ACKNOWLEDGEMENT
First of all, we would like to thank the Lord for giving us the strength we need in making our feasibility study. We will forever be reminded and eternally grateful of His kind and caring heart. Secondly, we would like to thank our dear parents who supported us along the way, for giving us the encouragement to go on.
To our friends who had helped us, by giving assistance and suggestions, thank you.
To those people we weren’t able to mention, who in their own way had helped us in making this feasibility study a success, thank you so much.

Table of Contents
Content Page no.
Project Summary ……………………………………………..
Market Study ……………………………………………..
Technical Study ……………………………………….…….
Financial Study ……………………………………………..
Management Study ………….………………………………….
Socio-Economic Study ………….…………………………………..
Accounting System …..…………………………………………
Appendix …..…………………………………………
List of Figure/Tables ……………….…………………………….
Curriculum Vitae ……………………………………………..

PROJECT
SUMMARY
PROJECT
SUMMARY

Fitness
There are thousands of people in Baguio City specifically men, who actually hit the gym to exercise and maintain their physical fitness. With the number of people consciously aware that they need to flex and stretch their muscles regularly, investing and starting a fitness business was considered by the proponents a good idea. It is considered by the proponents a very profitable business to be in, because people often value their health and physical fitness more than they value luxury items now. This ensures fitness centers to continue thriving, even in an economic climate in which other types of businesses fail.
Wellness
In the wellness industry, businesses now have access to an entire new market segment that is virtually untapped. One of the fastest growing trends in the wellness industry is men's spa services and products created specifically for men. According to ISPA 2005 men now make up over 30% of spa clientele in the world and that number is expected to increase substantially over the next few years. As the stresses of our world continue to build, men now realize that they need to do everything they can to reduce their stress, stay healthy and live longer, not to mention the fact that men also want to retain their youthful vitality and look their very best just as women do. And as men become more educated and aware of the importance of keeping stress at bay, they'll be seeking out spas that offer these products and services. The proponents recognize that it is high time to capitalize on this opportunity and a trend that could dramatically increase business clientele and profit center.
By making this concentrated effort in marketing to men the proponents foresees reaping the rewards of a virtually untapped market. A. Name of the enterprise
The business shall be named ARMY Fitness and Wellness Center. The name was chosen to connote masculinity since the business intends to cater to the niche market of young and middle aged men in Baguio City. With the fitness and wellness market already saturated, the business aims to make a statement with its name. The name is made simple that says what type of gym it is, a fitness and wellness center for men.

B. Nature of the business
ARMY FIT Fitness and Wellness Center is a service oriented enterprise that caters to the niche market of young and middle aged men. It is a fitness and wellness center that creates an environment tailored for men to pursue their health goals. The business thrives on having up-to-date equipment and the latest training program in the market.

As discussed further in the Market Study, ARMY Fitness and Wellness Center attempts to provide services that are somehow different than the competitors’ that is, by catering specifically to the fitness and wellness needs of the young and middle aged male segment of the market. The proponents intend to capture this niche market in order to capitalize on these customers who are accessible, growing fast enough in number and that is not owned by one established vendor already. This market niche enabled the proponents to define the specific service features to be provided by the business in order to satisfy the specific market’s needs, which is to create fitness and wellness atmosphere custom-made for men. C. Mission
To maintain a state of the art fitness and wellness facility that offers the clientele diverse, productive, affordable and accessible means of fitness and wellness that is supervised by well trained staff.

D. Vission
To facilitate the process of helping men make themselves better by improving their wholistic physical and emotional qualities of life.

E. Location
ARMY Fitness and Wellness Center is to be located at the third floor of ICSEC-Kaplan, Bonifacio Street, Baguio City. The proponents decided to lease the area for easier access for the business clients. It is accessible to a large number of the population who are conscious about physical fitness including young and middle aged men, who frequent the gym and may wellness centers. Competition wise, the location is not closely in proximity with its direct competitors which would enable the business to capture more clients and be able to increase its market share. The location was also chosen in consideration of its proximity with the business’ supplier of supplies particularly HBC in order to reduce costs and delivery time. This is further discussed in the Market Study.

F. Long Term Objectives
To improve the organization’s competitive strength and long-term market position through creating customer value thereby becoming the dominant provider of fitness and wellness services to the young and middle aged male segment of the market in five to ten years’ time.

To achieve acceptable profitability in the company’s pursuit of its mission/vision, long-term health, and ultimate survival, that is, by having at least 20% of revenue in 2018 from markets not currently being served, by having a more diversified revenue base as a result of offering more services and expanding the business.

G. Summary of findings and conclusion
Market Feasibility
ARMY Fitness and Wellness Center targets the young and middle aged men of the City of Baguio. The demand projection made for the business’ services has been carefully considered as the projected consumption used was based on data gathered through questionnaires floated and calculated using the statistical methods of making projections.

The demand-supply analysis presented in the market study shows that the projected market demand is greater than the projected supply, thus creating unsatisfied demand. The business aims to satisfy and generate revenue from a portion of this unsatisfied demand.

The location was carefully chosen to make the business more accessible to its targeted market. The prices established for each service were based on cost plus mark-up. These were set to ensure reasonableness to customers but at the same time making sure that the business’ objectives of profitability is achieved. Prices of competitors for similar services offered were also considered in coming up with the services prices. Promotional activities are also laid by the proponents in order to advertise the services offered by the business. This is comprehensively discussed in the market study.

Technical Feasibility
The business has 353 for its normal operating days after deducting holidays from the year’s 365 days an in consideration of days allotted for maintenance of machineries and equipment. But for purposes of computing sales revenue, an occupancy rate of 80% was set by the proponents for conservatism purposes.

Facilities needed for the fitness and wellness center including the various equipment, machineries and furniture and fixtures are locally available in the market with the business having a contracted supplier.

The facility layout as presented in the technical study allows proper logistics thus enabling the flow of operations in the business to run smoothly.

Financial Feasibility
Based on the data presented in the separate financial study, the business will be yielding positive results of operations for the five years projected after forecasting sales revenue along with the costs and expenses related to the provision of the services.

The study also presented the capital required to run the business which is pegged at P6,000,000 with 50% being financed by the shareholders and the other half borrowed from the bank.

Based on the financial ratios computed by the proponents, the business is viewed as financially viable as a evidenced by favorable payback period, bailout period, accounting rate of return, net present value and discounted payback.

Socio-Economic Feasibility
The proponents also considered the social responsibility the business should take and the economic contributions and health benefits it should give to the community where the business is to be located.

As such, the company is focused on meeting the customers’ needs in an environmentally responsible manner. This is achieved through the proper waste disposal, and segregation practice of the business.

The business will contribute to the government, through its payments of taxes and fees such as business permits, sanitary fees, individual income taxes. The management will pay the prescribed requirements and charges required to operate the business.

Management Feasibility
The business adopted a closed corporation type of business in order to regulate ownership of the business without compromising the benefits derived from a corporation type of business in comparison with the other types of business namely sole proprietorship and partnership.

The separate section of the study for management shows the organizational chart and depicts how the business is to be administered.

