Market Study of Zagu Essay

Custom Student Mr. Teacher ENG 1001-04 28 April 2016

Market Study of Zagu

A. The product

What a better way to beat the heat than a cold shake….. Not just any other shake but Zagu Pearl Shake………

B. Name of the product

Zagu Pearl Shake is a food stall business that offers cool flavored drink.

C. Properties of the product

The Zagu franchise is committed to providing the perfect customized combination of support and marketing to meet the needs of its franchise family. Authorized dealership features the opportunity to carry the established Zagu trade mark and logo. By this, all the Zagu products to be sold are already part of the authorized dealership. Since the success of every business lies on the quality of the product it produced there will be a proprietary recipes, ingredients, and procedures to be provided by the business owner. All shall be held as confidential so as to promote the loyalty towards the business and to maintain its brand uniqueness among other beverages. Zagu is not only a thirst quencher but also provides your daily Calcium requirement depending on the flavor which you will buy.

D. Target Market

Typically, Zagu business caters customers in different malls. We believed that Zagu is an ideal drink for customers who were having their shopping, settling important affairs with other people inside the mall or any other matter that would vanish there boredom while they are inside the mall . Since we found out that there is only four existing competitor in Gaisano Danao, we are eager and confident enough that this business will boost its sales. Thus, our target market is the customers or shoppers in Gaisano Danao.

E. Geographical Area of Dispersion

The establishment aims to cater the shoppers in Gaisano Danao. As to the convenience and accessibility of the customers, the proposed location of our business is inside Gaisano Danao. The location is easy to find for it is near the main entrance door of the mall where biggest number of customers often passed by.

F. Market Description

Danao city is one of the fast evolving cities in Cebu. Having a total population of 117, 732 for the year 2012 it grow efficiently maximizing their total income yearly. With the advent of the local government unit, Danao City was able to achieve its goals and objectives. Our specific target market for this business is ages 13-45 years old. The proponents choose this range of ages as per basis of the survey we had conducted in our target location. Moreover, we believed that these ages are good consumers for this kind of product. When it comes to the revenues of our consumers, a careful and systematic consideration must be done for this is the vital factor to the continuity of the business.


1. Do you purchase the cool drink pearl shake “ZAGU”?

Yes 88 No 12

The data shows that out of 100 respondents, 88 purchased Zagu equivalent to 88% while 12 % said no.

2. How often do you purchase ZAGU?

Everyday 15 Every month 33 Every week 24 others 16

The data shows that out of 88 respondents who knew Zagu, 15 purchased every day equivalent to 17.05%, 24 purchased every week equivalent to 27.27%, 33 purchased every month equal to 37.5% and 16 for others equivalent to 18.18%.

3. How many cups of Zagu do you consume a day?

1 cup 59 3 cups 8

2 cups 21

The data shows that out of 88 respondents who purchased Zagu, 59 said that they consume 1 cup a day equivalent to 67.05%, 21 said that they consume 2 cups equivalent to 23.86%, 8 said that they consume 3 cups equivalent to 9.09%.

4. Do you like its variety of flavors?

Yes 80 No 8

The data shows that out of 88 respondents who knew Zagu, 80 liked its variety of flavors equivalent to 90.91% and 8 disliked, equivalent to 9.09%.

5. Which of the following flavors do you like most?

Chocolate 56 Dessert 14 Coffee & Tea 8 Indulgence 6 Natural 4

The data shows that out of 88 respondents, who knew zagu, 56 preferred chocolate flavor equivalent to 63.64%, 8 preferred coffee & tea flavor which is equivalent to 9.09%, 4 for natural flavor equivalent to 4.55%, 14 for dessert flavor equivalent to 15.91%, and 6 preferred indulgence flavor equivalent to 6.81%. .

6. Which of the following sizes you usually consume?

baby z 16 regular 64 grande 8

The data shows that out of 88 respondents who knew and purchased Zagu, 16 consumed baby z size equivalent to 18.18%, 64 consumed regular size equivalent to 72.73% and 8 consumed grande size equivalent to 9.09%.

