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COLLEGE DEPARTMENT 5

Chapter 2
MARKET ASPECT

Marketing is typically seen as a task of creating, promoting and

delivering goods and services to customers and business. It is societal
process by which individuals and group obtain what they need and want
through creating, offering and freely exchanging product, promoting and
distributing of ideas, goods and services to create exchanges that satisfy
individual and organizational goal.
Marketing is the “art of selling” products but people are surprised
when they hear that the most important part of marketing is not selling,
Selling is only the tip of the marketing iceberg. According to Peter
Drucker, the aim of marketing is to make selling superfluous. Its aim is to
know and understand the customers and how the product or services fits
them and sells it. Ideally, marketing should result to a customer who is
ready to buy.
The concept of marketing holds the key to organizational goals of the
company by which it is more attractive than competitors in creating,
delivering and communicating superior customer’s value to its chosen
target market.

A. Product Description
This section provides the description of the proposed product
which was considered part of the feasibility study. This is to give
detailed descriptions of what the business is considering so this
description can be applied to certain sections. It is important that this
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COLLEGE DEPARTMENT 6

will capture the most important aspects of the product as well as how
it may benefit the customers and organizations.
The marketing objectives of the proponents are to offer a
product made of oils of Coconut, Avocado and Castor in an
affordable price and new on consumer’s eye which is not only for
pretty hair but also healthy and its make the hair fast which every
individual will surely like and satisfy their needs when it comes to their
hair.

A.1 Name of the Product

The proposed project is the production of NURTURE hair grower the
2in1 shampoo and conditioner in Calamba City. The proposed name for
the product would be “NURTURE Hair Grower the 2in1 Shampoo and
Conditioner”. The word “NURTURE” was taken from the natural oil of our
main ingredients which are the Castor oil, Coconut oil and Avocado oil of
the product as it stands for something that gives you great pleasure or
satisfaction.

A.2 Properties of the Product

“NURTURE Hair Grower” made from Castor, Coconut and Avocado
extract that come from their oils. It is a hair grower that will be used to
have straight hair, fresh-feeling hair and growing faster of your hair. It has
a Glycerin, a natural humectant that help hair to retain and attract
moisture, mixed with the oils, which makes it ideal for use as shampoo
and conditioner.
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COLLEGE DEPARTMENT 7

A.3 Uses of the Product

NURTURE hair grower will be primarily used as substitute for other
brands of shampoo and conditioner that this will help you not to be hassle
in shampooing and conditioning your hair.

A.4 Target market and Location

The target market of the proponents’ products will be the
Individuals population located within the area of Los baños and Calamba
City.
B. Demand Analysis
The Demand analysis is based on the survey and interviews that
were conducted. The demand was taken from the total number of
Individuals in Calamba and Los Baños Laguna.
To compute the population, the proponents consider the number of
individuals in the target area which is Calamba and Los Baños it shown in
the Table 2.1.
TABLE 2.1: TOTAL INDIVIDUALS POPULATION AS PER TARGET AREAS

YEAR CALAMBA CITY LOS BAÑOS

2014 290,648 109,206

2015 351,862 223,645

2016 428,586 302,105
2017 521,601 412,560
2018 643,283 529,818
TOTAL 2,235,980 1,577,334

Source: City planning and development office, NSO (Calamba,Los Baños)

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COLLEGE DEPARTMENT 8

Table 2.1 Shows the total individuals population in Calamba City and Los
Baños from the year 2013 up to 2017 in which those individuals has age
bracket that consists of 15-60 years old that will be the target market of
“NURTURE hair grower”.
Slovin’s Formula
Slovin’s formula is used to calculate the sample size (n) given the
population size (N) and a margin of error (e) of 10%.
TO KNOW THE NUMBER OF RESPONDENTS:

SLOVIN'S FORMULA:

n = N W here: n = sample size of the respondents

1 + Ne2 N = Total Population of the target market
e = marginal error (0.1)
n = 1,173,101
2
1 + 1,173,101 x (0.1)

n = 1,173,101
11,732

n = 100

The number of respondents is the total number of individual’s

population on the last year which is 1,173,101 over the sum of 1 and the
total number of household population multiplied to the 10% marginal
error. The proponents decided to distribute the survey questioner as 50-50
sheets as per target area.
Disproportionate stratified sampling is a stratified sampling
procedure in which the number of elements sampled from each stratum is
not proportional to their representation in the total population. In order to
estimate population parameters, the population composition must be
used as weights to compensate for the disproportionality in the sample.
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COLLEGE DEPARTMENT 9

TABLE 2.2: HISTORICAL DEMAND

AVERAGE ANNUAL
AGE BRACKET % OF
TOTAL MONTHLY CONSUMPTION PER
RESULT INDIVIDUAL HISTORICAL
YEAR INDIVIDUAL INCOME WITH RESULT INDIVIDUAL
WHO AVAILED DEMAND
POPULATION 5,000 ABOVE (170ML/PER
15 to 60 THE PRODUCT
BOTTLES)

2014 399,854 65% 70% 181,934 78% 141,908 24 3,405,796

2015 575,507 65% 70% 261,856 78% 204,247 24 4,901,938
2016 730,691 65% 70% 332,464 78% 259,322 24 6,223,734
2017 934,161 65% 70% 425,043 78% 331,534 24 7,956,810
2018 1,173,101 65% 70% 533,761 78% 416,334 24 9,992,005

TOTAL 3,813,314 1,735,058 1,353,345 32,480,283

Source: NSO and Actual Survey - Interview of 100 respondents

After determining the sample size of the respondents, the

proponents conducted a survey by giving 100 pieces of questionnaires to
the target area. Based on the survey, 78% of the sample population
consumed hair grower.
To get the historical demand, the proponents multiplied the total
no. of individual’s population who availed the product to the average
annual consumption (per month). The table also shows the average
annual consumption of individuals population is 170ml of hair grower per
bottle.

