Market Analysis

Overview
Crunchy, crispy, and covered with a spicy sweet sauce or plain, Korean fried chicken is

best washed down with some cold refreshing beer. Loved by many fans of different countries,

Korean fried chicken has always been a popular dish that transcends its origins in Korea. Today

it is eaten as a meal or snack at home or in the office or on the go. It is usually served with

pickled radish, beer, and soju. Unlike its American counterpart, Korean fried chicken is fried

twice to get it to be crunchier. Frying the chicken twice also makes it less greasy.

As of February 2019, there were approximately 87,000 fried chicken restaurants in South

Korea; to put this into perspective, McDonald’s has about 38,000 restaurants worldwide. Many

of the Korean fried chicken restaurant chains have opened up international stores in other

countries such as the United States and Canada. For example, Bonchon—a fried chicken

franchise from South Korea—has over 300 locations across 94 locations in the United States and

a few in Vietnam, Thailand, Cambodia, and Myanmar. It is amazing how humble the Korean

fried chicken origins were and how Korean fried chicken franchises have proliferated the world

today.

The wing beer company only started with the owners' passion for Korean food,

particularly fried chicken. Later, it was decided to make it a business and at the same time

refresh the owners' passion and love for food.

I. Demand Forces

Chicken production in the Philippines has surged 40 percent over a decade, growing from

one million tons in 2009 to 1.4 million tons in 2018. This growth is due to the establishment of
new commercial farms and dressing plants, switching some commercial farms to tunnel-

ventilated housing, expansion of farms’ stocking capacities, adequate supply of day-old chicks,

growing use of contract farming, and an ever-increasing demand for chicken meat. The growth in

chicken demand has been faster than other meats due to its affordability, lower fat content and

lack of cultural and religious restrictions. In addition, chicken is the preferred meat in fast food

outlets which are experiencing fast expansion throughout the country. Over the past decade,

chicken consumption has increased in restaurants as more customers have developed a taste for

the protein. Per capita consumption rose by 4% per year from 11.6kg in 2009 to 15.6kg in 2018,

while consumption averaged 13.4kg per person per year.

According to the Philippines Streets, there are only three (3) establishments that offers food

services in Brgy. Binauganan, Tarlac City where the Wing Beer is set to locate.

Public Services
20%

Food Services
15%
Others
65%

Public Services Food Services Others

Table 1. Shows the percentage of establishments in Brgy. Binauganan, Tarlac City

The table above shows that there is a scarcity of Chicken business in the barangay where

the business will be located.

Table 2 shows that sixty (60) percent of the potential customers eat fried chicken weekly,

while 25.7% eat daily.

II. Supply Forces

According to the Department of Agriculture, there is a total of forty-five (45) registered

poultry farms in Tarlac City, and Tarlac Province that proves that there is enough supply of

chicken in the province.

2%2% 11%
7%

7%

22%
16%

2%
2%
16%
13%

Capas Sta. Ignacia Bamban Conception Gerona Anao

Table 3. Shows the number of Poultry Farms

Market research is a valuable tool that can help determine and examine the current state

of a market, as well as its potential for growth.

A. Market Trends

In the first three months of 2022, total chicken production was 455.04 thousand metric

tons, live weight. This indicates an increase of 13.0 percent from the same period in 2021.

Table 4. Chicken Production in the Philippines

The rise of fast-food restaurants, growing reliance on takeout foods, and the consumption

of meal replacements are driving the quick service restaurant segment. Exposure to

advertisements has led to Filipinos' desire for budget-friendly quick meals. Also, millennials'

interest in dining out with their companions is increasing demand for quick service restaurants in

the Philippines.
 Table 5. Beer Consumption
Beer is the most important segment of the global Alcoholic Drinks market by

volume, with value accounting for roughly half of all volumes. In comparison to other segments

of the Alcoholic Drinks market, this segment is already quite concentrated – with only five

companies accounting for nearly 60% of global volume – half of which is attributable to market

leader in beverage alone.

Table 6. Shows the Food Service Market Growth

fast-food chains that specializes in this dish have stayed in the business for decades. As Korean

culture continues to take the world by storm, its influence on Filipinos can be seen in every

aspect including food. Explicitly highlighted in Korean dramas, Korean food has gained a

significant following in the country. Like the chicken and beer combination seen on Hyun Bin

and Son Ye-jin’s Crash Landing On You (2014), as well as on Kim Soo-hyun and Jun Ji-hyun’s

My Love from the Stars (2015).

Table 7. Shows the percentage of people who likes chicken and beer combo

Table 7 reveals that 80 % of the potential customers like the combination of

chicken and beer.

Table 8. Budget
Table 8 shows the budget that determines the buying capacity of the expected consumers

of the business. The budget ranges from Php100.00 to Php500.00 which indicates that they have

the capacity to purchase Wing Beer’s products and services.

C. Market Segmentation

Before creating a business plan for Wing Beer, it is crucial to examine the market

segmentation of the possible clients for your products and services since only after thoroughly

understanding our potential clients can create an effective marketing strategy. The target market

is families, groups of friends, and K-Drama fans who reside in Tarlac City and in its neighboring

municipality.

D. Consumers

The Wing Beer analyzes the target customers for an organization by specific categories

such as geography, demographics, psychographics, and purpose of trip. For Wing Beer, the

geography targeted is the area surrounding Barangay Binauganan, Tarlac City and its

neighboring municipalities. The demographics targeted are families, groups of friends and may
be male or female at legal age. The psychographics targeted are food enthusiasts: those who love

eating chicken while drinking beer. And finally, the purpose is to enjoy the chicken and beer

combo while chilling out with friends, family or even with yourself.

Geography Count

Total Area of Tarlac City 3,053.60 square kilometers

Victoria (Neighboring
111.51 square kilometers
Municipality)

La Paz (Neighboring Municipality) 114.33 square kilometers

Capas (Neighboring Municipality) 377.60 square kilometers

Table 9. Geographic area of Tarlac City

Table 9. shows the geographic area where the business where the operations will

revolve.

Particulars Population

Family/Household 75,546

Men (of legal age) 432,803

Women (of legal age) 432,185

Table 10. Demographic

Table 10 reveals the demographic characteristics of the possible customers of the

business.
D. Competitors

Wing Beer competitors are unlimited chicken wings businesses that are in favor

nowadays. There are around ten unlimited wings chicken stores all over Tarlac and the top three

competitors are based mostly near Wing Beer business workplace. Wing Bites, Wing It On, and

Wings City Diner are Wing Beer's top three competitors located in Tarlac. These three

businesses offer unlimited flavored chicken wings in a dine-in type. Despite the pandemic, they

are still operating. Just like the Wing It On that serves unlimited chicken wings at a price range

of 200-250 pesos. They also accept advance orders for pick-up or via delivery. In addition,

Wings City Diner offers two additional pre-order flavors of cheesecake that attract customers for

a perfect giveaway. The Wings City Diner also offers unlimited chicken wings at 199 pesos, as

well as other beverages, a breakfast buffet, and others. Wing Beer's competitors use social media

platforms such as Facebook to market their product and offer different promos to potential

customers.

Table 11. Study

potential customers based on the conducted survey.

E. Buying Patterns

Customers have a wide range of buying patterns for convenience, cost, and quality. Some

customers are willing to pay more for the convenience of individual sized servings and the

benefit of buying food from their existing food product vendor. Others are willing to pay more

for quality ingredients and will not settle for anything less. Some companies recognize the

demand for high-quality chicken and beer and will not do anything less than what their

customers expect.