Good management, proper administration and control is to be emphasized in the company to ensure the success of the business. Aside from paying salaries which are above the minimum, the company also considers providing a positive workplace environment, where employees have favorable feelings about the entity. | | DURATION | | WEEKS | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | | MONTH | 2012 JULY | JULY | AUGUST | SEPTEMBER | OCTOBER | NOVEMBER | DECEMBER | JANUARY,2013 | | ACTIVITY | | | | | | | | | A | Feasibility Study | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | B | Fund Acquisition | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | C | Furnish of Permits and Other legal Requisites | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | D | Place Renovation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | E | Purchase, Delivery and Installation of machines, equipment, Utensils | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | F | Recruitment, Selection and Hiring | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | G | Advertising | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | H | Purchase of raw materials and supplies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | I | Test Run and Training | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | J | Full Normal Operation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | -- |
H.Project Timetable

MARKET
STUDY
MARKET
STUDY

INTRODUCTION TO THE MARKET STUDY
Fitness

Since 2009, a big boom for the Philippine fitness industry has been seen. This demand for fitness programs in the country is stimulated by the knowledge that exercise improves health. Through the media, education and medical studies, the majority of the public is now aware of the benefits of staying active and that regular exercise helps maintain good health. As the general public pursues leading a healthier lifestyle, the fitness industry including gyms is poised to benefit. Recent fitness industry statistics provided by IHRSA (International Health, Racquet and Sports club Association) vouches the existence of an enormous opportunity for the number of fitness centers and memberships to increase.

In the Philippines, research shows that an increasing number of men are looking to get in better shape and improve their overall fitness. This phenomenon is prevalent as well in the City of Baguio. Men who reside in Baguio desire to lose weight and feel better about their selves. As well, they recognize fitness is a preventive measure for stress, cancer, cardiovascular diseases, diabetes, arthritis and osteoporosis. With the steady increase in the population of men going to fitness centers, a huge market still needs to be satiated. ARMY FIT fitness and Wellness Center offers this market segment new exercise option that provides better convenience than its industry peers. With its proximity to both residential and commercial marketplaces and its accessibility, ARMY FIT fitness and Wellness Center delivers better fitness experience to its customers.

Wellness
At one time, a visit to a wellness center was perceived as a self-indulgent treat. However, wellness centers including spas are now increasingly seen as being part of a healthy regimen. The wellness industry has been working to broaden its consumer appeal and is quickly becoming a leading leisure activity. According to ISPA (International Spa Association) the number of spa visits continuously increase and that the industry represents a sizeable market.

But it is worth to note that a new trend in the wellness industry has emerged. Today, men are viewing wellness centers as potentially life-saving (rejuvenating, relaxing and re-energizing), improving their quality of life and stress management, pampering, encourage physiological conditioning and promoting private time. In addition, recent evidence shows a growing concern for external well-being and anti-aging occurring among men. Indeed, men now are showing a high level of interest in their appearance. According to latest Mintel research, on a global scale, 52% of men have used professional care services. Interestingly, 25% of men report having a manicure or pedicure. Also, 38% of men have had a facial or body treatment.

In the Philippines, particularly men here in the City of Baguio are now incorporating spas and treatments into part of their lifestyle. With the growing male population of the city that aims to look clean and groomed, ARMY FIT fitness and Wellness Center thrives on creating a wellness center atmosphere where men would feel comfortable and aims to offer an exclusive male spa experience where the signature treatments use products and provide services specifically made for men.

I. DESCRIPTION OF SERVICES A. Company Name

The business shall be named ARMY Fitness and Wellness Center. Army came from the Latin word “Armata” which refers to a large organized body of armed personnel trained for war especially on land. It also refers to a unit capable of independent action and consisting usually of headquarters, two or more corps, and auxiliary troops. The name was chosen to connote masculinity as “army” is more often than not referred for men.

ARMY Fitness and Wellness Center aims to promote fitness and wellness to young and middle aged men to help them achieve the fitness and wellness in mind, body and spirit to make them fit just like those men in the Army ready to withstand the emotional and physical stresses of studies, work and the other everyday simple strains of life.

More than just a gym and spa, ARMY Fitness and Wellness Center aims to be an institution organized for the advancement of a cause which is to help every man in the City of Baguio become fit and healthy.

B. Logo

Due to the increasing popularity of fitness and wellness centers, the business intends to standout from the competition. One way considered by the company to better market the business is its logo. The logo designed by the proponents professionally denotes the health and fitness related services offered to its targeted clientele. The selected gym image depicts masculinity, the provision of strength, muscle building, fitness and wellness to individuals who want to keep their bodies physically fit and healthy.

The colors chosen by the proponents also play a vital role in attracting people towards the business, by exhibiting a great psychological impact on the minds of the target market. The bright and energetic colors of yellow and green provide a more appealing look to the entire logo design.

The bold and stylish typefaces used for the logo has for its purpose of representing the name of the enterprise. This is intended to make the logo understandable by the onlookers and also help to convey the message of what the business offer.

C. Nature and Purposes of the Services Provided

Fitness 1. Cardio Kickboxing - a workout that combines aerobics, boxing, and martial arts that aims to improve endurance, flexibility, balance, coordination and cardiovascular fitness. It is a total body workout that tones muscles and shreds abs if consistently practiced with power and precision. Its routines are characterized by high intensity intervals coupled with toning recovery periods to zap calories and define muscles. The American Council on Exercise (ACE), which evaluates exercise products and programs, notes that, during a one-hour kickboxing workout, one can burn from 500 to 800 calories, which is up to twice the calories that can be burned during a one-hour step-aerobics class. In addition to being an excellent cardiovascular workout, Cardio Kickboxing is a positive and productive way to relieve stress and work out aggression. 2. Boxing – a workout that is considered by sports scientists as one of the best forms of exercise, because it conditions the total body and provides a complete workout for your cardiovascular and endurance systems. Weight loss, increased agility and coordination, muscle tone and greater fitness all result from boxing. Although many people think that boxing is all about the arms, it is actually a cardio work-out for the whole body. It is especially good for toning one’s bottom and quadricep muscles, which is perfect for those who want to lose weight around their bottom and thighs as part of an overall reduction programme. Cardio-boxing also promotes a person’s wellbeing by strengthening their self-discipline and combined with strength training it may be considered as truly the total package for self-defense and fitness.

3. Muay Thai - an intense workout that can burn as many as 3,000 calories an hour, at just beginner levels. This substantially increases as you go up the levels. The workout intends to hone every part of the body into a weapon and identify vulnerable areas of an opponent. The moves are designed to tighten and harden each muscle, not just the core ones. This toning and building of muscle mass ups the metabolic rate and sheds fat. In addition, like yoga, even Muay Thai has a meditation component, but instead of trying to blank out the mind, the intention is to sharpen the senses and awareness.

4. Gym – an athletic facility equipped for sports or physical training. It is an avenue offered by the business to improve the clients’ strength, suppleness, and muscle coordination and stamina.
Wellness
The most popular male wellness treatments worldwide are 1) massages which represent 80%; 2) facials represent 10 – 15% and 3) body scrubs represent 5 – 10%. Also, popular treatments include foot spa/pedicure, manicure and foot massage. 1. Full Facial Workout
Includes mask application, massage to tone up facial muscles, vacuuming, laser-toning and deep facial cleansing to reveal a fresher, cleaner and smoother skin a. Full Facial Workout with Rejuvenating Mask - a full facial treatment procedure with extra pampering by applying a rejuvenating mask which contains natural herbal extract, sea collagen and moisture factors. With frequent treatments, it can help rejuvenate the skin making it look healthy, shiny and elastic. b. Full Facial Workout with Whitening Mask -a full facial treatment procedure with the application of whitening mask which contain natural whitening ingredients, sea minerals and moisturizers that help lighten the skin and provide a radiant glow

1. Body Treatments a. Skin Fitness Workout – (body scrub) - a body treatment that is like a facial for the body. It exfoliates and hydrates theskin, leaving it smooth and soft b. Executive Stress Buster – (Swedish/Shiatsu Massage) - Swedish massage uses five stroke patterns across all the major muscles in the body where patterns in the form of minor vibrations, rhythmic tapping of the body and friction are applied on the body. This type of massage will increase blood flow in the body and also help to relieve muscle tension. On the other hand, shiatsu massage aims to correct any imbalances in the body. It is done by putting or applying pressure on certain energy points on the body. c. Sports Massage Treatment – (Traditional Hilot) - a traditional therapeutic massage that entails kneading the muscles to remove aches and pains. It uses medium to deep pressure and smooth, flowing strokes to restore the body's balance. 2. Foot and hand Treatments a. Foot Fitness Program – (Foot Spa) – for soothing and/or cleaning the feet b. Pedicure Action – a way to improve the appearance of the feet and the nails. Pedicures are done for cosmetic, therapeutic and medical purposes. c. Express Handy MANicure - a cosmetic treatment for the fingernails and hands. A manicure can help prevent nail diseases and nail disorders.