7. Which of the following prices are you willing to pay?

Baby z (all flavors) P33 43 Grande (all flavors except natural) P45 17 Regular (all flavors except Grande (natural flavors) P53 10 natural) P40 28 Regular (natural flavor) P48 2

The data shows that out of 100 respondents, 43 are willing to pay the amount of P33 equivalent to 43%, 28 are willing to pay the amount of P40 equivalent to 28%, 17 are willing to pay the amount of P45, 2 are willing to pay the amount of P48 and 10 are willing to pay the amount of P53 equivalent to 10%.

8. Are you satisfied with the existing stall offering cool drinks or shakes?

Yes 62 No 26

The data shows that out of 88 respondents, 62 said that they are satisfied with the existing stall offering cool drinks and shakes equivalent to 70.45% and 26 said that they are not satisfied with the existing stall offering cool drinks or shakes equivalent to 29.55%.

9. Have you encountered some problems with the cool drink establishments here?
Yes 29 No 59

The data shows that out of 88 respondents, 29 said that they have encountered problems with the existing cool drink establishments equivalent to 32.95% and 59 said that they did not encountered problems equivalent to 67.05%.

10. What are the common problems you have encountered with these establishments?

Their products are not in good taste 20 Their establishment are not inviting 7 Offered only limited flavors 22 Their customer service is poor 15 Their product tastes common 26 others 10

The data shows that out of 35 respondents who have encountered problems, 12 said that their problem is the products are not in good taste equivalent to 34.29%, 7 said that their problem is the establishment offered only limited flavors equivalent to 20%, 4 said that their problem is the product tastes common equivalent to 11.43%, 9 said that their problem is the establishment is not inviting equivalent to 25.71%, 2 said that their problem is the customer service is poor equivalent to 5.71% and 1 said for others equivalent to 2.86%.

11. If we will put a store offering ZAGU, will you patronize our products?

Yes 92 No 8

The data shows that out of 100 respondents, 92 said that they will patronize our products if we will establish a Zagu store equivalent to 92% and 8 said no equivalent to 8%.

12. If we will establish a ZAGU store, which location would you prefer?

Inside Gaisano Danao 74 Others 12 Outside Gaisano Danao 14

The data shows that out of 100 respondents, 74 said that the location they wanted is inside gaisano danao equivalent to 74% while 14 said that outside gaisano danao is the ideal location equivalent to 14% and 12 said for others equivalent to 12%.

(The computation of the Historical demand is based on the total number of shoppers multiplied by the percentage of ages 13 – 45 years old and then multiplied by the percentage of the respondents who purchased Zagu. We assumed that the customers can consume at least one cup a day based on the survey. )

J. Breakdown of Historical Demand by Flavor and Sizes
a. Chocolate Flavor

O. Price Study

There are several factors to consider in setting the price of the product or service. This could be competition, quality of the product or serviced proposal, product costs, government regulations, etc. All these factors must be properly take into account to arrive at a reasonable price that would complement to the quality of a certain product or service.

Aside from that, the demand and supply of the product in the market must also be consider to manage its changes so as to determine whether the set price is appropriate to the demand of the consumers or a hint to the suppliers the desired number to produce.

Since we are engage in the business of franchising, setting prices to our products is already done by the owner of the business. And these prices are what we had used in our survey questionnaire. It would be easy for us to market this product for it is already established its brand recognition. And thus, the prices for our products are P33, P40, P45, P48 and P53. According to the result of our survey, majority of the respondents are in favor of P40.

P. Marketing Program

A marketing strategy is a written plan that combines product development, promotion, distribution and pricing approach, identifies the firms marketing goals and explains how they will be achieved within a stated timeframe. It determines the choices of the target market segment, positioning, marketing mix and allocated resources.

Having a good marketing strategy means qualifying to one of the major requirements in reaching success within the complex environment of the business world. It is through a unique and effective marketing strategy that a business will successfully capture its target customers and be able to compete against the other organizations operating a business of the same kind.

Zagu introduces the “Pearl Drink” to the Philippine market. The drink’s uniqueness and the variety of flavors it offers broaden its appeal to the customers and keep them interested. Taste and flavor is the essential component, keeping customers coming back for more.

Free Market Study of Zagu Essay Sample


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  • University/College: University of Chicago

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 28 April 2016

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