and tourists with ages three and below were
excluded from the total population projected based from the data provided by the National
Statistics Office and Department of Tourism.
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Standard Deviation

Standard Deviation is a measure of the dispersion of a set of data from its mean. The
more spread apart the data, the higher the deviation. The standard deviation is calculated as the
square root of variance.

RESIDENTS

Table 1. 16 Summary of Standard Deviation of Residents

Methods of Projection Computed Standard Deviation

Arithmetic Straight Line 240
Arithmetic Geometric Curve 4,480
Statistical Straight Line 154
Statistical Parabolic 1,580

Among the four methods of projection, the Statistical Straight Line provided the lowest
standard deviation, hence it is the most reliable forecast. This method was used in the
computation of projected demand for the Aviary.

Table 1. 17 Statistical Straight Line Computation of Residents

Year Y X X² XY A
2011 323,253.00 1 1 323,253.00 315,167.00
2012 330,882.00 2 4 661,764.00 315,167.00
2013 338,690.00 3 9 1,016,070.00 315,167.00
2014 346,684.00 4 16 1,386,736.00 315,167.00
2015 354,865.00 5 25 1,774,325.00 315,167.00
Total 1,694,374.00 15 55 5,162,148.00  

Continuation
b bX Yc Y-Yc (Y-Yc)²
7,902.6
7,902.60 323,069.60 183 33,635.56
0
7,902.6
15,805.20 330,972.20 -90 8,136.04
Equation 1. 6 0 Standard
7,902.6
Deviation- 118871 Residents
0
7,902.6
√ 23,707.80 338,874.80 -185
5
34,151.04

31,610.40 346,777.40 -93 8,723.56

0
7,902.6
39,513.00 354,680.00 185 34,225.00
0
        118,871.00
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Standard Deviation =

= 154.188974962551

Table 1. 18 Projected Population of Residents

Year a B X bX Yc
2016 315,167.00 7,902.60 6 47,415.60 362,583.00
2017 315,167.00 7,902.60 7 55,318.20 370,485.00
2018 315,167.00 7,902.60 8 63,220.80 378,388.00
2019 315,167.00 7,902.60 9 71,123.40 386,290.00
2020 315,167.00 7,902.60 10 79,026.00 394,193.00
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Table 1. 19 Projected Demand of Residents

Projected Percentage of Average

Year Projected Demand
Population Willingness Annual Visits
2016 362,583 85.00% 7 2,157,366
2017 370,485 85.00% 7 2,204,387
2018 378,388 85.00% 7 2,251,407
2019 386,290 85.00% 7 2,298,428
2020 394,193 85.00% 7 2,345,448

According to the table above the projected demand for 2016 to 2020 is constantly
increasing every year, so that simply implies that the demand for visiting the Aviary is enhanced.

TOURISTS

Table 1. 20 Summary of Standard Deviation of Tourists

Methods of Projection Computed Standard Deviation

Arithmetic Straight Line 39,172
Arithmetic Geometric Curve 124,442
Statistical Straight Line 32,220
Statistical Parabolic 46,621

Among the four methods of projection, the Statistical Straight Line provided the lowest
Standard Deviation, hence it is the most reliable forecast. This method was used in the
computation of projected demand for the Aviary.
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Table 1. 21 Statistical Straight Line Computation of Tourists

Year Y X X² XY a
2011 552,497.00 1 1 552497.00 379896.90
2012 617,079.00 2 4 1234158.00 379896.90
2013 843,473.00 3 9 2530419.00 379896.90
2014 932,292.00 4 16 3729168.00 379896.90
2015 1,115,264.00 5 25 5576320.00 379896.90
Total 4,060,605.00 15 55 13,622,562.00  

Continuation

B bX Yc Y-Yc (Y-Yc)²
144,074.70 144,074.70 523,971.60 28,525.00 813,698,445.16
144,074.70 288,149.40 668,046.30 -50,967.00 2,597,665,669.29
144,074.70 432,224.10 812,121.00 31,352.00 982,947,904.00
144,074.70 576,298.80 956,195.70 -23,904.00 571,386,873.69
144,074.70 720,373.50 1,100,270.40 14,994.00 224,808,040.96
        5,190,506,933.00

Equation 1. 7 Standard Deviation- Tourists

5190506933
Standard Deviation =
√ 5

= 32219.5807952245

Table 1. 22 Projected Population of Tourists

Year a B x Bx Yc
2016 379,896.90 144,074.70 6 864,448.20 1,244,345.00
2017 379,896.90 144,074.70 7 1,008,522.90 1,388,420.00
2018 379,896.90 144,074.70 8 1,152,597.60 1,532,495.00
2019 379,896.90 144,074.70 9 1,296,672.30 1,676,569.00
2020 379,896.90 144,074.70 10 1,440,747.00 1,820,644.00

