University of San Carlos

School of Business and Economics

Department of Accountancy
March 2, 2012
The initiative to conduct this study on an
innovative product engagement involving
the all-time favourite burger began when
the proponents grew tired of eating the
same burger with the same taste and
name on it.
INTRODUCTION
General Objective:
To investigate and determine the
marketability of Chz It: Burger Joint in
Ayala Center Cebu.


STATEMENT OF THE RESEARCH OBJECTIVES
Specific Objectives:
To identify customer preference with
regards to:
o Burger Features
o Burger joint set-up
To identify pricing strategy:
o Customers willingness to spend
o Costs and price of the products

STATEMENT OF THE RESEARCH OBJECTIVES
Specific Objectives:
To identify market edge:
o Competitor Analysis
o To determine the promotion strategy of the
business
To determine supply and demand factors
such as:
o Customers willingness to buy the product
o Marketability in Ayala Center Cebu

STATEMENT OF THE RESEARCH OBJECTIVES
EXISTING MARKET SITUATION
Uses and Users of Product
The Identified Competitors
Channels of Distribution used by Competitors
Competitors Product and their Prices
Promotional Activities of Competitors
Uses and Users of Product
The users of the product are the Ayala
customers.

Male 157 44%
Female 202 56%
Total 359 100%
Gender of Respondents
Majority of the respondents belong to the
female gender.
Uses and Users of Product
Respondents who eat burgers
The survey showed that respondents are akin
to eating burgers.
It can be seen that burgers are found to be
eaten by the majority and will create a good
market.
YES 349 97%
NO 10 3%
Total 359 100%
Uses and Users of Product
Respondents Burger Consumption
35% of the respondents eat burger at least
once a week.
Some respondents even answered that they
eat burgers at more than once a week with
the reason of just liking to eat one.
Daily 10 3%
Once a week 123 35%
Once a month 102 29%
Others 114 33%
Total 349 100%
Uses and Users of Product
Respondents' preferred burger bun
Most preferred the Poppy Seed Bun, or the
Normal Bun for their burgers with a
percentage of 59%.
Poppy Seed Bun
(Normal Bun)
200 57%
Wheat Bun 122 35%
Oatmeal Bun 26 7%
Others 1 0%
Total 349 100%
Uses and Users of Product
Respondents' preferred burger patty
The respondents showed that they prefer to
have Beef as their burger patty as it was what
they grew up with given the conventional
burger that most fast food restaurants usually
offer.
Beef 286 82%
Chicken 56 16%
Tofu 5 1%
Others 2 1%
Total 349 100%
Uses and Users of Product
Respondents' preferred burger sauce
77% of the respondents prefer the
conventional ketchup and mayonnaise
sauce compared to the other sauces that
are available in the market.
Ketchup and
Mayonnaise
258 74%
BBQ Sauce 57 16%
Teriyaki 22 6%
Others 12 3%
Total 349 100%
Uses and Users of Product
Respondents' preferred non-meat add-ons
The Lettuce, Tomato, Coleslaw were the
top three choices followed by the
Cucumber, Onion, Pickles and Pineapple.
Lettuce 217 1
Tomato 194 2
Coleslaw 145 3
Cucumber 140 4
Onion 133 5
Pickles 95 6
Pineapple 95 6
Total 1019
Uses and Users of Product
Respondents' preferred special add-ons
The top choice of the respondents is
cheese, followed by Bacon, Egg and Ham.
Cheese 249 1
Bacon 208 2
Egg 191 3
Ham 173 4
Total 821
Uses and Users of Product
Respondents' preferred Beverage
Softdrinks have gained most preference with a 66%
result, followed by Smoothies/Milkshakes and Shakes
with 15% and 14%, respectively.
While some respondents answered Others and
indicated that they want Water, Fruit Juices and Ice
tea for their beverage.

