STI College Baliuag

A&C Bldg., Gil Carlos St.

Baliuag Bulacan

True Beauty Essential

In Partial Fulfillment of the Subject: Applied Economics

Submitted by:

ABM – 2B

Janelle Dela Cruz

Elcie Ane Joice Delfin

Jm Dantes

Angelica Kaye Idion

Hanna Lim

Cobie Pablo

Darren Parulan

Trizhia Samson

Submitted to:

Ms. Lhycca Mae T. Dela Cruz

A. Estimate the Market Demand and Supply

True beauty essential market target are citizens of San Rafael, Bulacan and

specifically the people who have acne, dry, and only skin from sixteen to 29 years old and

the estimated total of population is 134,655. After the analyzing the data of the people in

San Rafael, Bulacan the management of the skin care product concludes to have a total

demand of more than 1,000 each month. If the customer will get satisfied to the true beauty

essential product, it has the probability increase the demand every month and produces

more products.
Price of True DEMAND OF TRUE BEAUTY
Beauty Product DEMAND
Per Set ESSENTIAL SET PRODUCTS
P270.00 1000 320 310
310 300
P280.00 800 300 290
PRICE

290 280
280 270
P290.00 600 270
260
P300.00 400 250
200 400 600 800 1000
P310.00 200 QUANTITY

Demand

Price of True
Beauty Product SUPPLY SUPPLY OF TRUE BEAUTY
Per Set ESSENTIAL SET PRODUCTS
P270.00 200 320 310
310 300
P280.00 400 300 290
PRICE

290 280
280 270
P290.00 600
270
260
P300.00 800 250
200 400 600 800 1000
P310.00 1000 QUANTITY

Supply
B. Critical Factors that Influence the Market Demand and Supply

• Consumer Preference – This is the main key for the business to be a success start up

business. It is also an important factor that may affect the demand and supply.

Consumer preference is serves as the expectations and satisfaction towards the product

and in that point the business should be aware of all the preferences of the consumers.

Knowing the consumer preference can boost the profit and sales of the business because

you will be basing the product on the costumers preferences. In other term consumer

preferences are their wants, True Beauty Essentials will serve different variety of

beauty product and sets to enter the preference of different consumers.

Consumer Preference
100
90
80
Number of Customers

70
60 Luxe Organix
50 Nature Republic
40 Fresh Skinlab
30
20
10
0

• Price of goods - Pricing a product or service can be a daunting prospect, especially if

you are at all unsure about how involved the subject of pricing can be. Although there

are plenty of strategies you can use to go about establishing a presence within your
 chosen industry, results will undoubtedly vary. The price of the same beauty products

is different when they sell to different countries. It may affect by the tax influences or

the delivery influences. Thus, the pricing considerations of beauty products are varied.

We will rest assure that our pricing is very much affordable that other known brands,

but it can satisfy the customers and reach their desire expectation.

Prices of Goods
1200

1000

800
Price

600 Supply
Demand
400

200

0
1 2 3 4

• Number of Consumers in the Market- the market demand for a good is obtained by

adding up the individual demands of the present as well as prospective consumers of a

good at various possible prices. The greater the number of consumers of a good, the

greater the market demand for it. Now, the question arises on what factors the number

of consumers for a good depends. If the consumers substitute one good for another,

then the number of consumers for the good which has been substituted by the other will

decline and for the good which has been used in place of the others, the number of

consumers will increase. Besides, when the seller of a good succeeds in finding out
 new markets for his good and as a result the market for his good expands the number

of consumers for that good will increase. Another important cause for the increase in

the number of consumers is the growth in population.

The Number of Customers in The Market

300
Monday
Number of Customers

250
Tuesday
200 Wednesday
Thursday
150
Friday
100 Saturday

50 Sunday

0
7:00-11:59 AM 12:00-3:00 PM 3:00-7:00 PM

• Changes in Price of Related Goods - The demand for a good is also affected by the

prices of other goods, especially those which are related to it as substitutes or

complements. When we draw the demand schedule or the demand curve for a good, we

take the prices of the related goods as remaining constant Therefore, when the prices

of the related goods, substitutes or complements, change, the whole demand curve

would change its position; it will shift upward or downward as the case may be. When

the price of a substitute for a good fall, the demand for that good will decline and when

the price of the substitute rises, the demand for that good will increase. For example,

when price of Ponds and incomes of the people remain the same, but the price of Beauty
 Essential falls, the consumers would demand less of than before. Beauty Essential and

Ponds are very close and very close substitute. Therefore, when Beauty Essential

becomes cheaper, the consumers substitute Beauty Essential for Ponds and as a result

the demand for Ponds declines. The goods which are complementary with each other,

the fall in the price of any of them would favorably affect the demand for the other.

Changes in the price of some products can affect the demand for related products.

