MARKETING STUDY 2

MARKETING STUDY

INTRODUCTION

Marketing is an organizational function and a set of

process for creating, delivering and communicating value to
customers and managing customer relationship in ways that
benefit the organization.(Kotler, Philip and Keller, L.
Kevin, 2012)

As years pass by, the Philippines and all the other

countries have been seen to continuously increase in
population. As the population increase the demand for
resources also increase. New things really require big cash
outflows which are quite burdensome to people who needs to
budget their money specifically students or the ones who
earn less. Because of this, a lot of second hand stores are
now patronized by the society ranging from second hand
clothes, cell phones, gadgets, supplies and books acquiring
them at a cheaper price. The price difference between second
hand and brand new things really makes a difference and can
help the people save a lot of money. The increase in
population will also increase the potential students. The
demand for books, and other school materials are rapidly
rising and so as its price. Since there is a large demand
for these items, a lot of business industries are offering
services of bookstores and supply stores. Although it is not
beyond the mind of students the prices accompanying these
items are not cheap.

For the said reasons above, the researchers do know the

burden that students handle with regards to budgeting their
 MARKETING STUDY 3

allowances. So to help them ease the said burden the

researchers came up with the idea of putting up an
establishment where they can find various textbooks and
reviewers and school materials at a cheaper price.

This research is for the purpose of testing the

feasibility of a merchandising BUYING and SELLING student’s
school textbooks and reviewers and school material
secondhand items.

The market study conducted has determined the market

feasibility of a buy and sell service:

A. There is sufficient demand from the respondents
to support the operation of this type of service.

B. There is sufficient price point elasticity to afford
the operation of the service with the ability to
generate a profit and a reasonable time frame for
return on investment.

A. SERVICE DESCRIPTION

The company shall provide the public the buying and

selling service of school items specifically textbooks and
reviewers and school supplies.

School textbooks and reviewers shall be limited to

secondhand medical, marketing, law, and other school
textbooks of different college that do not change their
standards constantly unlike accounting textbooks. The school
 MARKETING STUDY 4

textbooks and reviewers to be offered must still be usable

to be tradable and negotiable. The word usable shall also
mean that the textbook and reviewer shall only have minimal
damage on it.

Below are the required standards before the secondhand

textbook or reviewer will be bought by CKrAF Company:

 The title of the cover page of the textbook or reviewer

must be the same with its content.
 Soft or Hard bound textbooks and reviewers are still
acceptable.
 In cases of missing pages, the said pages must not be
relevant to the composition of the book.
 In cases of scratch marks, pen writings, torn pages and
other same case, as long as the contents are readable
is still acceptable.
 Other issues shall be subject under the professional
judgement of the company if they will accept or reject
the textbook or reviewer offered to them.

School supplies shall only be limited to secondhand

school supplies used by engineering, architecture, nursing
and other courses that require expensive school supplies.
The word expensive shall be of a worth of at least two
hundred Philippine pesos (Php.200.00) of its current market
price.

Below are the required standards before the secondhand

school supplies will be bought by CKrAF Company.
 MARKETING STUDY 5

 In cases of scratch marks, pen writings, missing part

and other same case, as long as the supply is able to
perform its intended purpose are still acceptable.
 The school supply though is able to perform its
intended use but is covered with any harmful substance
such as rust or chemicals are still not acceptable.
 Other issues shall be subject under the professional
judgement of the company if they will accept or reject
the school supplies offered to them.

Policies regarding goods purchased from the company:

 Return of goods is allowed only within the first 24
hours from the date of purchased supported with
complete documents and reasonable reason.
 Any other issues shall be subject to the professional
judgment of the company if they will consider the
erroneous transaction.

B. DEMAND AND SUPPLY ANALYSIS

1. QUESTIONNNAIRE ANALYSIS

The questions established by the researchers represent

vital and crucial role in assessing the marketability and
efficiency of the proposed service in the industry. The
questionnaire was intended to provide information as regards
to potential market share and demand for the service.
Information that will be gathered from floated
questionnaires will be used as a guide and help for the
researchers to assess and determine the possible demand of
 MARKETING STUDY 6

the service which can lead to acceptance and approval of the

proposed service in the market.

The questionnaires were floated to different

universities located in Baguio City as the students are of
its main target market;

Number of questionnaires floated per particular place is

presented as follows:
Place Questionnaires Floated
University of the Cordilleras 72
University of Baguio 90
University of the Philippines 19
Saint Louis University 216

To determine the population sample size, the researchers

have used the formula;

Where:
n= sample population (number of respondents)
N= total population
e= margin of error (5%)

University Total Population Sample Size

University of the Cordilleras 9,273 72
University of Baguio 11,610 90
University of the Philippines 2,477 19

Saint Louis University 27,989 216

Sum: 51,349 397

: : 397
Sample size was then allocated by dividing the total
population from each university to the total sum population
and multiplying to the computed total sample size.
 MARKETING STUDY 7

After which, analyses of every question were formed. Data

gathered are as follows:

Question #1: Do you buy secondhand school items? (Textbooks

and Reviewers and School Supplies)

Table 1.1: Buyers of secondhand school items

Response No. of Respondents Percentage

Yes 162 59%

No 113 41%
Total 275 100%

Figure 1.1 Percentage Breakdown of Buyers of secondhand

school items

Answered No
41%

Answered Yes Answered Yes

59% Answered No

The question is to determine whether the respondents

are buying their second hand items or not. This question
shall determine if there is currently an available potential
market that will be willing to purchase the proposed service
of buying. And as a result, 59% of our respondents are said
to be buying their secondhand school items while 41% do not.
This data would show that currently there is indeed a
 MARKETING STUDY 8

readily potential market that would purchase the proposed

service.