Softdrinks 229 66%
Smoothies/Milkshakes 53 15%
Shakes 50 14%
Others 17 5%
Total 349 100%
Uses and Users of Product
Respondents' side dish preference
Respondents prefer to have french fries as their
side dish. It had an 80% outcome as compared to
Buffalo wings, Onion Rings and Tortilla with 11%,
9% and 0%, respectively.
French Fries 279 80%
Buffalo Wings 37 11%
Onion Rings 30 9%
Others 2 1%
Tortillas 1 0%
Total 349 100%
The Identified Competitors
The researchers have identified five
competitors for its product in Ayala Center:
JOLLIBEE
MCDONALDS
KFC
CASA VERDE
FLAME IT! BURGER

The Identified Competitors
Competitors
LIKERT SCALE RANKING
(1 highest, 5 lowest)
1 2 3 4 5
Jollibee 108 67 52 39 24
McDonalds 82 94 53 30 25
Flame It! Burger 45 29 22 113 65
KFC 39 49 125 35 33
Casa Verde 18 40 27 59 115
Respondents' Preferred Burger Restaurants in Ayala
Most of the respondents prefer Jollibee as their top choice
for a burger restaurant followed by McDonalds, KFC,
Flame It! Burger and Casa Verde.
Channels of Distribution used by Competitors
The distribution channel used by the
competitors is direct selling.

llustration of the Direct Selling Strategy used by Competitors
Competitors Products and their Prices
Competitor Competitors Product Prices
JOLLIBEE
Regular Yum
Regular Yum with Cheese
Yum with TLC (Tomato, Lettuce and Cheese)
Burger Champ
Crunchy Chicken Burger
Hash brown Burger
French Fries (regular, large and extralarge)
Flavored French Fries (large and extralarge)
Coke Float (regular and giant)
Ice Tea
Softdrinks (regular and Large)
Regular Yum Meal (with regular fries and
regular drinks)
Regular Yum with Cheese Meal (with regular
fries and regular drinks)
Yum with TLC Meal (with regular fries and
drinks)
Burger Champ Meal (with regular fries and
drinks)
Crunchy Chicken Burger Meal (with regular
fries and regular drinks)
Hash Brown burger Meal (with regular
drinks)
Php28
Php43
Php54
Php98
Php39
Php64
Php28, 46, 58
Php51, 58
Php25, 35
Php28, 43
Php28, 42
Php62
Php77
Php88
Php132
Php72
Php80
Competitors Products and their Prices
Competitor Competitors Product Prices
MCDONALDS
Chicken Fillet Sandwich
Regular burger
Big Mac Meal (with regular fries and drinks)
Big Mac Meal (with large fries and drinks)
Quarter Pounder with Cheese Meal (with regular
fries and drinks)
Quarter Pounder with Cheese Meal (with large fries
and drinks
Double Cheeseburger Meal (with regular fries and
drinks)
Double Cheeseburger Meal (with large fries and
drinks)