D. Clients of the business Based on a study conducted by IHRSA in 2005, on a global scale, 69% of total fitness club members are represented by those who belong to the 18-54 age bracket. The study also mentioned that this segment of the population has been fuelling much of the growth in fitness memberships. In addition, Spa Finder reported in 2006 that the male spa-goer worldwide increased nearly 900% in the past 4 years and that over 30% of wellness enquiries come from men who want to lose weight and improve diet and fitness.

Considering the above data, the proponents target the residents of the City of Baguio with ages ranging from 18 to 54, the young adult (18-34) and middle age (35-54) segment of the population, but more specifically, the male sector for the company’s services. The services offered by ARMY FIT cater to the young adult and middle aged segment of the population, this on the assumption that those who belong to this demography have the earning capacity and are able to afford the services offered by the business. Moreover, the business cater to male clients on the premise that a notable trend in the fitness and wellness industry are the niche centers that target groups that were historically overlooked or neglected by the industry. ARMY FIT aims to provide members a novel and non-threatening environment for exercise and wellness treatments to men who want to work out and avail spa services with others like themselves, without intimidation.

E. Place of Business

ARMY Fitness and Wellness Center is to be located at the basement of ICSEC-Kaplan, Bonifacio Street, Baguio City. The proponents decided to operate in the area for easier access for the business clients. This location is much accessible for men who want to exercise, use gym equipment and pamper themselves. It is accessible to the majority of the population who are actually conscious about physical fitness including students and the young people, who frequent the gym health clubs and they are potentially good clients. The proponents therefore find it feasible to place the business in the stated place since it is near a mall and schools. The location can ensure a good number of clients who will use the fitness facilities and avail the wellness services.

Competition wise, the location is not closely in proximity with its direct competitors. Only a few gym and wellness center is available around the business premises. This would be an advantage for the business to capture more clients and be able to increase its market share.

The location was also chosen in consideration of its proximity with the business’ supplier of supplies particularly HBC in order to reduce costs and delivery time.

II. DEMAND ANALYSIS
This section of the feasibility study presents information about the willingness and ability of consumers to avail of the business’ services. It shows how the proponents of the study had projected the demand for fitness and wellness services using information gathered from the questionnaires floated.

A. Historical Data
The total number of male residents in Baguio City for the year 2007 was gathered from the National Statistics Office (NSO). Since only data for 2007 was furnished to the proponents, the average growth rate of 2.5% as used by NSO was applied by the researchers to arrive at the city’s population for the years 2007 to 2012, that is, multiplying the previous year’s population by 1.025 to arrive at the current year’s data. This historical data is further used as basis on the projection historical demand for the services offered.

Table 1
Projections for the Male Population with ages 18-54 in Baguio City from 2007-2012

Years | Total Population Of Male Residents (18-54 years old) | 2007 | 104,640 | 2008 | 107,256 | 2009 | 109,937 | 2010 | 112,686 | 2011 | 115,503 | 2012 | 118,391 |

B. Sample Size
Using Slovin’s formula, the sample size is computed as follows:

n= N 1+Ne2
Where:
n= sample population N= total number of male residents in Baguio City as of 2012 e= margin of error

n = 118,391 __ 1+ (118,391* .052)

n = 398.653 ≈ 400

C. Analysis of the Results of the Survey 1. Do you avail of the services of a Fitness Center and/or a Wellness Center?
This introductory question was asked in order to establish the number of male young adults and middle aged men in Baguio City who go to fitness centers and/or wellness centers and be able to come up with the data on the current demand for the services offered by these establishments.

Table 2
Percentage of Men who avails of the services of Fitness Centers

| Number of male respondents | Percentage | Yes | 295 | 73.68 | No | 105 | 26.32 | Total | 400 | 100 |

Based on the table above, out of the 400, 295 respondents avail the services of fitness centers. It represents then that 73.68% of the total male population who belong to the young and middle aged bracket in the city of Baguio go to fitness centers.
Table 3
Percentage of Men who avails the services of Wellness Centers

| Number of male respondents | Percentage | Yes | 168 | 42.11 | No | 232 | 57.89 | Total | 400 | 100 |

The above table indicates that 168 out of the 400 respondents avail services of wellness centers. It is interpreted that 42.11% of the total target market do go to wellness centers.

2. a. Do you avail of the following services of the fitness centers? If yes, how often?
Results of this question were used to determine the demand per service specifically offered by fitness centers in the city and in what frequency. The tables below were presented in such a way that one can clearly determine the number and percentage of respondents who avail of the given fitness services and the frequency of the procurement of the said services.

Table 4
Percentage of Men who avail the services of Fitness Centers (per service offered) A. Cardio Kickboxing | | | | Number of male respondents | Percentage (%) | Yes | | | | Frequency | | | | Once a week | 45 | | | Thrice a week | 10 | | | Daily | 3 | 58 | 14.50 | No | | 342 | 85.50 | Total | | 400 | 100 | Boxing | | | | Number of male respondents | Percentage (%) | Yes | | | | Frequency | | | | Once a week | 19 | | | Thrice a week | 2 | | | Daily | 0 | 21 | 5.26 | No | | 379 | 94.74 | Total | | 400 | 100 | C. Muay Thai | | | Yes | | | | Frequency | | | | Once a week | 13 | | | Thrice a week | 1 | | | Daily | 0 | 14 | 3.51 | No | | 386 | 96.49 | Total | | 400 | 100 | D. Gym | | | Yes | | | | Frequency | | | | Once a week | 65 | | | Thrice a week | 160 | | | Daily | 6 | 231 | 57.75 | No | | 169 | 42.25 | Total | | 400 | 100 |

b. Do you avail of the following services of the wellness centers? If yes, how often?
Information gathered through this question was used to establish the demand for the different services offered by wellness centers and in what frequency. The tables below were presented in such a way to clearly indicate the number and percentage of respondents who avail of the given wellness services and the frequency of the procurement of the said services.