The respondents conduct the buying of the secondhand

school items either at merchandising institutions such as A
& P Thrift Shop, SM Book Sale and others and through direct
trading between students.

Question #2: In a semester, how often do you buy second hand

school items?

Table 1.2.1: Buy Books (Textbooks and Reviewers)

Response No. of Respondents Percentage

Once in a Semester 87 85.29%

Twice in a Semester 13 12.75%

Thrice in a Semester 2 1.96%

Four Times in a Semester 0 0%

Total 102 100%

 MARKETING STUDY 9

Figure 1.2.1: Percentage Breakdown of frequency of buying

text books and reviewers in a semester

13% 2%

Once a Semester
Twice a Semester
Three Times a Semester
Four Times a Semester
85%

The question is to determine the frequency behavior of

buyers of second hand Textbooks and Reviewers. This question
shall answer if there would be frequent customers that will
be purchasing second hand Text Books and Reviewers.
Accordingly, 85.29% of the respondent students are going to
buy text books and reviewers once in a semester. 12.75% of
the respondent students are going to buy text books and
reviewers twice in a semester. 1.96% of the respondent
students are going to buy thrice in a semester. And none of
the respondent students are going to buy four times in a
semester.
 MARKETING STUDY 10

Cross Tabulation of Buying Text Books and Reviewers

Average Average
Number of  Number
  Semesters Total
Respondents of Units
in a year Books
1 to 2 72 2 x 1 216
once in a semester 87 3 to 4 11 2 x 1 77
5 to 6 4 2 x 1 44
 
1 to 2 11 2 x 2 66
twice in a
13 3 to 4 2 2 x 2 28
semester
5 to 6 0 2 x 2 0
 
1 to 2 2 2 x 3 18
three times in a
2 3 to 4 0 2 x 3 0
semester
5 to 6 0 2 x 3 0
 
1 to 2 0 2 x 4 0
four times in a
0 3 to 4 0 2 x 4 0
semester
5 to 6 0 2 x 4 0
 
  102 102 449
         
Total # of Units
  per Respondents 449/102 4.40
in a year

The cross tabulation shows that each of the respondents

will buy an average of 4.40 text books and reviewers in a
year.

Table 1.2.3: Buy School Supplies

Response No. of Respondents Percentage

 MARKETING STUDY 11

Once in a Semester 41 68.33%

Twice in a Semester 15 25%

Thrice in a Semester 4 6.67%

Four Times in a Semester 0 0%

Total 60 100%

Figure 1.2.3: Percentage Breakdown of frequency of Buying

School Supplies in a Semester

7%
25%

Once a Semester
Twice a Semester
Three Times a Semester
Four Times a Semester
68%

The question is to determine the frequency behavior of

buyers of second hand school supplies. This question shall
answer if there would be frequent customers that will be
purchasing second hand supplies. Accordingly, 68.33% of the
respondent students are going to buy school supplies once in
a semester. 25% of the respondent students are going to buy
school supplies twice in a semester. And 6.67% of the
respondent students are going to buy school supplies thrice
in a semester. And none will be buying school supplies four
times in a semester. As seen in the data from above there is
a close difference between once in a semester and twice in a
semester therefore there is a good return of profit from
customers of school supplies per semester.
 MARKETING STUDY 12

Cross tabulation of Buying School Supplies

Average
Number of  Number semesters
  Total
Respondents of Units in a year
Supplies
once in a 1 to 2 21 2 x 1 63
41 3 to 4 16 2 x 1 112
semester/Trimester
5 to 6 4 2 x 1 44
 
1 to 2 11 2 x 2 66
twice in a
15 3 to 4 4 2 x 2 56
semester/Trimester
5 to 6 0 2 x 2 0
 
1 to 2 4 2 x 3 36
three times in a
4 3 to 4 0 2 x 3 0
semester/Trimester
5 to 6 0 2 x 3 0
 
1 to 2 0 2 x 4 0
four times in a
0 3 to 4 0 2 x 4 0
semester/Trimester
5 to 6 0 2 x 4 0
 
  60 60 377
         
Total # of Units
per respondents in 377/60 6.28
a year

The Cross tabulation of buying school supplies,

determine the number of units bought by the respondents per
year. It shows that 6.28 school supplies are being bought in
a year

Question #3: Do you sell secondhand school item? (EX.

Textbooks, Reviewers and School Supplies)

Table 1.4

Response No. of Respondents Percentage

Yes 125 39%
 MARKETING STUDY 13

No 196 61%
Total 321 100%

Figure 1.4: Percentage Breakdown of Seller of Second hand

school item

Yes
39%

Yes
No No
61%

The question is to determine if the respondents are

selling their secondhand school items or not. This question
shall answer if there would be students who will be willing
to sell their secondhand school materials. As the percentage
result, 61% of the total respondents are not selling their
respondents are not selling their secondhand school item.
The other 39% of the respondents are selling their school
items. Though it there are only few who sell their
secondhand school items we shall put into consideration the
factors that is hindering them from selling their second
hand material, such as they know few knowledge about the
market value of school materials, it is difficult to know
who will be willing to buy your second hand item and so on
and so forth.

The respondents conduct the selling of the secondhand

school items either at merchandising institutions such as A
& P Thrift Shop, SM Book Sale and others and through direct
trading between students.
 MARKETING STUDY 14

Question #4: In a semester, how often do you sell second

hand school item such as Textbooks, Reviewers and School
Supplies?