Method of Projection:
There are four methods used in computing for in the projection of
demand and supply. These are: Arithmetic Straight Line Method,
Arithmetic Geometric Curve, Statistical Line Method, and Statistical
Parabolic Curve.
The Proponents distributed 100 survey questionnaires (50-50 as per
target areas) to the selected individuals in Calamba City. And Los Baños
Laguna.
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COLLEGE DEPARTMENT 10

B.1 Arithmetic Straight Line Method

Projected Values: Yc=a+Yi-1
𝝈=√∑(𝐘−𝒀𝒄)𝟐
Where: 𝒂 = 𝒀𝒏−𝒀𝒄
𝑵−𝟏 𝑵

Yc = Initial Value
N = Number of Years
Yn = Final Value
Yi = Value for the Past
Table 2.2.1. Historical Values: Arithmetic Straight Line
Step 1 Step 2
YEAR Y a + Yi - 1 = Yc Y - Yc (Y - Yc)2
2014 3,405,796 - - 0.00 0.00
2015 4,901,938 1,646,552.16 + 3,405,796 = 5,052,349 -150,410.17 22,623,218,938.61
2016 6,223,734 1,646,552.16 + 5,052,349 = 6,698,901 -475,167.09 225,783,765,699.87
2017 7,956,810 1,646,552.16 + 6,698,901 = 8,345,453 -388,643.18 151,043,523,070.54
2018 9,992,005 1,646,552.16 + 8,345,453 = 9,992,005 0.00 0.00
TOTAL 32,480,283 ∑= 399,450,507,709.02

Computations:
a= Yn - Yc 399,450,507,709.02
σ=
N - 1 5
= 9,992,005 - 3,405,796 = 79,890,101,541.80
5 - 1 σ= 282,648.37
a= 1,646,552.16

Yn = last year
Yc = first year

Table 2.2.2 Projected Values: Arithmetic Straight Line

YEAR a + Yi - 1 = Yc
2019 1,646,552.16 + 9,992,005 = 11,638,557
2020 1,646,552.16 + 11,638,557 = 13,285,109
2021 1,646,552.16 + 13,285,109 = 14,931,662
2022 1,646,552.16 + 14,931,662 = 16,578,214
2023 1,646,552.16 + 16,578,214 = 18,224,766
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COLLEGE DEPARTMENT 11

B.2 Arithmetic Geometric Curve Method

𝑌𝑖+1 𝝈=√∑(𝐘−𝒀𝒄)𝟐
Where: 𝑌𝑐 = 1+𝑟 𝑵

Yi+1 = value of the year ahead

r = average rate increase

(∑% 𝐨𝐟 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞)
r= 𝑵−𝟏
Table 2.2.3Historical Values: Arithmetic Geometric Curve
Step 1 Step 2
% INCREASE (1 +
YEAR Y Yi + 1 ÷ = Yc Y - Yc (Y - Yc)2
(DECREASE) r)
2014 3,405,796 - 4,436,572.23 ÷ 1.31 3,384,640.34 21,156.09 447,579,975.25
2015 4,901,938 43.93 5,815,440.10 ÷ 1.31 4,436,572.23 465,366.19 216,565,692,055.58
2016 6,223,734 26.96 7,622,854.25 ÷ 1.31 5,815,440.10 408,293.57 166,703,635,932.74
2017 7,956,810 27.85 9,992,005.08 ÷ 1.31 7,622,854.25 333,955.48 111,526,262,912.84
2018 9,992,005 25.58 - - - - -
TOTAL 32,480,283 124.32 Σ= 495,243,170,876.41

Computations:
2015
% = ( 4,901,938 - 3,405,796 ) (1 + r)= [ ∑ % increase 495,243,170,876.41
[ ] 100 [ ] ÷ 100 ] + 1 σ=
3,405,796 N-1 5
%= 43.93 = [ 124.3183063 = 99,048,634,175.28
[ ] ÷ 100 ] + 1
2016 5-1 σ= 314,719.93
% = ( 6,223,734 - 4,901,938 ) (1 + r)= 1.31
[ ] 100
4,901,938
%= 26.96
2017
% = ( 7,956,810 - 6,223,734 )
[ ] 100
6,223,734
%= 27.85
2018
% = ( 9,992,005 - 7,956,810 )
[ ] 100
7,956,810
%= 25.58
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COLLEGE DEPARTMENT 12

Table 2.2.4Projected Values: Arithmetic Geometric Curve

YEAR Yi - 1 x (1 + r) = Yc
2019 9,992,005 x 1.31 = 13,097,478
2020 13,097,478 x 1.31 = 17,168,119
2021 17,168,119 x 1.31 = 22,503,897
2022 22,503,897 x 1.31 = 29,498,013
2023 29,498,013 x 1.31 = 38,665,871