Table 1. 23 Projected Demand of Residents

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Projected Percentage of Average Annual Projected

Year
Population Willingness Visits Demand
2016 1,244,345.00 87.00% 2 2,165,160.00
2017 1,388,420.00 87.00% 2 2,415,850.00
2018 1,532,495.00 87.00% 2 2,666,540.00
2019 1,676,569.00 87.00% 2 2,917,230.00
2020 1,820,644.00 87.00% 2 3,167,920.00

According to the table above the projected demand for 2016 to 2020 is constantly
increasing every year, so that simply implies that the demand for visiting the Aviary is enhanced.

SUPPLY ANALYSIS

Supply is the schedule of various quantities of goods and services which sellers are
willing and able to sell at a given price, time, and place, and all other factors are held constant.
Supply analysis can be used to determine the impact of changes in product and factor prices, in
technology, and in access on factor demands (including labor), production, marketed output,
aggregate supply, and incomes. Generally, it can be used to analyze the impact on production of
the removal of barriers to access or other changes in markets. Supply analysis, in the employment
context, deals with key staffing questions related to current staffing levels in an organization.

As a counter part of demand, a certain amount of supply is needed and should ideally
create market equilibrium. Thus, supply should be given importance to lessen if not eliminate
shortage or surplus. At present, no direct competitors exist in the product and the service which
the proponents would like to offer.

DEMAND-SUPPLY ANALYSIS

Demand refers to how much of a service is desired by the buyers. The quantity demanded
is the amount of service people are willing to buy at a certain price. Supply represents how much
the market can offer. The quantity supplied refers to the amount of a certain service the service
providers are willing to supply when receiving a certain price. The Demand and Supply Analysis
is used to identify the gap which represents the unsatisfied demand. The demand and supply data
are gathered through the distribution of questionnaires to the target market and interviews.
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Since the proposed study does not have direct competitors particularly in Baguio City, the
proponents have zero projected supply.

Table 1. 24 Demand-Supply Analysis for the Residents

Projected Projected Unsatisfied

Year
Demand Supply Demand
2016 2,157,366.00 0 2,157,366.00
2017 2,204,387.00 0 2,204,387.00
2018 2,251,407.00 0 2,251,407.00
2019 2,298,428.00 0 2,298,428.00
2020 2,345,448.00 0 2,345,448.00

Table 1. 25 Demand-Supply Analysis for the Tourists

Projected Projected Unsatisfied

Year
Demand Supply Demand

2016 2,165,160.00 0 2,165,160.00

2017 2,415,850.00 0 2,415,850.00
2018 2,666,540.00 0 2,666,540.00
2019 2,917,230.00 0 2,917,230.00
2020 3,167,920.00 0 3,167,920.00

CAPACITY

The normal capacity is computed by determining the number of guests per day which is
the total area available divided by allotted area per person (330 m²/1.25 m²) multiplied by the
annual operating days and the number of hours interval which is operating hours per day divided
by allotted number of hours per person (8 hours/2 hours).

Table 1. 26 Capacity

Capacity No. of Guests per Annual Operating Four Hrs. Annual

Day Days Interval Capacity
Maximum Capacity 330 365 4 481,800.00
Normal Capacity 264 360 4 380,160.00
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MARKET SHARE

The company needs to establish its own market share for the business to earn profit.
Market share can be a sign of the relative competitiveness of the company’s service. Increase in
the market share allows the company to achieve greater scale in its operations and improve
profitability.

Table 1. 27 Market Share

Projected
Projected Total Projected Normal Percentage of
Year Demand
Demand Demand Capacity Market Share
(Residents)
(Tourists)
2016 2,157,366.00 2,165,160.00 4,322,527.00 380,160.00 8.79%
2017 2,204,387.00 2,415,850.00 4,620,237.00 380,160.00 8.23%
2018 2,251,407.00 2,666,540.00 4,917,948.00 380,160.00 7.73%
2019 2,298,428.00 2,917,230.00 5,215,658.00 380,160.00 7.29%
2020 2,345,448.00 3,167,920.00 5,513,369.00 380,160.00 6.90%

COMPETITIVE ADVANTAGE

Aviary is formed from the Latin word avis, “for birds”, and the ending –ary, meaning “a
place”. Unlike birdcages for pets, aviaries are large enough to allow the captive birds room to fly
around. They are often large enough for people too.

Being aware in the presence of the different indirect competitors, the business will cater
the desires of every customer at its best and will focus on the customer’s satisfaction. The
Northern Nest will not only offer entertainment but it will also sell experience and memories
through socializing and interacting with the different birds.