Table 1.5.1: Sell Text Books and Reviewers

No. of
Response Respondents Percentage

Once in a Semester 81 85%

Twice in a Semester 11 12%

Thrice in a Semester 2 2%

Four Times in a Semester 1 1%

TOTAL 95 100%

Figure 1.5.1: Percentage breakdown of frequency of selling

textbooks and reviewers in a Semester
 MARKETING STUDY 15

12% 2% 1%

Once in a Semester
Twice in a Semester
Thrice in a Semester
Four Times in a Semester

85%
85%

The question is to determine the frequency behavior of

selling of secondhand in Textbooks and Reviewers.
Accordingly, 85% of the respondent students are going to
sell textbooks and reviewers once in a semester. 12% of the
respondents are selling twice in a semester. 2% are selling
twice in a semester. And 1% of the respondents are selling
four times in a semester. The reason behind is that it would
be difficult to find students whom to sell to; therefore it
is only natural for them to sell a few times in a semester.

Cross Tabulation of Selling Text Books and Reviewers

 MARKETING STUDY 16

Number of  Number of Semesters Average Total

 
Respondents Units in a year Supplies
1 to 2 52 2 x 1 156
once in a
81 3 to 4 20 2 x 1 140
semester
5 to 6 9 2 x 1 99
 
1 to 2 7 2 x 2 42
Twice in a
11 3 to 4 4 2 x 2 56
semester
5 to 6 0 2 x 2 0
 
three times 1 to 2 2 2 x 3 18
in a 2 3 to 4 0 2 x 3 0
semester 5 to 6 0 2 x 3 0
 
four times 1 to 2 1 2 x 4 12
in a 1 3 to 4 0 2 x 4 0
semester 5 to 6 0 2 x 4 0
 
  95 95 523
         
Total # of Units per
523/95 5.51
respondents in a year

The Cross tabulation of selling textbooks and reviewer,

determine the number of units bought by the respondents per
year. It shows that 5.51 textbooks and reviewers can be sold
in a year.

Table 1.5.3: Selling of School Supplies

No. of
Response Respondents Percentage
 MARKETING STUDY 17

Once in a Semester 19 63%

Twice in a Semester 10 33%
Three Times in a
Semester 1 3%
Four Times in a
Semester 0 0%
TOTAL 30 100%

Figure 1.5.3: Percentage breakdown of frequency of selling

School supplies in a semester

3%

33%

Once in a Semester
Twice in a Semester
Three Times in a Semester
Four Times in a Semester
63%

The question is to determine the frequency behavior of

selling of secondhand School Supplies. Accordingly, 63% of
the respondent students are going to sell supplies once in a
month. 33% of the respondents are selling twice in a
semester. And 3% are selling thrice in a semester. There is
lot of school supplies students are in need of but are
expensive however only few students are willing to sell
their school supplies because of other factors.

Cross tabulation of Selling School Supplies

 MARKETING STUDY 18

Number of  Number of Semesters Average Total

 
Respondents Units in a year Supplies

1 to 2 9 2 x 1 27
once in a
19 3 to 4 6 2 x 1 42
semester
5 to 6 4 2 x 1 44
 
1 to 2 6 2 x 2 36
twice in a
10 3 to 4 2 2 x 2 28
semester
5 to 6 2 2 x 2 44
 
three times 1 to 2 1 2 x 3 9
in a 1 3 to 4 0 2 x 3 0
semester 5 to 6 0 2 x 3 0
 
four times 1 to 2 0 2 x 4 0
in a 0 3 to 4 0 2 x 4 0
semester 5 to 6 0 2 x 4 0
 
  30 30 230
           

Total # of Units per

230/30 7.67
respondents in a year

The cross tabulation represent that each of the

respondents will sell an average of 7.67 school supply every
year.

Question #5: How many secondhand school items do you usually

buy or sell? (School materials such as Text books, Reviewers
and School Supplies)

Table 1.7.1: Number of Secondhand Textbooks and Reviewer

being bought
 MARKETING STUDY 19

Response No. of Respondents Percentage

1 to 2 books 80 78.43%

3 to 4 books 20 19.61%

5 to 6 books 2 1.96%

Total 102 100%

Figure 1.7.1: Percentage Breakdown of Secondhand Text Books

and Reviewers being bought

20% 2%

1 to 2 books
3 to 4 books
5 to 6 books

78%

The question is to determine the number of secondhand

textbooks and reviewers usually being bought by the
respondents or students. As a result, the percentage shows
that 78.43% of the respondents only buy one to two textbooks
and reviewers, less percentage on students that buy more
than three textbooks and reviewers. This is because students
are not being required to buy a lot of textbooks and
reviewers at the same time at school. Mostly, college
students buy textbooks and reviewers once in a semester.

Table 1.7.3: Number of Secondhand School Supplies being

bought
 MARKETING STUDY 20

Response No. of Respondents Percentage

1 to 2 supplies 32 53.33%

3 to 4 supplies 23 38.33%

5 to 6 supplies 5 8.33%

Total 60 100%

Figure 1.7.3: Percentage Breakdown of Second hand School

Supplies being bought

8%

1 to 2 supplies
53% 3 to 4 supplies
38%
5 to 6 supplies

The question presents the number of secondhand school

supplies being bought by respondents and as opposite to the
results from buying textbooks and reviewers, the percentage
is divided. This is because the percentage breakdown shows
that although buying one to two supplies has still the
largest percentage, there are also 39% of respondents that
buy three to four supplies. This is due to some school
supplies that are easily disposable and are petty things
compared to textbooks and reviewers, thus the demand is
higher.

