The market study is as very significant part in coming up with any feasibility study because it determines the size,

nature, and development of total demand for the parking building and the services such as car wash, oil change, battery, air conditioning, and the services such as car wash, oil change services, tire services, air conditioning services, tuning and checkup services, and battery services. This section points out if the project should be continued or not. The accomplishment of any proposed projects depends much on the effectiveness and efficiency of the economic study performed. The purpose of the market study is to come up with the description and the price to be provided by the service as well as the marketing program which has to be adopted in order to put in the market the a quality kind of services. It is also here that the analysis of the services provided from direct and indirect competitors took place, like other related parties chosen by vehicle owners to provide them such services. The different factors affecting the market of the service and appropriate marketing programs based on present strategies are also standardized in this section. I. i. SERVICE DESCRIPTION: NAME OF SERVICE PARK & DRIVE is a service name that would be easily remembered and at first glance would create curiosity to individuals about the kind of services the establishment offers. As defined by Webster, PARK means any place where vehicles are assembled according to a definite arrangement and DRIVE means to guide, control, or direct something into certain directions which is why it is chosen to be the name of the establishment for it simply describe the services offered. Park in the sense that it is a parking building which provides car care

services at the same time and that is where drive comes in for the business would like to provide services that give quality package and worry-free feeling to the owners while they drive their vehicles. It is an established principle in business that deciding on the name of the product or service is the primary step in introducing it to the market. That is so because its name is of critical importance to its demand. It is, therefore, good business sense that a product or service name be both descriptive and impressive or catching enough as to be easily remembered and known. Since PARK & DRIVE is located in the central business district near session road it is going to be a big convenience to car owners to have their cars parked in a secured area where they can avail of car care services while they stroll along the city district. ii. PROPERTIES OF SERVICE PARK & DRIVE is a parking building and at the same time a car care service center which offers tire, tune-up and check-up services. The establishment would have spacious parking space which will ensure enough area for car owners who wished to stroll in the central business district without the burden of finding parking area for their vehicles. The building would also have its own car care service center which will be providing quality service with the help of the new technologies installed in the station. There will also be security devices to make sure the safety of the vehicles and their owners while they avail the services. iii. USES OF THE SERVICE

It is a need along the central business district to have a parking space where you can leave your vehicles in a safe location while you stroll along the busy street and shops of the city. PARK & DRIVE will be at your service to look after your vehicles while you are out enjoying the city streets and while you are busy with your own business. It is also a place where you can take good care of your cars having them be checked-up by our mechanics. The building is a one-stop shop for customers who also wished to have their tires be changed or vulcanized and if they wanted to tune-up their vehicles so that they will be worry-free on the road. iv. MAJOR USERS OF SERVICE The aim of the business is to provide quality services to those who own and use vehicles. The individuals targeted by PARK & DRIVE are not only limited to private car owners but it will also provide services to Public Utility Vehicles as well as the Government-owned vehicles. This is the group of individuals who are often faced with parking problems whenever they come and visit the central business district. Also, this group would find it more convenient to have car care services in the central business district. v. GEOGRAPHICAL AREAS OF DISPERSION The city of Baguio continues to have a positive growth rate in its population not only in the sense of birth rate but also because of the continuing migration of people from different places. In line with this, the number of vehicle registered in the city continues to increase. It is a strategic move to have PARK & DRIVE situated in front of Melvin Jones; beside Tiong San Harrison for it is where the high demand of parking area is foreseen. The number of

vehicles in the city plus the usual visit of tourists comes with the inevitable increase in the need for parking area and car care services in the central business district. II. DEMAND AND SUPPLY i. METHODS OF PROJECTION There are four methods used in projecting the total number of vehicles, also for the projection of future supply of parking area with tire, tune-up and check-up services. These methods are (1) Arithmetic Straight line, (2) Arithmetic Geometric Curve, (3) Statistical Straight Line, and (4) Statistical Parabolic. The formulas for these methods are: 1. Arithmetic Straight Line Yc = a + Yi - 1 Where: Yc = initial value (1st year) a=

Yi = value for the year past Yn = final value (last year) N = number of years 2. Arithmetic Geometric Curve

Yc =

Where:

Yi + 1 = value for the year ahead r = average rate increase

r=

3. Statistical Straight Line Yc = a + bx Where: Yc = computed demand for a specified year

a=
( ( ) ( ) ( )( ) )

b=

n = number of years 4. Statistical Parabolic Y = a + bX + cX2

( )( ( ) ( ) ( )( ) )

Where:

a=

b=
( ( ) ) ( ( )( ) )

c=

a. Demand Analysis The sample size of population was derived using the Slovins Formula given as:

n=

Where:

n = sample size N = total population e = desired margin of error

Thus: n=

n = 395.0124688 n = 396 The parking building with car care services intended market ranges from, but is not restricted to, cars and public utility vehicles in Baguio City. The demand for the services is comprised by the need of vehicles in Baguio City. In arriving with the demand, questionnaires and records from the Land Transportation Office (LTO) and Department of Transportation and Communication (DOTC) were used. Number of Registered Vehicles