B.3 Statistical Straight Line Method

Yc=a+bx
n = number of years
∑𝐘 ∑𝐗 𝐍∑𝐗𝐘 ∑𝐗∑𝐘
Where: 𝒂= − 𝒃= −
𝑵 𝑵 𝑵∑𝐱 𝟐 (∑𝐱)𝟐

Table 2.2.5 Historical Values: Statistical Straight Line

Step 1
2
YEAR Y X X XY a + b ( x )= Yc
2014 3,405,796 1 1 3,405,796 1,627,870.08 + 1,622,728.86 ( 1 ) = 3,250,598.94
2015 4,901,938 2 4 9,803,877 1,627,870.08 + 1,622,728.86 ( 2 ) = 4,873,327.80
2016 6,223,734 3 9 18,671,201 1,627,870.08 + 1,622,728.86 ( 3 ) = 6,496,056.67
2017 7,956,810 4 16 31,827,239 1,627,870.08 + 1,622,728.86 ( 4 ) = 8,118,785.53
2018 9,992,005 5 25 49,960,025 1,627,870.08 + 1,622,728.86 ( 5 ) = 9,741,514.39
TOTAL 32,480,283 15 55 113,668,139

Step 2
Y - Yc (Y - Yc)2
155,197.49 24,086,259,686
28,610.62 818,567,485
-272,323.00 74,159,818,333
-161,975.79 26,236,157,246
250,490.69 62,745,586,458
∑= 188,046,389,208
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COLLEGE DEPARTMENT 13

Computations:
a= ∑Y -b ∑X b= ( 5 ) ( 113,668,139 ) ( 15 ) ( 32,480,283 )
2
n n 5(55) - (15)
b= n ∑ XY - ∑X ∑Y b= 81,136,443
n (X)2 - (∑X)2 50
b= 1,622,728.86

a = 32,480,283 -1,622,728.86 15 188,046,389,207.95

( ) σ =
5 5 5
= 6,496,056.67 -1,622,728.86 ( 3 ) = 37,609,277,841.59
= 6,496,056.67 -4,868,186.58 σ = 193,931.12
a = 1,627,870.08

Table 2.2.6 Projected Values: Statistical Straight Line

YEAR a + b = Yc
2019 1,627,870.08 + 1,622,728.86 ( 6 ) = 11,364,243
2020 1,627,870.08 + 1,622,728.86 ( 7 ) = 12,986,972
2021 1,627,870.08 + 1,622,728.86 ( 8 ) = 14,609,701
2022 1,627,870.08 + 1,622,728.86 ( 9 ) = 16,232,430
2023 1,627,870.08 + 1,622,728.86 ( 10 ) = 17,855,159

B.4 Statistical Parabolic Method

Yc=a+bx+c𝑥 2
Where:
(∑𝑿𝟒) (∑𝐘)−(∑𝐱 𝟐 )(∑𝑿𝟐 𝒀) 𝝈=√∑(𝐘−𝒀𝒄)𝟐
𝒂=
𝑵(∑𝑿𝟒 )−(∑𝑿𝟐 )𝟐 𝑵

∑𝐗𝐘 𝐍(∑𝑿𝟐 𝐘)−(∑𝐱 𝟐 )(∑𝒀)

𝒃= ∑𝐱 𝟐
𝒄= 𝑵(∑𝑿𝟒 )−(∑𝑿𝟐 )𝟐
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COLLEGE DEPARTMENT 14

Table 2.2.7Historical Values: Statistical Parabolic

YEAR Y X X2 X4 XY X2Y

2014 3,405,796 -2 4 16 -6,811,593 13,623,186

2015 4,901,938 -1 1 1 -4,901,938 4,901,938
2016 6,223,734 0 0 0 0 0
2017 7,956,810 1 1 1 7,956,810 7,956,810
2018 9,992,005 2 4 16 19,984,010 39,968,020
TOTAL 32,480,283 10 34 16,227,289 66,449,954

Step 1 Step 2
a + b x + c X2 = Yc Y - Yc (Y - Yc)2
2
6,283,287.02 + 1,622,728.86 ( -2 ) + ( 106,384.82 ) ( -2 ) = 3,463,368.59 -57,572.16 3,314,553,828.14
6,283,287.02 + 1,622,728.86 ( -1 ) + ( 106,384.82 ) ( -1 2 ) = 4,766,942.98 134,995.44 18,223,769,468.77
6,283,287.02 + 1,622,728.86 ( 0 ) + ( 106,384.82 ) ( 0 2 ) = 6,283,287.02 -59,553.36 3,546,602,172.75
6,283,287.02 + 1,622,728.86 ( 1 ) + ( 106,384.82 ) ( 1 2 ) = 8,012,400.70 -55,590.97 3,090,355,740.97
2
6,283,287.02 + 1,622,728.86 ( 2 ) + ( 106,384.82 ) ( 2 ) = 9,954,284.03 37,721.04 1,422,877,112.17
∑= 29,598,158,322.80

Computations:
a = (∑ X 4) (∑ Y) - (∑ X 2) (∑ X 2Y) b = ∑XY
n (∑ X 4) - (∑ X 2)2 ∑ X2
= ( 34 ) ( 32,480,283 ) - ( 10 ) ( 66,449,954 ) = 16,227,289
(5)(34) - (10)2 10
= 439,830,091.21 b = 1,622,728.86
70
a = 6,283,287.02

c = n (∑ X2Y) - (∑ X 2) (∑Y) 29,598,158,322.80

σ=
n (∑ X 4) - (∑ X 2)2 5
= ( 5 ) ( 66,449,954 ) - ( 10 ) ( 32,480,283 ) = 5,919,631,664.56
(5)(164) - (20)2 σ= 76,939.14
= 7,446,938
70
c = 106,384.82
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COLLEGE DEPARTMENT 15