Table 1.8.1: Number of Textbooks and Reviewers being sold

Response No. of Respondents Percentage

 MARKETING STUDY 21

1 to 2 books 75 78.95%

3 to 4 books 17 17.89%

5 to 6 books 3 3.16%

Total 95 100%

Figure 1.8.1: Percentage breakdown of Textbooks and

Reviewers being sold

18%
3%

1 to 2 books
3 to 4 books
5 to 6 books

79%

This information shows that there are more students

that only sell one to two textbooks and reviewers which also
imply that the need of textbooks and reviewers is not very
frequent as compared to school supplies. As what was
mentioned earlier, textbooks and reviewers are not
frequently needed from time to time that’s why students
could just only sell one to two textbook and reviewer in a
semester.

Table 1.8.3: Number of Secondhand School Supplies being sold

Response No. of Respondents Percentage

1 to 2 supplies 27 90%
 MARKETING STUDY 22

3 to 4 supplies 3 10%

5 to 6 supplies 0 0%

Total 30 100%

Figure 1.8.3: Percentage breakdown of Secondhand School

supplies being sold

10%

1 to 2 supplies
3 to 4 supplies
5 to 6 supplies

90%

The question determines how many school supplies that

the students are selling and it resulted to a 90% of the
respondents who sell only one to two secondhand school
supplies and a few 10% for those who sell three to four
school supplies. It is also rare that there are some that
sell secondhand school supplies because this school supplies
could not anymore perform satisfactory quality. But despite
of it, there are still students who do it so the proponents
had found a possible market from this certain percentage.

Question #6: If we will establish a business where you can

trade your secondhand school items below the original price,
would you avail of our service?
 MARKETING STUDY 23

Table 1.10: Number of respondents willing to avail the

service
No. of
Response Buyers Seller Respondents Percentage

YES 137 105 242 84%

NO 25 20 45 16%

Total 162 125 287 100%

Figure 1.10: Percentage breakdown of respondents availing

the service
11%

Answered YES
Answered NO

89%

The question would like to determine the number of

students who are willing to avail of the service that the
proponents would like to establish. And accordingly, a
significant number of students say that they are willing to
avail and only 16% of students say no, thus giving more
confidence to the proponents to establish the business. This
explains that students are becoming price conscious and
becoming a thinker consumer. In this instance, they would be
able to save more and find a way to dispose things and
receiving a return from it.
 MARKETING STUDY 24

Question #7: At what percentage compared to the current

price are you willing to buy and sell your second hand
school items?

Table 1.11.1: Number of respondents willing to buy

secondhand textbooks and reviewers at a given percentage
compared to the current price.

Response No. of Respondents Percentage

41 to 50 % 57 55.88%

51 to 60 % 28 27.45%

61 to 70 % 12 11.76%

71 to 80 % 5 4.90%

Total 102 100%

Figure 1.11.1: Percentage breakdown of respondents willing

to buy secondhand textbooks and reviewers at a given
percentage compared to the current price
 MARKETING STUDY 25

12% 6%

41 to 50 %
51 to 60 %
56% 61 to 70 %
71 to 80 %
27%

Normally, respondents most likely want to buy

secondhand books at 41% to 50% of the current price which
is the lowest range of percentage. This is for the reason
that most college textbooks and reviewers costs too much
expensive and an opportunity to buy it at a lower price
will be so much in favor of the buyer.

Table 1.11.3: Number of respondents willing to buy second

hand school supplies at given percentage compared to the
current price.

Response No. of Respondents Percentage

41 to 50 % 41 68.33%
51 to 60 % 10 16.67%
61 to 70 % 8 13.33%
71 to 80 % 1 1.67%
Total 60 100%

Figure 1.11.3: Percentage breakdown of respondents willing

to buy secondhand school supplies at given percentage
compared to the current price.
 MARKETING STUDY 26

13% 4%

16%
41 to 50 %
51 to 60 %
61 to 70 %
71 to 80 %
68%

There were 68.33% of the respondents that selected

paying 41% to 50% of the current price of school supplies
whereas the remaining selected above 50%. This is due to
the higher amount of money being saved as compared to
other percentages.

Table 1.13.1: Number of respondents that are willing to

sell secondhand textbooks and reviewers at a given
percentage compared to the current price
Response No. of Respondents Percentage
10 to 20 % 6 6.32%
21 to 30 % 8 8.42%
31 to 40 % 21 22.11%
41 to 50 % 60 63.16%
Total 95 100%

Figure 1.13.1: Percentage breakdown of respondents that

are willing to sell secondhand textbooks and reviewers at
a given percentage compared to the current price
 MARKETING STUDY 27

8%
6%

22%
10 to 20 %
21 to 30 %
31 to 40 %
65% 41 to 50 %

Ideally, the respondents had chosen the highest range

of percentage of current price in which they want to sell
the secondhand textbooks and reviewers. This is because
they want a higher return from selling their textbooks and
reviewers.