Cheeseburger Meal (with regular fries and drinks)
Cheeseburger Meal (with large fries and drinks)
Burger McDo Meal (with regular fries and drinks)
Burger McDo Meal (with large fries and drinks)
McChicken Burger Meal (with regular fries and
drinks)
McChicken Burger Meal (with large fries and drinks
Chicken Fillet Sandwich Meal (with fries and drinks)
Cheeseburger
Coke Float
French Fries (Regular, Large, Extra Large)
Softdrinks
Php 39
Php 25
Php 137
Php 157
Php 137
Php 157
Php 135
Php 115
Php 84
Php 104
Php 66
Php 88
Php 135
Php 115
Php 50
Php 39
Php 25
Php 25, 45, 56
Competitors Products and their Prices
Competitor Competitors Product Prices
KFC Chik'n Burger
Wow Burger
Chicken Fillet Burger Meal
Chik n Fillet Meal (with regular drinks)
Chicken Burger Meal (with regular fixin
and drinks)
Zinger
Zinger Meal (regular fixin and regular
drinks)
Krushers
Softdrinks
Ice Tea
French Fries (regular, large, bucket)
Php 48
Php 29
Php 50
Php 80
Php 65
Php 105
Php 135
Php 105
Php 135
Php 65, 75, 45
Php 29, 40
Php 29, 40
Php 29, 46, 58
Competitors Products and their Prices
Competitor Competitors Product Prices
FLAME IT! BURGER Flame Burger
Flame Burger with Cheese
Flame Half Pounder
Flame Half Punder with Cheese
Bacon Mushroom and Cheese Burger
Cream Cheese and Garlic Burger
Garlic Mayo Burger
Chili Con Carne and Cheese Burger
Tuna burger
French Fries
Onion Rings
Twistee Fries
Potato Wedges (chili con carne and
cheese, cheese overload and garlic
mayo)
Ice tea
Softdrinks in can and Dispenser
Flame Burger with Cheese Meal (with
regular fries and drinks)
Flame Half Punder with Cheese (with
regular fries and drinks)
Php 78
Php 88
Php 115
Php 125
Php 108, 145
Php 95, 132
Php 95, 132
Php 95, 132
Php 69
Php 37
Php 40
Php 45
Php 58
Php 23, 25
Php 30, 23, 25
Php 145
Php 179
Competitors Products and their Prices
Competitor Competitors Product Prices
CASA VERDE
Burger Bites
Big Bang Burger
Ex calibur Burger
Swiss Mushroom Burger
Chicken Burger
Casa Burger Classic
Php 475
Php 377
Php 228
Php 198
Php 178
Php 195
Promotional Activities of Competitors
Jollibee, McDonalds and KFC are large fast
food chains. Currently, they are using
television advertisement and posters in
promoting their product.
The Local competitors such as Flame It! Burger
and Casa Verde have also used posters,
internet (e.g. Facebook page) and print ads to
cater to local citizens.
SUPPLY AND DEMAND ANALYSIS
Supply Data for the past 5 years
Projected Supply for the next 3 5 years
Demand Analysis
Supply and Demand Analysis