Table 2.2.8 Projected Values: Statistical Parabolic for Demand

YEAR a + b x + c X2 = Yc
2
2019 6,283,287.02 + 1,622,728.86 ( 3 ) + ( 106,384.82 ) ( 3 ) = 12,108,937.01
2
2020 6,283,287.02 + 1,622,728.86 ( 4 ) + ( 106,384.82 ) ( 4 ) = 14,476,359.64
2
2021 6,283,287.02 + 1,622,728.86 ( 5 ) + ( 106,384.82 ) ( 5 ) = 17,056,551.92
2
2022 6,283,287.02 + 1,622,728.86 ( 6 ) + ( 106,384.82 ) ( 6 ) = 19,849,513.84
2
2023 6,283,287.02 + 1,622,728.86 ( 7 ) + ( 106,384.82 ) ( 7 ) = 22,855,245.42

Table2.2.9. Summary of Standard Deviation: Historical Demand

Arithmetic Straight Line 282,648.37
Arithmetic Geometric Curve 314,719.93
Statistical Straight Line 193,931.12
Statistical Parabolic 76,939.14

LOWEST STANDARD DEVIATION (DEMAND): 76,939.14

Standard Deviation is a measure that is used to quantify the

amount of variation or dispersion of a set of data values. A low standard
deviation indicates that the data points tend to be close to the mean or
expected value of the set, while a high standard deviation indicates that
the data points are spread out over a wider range of values. The lowest
standard deviation is a deviation which has a lesser error and risks.
The proponents used the statistical parabolic of projection as it
yielded the smallest standard deviation of 76,939.14 Therefore, this
method is used by the proponents to get the projected demand for the
next 5 years.
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COLLEGE DEPARTMENT 16

Table 2.2.10 Projected Values using Statistical Parabolic for Demand

YEAR a + b x + c X2 = Yc
2
2019 6,283,287.02 + 1,622,728.86 ( 3 ) + ( 106,384.82 ) ( 3 ) = 12,108,937
2
2020 6,283,287.02 + 1,622,728.86 ( 4 ) + ( 106,384.82 ) ( 4 ) = 14,476,360
2
2021 6,283,287.02 + 1,622,728.86 ( 5 ) + ( 106,384.82 ) ( 5 ) = 17,056,552
2
2022 6,283,287.02 + 1,622,728.86 ( 6 ) + ( 106,384.82 ) ( 6 ) = 19,849,514
2
2023 6,283,287.02 + 1,622,728.86 ( 7 ) + ( 106,384.82 ) ( 7 ) = 22,855,245

C. Supply Analysis

In order to determine the historical supply of hair grower Shampoo

and Conditioner in Calamba and Los Baños, the proponents have
conducted interviews with the said supermarkets and groceries that are
considered indirect competitors within the area. Through this method, the
proponents have now determined the historical supply.

TABLE 2.3 TITLE: HISTORICAL SUPPLY

SHAMPOO CONDITIONER
KERATIN WITH
FAST BIOTIN PALMOLIVE CREAM ANDREA'S HAIR HISTORICAL
YEAR SUNSILK GREEN ARGAN OIL
SHAMPOO SHAMPOO (ALOVERA) GROWER SUPPLY
CONDITIONER
2014 1,104,287 806,154 825,625 1,012,543 1,215,962 743,206 5,707,777
2015 1,325,144 886,769 965,981 1,184,675 1,301,079 817,527 6,481,176
2016 1,444,407 966,579 1,052,920 1,291,296 1,418,176 891,104 7,064,482
2017 1,559,960 1,043,905 1,137,153 1,394,600 1,531,631 962,392 7,629,641
2018 1,887,552 1,252,686 1,364,584 1,673,520 1,837,957 1,154,871 9,171,168
TOTAL 7,321,350 4,956,093 5,346,263 6,556,634 7,304,805 4,569,100 36,054,245

This table shows the supply based on the sales volume of the
competitors in different supermarkets in Calamba and Los Baños including
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COLLEGE DEPARTMENT 17

Sm Calamba, Robinson’s, Olivarez and Walter Mart which are all located
in Calamba City and Los Baños Laguna.

Methods of Projection
There are four methods used in computing for in the projection of
supply. These are: Arithmetic Straight Line Method, Arithmetic Geometric
Curve, Statistical Line Method, and Statistical Parabolic Curve.
The method that yields the lowest standard deviation is most likely
to give the most reliable forecast.