Table 1.13.3: The number of respondents that are willing to

sell secondhand school supplies at a given percentage
compared to the current price

Response No. of Respondents Percentage

10 to 20 % 2 6.67%
21 to 30 % 1 3.33%
31 to 40 % 5 16.67%
41 to 50 % 22 73.33%
Total 30 100%

Figure 1.13.3: Percentage breakdown of respondents that

are willing to sell secondhand school supplies at a given
percentage compared to the current price
 MARKETING STUDY 28

4% 3% 15%

10 to 20 %
21 to 30 %
31 to 40 %
41 to 50 %

78%

Again, just like the last two tables above, respondents

had chosen the highest range of percentage in order to
gain more from selling of their secondhand school
supplies. This would give them benefit than the other set
of percentages.

s
2. DEMAND AND SUPPLY ANALYSIS

a. DEMAND ANALYSIS

In establishing a business, determining the demand

plays a very important role. It helps in projecting the
future returns or income that would be received and as well
as the possible market share in the business industry.
Demand is the amount of a particular economic good or
service that a consumer or group of consumers will want to
purchase at a given price. This will also guide the business
in making decisions on possible expansions and other
significant changes or improvements.
 MARKETING STUDY 29

In order to deeply analyze the demand, demand analysis

should be implemented. Demand analysis is a method of
determining and understanding the impact or effect of
different factors affecting the demand. This analysis helps
management determine if they can successfully enter a market
and generate enough profits to advance their business
operations.

In projecting future demand, the proponents used the

four method of forecasting namely arithmetic straight line
(ASL), statistical straight line (SSL), statistical
parabolic curve (SPC), and geometric parabolic curve (GC).
This is to determine the future consumption of the market.

There are separate computation for demand and supply

for buying, selling and swapping aspects presented.

Summary of Standard Deviation

METHODS STANDARD DEVIATION
Arithmetic Straight Line 2,106
Statistical Straight Line 208
Statistical Parabolic Curve 224
Geometric Parabolic Curve 2,803

Standard deviation is the most statistical indicator of

an asset’s risk. In general, the higher the standard
deviation is, the greater the risk an asset has.

Computation for each of the Standard Deviation is

provided below as:
 MARKETING STUDY 30

 Arithmetic Straight Line

Yc= ((Y current yr-Y previous yr)/N)+ Y current yr

YEAR Y Yc Y-Yc (Y-Yc)^2

2009 38,321

2010 40,892 38,835 2,057 4,230,426

2011 43,673 41,448 2,225 4,949,735

2012 46,249 44,188 2,061 4,246,897

2013 49,377 46,875 2,502 6,262,006

2014 51,349 49,771 1,578 2,488,822

Total 269,861 221,118 10,422 22,177,885

SD=√ ∑(Y-Yc)^2/(N-1)
SD= √ (22,177,885/5)
SD= 2,106

 Statistical Straight Line

Yc=a+bx a=∑y/n b=∑xy/∑x^2
 MARKETING STUDY 31

YEAR Y x x xy Yc Y-Yc (Y-Yc)^2

2009 38,321 (5) 25 (191,605) 38,322 (1) 1

2010 40,892 (3) 9 (122,676) 40,984 (92) 8,425

2011 43,673 (1) 1 (43,673) 43,646 27 739

2012 46,249 1 1 46,249 46,308 (59) 3,463

2013 49,377 3 9 148,131 48,970 407 165,750

2014 51,349 5 25 256,745 51,632 (283) 80,035

Total 269,861 70 93,171 269,861 258,412.82

SD= √ ¿∑(Y-Yc)^2/N)
SD= √ 258,412.82/6
SD= 208

 Statistical Parabolic Curve

Yc= a+b*x+c*x^2
a= ((∑x^4*∑Y)-((∑x^2)*(∑x^2y)))/((N*X^4)-(X^2)^2)
b= ∑xy/∑x^2
c= (N(∑x^y)-(∑x^2)(∑y))/(N(∑x^4)-(∑x^2)^2)

Year Y X x2 X4 Xy x2y Yc Y-Yc (Y-Yc)2

2009 38,321 (5) 25 625 (191,605) 958,025 38,226 95 9,005

2010 40,892 (3) 9 81 (122,676) 368,028 41,067 (175) 30,796

2011 (57)
 MARKETING STUDY 32

43,673 (1) 1 1 (43,673) 43,673 43,730 3,194

2012 46,249 1 1 1 46,249 46,249 46,392 (143) 20,319

2013 49,377 3 9 81 148,131 444,393 49,054 323 104,604

2014 51,349 5 25 625 256,745 1,283,725 51,716 (367) 134,398

Total 269,861 70 1,414 93,171 3,144,093 270,184 (323) 302,316

SD= √ (∑(Y-Yc)^2/N)
SD= √ 50,386
SD= 224

 Geometric Parabolic Curve

Yc= ((∑Y/N-1)+1)*Y current yr

YEAR Y Inc inc% Yc Y-Yc (Y-Yc)^2

2009 38,321

2010 40,892 2,571 0.07 43,359 (2,467) 6,086,357

2011 43,673 2,781 0.07 46,308 (2,635) 6,942,355

2012 46,249 2,576 0.06 49,039 (2,790) 7,785,481

2013 49,377 3,128 0.07 52,356 (2,979) 8,874,219

2014 51,349 1,972 0.04 54,447 (3,098) 9,597,204

Total 269,861 13,028 0.30 245,509 (13,969) 39,285,615

SD=√ ∑(Y-Yc)^2/N-1
SD= √ 7,857,123
SD= 2,803

Projected Population
 MARKETING STUDY 33

Statistical Straight Line Standard Deviation was used

because it results to the lowest standard deviation, which
means that it is closer to the average population.
44,977 is the amount of (a) equation as well as 1,331
as the value of (b) equation as seen from the computation
under the straight line from the previous page.
Projected Population stated in each table below shall
be limited to total students that will be enrolled under the
four different colleges in Baguio, namely: University of the
Cordilleras, Saint Louis University, University of Baguio,
and University of the Philippines.