PRICE STUDY

Price is one of the most important components of marketing program and is the only
revenue generating element among the four P’s of the Marketing mix.

Pricing is the process of determining what a company will receive in exchange for its
product or service being offered. The price is according to the ability of the customer to pay a
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Marketing Aspect

given product. Considering the factors that might affect the pricing scheme such as the
manufacturing cost, market price competition, market conditions and quality of the services, the
proponents will device a pricing strategy that will ensure the attainment of the financial goal of
the business.

The pricing schemes may be based on the prevailing market price, competitor’s price,
taste and quality of the service, business price equal to or lower than the former. Aside from that,
the result of the survey conducted regarding the prices which customers are willing to pay, are
also taken into consideration.

The pricing strategy of the business is cost plus pricing method wherein cost of service is
considered in establishing price for the service that will be offered.

To clarify further, the proponents decided to equalize the prices among tourists and
residents including kids and adults. It would be difficult in determining whether the customer is a
tourist or a resident and even the kids to adults thus to simplify and to eliminate bias among
customers, it would be more practical and reasonable to make the prices equal. In addition, when
the tourists realize that entrance fees for residents are way cheaper than theirs, the next time they
will visit probably they would deny that they are tourist and they will claim as they are resident.

Reasonably speaking, when an individual had given a chance to choose a price for his
consideration among various choices, definitely the lowest bracket of price will be the most
favorable for him and this range of prices will only be the price he is willing to pay for this is the
lowest and cheapest. For this, even the business cannot recover from their expenses using this
price; they cannot do anything about it because it was decided. However, when the business
focuses on their return and recovery of their expenses, they will earn profit. Businesses exist to
earn profit.

Regardless of the questionnaires we floated among probable customers that we asked

them on what price they were willing to pay for the entrance fees, the computed (as shown below)
price will still be used by the business.

SUMMARY OF PRICING STRATEGY

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Marketing Aspect

The proponents computed the direct costs incurred or cost of service and the normal
capacity to determine the price of the entrance fees to be collected.
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Marketing Aspect

Table 1. 28 Total Direct Costs

Total Direct Cost Incurred Monthly Annually

Salary of Avian Vet 27,083.33 325,000.00
Salaries of Feeding Personnel 65,000.00 780,000.00
Salaries of Avian Specialist 65,000.00 780,000.00
Salaries of Gardener 19,500.00 234,000.00
Salaries of Avian Trainer 62,291.67 747,500.00
Bird Supplies 5,516.67 66,200.00
Facility Equipment 17,571.67 210,860.00
Facility Supplies 2,270.83 27,250.0
Depreciation of Birds 3,053.43 36,641.18
Depreciation of Aviary 13,975.75 167,708.95
Depreciation of Plants 3,352.16 40,225.89
Electricity 153.01 18,316.13
Water 2,427.31 29,127.72
TOTAL 288,569.16 3,462,829.87

Note: The Bird Supplies are inclusive of Bird Foods, Bird Toys, Bird Supplements and
Bird Accessories. Facility Equipment and Facility Supplies components can be seen in the
Technical Aspect for more details. Depreciation of Birds as well may vary yearly due to mortality
rate, replacements and additional purchase of birds, further information can be seen in the
Technical Aspect.

The normal capacity is computed by determining the number of guests per day which is
total area available divided by allotted area per person (330 m²/1.25 m²) multiplied by the annual
operating days and the number of hours interval which is operating hours per day divided by
allotted number of hours per person (8 hours/2 hours).

Based on the result gathered, each customer will be charged Php9.11 when cost-based
pricing is used. But since, the researchers will be using cost plus pricing method, each customer
will be charged Php30.00. Using a mark-up of 330%, when multiplied by Php9.11 will yield to
Php30.00.
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Marketing Aspect

FACTORS AFFECTING THE MARKET

Factors affecting the demand

1. Population Change

As population increases, the demand for goods and services also increases. This demand
of the increasing population should be met and satisfied. However, these needs and wants of the
people change overtime.

2. Customer’s Leisure, Fun and Relaxation

Customers today are notoriously uncertain on what type of service or relaxation will they
avail. Some will choose discovering new activities which are new to their taste, while others
choose something that seems to be adventurous. Their desire of having leisure activities, when
attained even for a short period of time, gives them fun and relaxation.

3. Household Income and Employment

A household’s income and the job they have determine how an individual or family can
allocate budget to spend for their leisure activities. People with higher income will have the
ability to acquire more upscale services, and have the higher possibility of spending their income
for this kind of activities. On the other hand, households with moderate income will necessitate
different activities. Employment describes spending power since many purchasing decisions are
made by employed people.