It is assumed that the vehicles registered in Baguio City will be the primary users of the parking building, tire, tune-up and check-up services that is why the data regarding the number of registered vehicles in the city was obtained. Table 1 Actual Number of Registered Vehicles in Baguio City (Source: Department of Transportation and Communication) Year 2007 2008 2009 2010 2011 Number of Vehicles 29736 30363 30920 31241 31680

Projections: a. Arithmetic Straight Line a= a = 486

Historical Values Year 2007 2008 2009 2010 2011 Y 29736 30363 30920 31241 31680 a 486 486 486 486 486 29736 30222 30708 31194 30222 30708 31194 31680 Yi - 1 Yc Y - Yc 0 141 212 47 0 (Y -Yc)2 0 19881 44944 2209 0 = 67034

= 115.79

Projected Values Year 2012 2013 2014 2015 2016 a 486 486 486 486 486 Yi - 1 31680 32166 32652 33138 33624 Yc 32166 32652 33138 33624 34110

b. Arithmetic Geometric Curve r=

r= 0.015

Projected Values Year Yi-1 1+r Yc

2012 2013 2014 2015 2016

31680 32155.2 32637.53 33127.09 33624

1.015 1.015 1.015 1.015 1.015

32155.2 32637.53 33127.09 33624 34128.36

c. Statistical Straight Line

a=

a = 29630 b=

b = 476.6
Historical Values Year 2007 2008 2009 2010 2011 = Y 29736 30363 30920 31241 31680 153940 X 1 2 3 4 5 15 X2 1 4 9 16 25 55 XY 29736 60726 92760 124964 158400 466586 a 29630 29630 29630 29630 29630 b 476.6 476.6 476.6 476.6 476.6 x 1 2 3 4 5 Yc 30106.6 30583.2 31059.8 31536.4 32013 Y-Yc -370.6 -220.2 -139.8 -295.4 -333 (Y-Yc)2 137344.4 48488.04 19544.04 87261.16 110889 = 403526.6 = 284.07

Projected Values Year 2012 a 29630 b 476.6 X 6 Yc 32489.6

2013 2014 2015 2016

29630 29630 29630 29630

476.6 476.6 476.6 476.6

7 8 9 10

32966.2 33442.8 33919.4 34396

d. Statistical Parabolic a=
[( )( ( )] ) [( ( ) )( )]

a = 30855.2381 a = 30855.24 b= b = 335.5 c=

[ ( )] [( )( [ ( )] ( ) )]

c = - 16.80952381 c = - 16.81
Historical Values Year 2007 2008 2009 2010 2011 = Y 29736 30363 30920 31241 31680 153940 X -3 -1 0 1 3 X2 9 1 0 1 9 X4 81 1 0 1 81 XY X2Y a bX cX2 Yc Y-Yc 38.55 (Y-Yc)2 1486.1 19580.4 4193.86 4498.38 927.2 = 30685.94 = 78.34

-89208 267624 30855.24 -1006.5 -151.29 29697.45 -30363 0 31241 95040 6710 30363 0 31241 30855.24 30855.24 30855.24 -335.5 0 335.5 1006.5 -16.81 0 -16.81

30502.93 -139.93 30855.24 31173.93 64.76 67.07 -30.45

285120 30855.24 614348

-151.29 31710.45

20 164

Projected Values Year 2012 2013 2014 2015 2016 a 30855.24 30855.24 30855.24 30855.24 30855.24 X 6 7 8 9 10 bX 2013 2348.5 2684 3019.5 3355 cX2 -605.16 -823.69 -1075.84 -1361.61 -1681 Yc 32263.08 32380.05 32463.4 32513.13 32529.24

REMARKS ON THE MATHEMATICAL METHOD OF PROJECTION Based on the standard deviation derived ( ):
SUMMARY OF PROJECTED DEMAND Methods of Projection Standard Deviations Projected Values 2012 2013 2014 2015 2016 32166 32652 33138 33624 34110 32155.2 32637.53 33127.09 33624 34128.36 32489.6 32966.2 33442.8 33919.4 34396 32263.08 32380.05 32463.4 32513.13 32529.24 Arithmetic Straight Line 115.79 Arithmetic Geometric Curve Statistical Straight Line 284.07 Statistical Parabolic 78.34

The Statistical Straight Line is bound to be favored by statisticians as the best method in projecting the future demand of the services offered. The method appears to be realistic in relation to the behavior of the population and the demand. The researchers come up with a conclusion that the statistical straight line method is best suited for the projection of demand.