YEAR Previous X Yc YEAR Projected

Population Population
2012 40,892 6 44,977 + (1,331*6) 2015 52,963
2011 43,673 7 44,977 + (1,331*7) 2016 54,294
2012 46,249 8 44,977 + (1,331*8) 2017 55,625
2013 49,377 9 44,977 + (1,331*9) 2018 56,956
2014 51,349 10 44,977 +(1,331*10) 2019 58,287

BUYING ASPECT

Estimated Market from Projected Population

The estimated demand stated below is the number of the
students that is projected to buy a secondhand school item
for the next five years.
Year Projected K-12 effect to Estimated Demand
Population Population (59%)

2015 52,963 52,963 31,248

2016 54,294 40,178 23,705
2017 55,625 23,919 14,112
2018 56,956 24,397 14,394
2019 58,287 24,885 14,682

For the year 2015 52,963 total projected populations

was still used since the K-12 has no effect yet to the
 MARKETING STUDY 34

population of the students. In 2016, K-12 already has an

effect to the population of the college students. As an
effect the researchers assumed a 26% decrease from the total
projected population of 2015. In 2017, still due to the K-12
effect a 43% decrease from the total projection of 2016 was
assumed. In 2018, it is expected that there would be new
enrollees but at a minimal because it is assumed that not
all graduates of high school would enroll for college. This
is the reason why a 2% growth rate was used from the
projected population of 2018. This assumption continued for
the year 2019.

The 26% was computed by dividing the total projected

population of first years of all universities by the total
projected population of students in 2016 (14, 209/54,294).
In 2017, the population of graduating students was given
consideration that’s why the decrease of percentage was
computed as 43% [(14,403+9682)/55,625].

The percentage used is 59% which was derived from the

percentage of willing buyers to avail the service for the
next five years from questionnaire no. 1 in the survey
floated.

The following tables show a more detailed demand for

each of the following five years:

Projected Demand of those who will buy secondhand

school items each year

The total estimated demand computed from the previous

calculation is subdivided between those who are buying
 MARKETING STUDY 35

secondhand school textbooks and reviewers and those who are

buying secondhand school supplies. It was based on the
result of the data the researchers gathered during the
floating of the questionnaires that 63% is currently buying
secondhand school material and 37% as presented below:

Year School Estimated Total # of Projected TOTAL

Material Demand units per Demand in a
(59%) respondent in year
a year
2015 Books 19,868 4.40 86,619 159,227
Supplies 11,562 6.28 72,608
2016 Books 14,934 4.40 65,710 120,791
Supplies 8,771 6.28 55,081
2017 Books 8,891 4.40 39,118 71,909
Supplies 5,221 6.28 32,791
2018 Books 9,068 4.40 39,900 73,346
Supplies 5,326 6.28 33,446
2019 Books 9,250 4.40 40,699 74,814
Supplies 5,432 6.28 34,115

SELLING ASPECT

Estimated Market from Projected Population

The estimated demand stated below is the number of
students that is projected to sell a secondhand school item
for the next five years.

Year Projected K-12 effect to Estimated Demand

Population Population (39%)

2015 52,963 52,963 20,656

2016 54,294 40,178 15,669
2017 55,625 23,919 9,328
2018 56,956 24,397 9,515
2019 58,287 24,885 9,705
 MARKETING STUDY 36

For the year 2015 52,963 total projected population was

still used since the K-12 has no effect yet to the
population of the students. In 2016, K-12 already has an
effect to the population of the college students. As an
effect the researchers assumed a 26% decrease from the total
projected population of 2015. In 2017, still due to the K-12
effect a 43% decrease from the total projection of 2016 was
assumed. In 2018, it is expected that there would be new
enrollees but at a minimal because it is assumed that not
all graduates of high school would enroll for college. This
is the reason why a 2% growth rate was used from the
projected population of 2018. This assumption continued for
the year 2019.

The 26% was computed by dividing the total projected

population of first years of all universities by the total
projected population of students in 2016 (14, 209/54,294).
In 2017, the population of graduating students was given
consideration that’s why the decrease of percentage was
computed as 43% [(14,403+9682)/55,625].

The percentage used is 39% which was derived from the

percentage of willing buyers to avail the service for the
next five years from questionnaire no. 3 in the survey
floated.

The following tables show a more detailed demand for

each of the following five years.

Projected Demand of those who will sell secondhand

school items each year
 MARKETING STUDY 37

The total estimated demand computed from the previous

calculation is subdivided between those who are selling
second hand school textbooks and reviewers and those who are
selling secondhand school supplies. It was based on the
result of the data the researchers gathered during the
floating of the questionnaires that 76% is currently buying
secondhand school material and 24% as presented below:

Projected Demand of those who would sell each year

Year School Estimated Total # of Projected TOTAL
Material Demand units per Demand in a
(39%) respondent in year
a year
2015 Books 15,699 5.51 86,499 124,523
Supplies 4,957 7.67 38,024
2016 Books 11,908 5.51 65,616 94,459
Supplies 3,761 7.67 28,843
2017 Books 7,089 5.51 39,062 56,233
Supplies 2,239 7.67 17,171
2018 Books 7,231 5.51 39,845 57,360
Supplies 2,284 7.67 17,515
2019 Books 7,376 5.51 40,641 58,506
Supplies 2,329 7.67 17,865

b. SUPPLY ANALYSIS

Supply is defined as the fundamental economic concept

that describes the total amount of a specific good or
service that is available to consumers.
 MARKETING STUDY 38

Buying and selling secondhand school materials is

already established in the city but this is just limited to
books mostly novels, novelettes, magazines and textbooks.
There are also no other business establishments that deals
on buy and sell school materials such as techpens, rulers,
and other school materials that are expensive as stated from
the previous page. An example of business that offers the
buying and selling of secondhand books in Baguio City is the
A&P Thrift Shop that is located in Session Road and has been
operating for forty years already. Another is the Book Sale
situated in SM Baguio City that also offers varieties of
books.