C.1. Arithmetic Straight Line

𝑌𝑛−𝑌𝑐
Where: 𝑎 = 𝑁−1

Yc = Initial Value N = Number of Years

Yn = Final Value Yi = Value for the year past

Table 2.3.1 Historical Values: Arithmetic Straight Line

Step 1 Step 2
YEAR Y a + Yi - 1 = Yc Y - Yc (Y - Yc)2
2014 5,707,777 - - 0.00 0.00
2015 6,481,176 865,847.87 + 5,707,777 = 6,573,625 -92,448.57 8,546,738,479.11
2016 7,064,482 865,847.87 + 6,573,625 = 7,439,473 -374,990.58 140,617,932,954.59
2017 7,629,641 865,847.87 + 7,439,473 = 8,305,321 -675,679.88 456,543,294,657.86
2018 9,171,168 865,847.87 + 8,305,321 = 9,171,168 0.00 0.00
TOTAL 36,054,245 ∑= 605,707,966,091.57
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COLLEGE DEPARTMENT 18

Computations:
a = Yn - Yc 605,707,966,091.57
σ=
N - 1 5
= 9,171,168 - 5,707,777 = 121,141,593,218.31
5 - 1 σ= 348,054.01
a = 865,847.87

Yn = last year
Yc = first year

Table 2.3.2. Projected Values: Arithmetic Straight Line

YEAR a + Yi - 1 = Yc
2019 865,847.87 + 9,171,168 = 10,037,016
2020 865,847.87 + 10,037,016 = 10,902,864
2021 865,847.87 + 10,902,864 = 11,768,712
2022 865,847.87 + 11,768,712 = 12,634,560
2023 865,847.87 + 12,634,560 = 13,500,408

C.2. Arithmetic Geometrical Curve

Where:
𝑌𝑖+1
𝑌𝑐 = 1+𝑟
Yi + 1 = Value for the year head

r = Average rate of increases r = S% increase

n–1
Table 2.3.3. Historical Values: Arithmetic Geometric Curve
Step 1 Step 2
% INCREASE
YEAR Y Yi + 1 ÷ (1 + r) = Yc Y - Yc (Y - Yc)2
(DECREASE)
2014 5,707,777 - 6,408,919 ÷ 1.13 = 5,687,282.59 20,494.41 420,020,773.31
2015 6,481,176 13.55 7,222,121 ÷ 1.13 = 6,408,918.87 72,257.43 5,221,135,668.32
2016 7,064,482 9.00 8,138,506 ÷ 1.13 = 7,222,120.66 -157,638.50 24,849,895,809.31
2017 7,629,641 8.00 9,171,168 ÷ 1.13 = 8,138,506.34 -508,865.60 258,944,199,018.49
2018 9,171,168 20.20 0.00
TOTAL 36,054,245 50.75 ∑= 289,435,251,269.44
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COLLEGE DEPARTMENT 19

Computations:
2015
%= ( 6,481,176 - 5,707,777 )
[ ] 100
5,707,777
%= 13.55
2016
%= ( 7,064,482 - 6,481,176 )
[ ] 100
6,481,176
%= 9.00
2017
%= ( 7,629,641 - 7,064,482 )
[ ] 100
7,064,482
%= 8.00
2018
%= ( 9,171,168 - 7,629,641 )
[ ] 100
7,629,641
%= 20.20

(1 + r) = [ ∑ % increase ] 289,435,251,269.44
[ ] ÷ 100 + 1 σ=
N-1 5
=[ 50.75438193 ] = 57,887,050,253.89
[ ] ÷ 100 + 1
5-1 σ= 240,597.28
(1 + r) = 1.13

Table 2.3.4. Projected Values: Arithmetic Geometric Curve

YEAR Yi - 1 x (1 + r) = Yc
2019 9,171,168 x 1.13 = 10,334,861
2020 10,334,861 x 1.13 = 11,646,210
2021 11,646,210 x 1.13 = 13,123,950
2022 13,123,950 x 1.13 = 14,789,195
2023 14,789,195 x 1.13 = 16,665,736
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COLLEGE DEPARTMENT 20

C.3. Statistical Straight Line

Where: Yc = a + bx
Table 2.3.5. Historical Values: Statistical Straight Line
Step 1
YEAR Y X X2 XY a + b ( x ) = Yc
2014 5,707,777 1 1 5,707,777 4,788,274.71 + 807,524.74 ( 1 ) = 5,595,799.46
2015 6,481,176 2 4 12,962,353 4,788,274.71 + 807,524.74 ( 2 ) = 6,403,324.20
2016 7,064,482 3 9 21,193,447 4,788,274.71 + 807,524.74 ( 3 ) = 7,210,848.94
2017 7,629,641 4 16 30,518,563 4,788,274.71 + 807,524.74 ( 4 ) = 8,018,373.68
2018 9,171,168 5 25 45,855,842 4,788,274.71 + 807,524.74 ( 5 ) = 8,825,898.42
TOTAL 36,054,245 15 55 116,237,982

Step 2
Y - Yc (Y - Yc)2
111,977.54 12,538,970,419
77,852.10 6,060,949,874
-146,366.77 21,423,231,985
-388,732.94 151,113,299,008
345,270.07 119,211,418,323
∑= 310,347,869,608

Computations:
a = ∑Y -b ∑X b= ( 5 ) ( 116,237,982 ) ( 15 ) ( 36,054,245 )
n n 5(55) - (15)2
b= n ∑ XY - ∑X ∑Y b= 40,376,237
n (X)2 - (∑X)2 50
b= 807,524.74

a= 36,054,245 -807,524.74 15 310,347,869,608.41

() σ=
5 5 5
= 7,210,848.94 -807,524.74 ( 3 ) = 62,069,573,921.68
= 7,210,848.94 -2,422,574.23 σ= 249,137.66
a= 4,788,274.71
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COLLEGE DEPARTMENT 21

Table 2.3.6. Projected Values: Statistical Straight Line

YEAR a + b = Yc
2019 4,788,274.71 + 807,524.74 ( 6 ) = 9,633,423
2020 4,788,274.71 + 807,524.74 ( 7 ) = 10,440,948
2021 4,788,274.71 + 807,524.74 ( 8 ) = 11,248,473
2022 4,788,274.71 + 807,524.74 ( 9 ) = 12,055,997
2023 4,788,274.71 + 807,524.74 ( 10 ) = 12,863,522