Table 5
Percentage of Men who avail the services of Fitness Centers (per service offered)

A. Facial treatments 1. Facial | | | | Number of male respondents | Percentage (%) | Yes | | | | Frequency | | | | twice a month | 4 | | | once a month | 39 | | | every 2 months | 61 | | | others-once a year | 4 | 108 | 27.00 | No | | 292 | 73.00 | Total | | 400 | 100 | 2. Facial with Rejuvenating Mask | | | Yes | | | | Frequency | | | | twice a month | 0 | | | once a month | 11 | | | every 2 months | 8 | | | others-once a year | 1 | 20 | 5.00 | No | | 380 | 95.00 | Total | | 400 | 100 | 3. Facial with Whitening Mask | | | Yes | | | | Frequency | | | | twice a month | 0 | | | once a month | 12 | | | every 2 months | 9 | | | others-once a year | 1 | 22 | 5.50 | No | | 378 | 94.50 | Total | | 400 | 100 |

B. Body Treatments 1. Body Scrub | | | | Number of male respondents | Percentage (%) | Yes | | | | Frequency | | | | twice a month | 0 | | | once a month | 29 | | | every 2 months | 27 | | | others-once a year | 0 | 56 | 14.00 | No | | 344 | 86.00 | Total | | 400 | 100 | 2. Shiatsu/Swedish Massage | | | Yes | | | | Frequency | | | | twice a month | 13 | | | once a month | 56 | | | every 2 months | 23 | | | others-once a year | 0 | 92 | 23.00 | No | | 308 | 77.00 | Total | | 400 | 100 | 3. Traditional Hilot | | | Yes | | | | Frequency | | | | twice a month | 0 | | | once a month | 4 | | | every 2 months | 11 | | | others-once a year | 19 | 34 | 8.50 | No | | 366 | 91.50 | Total | | 400 | 100 |
Foot and hand Treatments 1. Foot Scrub | | | Yes | | | | Frequency | | | | twice a month | 0 | | | once a month | 12 | | | every 2 months | 24 | | | others-once a year | 9 | 45 | 11.25 | No | | 355 | 88.75 | Total | | 400 | 100 | 2. Pedicure | | | | Number of male respondents | Percentage (%) | Yes | | | | Frequency | | | | twice a month | 0 | | | once a month | 6 | | | every 2 months | 25 | | | others-once a year | 3 | 34 | 8.50 | No | | 366 | 91.50 | Total | | 400 | 100 | 3. Manicure | | | Yes | | | | Frequency | | | | twice a month | 0 | | | once a month | 6 | | | every 2 months | 24 | | | others-once a year | 3 | 33 | 8.25 | No | | 367 | 91.75 | Total | | 400 | 100 |

3. Would you be willing to avail of ARMY Fitness and Wellness Center?
This question was asked in order to determine what portion of the market would be willing to avail of the service offered by the proponents of the study.

Table 6
Percentage of Men Willing to Avail the Services of ARMY Fitness and Wellness Center Fitness | | | | Number of male respondents | Percentage (%) | Yes | 379 | 94.74 | No | 21 | 5.26 | Total | 400 | 100 | Wellness | | | Yes | 337 | 84.21 | No | 63 | 15.79 | Total | 400 | 100 |

Based on the above data, 379 out of the 400 respondents are willing to avail the services offered by the proponents. It may be interpreted that 94.74% of the total target market would be procuring the services offered by the business

The table above indicates that, 337 out of the 400 respondents are willing to avail the services offered by the proponents. Consequently, 84.21% of the total target market would be procuring the services offered by the business.

4. What services would be willing to avail and in what frequency?
This question was asked to determine, out of those who were willing to avail of the fitness and wellness services offered by the proponents, which services they would procure and in what frequency. Information gathered from this question was used to establish if the services offered by the business have a ready market.
Table 7
Frequency of the services to be availed A. Fitness | Gym | Cardio Kickboxing | Boxing | Muay Thai | Frequency | | | | | once a week | 267 | 52 | 38 | 28 | thrice a week | 49 | 41 | 17 | 21 | Daily | 42 | 0 | 0 | 3 | Total | 358 | 93 | 55 | 52 |

B. Wellness
Facial Treatments | Facial | with rejuvenating mask | with whitening mask | Frequency | | | | Twice a month | 24 | 14 | 3 | Once a month | 55 | 38 | 10 | Every 2 months | 14 | 10 | 0 | Others-once a year | 0 | 0 | 0 | Total | 93 | 62 | 13 |
Body Treatments | Body Scrub | Shiatsu/Swedish | Traditional Hilot | Frequency | | | | Twice a month | 24 | 14 | 3 | Once a month | 55 | 38 | 10 | Every 2 months | 14 | 10 | 0 | Others-once a year | 0 | 0 | 0 | Total | 93 | 62 | 13 |

Foot and Hand Treatments | Foot Spa | Pedicure | Manicure | Frequency | | | | Twice a month | 24 | 14 | 3 | Once a month | 55 | 38 | 10 | Every 2 months | 14 | 10 | 0 | Others-once a year | 0 | 0 | 0 | Total | 93 | 62 | 13 |

D. Computation of Annual Consumption

1. Fitness

Based on research, the Institute of Medicine has recently released a report recommending that, as part of a routine regimen to maintain cardiovascular health and ideal body weight and body composition, people should all engage in 60 minutes of daily vigorous physical activity. Considering this, the proponents allotted an average of one hour per visit to fitness centers. Multiply this to the number of male respondents who avail of the services and further express the figures in terms of years, then divide it by the number of respondents the proponents were able to derive at the average annual consumption of an individual in one year in terms of hours.

Table 11
Computation of Average Consumption per service offered for Fitness a. Cardio Kickboxing | | | Frequency | Number of male respondents | Average no. of hours per session a day | Frequency in terms of one year | Total | Once a week | 45 | 1 | 52 | 2,340 | Thrice a week | 10 | 1 | 156 | 1,560 | Daily | 3 | 1 | 365 | 1,095 | Total | 58 | | | 4,995 | Divide by | | | | 58 | Average annual consumption in hours per person in a year | 86 |

b. Boxing | | | Frequency | Number of male respondents | Average no. of hours per session a day | Frequency in terms of one year | Total | Once a week | 19 | 1 | 52 | 988 | Thrice a week | 2 | 1 | 156 | 312 | Daily | 0 | 1 | 365 | 0 | Total | 21 | | | 1,300 | Divide by | | | | 21 | Average annual consumption in hours per person in a year | 62 |

c. Muay Thai | | | Frequency | Number of male respondents | Average no. of hours per session a day | Frequency in terms of one year | Total | Once a week | 13 | 1 | 52 | 676 | Thrice a week | 1 | 1 | 156 | 156 | Daily | 0 | 1 | 365 | 0 | Total | 14 | | | 832 | Divide by | | | | 14 | Average annual consumption in hours per person in a year | 56 |

d. Gym | | | Frequency | Number of male respondents | Average no. of hours per session a day | Frequency in terms of one year | Total | Once a week | 65 | 1 | 52 | 3,380 | Thrice a week | 160 | 1 | 156 | 24,960 | Daily | 6 | 1 | 360 | 2,160 | Total | 231 | | | 30,500 | Divide by | | | | 231 | Average annual consumption in hours per person in a year | 132 |

2. Wellness
Based on interviews with employees of the different wellness centers, the average time spent for each of the services offered is one hour. Multiply this to the number of male respondents who avail of the services and further express the figures in terms of years, then divide it by the number of respondents the proponents were able to derive at the average annual consumption of an individual in one year in terms of hours.