In order to determine the total supply, the proponents

had researched on the information about the market share of
the different competitors that deal on buying and selling
books as follows:

Competitor’s Market Share

Buy and Sell Capacity Average Daily No. of Operating Total
Businesses Supply Days in a Year Supply
A & P Thrift Shop 60 20 300 6000

SM Book Sale 120 15 300 4500

Market buy and 50 22 300 6600

sale stalls
Mabini Buy and 72 13 300 3900
Sell Store
TOTAL 21000

Total supply for textbooks and reviewers is computed as

average number of books that is being availed or offered to
 MARKETING STUDY 39

customers on a daily basis multiplied by the Number of

Operating Days (1 year).

Total supply for school supplies is computed as 20% of

the total demand. The 20% shall represent the supply the
different social networking sites and direct trading of the
secondhand school items between the students is able to
provide.

c. DEMAND AND SUPPLY ANALYSIS SUMMARY

Demand and Supply gap (buying)

YEAR School Total Total Supply Unsatisfied Total
item Demand Demand Unsatisfied
Demand
2015 Books 86,619 21,000 65,619 123,706
Supplies 72,608 14,522 58,086
2016 Books 65,710 21,000 44,710 88,775
Supplies 55,081 11,016 44,065
2017 Books 39,118 21,000 18,118 44,351
Supplies 32,791 6,558 26,233
2018 Books 39,900 21,000 18,900 45,657
Supplies 33,446 6,689 26,757
2019 46,991
Books 40,699 21,000 19,699
Supplies 34,115 6,823 27,292

MARKET SHARE (books)

The data presented below is the demand of the students

who will buy secondhand textbooks and reviewers for the next
five years and the normal capacity of the company that they
can sell each year.
 MARKETING STUDY 40

Market Share in
Years Total Demand Normal Capacity Percentage
21,654 25%
2015 86,619
14,754 22%
2016 65,710
5,979 15%
2017 39,118
6,237 16%
2018 39,900
40,699 6,500 16%
2019
MARKET SHARE (supplies)

The data presented below is the demand of the students

who will buy secondhand school supplies for the next five
years and the normal capacity of the company that they can
sell each year.

Market Share in
Years Total Demand Normal Capacity Percentage
15,209 21%
2015 72,608
11,537 21%
2016 55,081
6,868 21%
2017 32,791
7,006 21%
2018 33,446
7,146 21%
2019 34,115

Demand and Supply gap (selling)

YEAR School Total Total Supply Unsatisfied Total

item Demand Demand Unsatisfied
Demand
2015 Books 86,499 21,000 65,499 95,918
Supplies 38,024 7,605 30,419
2016 Books 65,616 21,000 44,616 67,690
Supplies 28,843 5,769 23,075
2017 Books 39,062 21,000 18,062 31,799
Supplies 17,171 3,434 13,737
 MARKETING STUDY 41

2018 Books 39,845 21,000 18,845 32,857

Supplies 17,515 3,503 14,012
2019 Books 40,641 21,000 19,641 33,933
Supplies 17,865 3,573 14,292

MARKET SHARE (books)

The data presented below is the demand of the students

who will sell secondhand textbooks and reviewers for the
next five years and the normal capacity of the company that
they can buy each year.

Market Share in
Years Total Demand Normal Capacity Percentage
21,654 25%
2015 86,499
14,754 22%
2016 65,616
5,979 15%
2017 39,062
6,237 16%
2018 39,845
40,641 6,500 16%
2019

MARKET SHARE (supplies)

The data presented below is the demand of the students
who will sell secondhand school supplies for the next five
years and the normal capacity of the company that they can
buy each year.

Market Share in
Years Total Demand Normal Capacity Percentage
15,209 40%
2015 38,024
11,537 40%
2016 28,843
6,868 40%
2017 17,171
2018 17,515 7,006 40%
 MARKETING STUDY 42

7,146 40%
2019 17,865

Comparison of Market Share and Normal Capacity

Presented below are a summary of the normal capacity

the service of CKrAF Company can provide the market and
their corresponding percentage of the market’s demand the
company can satisfy.

BUYING
Year Market Share Normal Capacity
BOOKS SUPPLIES BOOKS SUPPLIES

2015
25% 21% 21,654 15,209
2016 22% 21% 14,754 11,537
2017 15% 21% 5,979 6,868
2018 16% 21% 6,237 7,006
2019 16% 21% 6,500 7,146

Presented below are a summary of the normal capacity

the service of CKrAF Company can provide the market and
their corresponding percentage of the market’s demand the
company can satisfy.

SELLING
Year Market Share Normal Capacity
BOOKS SUPPLIES BOOKS SUPPLIES

2015
25% 40% 21,654 15,209
2016 22% 40% 14,754 11,537
2017 15% 40% 5,979 6,868
2018 16% 40% 6,237 7,006
2019 16% 40% 6,500 7,146
 MARKETING STUDY 43

C. PRICE STUDY

Price is sometimes a primary feature that customers

look for a product or service. In order to attract the
target markets, prices should justify its quality and should
be set accordingly.

The service has different pricing schemes that were

derived from the survey that was floated to the students.
The seller of a secondhand school item could value his
secondhand school item at 41%-50% of its current price.

