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NEW RES B2 - CHAPTER 2 The Marketing aspect The Marketing...

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Arianna Reyes John Allen Marilla Arianne Cheryl Aspiras Allan Alberastine Asriel Madulin Marketing Aspect This chapter will discuss thoroughly the whole marketing aspect of the research. The proposed business’ market description, the past and projected demand as well as the supply made available in the market. In addition, this chapter will discuss the pricing strategy and the proposed marketing program of 5A’s Hollow Block Company. The market study is the first step that the proponent of a research should do in order to test the feasibility of their study. This is done to properly understand the customers’ needs and how should the proposed business penetrate the market. If in this stage of the research, it is found to be feasible, hence, it will give confidence to the researchers to pursue the study. Market Description Hollow Blocks are dense and hollow cement concrete blocks used as an alternative to bricks. It is cheaper than bricks, it is lighter and easier to place, furthermore, it grants the economics of cost and cement consumption. These blocks find wide applicability and construction cost is minimized. Hence, numerous construction companies prefer the use of hollow blocks today. As the construction industry grows wider day by day, the demand for hollow blocks is good. In Davao City, different national and multi national corporations intend to penetrate the city, commerce becomes good and more malls, establishment, subdivision, etc are being constructed. This economic boom in the city asks for a greater demand for hollow blocks. For this reason, 5A’s Hollow Blocks considers
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construction companies as our market as well as individual citizens who needs hollow blocks. Demand The data shown in Table 1 is based on the information gathered through a survey conducted on a randomly selected carpenters and engineers in Davao City. According to the statistics gathered by the proponents, it revealed that in the Davao Region between 2001 and 2003, about 10658 houses were built or an average of 3553 houses built per year. Consequently, using the data gathered from the survey which states that approximately 760 hollow blocks were used in building a 60 square meter house, the proponents conclude that in 2003, 2,700,027 hollow blocks were demanded and used in building the aforementioned number of houses. Assuming a 1 % increase in the demand of hollow blocks per year, 2,781,840 blocks were demanded in 2006, 2,809,659 blocks were demanded in 2007 and so on as shown in Table 2. Projected Demand Based on the past five years data, the next five years demand projections are shown in Table 2. The projected demand data as shown in the aforementioned table shows a projected 1 % annual increase in the demand for hollow block. This projected demand is corroborated by the facts that businesses both local, national and multinational companies have emerged in Davao City which equated to the boom of the construction industry which is also parallel to the increase in the demand for hollow blocks.
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