C.4. Statistical Parabolic

= 𝒂 + 𝒃𝒙 + 𝒄𝒙𝟐
(Σ𝑥 4 )(Σ𝑌) − (Σ𝑥 2 )(Σ𝑥 2 )(Σ𝑥 2 𝑌)
𝒂=
𝑛(Σ𝑥 4 ) − (Σ𝑥 2 )2
Σ𝑥𝑌
𝒃=
Σ𝑥 2
𝑛(Σ𝑥 2 ) − (Σ𝑥 2 )(Σ𝑌)
𝒄=
𝑛(Σ𝑥 4 ) − (Σ𝑥 2 )2
Table 2.3.7. Historical Values: Statistical P arabolic

YEAR Y X X2 X4 XY X2Y

2014 5,707,777.00 -2 4 16 -11,415,554.00 22,831,108.00

2015 6,481,176.30 -1 1 1 -6,481,176.30 6,481,176.30
2016 7,064,482.17 0 0 0 0.00 0.00
2017 7,629,640.74 1 1 1 7,629,640.74 7,629,640.74
2018 9,171,168.49 2 4 16 18,342,336.98 36,684,673.95
TOTAL 36,054,244.70 10 34 8,075,247.42 73,626,598.99

Step 1 Step 2
2
a + b x + c X = Yc Y - Yc (Y - Yc)2
6,993,976.14 + 807,524.74 ( -2.00 ) + ( 108,436.40 ) ( -2 2 ) = 5,812,672.26 -104,895.26 11,003,014,744.05
2
6,993,976.14 + 807,524.74 ( -1.00 ) + ( 108,436.40 ) ( -1 ) = 6,294,887.80 186,288.50 34,703,406,247.62
2
6,993,976.14 + 807,524.74 ( 0.00 ) + ( 108,436.40 ) ( 0 ) = 6,993,976.14 70,506.03 4,971,100,010.95
2
6,993,976.14 + 807,524.74 ( 1.00 ) + ( 108,436.40 ) ( 1 ) = 7,909,937.28 -280,296.54 78,566,150,509.90
2
6,993,976.14 + 807,524.74 ( 2.00 ) + ( 108,436.40 ) ( 2 ) = 9,042,771.22 128,397.27 16,485,857,776.84
∑= 145,729,529,289.36
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COLLEGE DEPARTMENT 22

Computations:
a = (∑ X 4) (∑ Y) - (∑ X 2) (∑ X 2Y) b = ∑XY
n (∑ X 4) - (∑ X 2)2 ∑ X2
= ( 34 ) ( 36,054,245 ) - ( 10 ) ( 73,626,599 ) = 8,075,247.42
(5)(34) - (10)2 10.00
= 489,578,329.72 b = 807,524.74
70.00
a = 6,993,976.14

c = n (∑ X 2Y) - (∑ X 2) (∑Y) 145,729,529,289.36

σ =
n (∑ X 4) - (∑ X 2)2 5.00
= ( 5 ) ( 73,626,599 ) - ( 10 ) ( 36,054,245 ) = 29,145,905,857.87
(5)(34) - (20)2 σ = 170,721.72
= 7,590,548.01
70.00
c = 108,436.40

Table 2.3.8. Projected Values: Statistical Parabolic

YEAR a + b x + c X2 = Yc
2
2019 6,993,976.14 + 807,524.74 ( 3 ) + ( 108,436.40 )( 3 ) = 10,392,477.97
2
2020 6,993,976.14 + 807,524.74 ( 4 ) + ( 108,436.40 )( 4 ) = 11,959,057.51
2
2021 6,993,976.14 + 807,524.74 ( 5 ) + ( 108,436.40 )( 5 ) = 13,742,509.85
2022 6,993,976.14 + 807,524.74 ( 6 ) + ( 108,436.40 ) ( 6 2 ) = 15,742,834.99
2023 6,993,976.14 + 807,524.74 ( 7 ) + ( 108,436.40 ) ( 7 2 ) = 17,960,032.94

Table 2.3.9 Summary Deviation: Historical Supply

Arithmetic Straight Line 348,054.01
Arithmetic Geometric Curve 240,597.28
Statistical Straight Line 249,137.66
Statistical Parabolic 170,721.72

LOWEST STANDARD DEVIATION (SUPPLY): 170,721.72

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COLLEGE DEPARTMENT 23

Standard Deviation is a measure that is used to quantify the

amount of variation or dispersion of a set of data values. A low standard
deviation indicates that the data points tend to be close to the mean or
expected value of the set, while a high standard deviation indicates that
the data points are spread out over a wider range of values. The lowest
standard deviation is a deviation which has a lesser error and risks.
The proponents used the statistical parabolic of projection as it
yielded the smallest standard deviation of 170,721.72. Therefore, this
method is used by the proponents to get the projected demand for the
next 5 years.