The company shall use the variable costing method in

calculating their prices for the services they will be
offering the public. The sample of how do they price their
school items is as presented below:

Books Supplies
Cost of the school item 250.00 170.00
Allocated Fixed Cost 35.74279 35.74279
TOTAL 285.74279 205.74279
Mark up 10% 10%
Selling Price 314.00 226.00
Output VAT 12% 12%
Invoice Price 352.00 253.00

CKrAF Company will push through with this pricing

strategy unless proven that it is inefficient. It is the
corporate philosophy of CKrAF Company to be in partnership
with all its stakeholders and as such the company will not
make any strategy to jeopardize any of the stakeholders by
having a volatile price list. However, the company does not
undermine the effects of economic downturns, inflation and
any other activity that can adversely affect the company’s
 MARKETING STUDY 44

operation, so instead of passing the cost to consumers

through price increase, CKrAF Company will utilize a cost-
leadership strategy to still gain as much without making the
consumers suffer. This way, the company can also gain a
greater patronage from the market.

D. MARKETING PRORAM

1. TARGET MARKET

The services offered are mainly for college students

who are willing to buy and sell their secondhand items.
Since the place is located in Baguio, the target students
are the ones who are studying in Baguio City and the ones in
the place nearby. Though it is not limited to college
students, the materials being traded are the normal needs of
college students in their courses in universities. The
business will accept textbooks and reviewers and school
materials commonly needed in school.

2. MARKETING STRATEGIES

Competition is at an intense level in the market, we

need to have an effective market strategy in our business.
Strategy is a method or plan chosen to bring about a desired
future such as achievement of a goal or solution to a
problem.

Choosing a marketing strategy gives a big factor and

influence over the business; it can either help or fail the
 MARKETING STUDY 45

goal of the business that to be put up. Making marketing

strategy also means establishing ways on how to engage the
customer to buy. If the business establishment functions
together to achieve the same end result, which is to build a
customer base and create an environment, will lead to the
success of the business.

A. Service Strategy

The CKrAF Company will make sure that their

employees will deal with the customers with utmost
respect and care. The company will also make sure to
provide the public with additional service. So that
Customer Satisfaction would continuously improve.

With the said service that the company will offer

their customer, the company will also continuously try
to learn and find ways how they can maintain customer
retention while satisfying their customers.

B. Price Strategy

The company did some comparison with the pricing

of different websites that offers secondhand school
textbooks and reviewers and secondhand school supplies
such as www.olx.ph, central.com.ph, www.amazon.com,
manila.philippineslisted.com and
www.constructionbook.com.and some existing
merchandising institutions such as A & P Thrift Shop
and SM Book Sale to make sure that the prices CKrAF
company offers the public is at a cheaper price but is
still profitable.
 MARKETING STUDY 46

C. Place Strategy

The proposed location is at Baguio City Market

which is situated in a populated place with no direct
competitors situated at the said location.

The market is also a walking distance from

Universities like UC, SLU and UB. Its accessibility is
readily available especially to students that are
renting in the same place and the location is being
visited by market goers and other people. Unlike if
they will purchase or sell secondhand school materials
through the internet that the location to where they
can pick up or transfer the good must still stipulated
by the parties which might result to additional
expenses that they might incur.

D. Promotional Strategy

The target market of the business is mainly

college students in Baguio City, because it is at this
level that students have to finance for their own
textbooks and reviewers, and require for a lot of
school supplies. At the same time, some students prefer
to dispose or liquidate their school materials and this
could be an opportunity for the proponents to advertise
such service aside from using a word of mouth
advertisement through posting in the social networking
sites to inform them of our business.
 MARKETING STUDY 47

Social networking site shall include a page of the

company at Facebook.com, company’s own twitter account
and posting originally made commercials and
advertisement at their own account in youtube.com.

3. SWOT ANALYSIS

STRENGTH WEAKNESS
1. Offers secondhand school 1. The business is generic
supplies materials
2. Low price of items 2. Takes time to penetrate
the market
3. Low Capital Requirement

OPPORTUNITIES THREATS
1. Business expansion 1. Competitors
2. Obtain high market share 2. Direct trade among
students
3. Add additional services 3. Imitation of other
business owners

STRENGTHS

1. Offers secondhand school supplies materials – Offering

the public with secondhand school supplies materials is
quite unique in the current market. It is also
advantageous that the business buys and sells
secondhand textbooks and reviewers and secondhand
school materials unlike those in the current market
that only buy and sell books.
 MARKETING STUDY 48

2. Has high market potential- Since students nowadays

patronize cheap school materials, a high demand for the
service is given.

3. Low price items- The materials to be sold are second

hand materials which is far way cheaper than new ones.

WEAKNESSES

1. The business is generic- Since merchandising

institutions nowadays are known and common the market
share is reduced.

2. Takes time to penetrate the market- Since the business

is unique and new, it will be hard to penetrate the
market and letting the customers know of the service’s
existence.

OPPORTUNITIES

1. Business expansion- Holding a satisfactory demand and

making the business profitable, expansion is foreseen
acquiring a better location than the current.

2. Obtain high market share- Considering that there is a

high demand for the service with few direct
competitors, a high market share can be obtained.

3. Add additional services- To keep the business flow

going, innovation and addition of services that the
business could offer is an opportunity that should be
 MARKETING STUDY 49

focused on.

THREATS

1. Competitors- They possesses a high threat because it

will lower the market share of potential customers.

2. Direct trade among students- It is a threat because it

will decrease potential customers.

3. Imitation of other business owners- When competitors

see the potential profitability of the service, there
is a chance that they will imitate it because it is
easy to setup same kind of business.