Table 12
Computation of Average Consumption per service offered for Wellness A. Facial Treatments 1. Facial | | | Frequency | Number of male respondents | Ave. no. of hours per session a day | Frequency in terms of one year | Total | twice a month | 4 | 1 | 24 | 96 | once a month | 39 | 1 | 12 | 468 | every 2 months | 61 | 1 | 6 | 366 | others-once a yr | 4 | 1 | 1 | 4 | Total | 108 | | | 934 | Divide by | | | | 108 | Average annual consumption in hours per person in a year | 9 | 2. Facial with Rejuvenating Mask | | | Frequency | Number of male respondents | Ave. no. of hours per session a day | Frequency in terms of one year | Total | twice a month | 0 | 1 | 24 | 0 | once a month | 11 | 1 | 12 | 132 | every 2 months | 8 | 1 | 6 | 48 | others-once a yr | 1 | 1 | 1 | 1 | Total | 20 | | | 181 | Divide by | | | | 20 | Average annual consumption in hours per person in a year | 9 |

3. Facial with Whitening Mask | | | Frequency | Number of male respondents | Ave. no. of hours per session a day | Frequency in terms of one year | Total | twice a month | 0 | 1 | 24 | 0 | once a month | 12 | 1 | 12 | 144 | every 2 months | 9 | 1 | 6 | 54 | others-once a yr | 1 | 1 | 1 | 1 | Total | 22 | | | 199 | Divide by | | | | 22 | Average annual consumption in hours per person in a year | 9 |

B. Body Treatments 1. Body Scrub | | | Frequency | Number of male respondents | Ave. no. of hours per session a day | Frequency in terms of one year | Total | twice a month | 0 | 1 | 24 | 0 | once a month | 29 | 1 | 12 | 348 | every 2 months | 27 | 1 | 6 | 162 | others-once a yr | 0 | 1 | 1 | 0 | Total | 56 | | | 510 | Divide by | | | | 56 | Average annual consumption in hours per person in a year | 9 |

2. Shiatsu/Swedish Massage | | | Frequency | Number of male respondents | Ave. no. of hours per session a day | Frequency in terms of one year | Total | twice a month | 13 | 1 | 24 | 312 | once a month | 56 | 1 | 12 | 672 | every 2 months | 23 | 1 | 6 | 138 | others-once a yr | 0 | 1 | 1 | 0 | Total | 92 | | | 1,122 | Divide by | | | | 92 | Average annual consumption in hours per person in a year | 12 |

3. Traditional Hilot | | | Frequency | Number of male respondents | Ave. no. of hours per session a day | Frequency in terms of one year | Total | twice a month | 0 | 1 | 24 | 0 | once a month | 4 | 1 | 12 | 48 | every 2 months | 11 | 1 | 6 | 66 | others-once a yr | 19 | 1 | 1 | 19 | Total | 34 | | | 133 | Divide by | | | | 34 | Average annual consumption in hours per person in a year | 4 |

C. Foot and Hand Treatments 1. Foot spa | | | Frequency | Number of male respondents | Ave. no. of hours per session a day | Frequency in terms of one year | Total | twice a month | 0 | 1 | 24 | 0 | once a month | 12 | 1 | 12 | 144 | every 2 months | 24 | 1 | 6 | 144 | others-once a yr | 9 | 1 | 1 | 9 | Total | 45 | | | 297 | Divide by | | | | 45 | Average annual consumption in hours per person in a year | 7 |

2. Pedicure | | | Frequency | Number of male respondents | Ave. no. of hours per session a day | Frequency in terms of one year | Total | twice a month | 0 | 1 | 24 | 0 | once a month | 6 | 1 | 12 | 72 | every 2 months | 25 | 1 | 6 | 150 | others-once a yr | 3 | 1 | 1 | 3 | Total | 34 | | | 225 | Divide by | | | | 34 | Average annual consumption in hours per person in a year | 7 |

3. Manicure | | | Frequency | Number of male respondents | Ave. no. of hours per session a day | Frequency in terms of one year | Total | twice a month | 0 | 1 | 24 | 0 | once a month | 6 | 1 | 12 | 72 | every 2 months | 24 | 1 | 6 | 144 | others-once a yr | 3 | 1 | 1 | 3 | Total | 33 | | | 219 | Divide by | | | | 33 | Average annual consumption in hours per person in a year | 7 |

D. Historical Demand
Table 13
Historical Demand for the Services Offered

For Services of Fitness Centers a. Cardio Kickboxing | Years | Population | % of Respondents who avail of the service | Average consumption(in hours) | Total(in hours) | 2007 | 104,640 | 14.50 | 86 | 1,306,692 | 2008 | 107,256 | 14.50 | 86 | 1,339,359 | 2009 | 109,937 | 14.50 | 86 | 1,372,838 | 2010 | 112,686 | 14.50 | 86 | 1,407,166 | 2011 | 115,503 | 14.50 | 86 | 1,442,344 | 2012 | 118,391 | 14.50 | 86 | 1,478,408 | b. Boxing | | | | 2007 | 104,640 | 5.26 | 62 | 340,932 | 2008 | 107,256 | 5.26 | 62 | 349,456 | 2009 | 109,937 | 5.26 | 62 | 358,191 | 2010 | 112,686 | 5.26 | 62 | 367,147 | 2011 | 115,503 | 5.26 | 62 | 376,326 | 2012 | 118,391 | 5.26 | 62 | 385,735 | c. Muay Thai | | | | 2007 | 104,640 | 3.51 | 59 | 218,197 | 2008 | 107,256 | 3.51 | 59 | 223,652 | 2009 | 109,937 | 3.51 | 59 | 229,242 | 2010 | 112,686 | 3.51 | 59 | 234,974 | 2011 | 115,503 | 3.51 | 59 | 240,848 | 2012 | 118,391 | 3.51 | 59 | 246,870 | d. Gym | | | | 2007 | 104,640 | 57.75 | 132 | 7,978,800 | 2008 | 107,256 | 57.75 | 132 | 8,178,270 | 2009 | 109,937 | 57.75 | 132 | 8,382,696 | 2010 | 112,686 | 57.75 | 132 | 8,592,308 | 2011 | 115,503 | 57.75 | 132 | 8,807,104 | 2012 | 118,391 | 57.75 | 132 | 9,027,314 |