D. Demand-Supply Analysis
After finding the least standard deviation for the demand and
supply analysis the proponents will then get its corresponding projected
demand and supply. After determining the projected demand and
supply, the proponents will now get the unsatisfied demand by
subtracting the projected demand from the projected supply. The
demand for the product must be greater than the demand for the supply
to have a good market.
Table 2.4. Projected Unsatisfied Demand
PROJECTED PROJECTED UNSATISFIED
YEAR
DEMAND SUPPLY DEMAND
2019 12,108,937 10,392,478 1,716,459
2020 14,476,360 11,959,058 2,517,302
2021 17,056,552 13,742,510 3,314,042
2022 19,849,514 15,742,835 4,106,679
2023 22,855,245 17,960,033 4,895,212

Formula:
Unsatisfied Demand = Projected Demand - Projected Supply
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COLLEGE DEPARTMENT 24

As a result of the study, the unsatisfied demand for NURTURE hair

grower is increasing every year. Meaning to say, there is still an existing
chance to gain profit in this kind of business.
E. Market Share
Market share is the percentage or proportion of the total available
market or market segment being attributed to a company. Increase in
market share is one of the most important objectives target businesses.
Market share is calculated by taking the company's sales over the
period and dividing it by the total sales of the industry over the same
period. This metric is used to give a general idea of the size of a
company to its market and its competitors. Increasing market share is
one of the most important objectives used in business.
The total acceptance factor was determined based on the total
percentage of individual population who are willing to try the product.
Table 2.5. Market Share
UNSATISFIED ACCEPTANCE PROJECTED MARKET
YEAR
DEMAND FACTOR DEMAND SHARE
2019 1,716,459 78% 12,108,937 11.06%
2020 2,517,302 78% 14,476,360 13.56%
2021 3,314,042 78% 17,056,552 15.16%
2022 4,106,679 78% 19,849,514 16.14%
2023 4,895,212 78% 22,855,245 16.71%

FORMULA: Market Share = ((Unsatisfied Demand x Acceptance Factor) / Projected

Demand) x 100

The acceptance factor of 78% was based on the conducted

survey of the proponents to its target market. This factor shows the number
of percentage of those who are willing to try the NURTURE hair grower of
A&V Production Company. On the given table, market shares of the
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COLLEGE DEPARTMENT 25

following years were computed by multiplying the unsatisfied demand to

the acceptance factor divided by the projected demand. The
calculated market share of the proponents on the first year was 11.06% to
16.71% on the year 2021. Market shares that are increasing every year
show a more profitable business.

F. Price Study
Price is the value expressed in monetary term. One pays for what he
gets. It is related to value and utility in the sense that a customer is willing
to pay any amount for the product that would give them value in return.
However, there are few factors affecting the prices, such as the
price of ingredients and salaries of workers, changes in the external
environment such as new rates for business, taxes, trade agreement and
natural calamities that would destroy food ingredients and hamper
production. Another would be the going rate of competitors.

COMPETITORS ML Price

SHAMPOO
SUNSILK GREEN 180 P 189.00
FAST SHAMPOO 250 425.00
BIOTIN SHAMPOO 120 380.00
CONDITIONER
KERATIN WITH ARGAN OIL CONDITIONER 200 150.00
PALMOLIVE CREAM (ALOVERA) 180 350.00
ANDREA'S HAIR GROWER 20 220.00

NURTURE HAIR GROWER -PROPONENTS' PRICE 170 170.00

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COLLEGE DEPARTMENT 26

G. Factors Affecting the Market

There are factors affecting the market which are the demand,
supply and the price. These factors must be considered in forecasting the
problems that may occur to the business in the near future. If the problems
come to a business, you must have an immediate solution to avoid further
effect to the product, market and most especially to the consumers.

G.1. Demand
G.1.a. Increased Competition
Strong names may not be enough to maintain loyalty of
consumers. There are famous and arising competitors relating to hair
grower. Customers may not easily trust products like “NURTURE hair
grower” that is new and not familiar in the market because they do not
know its reputation yet, but they may easily switch to it depending on the
satisfaction and impression it makes on the consumers. This proposed
product will be introduced through promotions and advertisements in
social Medias, posters, flyers and even a free give away of the product
will do on the public.

G.1.b. Price
The basic demand relationship is between potential prices of a
good or service and the quantities that would be purchased at those
prices. A&V Production Company aims to promote a product which suits
your hair but on its price that you can always afford. The relationship is
negative, meaning a cozy or too much increase on the price of the
“NURTURE hair grower” might make the consumers switched to other
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COLLEGE DEPARTMENT 27

products that are more affordable resulting to decrease the potential

demand of the product.

G.1.c Population Growth

Changes in population definitely affect the increase or decrease in
the demand of the product. The proponents decided to choose Los
Baños and Calamba because of the wide number of population in these
cities most especially the individuals as its target market. When the
population grows, there is an increase on the demand of the said product
especially the individuals and when the quantity of potential demand is
increased it will satisfied the needs of the population. If the population is
decreased, it serves as a threat and causes the decrease in the quantity
of demand of the “NURTURE hair grower””.

G.1.d Income Changes

The change in income of an individual’s greatly affects the
demand for it determines the capability of a consumer to spend for a
commodity. Income earners prioritize their basic necessities and will only
spend more on other commodities as their income increase. Los Baños
and Calamba City are also known on its commercial stabilities. Meaning,
there are lots of companies in the area, there are lots of jobs which make
every individuals employed. The proponents believed that people can
purchase the product in its affordable price by putting the business in this
targeted areas because every individuals have income to support their
needs. The capacity of the business to stay stable is based on the income
and ability of the consumers to avail the product.
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COLLEGE DEPARTMENT 28

G.1.e Preferences

The willingness or desire of the market to purchase a product is

affected by their preferences. This desire depends upon a consumers’
right to choose. If this certain individuals has developed a preference over
a commodity among others; therefore A&V Productions Company assures
that the product being offered suits every try of consumers when it comes
in hair products while giving nutritious benefits to their hair and is available
on its cheap price leaving them a satisfaction in every purchase.