4. Competition

Competition is not much intensified since Aviary has no direct competitors in providing
this kind of services. Though they may not render same service, others are still considered threat
for the business.

5. Location

This has a great effect in the market. Practically, the accessibility of the location will
encourage the market to visit the park more often.
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Marketing Aspect

6. Relative Prices, Taxes and Interest Rates

Most of these factors affect the entire market not just the specific area being tested. They
are extremely important since they will have a major effect on absorption rates and profitability.

7. Economic Consideration

The standard way of life is affected by the rapid changes of economic situation and this
affect the spending power of every individual as well as the market.

Factors affecting the supply

1. Capital Requirements

These are the financial resources required for infrastructure, machinery, R&D and
advertising. Startups may get around capital requirements by outsourcing parts of the operation to
companies that can leverage existing investments.

2. Power of Buyers 

The reverse situation occurs when bargaining power rests in the hands of
buyers. Powerful buyers can exert pressure on small businesses by demanding lower prices,
higher quality, or additional services, or by playing competitors off one another.

3. Regional Support

While some people will not need any type of support from the states or the government, it
is important to start your business in an area where there is support from the government. There is
difficulty in entering the market without the support of the regional government.

4. Government Regulation

Government intervention can have a significant effect on supply. Government can limit
or prevent entry to industries with various controls (for example, licensing requirements).

5. Economies of Scale
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Marketing Aspect

This are declines in the unit costs of a product as the absolute volume per period
increases.

Factors Affecting the Price

1. The Level of Competition

When trying to adopt a product pricing strategy or determine the right price for your
product, the issue of competition is a factor that must be trashed out effectively. The more intense
the competition in your industry is, the more flexible your product pricing strategy and policy
will have to be.

2. Perceived value of your product

This is another factor that must be considered before setting a price for your product.
Your first step is to ask this question “what is the perceived value of my product in the heart of
the customer? You must strive to find a good and definite answer to this question before fixing a
price for your product.

2. Economic trend

This is another unavoidable factor that can influence the pricing of a product. Economic
factors such as taxation rate, labor cost, inflation rate, and currency exchange rate, government’s
fiscal and monetary policy will definitely influence product pricing strategy either positively or
negatively.

3. Level of market demand

This is the third factor that can greatly affect a product price. In business economics, if
demand exceeds supply, there tends to be a mad rush for the few available products, thus inflating
the price of the product and vice versa.

4. Class of targeted customers

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Marketing Aspect

The class of customers you are targeting will greatly influence the pricing of your
product. In the society, there are three classes of people. The rich, the middle class and the poor
or more preferably “low income earners,” who are always the majority in terms of population.

5. Product Costs

The costs of the product—its inputs—including the amount spent on product

development, testing, and packaging required have to be taken into account when a pricing
decision is made.
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Marketing Aspect

MARKETING STRATEGIES

A marketing strategy is a process or model to allow a company or organization to focus

limited resources on the best opportunities to increase sales and thereby achieve a sustainable
competitive advantage. To be able to reach out to our target market, various types of
advertisement would be used.

Advertising is any paid form of non-personal presentation and promotion of ideas, goods,
or services by an identified sponsor. While each advertisement has its own specific objectives, all
ads generally fit into one of three generic goals: to inform, persuade or remind customers about
your brand or product. Initially, the main goal is to inform the public that there is a new service
that is open in the market.

1. Print advertisement
Newspaper
A newspaper is a print media advertisement that has a wide market coverage and
a lot of readers. Despite the fact that people nowadays rely on the internet for almost
everything, a lot of people, especially the adults, still don’t miss the daily or weekly issue
of newspaper. It is also an advantage to publish in a newspaper because it has a lower
cost compared to other paid advertisement.

Brochure

A brochure is a small book or magazine containing pictures and information

about a product or service. A tri-fold brochure will be used by the company. It will
contain the company logo, the mission and vision, and the philosophy of the company.
The brochure will also catch the interest of the customers because it will include pictures
of the facility and the different kinds of birds found in the aviary. Moreover, fun facts
about the birds will be included in the brochure. These brochures will be placed in the
help desk of the aviary.
2. Online Advertisement
The Internet's vast reach can allow advertisers to reach significantly more people
than traditional advertising media at a fraction of the cost. Internet advertising can also be
more targeted than some traditional media, ensuring that your messages are seen by the
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most relevant audiences. Social networking sites such as Facebook and twitter will be
used to create a page for the business. This will increase both awareness and interaction
between the customers.

Table 1. 29 Cost of Advertisement

Frequency or Number of
Type Unit Cost Total Costs
copies
Newspaper 5 1,000.00 5,000.00
Brochure 50 75.00 3,750.00