For Services of Wellness Centers A. Facial Treatments 1. Facial | | | | Years | Population | % of Respondents who avail of the service | Average consumption(in hours) | Total(in hours) | 2007 | 104,640 | 27.00 | 9 | 244,334 | 2008 | 107,256 | 27.00 | 9 | 250,443 | 2009 | 109,937 | 27.00 | 9 | 256,703 | 2010 | 112,686 | 27.00 | 9 | 263,122 | 2011 | 115,503 | 27.00 | 9 | 269,700 | 2012 | 118,391 | 27.00 | 9 | 276,443 | 2. Facial with Rejuvenating Mask | 2007 | 104,640 | 5.00 | 9 | 47,350 | 2008 | 107,256 | 5.00 | 9 | 48,533 | 2009 | 109,937 | 5.00 | 9 | 49,746 | 2010 | 112,686 | 5.00 | 9 | 50,990 | 2011 | 115,503 | 5.00 | 9 | 52,265 | 2012 | 118,391 | 5.00 | 9 | 53,572 | 3. Facial with Whitening Mask | 2007 | 104,640 | 5.50 | 9 | 52,058 | 2008 | 107,256 | 5.50 | 9 | 53,360 | 2009 | 109,937 | 5.50 | 9 | 54,694 | 2010 | 112,686 | 5.50 | 9 | 56,061 | 2011 | 115,503 | 5.50 | 9 | 57,463 | 2012 | 118,391 | 5.50 | 9 | 58,900 | A. Body Treatments 1. Body Scrub | 2007 | 104,640 | 14.00 | 9 | 133,416 | 2008 | 107,256 | 14.00 | 9 | 136,751 | 2009 | 109,937 | 14.00 | 9 | 140,170 | 2010 | 112,686 | 14.00 | 9 | 143,675 | 2011 | 115,503 | 14.00 | 9 | 147,266 | 2012 | 118,391 | 14.00 | 9 | 150,949 | 2. Shiatsu/Swedish Massage | Years | Population | % of Respondents who avail of the service | Average consumption(in hours) | Total(in hours) | 2007 | 104,640 | 23.00 | 12 | 293,515 | 2008 | 107,256 | 23.00 | 12 | 300,853 | 2009 | 109,937 | 23.00 | 12 | 308,373 | 2010 | 112,686 | 23.00 | 12 | 316,084 | 2011 | 115,503 | 23.00 | 12 | 323,986 | 2012 | 118,391 | 23.00 | 12 | 332,087 | 3. Traditional Hilot | 2007 | 104,640 | 9.00 | 4 | 36,839 | 2008 | 107,256 | 9.00 | 4 | 37,760 | 2009 | 109,937 | 9.00 | 4 | 38,704 | 2010 | 112,686 | 9.00 | 4 | 39,672 | 2011 | 115,503 | 9.00 | 4 | 40,664 | 2012 | 118,391 | 9.00 | 4 | 41,681 | B. Foot and Hand Treatments 1. Foot spa | 2007 | 104,640 | 11.25 | 7 | 77,695 | 2008 | 107,256 | 11.25 | 7 | 79,638 | 2009 | 109,937 | 11.25 | 7 | 81,628 | 2010 | 112,686 | 11.25 | 7 | 83,669 | 2011 | 115,503 | 11.25 | 7 | 85,761 | 2012 | 118,391 | 11.25 | 7 | 87,905 | 2. Pedicure | 2007 | 104,640 | 8.50 | 7 | 58,860 | 2008 | 107,256 | 8.50 | 7 | 60,332 | 2009 | 109,937 | 8.50 | 7 | 61,840 | 2010 | 112,686 | 8.50 | 7 | 63,386 | 2011 | 115,503 | 8.50 | 7 | 64,970 | 2012 | 118,391 | 8.50 | 7 | 66,595 | 3. Manicure | 2007 | 104,640 | 8.25 | 7 | 57,290 | 2008 | 107,256 | 8.25 | 7 | 58,723 | 2009 | 109,937 | 8.25 | 7 | 60,191 | 2010 | 112,686 | 8.25 | 7 | 61,696 | 2011 | 115,503 | 8.25 | 7 | 63,238 | 2012 | 118,391 | 8.25 | 7 | 64,819 | E. Projection of Demand
Based on the historical demand presented above, the proponents were able to project the demands from the years 2013 t0 2017 using Arithmetic Geometric Curve, the statistical tool that yielded the least standard deviation for all the services offered by the fitness and wellness centers. Only computations using the said tool are presented below. The rest of the derivations of the standard deviations are presented in the Appendices.
Table 15
Standard Deviation for Each Service Using the Different Statistical Tools | Standard Deviation | | Arithmetic Straight Line | Arithmetic Geometric Curve | Statistical Straight Line | Statistical Parabolic | A.Fitness | | | | | 1.Cardio Kickboxing | 1,325 | 4 | 1,280 | 14 | 2.Boxing | 389 | 1 | 298 | 1,509 | 3.Muay Thai | 229 | 1 | 221 | 1,629 | 4.Gym | 6,740 | 21 | 6,511 | 8,049 | | | | | | B.Wellness | | | | | 1.Facial Treatments | | | | | a.Facial | 268 | 1 | 259 | 1,570 | b.Facial w/rejuvenating mask | 44 | 0 | 42 | 1,904 | c.Facialw/whitening mask | 50 | 0 | 49 | 1,894 | | | | | | 2.Body Treatment | | | | | a.Body scrub | 112 | 0 | 108 | 1,802 | b.Shiatsu/Swedish | 246 | 1 | 238 | 1,603 | c.Traditional Hilot | 59 | 0 | 57 | 1,880 | | | | | | 3.Foot and hand Treatments | | | | | a.Foot spa | 65 | 0 | 63 | 1,872 | b.Pedicure | 49 | 0 | 48 | 1,895 | Manicure | 45 | 0 | 44 | 1,901 |

Table 16
Projected Values Using Arithmetic Geometric Curve (in hours) Services | 2013 | 2014 | 2015 | 2016 | 2017 | A.Fitness | | | | | | 1.Cardio Kickboxing | 1,515,369 | 1,553,254 | 1,592,087 | 1,631,890 | 1,672,689 | 2.Boxing | 395,379 | 405,264 | 415,395 | 425,781 | 436,425 | 3.Muay Thai | 253,042 | 259,369 | 265,853 | 272,500 | 279,312 | 4.Gym | 9,253,004 | 9,484,336 | 9,721,451 | 9,964,495 | 10,213,615 | | | | | | | B.Wellness | | | | | | 1.Facial Treatments | | | | | | a.Facial | 283,354 | 290,438 | 297,700 | 305,142 | 312,771 | b.Facial w/rejuvenating mask | 54,911 | 56,284 | 57,691 | 59,134 | 60,612 | c.Facialw/whitening mask | 60,372 | 61,881 | 63,428 | 65,014 | 66,640 | | | | | | | 2.Body Treatment | | | | | | a.Body scrub | 154,722 | 158,591 | 162,555 | 166,619 | 170,785 | b.Shiatsu/Swedish | 340,389 | 348,899 | 357,622 | 366,563 | 375,727 | c.Traditional Hilot | 42,723 | 43,791 | 44,886 | 46,008 | 47,158 | | | | | | | 3.Foot and hand Treatments | | | | | | a.Foot spa | 90,103 | 92,356 | 94,665 | 97,031 | 99,457 | b.Pedicure | 68,260 | 69,966 | 71,716 | 73,509 | 75,346 | Manicure | 66,440 | 68,101 | 69,803 | 71,548 | 73,337 |

III. SUPPLY ANALYSIS
Supply refers to the capacity of a business to satisfy the demand of the customers. It is the amount of services, the business are willing and able to provide at a given price. A. Historical Supply
The market’s historical supply for fitness and wellness services is based on the information gathered through interviews and phone conversations with managers and other personnel of the various gyms and spas in Baguio that are duly registered with the Department of Trade and Industry (DTI) from the years 2007 to 2011. List of these existing fitness and wellness centers as of 2011 is as follows:
Fitness
1. Mt. Hebron Fitness Gym | 9. 888 Wildcard Gym | 17. Trojan Fitness Center | 2. Shape Up Fitness Center | 10. Power Gym | 18. Stallion Fitness Gym | 3. Lakay Wushu MMA Gym | 11. Baguio Fitness Horizon | 19. Iron Shed | 4. Body Slimmer Fitness Gym | 12. YMCA | 20. CTH Fitness Center | 5. Endless Gym and Fitness Center | 13. Baguio Health Club | 21. Hard Muscle Gym | 6. Fitness Edge Health and Fitness Club | 14. Ultimate Gym | 22. Hercules Gym | 7. Body Base Aerobics Center | 15. Phoenix Gym | 23. Armand Fitness Gym | 8. Phoenix Physical Fitness Gym | 16. UFC | 24. Lion’s Gym |

Wellness 1. Personal Best Massage Therapy | 8.Highland Therapeutic Massage | 2. D&K Diala Massage Services | 9. Ben’s Reflexology Massage Services | 3. Mountain Massage Parlor | 10. .J’s Dial-a Therapeutic Massage Service | 4. Matthew 11:28 Massage Clinic | 11.Lovely R-C-V Massage Clinic | 5. Sensure Massage Clinic and Foot Spa | 12.Holiday Massage | 6. Asian Massage | 13.Body Tune | 7. Vismar | 14.Spa Ultima |

The projection of historical supply for the services is based only on these listed fitness and wellness centers in the city as reported by DTI and that freelance spa service providers were not considered since they cannot be reliably quantified.