G.1.f. Promotion
The increase in sales volume is affected by promoting the product
since promotion attracts the attention of the customers to buy product.
Through promotion, the benefits of the product are communicated to the
customers. Sales promotion, advertising, and salesmanship are the major
techniques used in merchandising the service to the public. Social media
will be the first step of the proponents to endorse the product because
everyone now uses social media to communicate. Attractive streamers
and posters will be displayed in conspicuous places in Los Baños and
Calamba City and it will contain information about what the proposed
product is offering.

G.2. Factors Affecting the Supply

G.2.a Technology
Technology decides what will happen to the production of the
product. Advanced technology will result to a more efficient and more
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COLLEGE DEPARTMENT 29

effective production of the products. This will make the production easier
and faster.

G.2.b Expectations
To prevent shortage and surplus, production should always meet
the business expectations. Meaning, when the business forecasts a high
demand of the product, the production of the product should also
increase to satisfy demand and avoid shortage in the market and
produce not more than the existing demand to avoid surplus.

G.3. Factors Affecting the Price

G.3.a Cost of Production
A supplier is interested in recovering hit outlay for labor, raw
materials, and other expenses. The price a commodity must carry its share
of the overhead expenses and the cost of production. In production, A&V
Production Company considers that if the cost of the production is high,
there’s no need to increase the price of the product in order to recover
the expenses.
G.3.b Price Elasticity
If the price of a certain product changes, there is a tendency that
it might affect its demand. Therefore, it should consider price elasticity
and be careful on offering its price on the market. Price which is too high
might lead to a declining demand. The proponents decided to offer
NURTURE hair grower with an affordable price; not too cozy and not to
cheap.
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COLLEGE DEPARTMENT 30

H. Marketing Programs

Marketing program is the manufacturing logic by which business units

expect to achieve the marketing objectives. The important factor for a
business to be successful is to make a good and effective marketing
strategy. The proponents develop an effective strategy through the use of
the marketing mix: product, price, place and promotion. To get the
attention and interest of the consumers, the proponents decided to use
the flyers and social Medias and networks to advertise and promote the
product.
H.1. Target Market
The target market of the proponents’ products will be the
household population who live in Calamba City and Los Baños. These are
Individuals who earn a monthly income of Php5,000 and above to support
their willingness to buy the product.
H.2 Product
The proponents will offer a unique product for its target market.
Instead of the common hair products offered by the different businesses
the proponents will offer a hair grower made from Castor, Coconut and
Avocado extract comes from their oils. NURTURE hair grower will not only
offer a new trend for the market but also offer different health benefits
from your hair for its market who consumes it. An unusual product
marketed properly always capture consumers attention that make them
want to give it a shot.
H.3 Packaging
Packaging of a certain product always captures the eyes of every
customer. The packaging of NURTURE hair grower the 2in1 shampoo and
conditioner will be in a 170 ml of plastic bottle with the brand logo
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COLLEGE DEPARTMENT 31

attached to it that will attract its target market. It also includes the name
of the manufacturer, contact number, and Facebook page for inquiries.
H.4 Labeling
There will be two labels that will be put on the bottle of the
”NURTURE” hair grower. The front label will consist of the brand name,
brand logo, and net weight of the product. The back label will provide
the health benefits per servings and the ingredients of the said product.

H.5 Promotion and Advertisement

Promotion is a two-way communication between buyer and seller. It is the
key ingredient in marketing campaigns consisting of a diverse collection
of incentive tools designed to stimulate greater purchase of a particular
products by the consumer. The proposed business will be advertised
through the following:
 Social networking like Facebook, Twitter and Instagram because it
is the most visited website and has a wide scope of network of
people.
 Through the word of mouth from those have already tried the
product will encourage others to buy the said product.
 Distributing sample products in a smaller size product to public like
schools, market, malls and terminals. Distributing free sample to the
public will long at least one year after the business starts.
 Distributing printed materials such as leaflets and flyers in the
chosen area, giving giveaways during special occasion. With
these promotion people will encourage to try the product, and will
convince them that our product is effective.
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COLLEGE DEPARTMENT 32

MANUFACTURER

WHOLESALER

RETAILER

CONSUMER/ END USER

Figure 1. Channel of Distribution

H.6. Green Marketing

Green marketing is defined as the marketing of products that are
presumed to be environmentally preferable to others. The proponents
decided to use plastic bottles. Plastic bottles after being used can be
recycled by making it as storage for something.
In addition, one way of demonstrating that this business is
environmental conscious is to use a resource that is environment friendly.
Another strategy is that rotting or damaged Avocado and waste coconut
head will be donated to farmers. These wastes can be used as fertilizer for
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COLLEGE DEPARTMENT 33

crops. These wastes just need to be sundried in storage so it can be used

as fertilizers.
Using also the green marketing, the proponents make use of
biodegradable tarpaulin made by using recycled printing materials such
as vegetable-based inks or natural dyes. Implementing recycled paper
into truck’s everyday uses. From receipts to paperwork, can use recycled
paper. Send customers home with sustainable packaging, as well. Instead
of using paper on advertisements, take it to the web. Everyone is on the
web now, so targeting them online is best bet. The proponents can able
to reach them better through social media.