Supply Data for the past 5 years
Year Supply
2011 75,117
2010 73,522
2009 72,787
2008 70,603
2007 69,897
Quantitative Supply Data for the past 5 years
The table shows the estimated quantitative
supply data for the past five years in the
Philippines to meet the demands of McDonalds
customers based from the research done.
Projected Supply for the next 3 5 years
Quantitative Data for the Projected Supply
for the next 3-5 years
YEAR
Number of
Burgers
Percentage
increase(decrease)
2012 50,000
2013 59,300 18.60%
2014 63,400 6.91%
2015 69,600 9.78%
2016 78,500 12.79%
Projected Supply for the next 3 5 years
Being the new, interesting, and exciting business
in the food industry, many consumers will surely
like to buy, taste, and experience the flavorful
personalized burger that will lead to a rapid
growth of supply of 18.60% from the first to
second year of operation.
As years will pass, the supply will have a slow
growth rate because the excitement of the
consumers will seem to cease.
Demand Analysis
The demand for the personalized burger is a
primary demand in which consumers will have
interest in purchasing it on hand.

YEAR BURGERS Percentage increase
2011 71,540 3%
2010 70,021 2%
2009 69,321 1%
2008 67,241 3%
2007 66,569 1%
Consumption Pattern in the past 5-year period
The consumption pattern is then recognized based
on consumers behavior in terms of food
expenditure.
Demand Analysis
Factors affecting the pattern of consumption for
the future:
The willingness of the consumers in
buying burgers
Interest on the said location of our
burgers in Ayala Center
Taste, appearance, packaging, and price
Ingredients used
Demand Analysis
Projection of the future demand of the product
It is anticipated that 91% or majority of the respondents
are willing to purchase and eat the personalized burger
while 9% are not willing to purchase and eat the offered
product.
91%
9%
Willing to eat
personalized
burgers
Not willing to eat
personalized
burgers
Supply and Demand Analysis
The Supply and Demand Gap Analysis
The burger manufacturers established a 5% gap based
from demand as to prepare them for increased burger
consumption.
60000 65000 70000 75000 80000
2011
2010
2009
2008
2007
demand
Supply
Supply and Demand Analysis
The market share that the firm wishes to target
91% of the total respondents were interested in
personalized burgers since the researchers were
introducing an innovative burger concept in which will
be new to burger consumers.
YES
91%
NO
9%
Interest of Ayala-goers
in purchasing the
personalized burger
PROPOSED MARKETING STRATEGY
Target Market
Proposed Product / Service
Proposed Promotion Activities
Placement
Price
Projected Sales Volume and Peso Sales
Target Market
Primary Target Market:
Ayala-goers
The age of the target market ranges from
adolescent to young adults.
Proposed Product / Service
Unique Selling Proposition
Quality
Service
Cleanliness
Pleasure
Value for money
Positioning Strategy
Chuz It: Burger Joint a place where they
can customize their burgers and enjoy
burgers in a rare opportunity
Proposed Product / Service
Features of the Product
Offer best tasting burgers
Opportunity to customize own burger
Accompaniment of side dish and drinks
Proposed Promotion Activities
Chuz It: Burger Joint will be using three
ways of letting the people know about the
business:
1. Distribution of flyers
2. Online advertising
3. Newspaper advertising

Proposed Promotion Activities
ACTIVITY BUDGET
Flyers, Coupons, etc. Php500,000
Online Advertising Php250,000
Newspaper
Advertising
Php250,000
Total Php1,000,000
Proposed Promotion Activities with the
Corresponding Budget
Placement
Proposed Channel of Distribution:
Exclusive distribution
Direct Selling

FOOD AND DRINK SUPPLIERS
(INGREDIENTS, DRINKS)
SELLER / PRODUCER
(MAIN OUTLET OF DISTRIBUTION)
CONSUMERS
Product Distribution
Flow of Chuz It:
Burger J oint
Price
Price Schemes for Chuz It: Burger Joint
Optional Product Pricing
Product Bundle Pricing
Penetration Pricing

List of Prices that will be offered
Description Cost Selling Price
Main Product
Burger P20.41 P45.00
Burger with side dish P25.79 P55.00
Special Add-ons
Egg P5.00 P10.00
Ham P6.00 P10.00
Bacon P5.63 P10.00
Cheese P3.08 P10.00
Vegetable Add-ons
Tomato P0.22 P5.00
Pickles P2.41 P5.00
Pineapple P0.30 P5.00
Onions P0.80 P5.00
Lettuce P0.40 P5.00
Drinks
Pepsi P8.00 P10.00
Mirinda P8.00 P10.00
Mountain Dew P8.00 P10.00
7UP P8.00 P10.00
Projected Sales Volume and Peso Sales
Year Product Price/unit
Projected Sales
(Volume)
Projected
Sales (Peso)

1
Burger Php45 15, 500 units Php697,500
Burger with side dish 55 13,000 units 715,000
Special Addons 10 57,000 units 570,000
Vegetable Addons 5 57, 000 units 285,000
Drinks 10 28,500 units 285,000

2
Burger Php45 17,050 units Php767,250
Burger with side dish 55 14,300 units 786,500
Special Addons 10 62,700 units 627,000
Vegetable Addons 5 62,700 units 313,500
Drinks 10 31,350 units 313,500

3
Burger Php45 19,700 units Php886,500
Burger with side dish 55 16,500 units 907,500
Special Addons 10 72,400 units 724,000
Vegetable Addons 5 72,400 units 362,000
Drinks 10 36,200 units 362,000
Upon thorough investigation on the data
gathered and compiled the results, the
researchers concluded that Chuz It: Burger
Joint is indeed feasible and profitable to be
offered in the market.
Since the product is new in the market, great
effort should be made with regards to advertising
and making a name.
In addition, there is a need to thoroughly study
the behavioral consumption of the consumers.
The burger joint should continually make
innovations of the main product to enhance its
marketability and to further leave mark among
the consumers that will make them come back
for more.