The historical supply is derived based on the information that at an average fitness centers operate for fourteen hours a day; for gym services, there are 14 sessions at one hour each which can accommodate 30 clients; for cardio kickboxing, there are four sessions at one hour each for thirty clients; for boxing, four sessions at one hour for twenty five clients and for Muay Thai, there are four sessions at one hour each for twenty five clients as well. 1. Fitness
Table 18
Computation of the Supply of the Other Fitness Services in 2012 | Num. of fitness centers that offer the service | Hours per session | Number of sessions per day | Number of clients per session | Frequency in terms of a year | Supply in terms of hours in a year | Cardio kickboxing | 24 | 1 | 5 | 365 | 30 | 1,314,000 | Boxing | 8 | 1 | 4 | 365 | 25 | 292,000 | Muay Thai | 5 | 1 | 4 | 365 | 25 | 182,500 |

Table 19
Computation of the Supply of Gyms in 2012 | Num. of fitness centers that offer the service | Hours per session | Number of turnover on use of equip per hour | Number of sessions per day | Number of clients per session | Frequency in terms of a year | Supply in terms of hours in a year | Gym | 24 | 1 | 4 | 30 | 8 | 360 | 8,294,400 |

2. Wellness
The historical supply for wellness services is derived based on the information provided by DTI about the fourteen registered wellness centers, at an average these operate for eight hours a day; for the facial treatments including simple facial, facial with rejuvenating mask and facial with whitening mask, five employees are able to render the service at one hour; for the body treatments, one hour is allotted per session with six masseurs and for foot and hand treatments, four posts are set to provide the services at one hour each.
Table 20
Computation of the Supply Wellness Treatments in 2012 | Number of wellness center that offer the service | Hours per session | Number of sessions per day | Number of employees | Frequency of sessions in terms of a year | Supply in terms of hours in a year | 1.Facial Treatments | | | | | | | Facial | 14 | 1 | 8 | 4 | 365 | 163,520 | Facial with rejuvenating mask | 4 | 1 | 8 | 4 | 365 | 46,720 | Facial with whitening mask | 4 | 1 | 8 | 4 | 365 | 46,720 | 2.Body Treatments | | | | | | | Body scrub | 9 | 1 | 8 | 5 | 365 | 131,400 | Shiatsu/Swedish massage | 14 | 1 | 8 | 5 | 365 | 204,400 | Traditional Hilot | 2 | 1 | 8 | 5 | 365 | 29,200 | 3.Feet and Hand Treatments | | | | | | | Foot spa | 7 | 1 | 8 | 3 | 365 | 61,320 | Pedicure | 6 | 1 | 8 | 3 | 365 | 52,560 | Manicure | 6 | 1 | 8 | 3 | 365 | 52,560 |

Historical Supply for Services Offered in Fitness Centers

The researchers were able to come up with the historical supply by dividing the 2012 computed demand by 1.04 to come up with the supply for 2011. Same was applied for the years 2010 back to 2007. The proponents used 4% based on the average annual inflation rate as of 2012.
Table 21
Historical Supply for Services Offered in Fitness Centers (in hours) 1. Fitness Year | Cardio Kickboxing | Boxing | Muay Thai | Gym | 2007 | 1,080,012 | 240,003 | 150,002 | 6,817,392 | 2008 | 1,123,213 | 249,603 | 156,002 | 7,090,088 | 2009 | 1,168,141 | 259,587 | 162,242 | 7,373,691 | 2010 | 1,214,867 | 269,970 | 168,732 | 7,668,639 | 2011 | 1,263,462 | 280,769 | 175,481 | 7,975,385 | 2012 | 1,314,000 | 292,000 | 182,500 | 8,294,400 |

2. Wellness A. Facial Treatments Year | Facial | Facial w/rejuvenating mask | Facial w/whitening mask | 2007 | 134,402 | 38,400 | 38,400 | 2008 | 139,778 | 39,936 | 39,936 | 2009 | 145,369 | 41,534 | 41,534 | 2010 | 151,183 | 43,195 | 43,195 | 2011 | 157,231 | 44,923 | 44,923 | 2012 | 163,520 | 46,720 | 46,720 |

B. Body Treatments Year | Body Scrub | Shiatsu/Swedish Massage | Traditional Hilot | 2007 | 108,001 | 168,002 | 24,000 | 2008 | 112,321 | 174,722 | 24,960 | 2009 | 116,814 | 181,711 | 25,959 | 2010 | 121,487 | 188,979 | 26,997 | 2011 | 126,346 | 196,538 | 28,077 | 2012 | 131,400 | 204,400 | 29,200 |

C. Foot and Hand Treatments Year | Foot Spa | Pedicure | Manicure | 2007 | 50,401 | 43,200 | 43,200 | 2008 | 52,417 | 44,929 | 44,929 | 2009 | 54,513 | 46,726 | 46,726 | 2010 | 56,694 | 48,595 | 48,595 | 2011 | 58,962 | 50,538 | 50,538 | 2012 | 61,320 | 52,560 | 52,560 |

B. Projections for 2013-2017 Supply

The Projected Supply for the different services offered by both fitness and wellness centers were computed using the Arithmetic Geometric Curve since it yielded the least standard deviation
Table 22
Projected Values Using Arithmetic Geometric Curve (in hours) Services | 2013 | 2014 | 2015 | 2016 | 2017 | A.Fitness | | | | | | 1.Cardio Kickboxing | 1,366,560 | 1,421,222 | 1,478,071 | 1,537,194 | 1,598,682 | 2.Boxing | 303,680 | 315,827 | 328,460 | 341,599 | 355,263 | 3.Muay Thai | 189,800 | 197,392 | 205,288 | 213,499 | 222,039 | 4.Gym | 8,626,176 | 8,971,223 | 9,330,072 | 9,703,275 | 10,091,406 | | | | | | | B.Wellness | | | | | | 1.Facial Treatments | | | | | | a.Facial | 170,061 | 176,863 | 183,938 | 191,295 | 198,947 | b.Facial w/rejuvenating mask | 48,589 | 50,532 | 52,554 | 54,656 | 56,842 | c.Facialw/whitening mask | 48,589 | 50,532 | 52,554 | 54,656 | 56,842 | | | | | | | 2.Body Treatment | | | | | | a.Body scrub | 136,656 | 142,122 | 147,807 | 153,719 | 159,868 | b.Shiatsu/Swedish | 212,576 | 221,079 | 229,922 | 239,119 | 248,684 | c.Traditional Hilot | 30,368 | 31,583 | 32,846 | 34,160 | 35,526 | | | | | | | 3.Foot and hand Treatments | | | | | | a.Foot spa | 63,773 | 66,324 | 68,977 | 71,736 | 74,605 | b.Pedicure | 54,662 | 56,849 | 59,123 | 61,488 | 63,947 | Manicure | 54,662 | 56,849 | 59,123 | 61,488 | 63,947 |