Changes in Price of the Related Goods

300

250

200 Luxe Organix

100

50

• Income of Buyers - Changes in income level can affect supply and demand in a major

way. The demand for goods also depends upon the incomes of the people. The greater

the incomes of the people, the greater will be their demand for goods. A consumer’s

demand for products is influenced by the size of his or her income. An increase in the

level of income will increase the demand for goods because a rise in income will cause

an increase in consumption. For most goods, an increase in income will lead to an

increase in consumption and increase demand. The greater income means the greater
 purchasing power. Therefore, when incomes of the people increase, they can afford to

buy more. It is because of this reason that increase in income has a positive effect on

the demand for a good.

Buyer's Income
120,000

100,000

80,000

60,000

40,000

20,000

High Income Middle Income Low Income

C. Future Forecast for Demand and Supply

These days, there are a lot of beauty products that launch new products. That is why

True Beauty came up with the idea of being creative and quality products to make

customers and users satisfied with the effect to their skin. The business aims to reach the

desired demand and supply of the business to succeed. True Beauty products is good and

perfect to all skin types even if it is oily or sensitive because its ingredients are all organic

and that it is safe to all customers.

In recent years, number of populations is increasing more and more as well as the

demands of every product. True Beauty forecast the demands and supplies and it shows

how it is increases on a period. While the population is growing, the number of people
 especially the women who needs skin care for their selves are also increasing too. Stress

and problems make people feel uncomfortable and make look bad. But, with the help of

True Beauty it can solve the problems of your skin and make it feel and look better. The

firm also considers the upcoming seasons that will hinder the productivity of the business.

We all know that in the business industry there are a lot of competitors that produce and

launch the same products and because of that other competitors will think and undergo to

more strategies to secure their markets and position. The business always chooses the needs

and at the same time the wants of the customers so that the future forecast in the market

demand and supply of the business will continue to increase and grow. The more

population growth, the business will have more potential buyer and user. And that will be

helpful to our business to be more competitive in the market.

D. Industry Dynamics

There is a lot of skin care sellers nowadays in the town of San Rafael, Bulacan they

also built strong foundation to maintain their market and the presence of their product. True

Beauty Essential will adapt the globalization in this firm to survive the market. The

business will have innovative product and will use social media to promote the product.

True Beauty Essential will use organic ingredients maintain the high quality of the

products. Nowadays there are a lot of teenagers dreaming to have a clear skin that is why

the business makes this product to help them and to also make the business successful at

the same time.

communication. To interact with the customer the business will use social media for

inquiries, suggestion or complains and to maintain the safeness of the staffs and customers

during pandemic. Customer can order online because the business offers cash on delivery.

The businesses make sure that the products are fully sealed and sanitize to maintain the

quality and safeness of the product and customers. Just in case the business will grow, the

firm decided to distribute supplies of product in different places.

E. Macro-Environmental and SPEET

Table 4. SPEET Analysis

Factors Opportunities Threats

1. Social • Increase demand and • Public health issues

• Population growth Supply. can be a concern as

and rate • Provide job for those they impact

• Age/gender people who are absenteeism and

distribution unemployed. worker morale.

• Immigration • Improving business • Human rights

patterns processes to increase violations within

efficiency and workforce

productivity. • different beliefs

and preferences.
2. Political • Low corporate tax • Political

• Tax policy rates environment can

• Labour law • Safety in the impact business, it

workplace and right could add risk

workers factor and lead to a

compensation. major loss.

• Easy to start a • Increase tax.

business. • High minimum

• Government keen on wage

growth economy

3. Economic • Increase profitability. • Altered consumer

• Inflation • Gain more customer. preference and

• Taxes • Growth and purchase

• Demand and expansion of the tendencies.

supply business. • Rising prices of

raw ingredients in

an economy.

• Competitors

• When supply is

greater than

demand.

4. Ecological • Opportunity to • It is hard to

advocate more avoid using

policies operations by packaging.

means of

manufacturing

products.

• Formulate

organic products

that is safe also in

the environment

5. Technological • Attracts more • Lack of basic

• Internet customer by knowledge in

connectivity promoting the technology.

product using

internet.

• Technology is a

tool that will also

help the business.

• Can be used for

online

advertisement.
F. SWOT Analysis

To further investigate the benefits and the risk associated in launching our products the

firm makes SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) to

become ready and aware of what strategies need to conduct.

Table 5. SWOT Analysis

STRENGTHS WEAKNESSES

• The products are all organic and safe. • Facing competition from several

• Packaging appeals to all demographics business

• Shop location is a crowded place. • Lacking customer dew to pandemic

• Unique products and packaging • Staff needs more training.

• Collaboration with suppliers and • Old machinery

investors • Reject raw goods and products.

OPPORTUNITIES THREATS

• Upgrading technologies to speed the • The customers might be allergic to our

production. products and they might ruin the name

• Online marketing of our business.

• Development of business • Competitors might use famous

• Fewer competitors within the area influencer or actresses to advertise

• Market trends their product.

• Price hike of the organic plants