Market potential study of X-Hot charcoal briquettes in Dasmariñas and Silang, Cavite

Date

2008

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Banzon, Agnes T.

Abstract

This study was conducted to determine the potential demand of X-HOT Charcoal Briquettes in Dasmarinas and Silang, Cavite. Specifically, it aimed to present the profile and decribe the behavior and qualitative requirements of the buyers of charcoal briquettes, estimate the market size of X-HOT Charcoal Briquettes, identify potential marketing opportunities, issues and problems in meeting the demand of the buyers, and formulate strategies to address the issues and opportunities identified. A survey of the household/consumer market, farms and restaurants was done. Dasmarinas and Silang were the chosen study because they are part of the marketing area the firm wants to focus on. One hundres twenty respondents were randomly selected from the study areas. Fifty of the respondents selected from the household market, 35 from the poultry farm market and another 35 from the restaurant market. The respondents chosen were asked participate in the survey. A self administered questionnaire was used in this study. The questionnaire comprised of Usage, Attitude, Image (UAI) survey, Product Attribute Importance Rating, Price Expectation Analysis, Price Sensitivity Testing and Satisfier/Dissatisfier Analysis. A product placement test was first done each of the respondents were given a kilogram pack of X-HOT Charcoal Briquettes and the heavy survey was done a week after. The study made use of frequency counts and percentage distribution in analyzing the data Price sensitivity analysis, product attribute importance rating and satisfier-dissatisfier analysis were used to further analyze the data gathered from the interviews and surveys. Market build up method was used in order to come up with the market potential of X-HOT Charcoal Briquettes in the study area. Also, non-parametic statistical tests were used that analyzed the results of the UAI survey. Friedman Anova, Kendall Coefficient of the Variance and Kruskall-Wallis Test were used to determine significant rating among attributes and significant rating among respondents. The result of the study showed that the household markets and restaurants were not that familiar with charcoal briquettes. While the poultry farms, all of the respondents interviewed already tried using charcoal briquettes in their operations in the past. From the results of Product Attribute Rating and Price Expectation analysis. it was seen that the product is acceptable to the respondents. Based on the mean rankings, the most important attribute of the product for the household respondents was duration of peak heat while other attributes like raw materials used, color and texture were not that important for the respondents in the purchase decision. Based on the price expectation analysis, the respondents expected the product to be priced under the price range of Php21-25. The price sensitivity analysis showed that respondents are willing to pay Php6 to Php25 for a kilogram pack of X-HOT Charcoal Briquettes. The results of the price sensitivity test showed that the price respondents' expected the product to be still in the range were they are willing to buy the product. The result of the study generated the market potential of X-HOT Charcoal Briquettes in the study area. For the household markets, 212,479 kilos of the product is the potential demand per month while for the business markets, poultry farms and restaurants combined, a total of 393,668 kilograms are demanded per month. In totality, the potential demand of the product is 606,147 kilograms or 606,147 tons per month. The firm can only produce 20 metric tons or 3.2% of the total demand in the area. To cope with the demand-supply gap, Agrofuels Development Ventures should increase its production. However since the X-HOT Charcoal Briquette is still in its introductory stage in the market, production increase may not be done right away so as to establish first a fixed market for the product. It was recommended to the firm to use the identified satisfier attributes in positioning the product each the market segment. Since majority of the respondents in the household, is the identified the most attractive segment in the market, are not aware of the product, educating the target market of advantages of charcoal briquettes over other fuels was recommended. There is also a need for improvement of the packaging of the product to make it more eye-catching. The price is recommended to be maintained at Php15 while the product is still in its introductory stage so as to established the market for the product. The firm was recommended to package the product in larger quantities or volumes for the business markets. Also, the respondents commented that product development was needed. It was recommended that the product be offered in larger size and of different shape. Respondents demand the product to be larger for this will enable them to cook more evenly. Lasly, longer product placement was recommended for the business markets. The product placement done for the purpose of this study only used 1 kilogram pack of charcoal briquettes per respondents. The respondents might have completely evaluated the product due to this limitation.

Language

English

Call Number

LG 993 2008 M17 A85

Document Type

Thesis

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