Supply Analysis
A. Supply Assumptions
1. The perfumity will be the first business to produce personalized
perfume within the Gaisano Country Mall (Talamban-Banilad) area
of establishment.
2. The company will be operating from to Mondays to Sundays as it
is the only store that sells personalized pergume in
Country Mall.
3. The proponents direct competitor is Chemworld Fragrance Factory
(CFF).
4. The proponents indirect competitors are Aficionado and Zen Zest.
B. Supply Components
1. A direct competitor is identified in Chemworld Fragrance Facotry as
they provide similar products.
2. All perfume shops/stores in Gaisano Country Mall (Banilad-
Talamban) area selling perfumes will be considered as indirect
competitors of Perfumity. The gathered data below is taken form
the direct competitors capacity to produce and sell perfumes.
Direct competitor Perfumes(45ml) Price Average Price
Chemworld Perfume 15% 250
Fragrance Perfume 20% 320
Factory 340
(CFF) Perfume 25% 450
Direct Competitors Average Price in Supply
Direct Competitor Price Weekly (pcs) Weekly(in pesos) Monthly (pcs) Monthly(in pesos)
Chemworld
Fragrance Factory 340 65 22,100 88,400
260
(CFF)
Direct Competitors Capacity in Supply
The direct competitors supply capacity in producing personalized perfume in a day is
multiplied by 7 working days in a week just like the usual working days in malls since the
Perfumity store is located near Gaisano Country mall. In calculating the annual supply
capacity, it is assumed that there are 365 working days in a year.
Indirect competitor Perfume(45ml) Price Average Price
Aficionado Eau de toilette 260
205
Body and Bath Sprays 150
Zen Zest Eau de toilete Series 230
175
Love Series 120
Indirect Competitors Average Price on Perfumes
Indirect Competitor Price Weekly (pcs) Weekly (php) Monthly (pcs) Monthly (php)
Aficionado 205 85 17,425 340 69,700
Zen Zest 175 90 15,750 360 63,000
Indirect Competitors Capacity in Supplying Perfumes
The indirect competitors supply capacity in selling perfumes in Gaisano
Country Mall is multiplied by 7 working days a week. In calculating the annual
supply capacity, it is assumed that there are 365 working days in a year
Projected Supply for five years
Supply in Yearly Supply in
Year Competitor Price Total Supply PhP PhP
CFF 340 3120 1,060,800
2018 Aficionado 205 4080 836,400 2,653,200
Zen Zest 175 4320 756,000
CFF 340 3120 1,060,800
2019 Aficionado 205 4080 836,400 2,653,200
Zen Zest 175 4320 756,000
CFF 340 3120 1,060,800
2020 Aficionado 205 4080 836,400 2,653,200
Zen Zest 175 4320 756,000
CFF 340 3120 1,060,800
2021 Aficionado 245 4080 836,400 2,653,200
Zen Zest 175 4320 756,000
CFF 340 3120 1,060,800
2022 Aficionado 205 4080 836,400 2,653,200
Zen Zest 175 4320 756,000
Method Of Projection
C. Supply Computations
The computed total supply of the direct competitor is assumed constant. This
value was added to the capacity of the indirect competitors to supply. With this, the
value is obtained through:
New total Capacity to supply in php = supply of the direct competitors in php + supply of the
indirect competitors in php
88,400 + (69,700 + 63,000) = php 221,100 monthly capacity in terms of Php
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Demand and Supply Gap Analysis
Year Total Demand Total Supply Demand-Supply
(PhP) (PhP) Gap
2018 2,821,920 2,653,200 168,720
2019 3,006,540 2,653,200 353,340
2020 3,191,160 2,653,200 537,960
2021 3,375,780 2,653,200 722,580
2018 3,560,400 2,653,200 907,200
The table shows the projected demand, supply and the demand-supply gap.
This shows the gap between the demand for Perfumity and the volume of supply.
Projected Market Shares
Year Demand-Supply Planned Production Project Market Share
(in percentages)
Gap
2018 168,720 50000 29.6%
2019 353,340 100000 28.3%
2020 537,960 1500000 27.9%
2021 722,580 200000 27.7%
2018 907,200 300000 33.1%
Computation for the projected shares:
Share of the project = Planned Production
Total Market Gap
Note: Assumed planned production of the company
Planne Project
Yea Dema d Market
Produ Share
r nd- ction (in
Suppl percent
y Gap ages)
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