IV. DEMAND-SUPPLY ANALYSIS

Having the computed expected demand and supply for the proposed services, the proponents was able to compare the data and consequently able to determine the unsatisfied demand available. The unsatisfied demands below were computed by deducting from the projected demand the projected supply.
Table 23
Computation of the Unsatisfied Demand (in hours) 1. Fitness a. Cardio Kickboxing | | | Years | Projected Demand | Projected Supply | Unsatisfied Demand (expected) | 2013 | 1,515,369 | 1,366,560 | 148,809 | 2014 | 1,553,254 | 1,421,222 | 132,032 | 2015 | 1,592,087 | 1,478,071 | 114,016 | 2016 | 1,631,890 | 1,537,194 | 94,696 | 2017 | 1,672,689 | 1,598,682 | 74,007 | b. Boxing | | | 2013 | 395,379 | 303,680 | 91,699 | 2014 | 405,264 | 315,827 | 89,436 | 2015 | 415,395 | 328,460 | 86,935 | 2016 | 425,781 | 341,599 | 84,182 | 2017 | 436,425 | 355,263 | 81,163 | c. Muay Thai | | | 2013 | 253,042 | 189,800 | 63,242 | 2014 | 259,369 | 197,392 | 61,977 | 2015 | 265,853 | 205,288 | 60,565 | 2016 | 272,500 | 213,499 | 59,000 | 2017 | 279,312 | 222,039 | 57,273 | d. Gym | | | 2013 | 9,253,004 | 8,626,176 | 626,828 | 2014 | 9,484,336 | 8,971,223 | 513,113 | 2015 | 9,721,451 | 9,330,072 | 391,379 | 2016 | 9,964,495 | 9,703,275 | 261,220 | 2017 | 10,213,615 | 10,091,406 | 122,209 |

2. Wellness A. Facial Treatments a. Facial | | | Years | Projected Demand | Projected Supply | Unsatisfied Demand (expected) | 2013 | 283,354 | 170,061 | 113,293 | 2014 | 290,438 | 176,863 | 113,575 | 2015 | 297,700 | 183,938 | 113,762 | 2016 | 305,142 | 191,295 | 113,847 | 2017 | 312,771 | 198,947 | 113,824 | b. Facial with Rejuvenating Mask | 2013 | 54,911 | 48,589 | 6,322 | 2014 | 56,284 | 50,532 | 5,752 | 2015 | 57,691 | 52,554 | 5,138 | 2016 | 59,134 | 54,656 | 4,478 | 2017 | 60,612 | 56,842 | 3,770 | c. Facial with Whitening Mask | 2013 | 60,372 | 48,589 | 11,783 | 2014 | 61,881 | 50,532 | 11,349 | 2015 | 63,428 | 52,554 | 10,875 | 2016 | 65,014 | 54,656 | 10,358 | 2017 | 66,640 | 56,842 | 9,798 | B. Body Treatments a. Body Scrub | | | 2013 | 154,722 | 136,656 | 18,066 | 2014 | 158,591 | 142,122 | 16,468 | 2015 | 162,555 | 147,807 | 14,748 | 2016 | 166,619 | 153,719 | 12,900 | 2017 | 170,785 | 159,868 | 10,917 | b. Shiatsu/Swedish Massage | 2013 | 340,389 | 212,576 | 127,813 | 2014 | 348,899 | 221,079 | 127,820 | 2015 | 357,622 | 229,922 | 127,700 | 2016 | 366,563 | 239,119 | 127,444 | 2017 | 375,727 | 248,684 | 127,043 | c. Traditional Hilot | | | Years | Projected Demand | Projected Supply | Unsatisfied Demand (expected) | 2013 | 42,723 | 30,368 | 12,355 | 2014 | 43,791 | 31,583 | 12,208 | 2015 | 44,886 | 32,846 | 12,040 | 2016 | 46,008 | 34,160 | 11,848 | 2017 | 47,158 | 35,526 | 11,632 | C. Foot and Hand Treatments a. Foot Spa | | | 2013 | 90,103 | 63,773 | 26,330 | 2014 | 92,356 | 66,324 | 26,032 | 2015 | 94,665 | 68,977 | 25,688 | 2016 | 97,031 | 71,736 | 25,296 | 2017 | 99,457 | 74,605 | 24,852 | b. Pedicure | | | 2013 | 68,260 | 54,662 | 13,597 | 2014 | 69,966 | 56,849 | 13,118 | 2015 | 71,716 | 59,123 | 12,593 | 2016 | 73,509 | 61,488 | 12,021 | 2017 | 75,346 | 63,947 | 11,399 | c. Manicure | | | 2013 | 66,440 | 54,662 | 11,777 | 2014 | 68,101 | 56,849 | 11,252 | 2015 | 69,803 | 59,123 | 10,680 | 2016 | 71,548 | 61,488 | 10,061 | 2017 | 73,337 | 63,947 | 9,390 |

V. Comparison of Unsatisfied Demand and Normal Capacity

After computing the unsatisfied demand for each service provided by fitness and wellness centers, the proponents compared these to the business’ normal capacity and occupancy rate in order to compute the company’s market share based on the unsatisfied demand only. Portion of the unsatisfied demand is expected to be covered by the company for the first five years of its operation. The normal capacity is however expected to increase in the succeeding years to cover a bigger share of the unsatisfied demand. Computations of normal capacity for each service offered by the business are detailed in the Technical Study.
Table 24
Computation of Market Share based on Unsatisfied Demand 1. Fitness a. Cardi0 Kickboxing | | | | Years | Unsatisfied demand(in hours) | Normal capacity(in hours) | Market share based on normal capacity (%) | Capacity based on occupancy rate (in hours) | Market share based on occupancy rate (%) | 2013 | 148,809 | 6,060 | 4.07 | 4,992 | 3.35 | 2014 | 132,032 | 6,060 | 4.59 | 5,142 | 3.89 | 2015 | 114,016 | 6,060 | 5.32 | 5,296 | 4.64 | 2016 | 94,696 | 6,060 | 6.40 | 5,455 | 5.76 | 2017 | 74,007 | 6,060 | 8.19 | 5,619 | 7.59 | b. Boxing | | | | | 2013 | 91,699 | 4,040 | 4.41 | 3,328 | 3.63 | 2014 | 89,436 | 4,040 | 4.52 | 3,428 | 3.83 | 2015 | 86,935 | 4,040 | 4.65 | 3,531 | 4.06 | 2016 | 84,182 | 4,040 | 4.80 | 3,637 | 4.32 | 2017 | 81,163 | 4,040 | 4.98 | 3,746 | 4.62 | | | | | | c. Muay Thai | | | | | Years | Unsatisfied demand(in hours) | Normal capacity(in hours) | Market share based on normal capacity (%) | Capacity based on occupancy rate (in hours) | Market share based on occupancy rate (%) | 2013 | 63,242 | 3,020 | 4.78 | 2,498 | 3.95 | 2014 | 61,977 | 3,020 | 4.87 | 2,573 | 4.15 | 2015 | 60,565 | 3,020 | 4.99 | 2,650 | 4.38 | 2016 | 59,000 | 3,020 | 5.12 | 2,730 | 4.63 | 2017 | 57,273 | 3,020 | 5.27 | 2,812 | 4.91 | d. Gym | | | | | 2013 | 626,828 | 123,550 | 19.71 | 98,840 | 15.77 | 2014 | 513,113 | 123,550 | 24.08 | 101,805 | 19.84 | 2015 | 391,379 | 123,550 | 31.57 | 104,859 | 26.79 | 2016 | 261,220 | 123,550 | 47.30 | 108,005 | 41.35 | 2017 | 122,209 | 123,550 | 101.10 | 111,245 | 91.03 | 2. Wellness A. Facial Treatments a. Facial 2013 | 113,293 | 11,014 | 9.72 | 8,811 | 7.78 | 2014 | 113,575 | 11,014 | 9.70 | 9,075 | 7.99 | 2015 | 113,762 | 11,014 | 9.68 | 9,347 | 8.22 | 2016 | 113,847 | 11,014 | 9.67 | 9,628 | 8.46 | 2017 | 113,824 | 11,014 | 9.68 | 9,916 | 8.71 | b. Facial with Rejuvenating Mask | 2013 | 6,322 | 363 | 5.74 | 290 | 4.59 | 2014 | 5,752 | 363 | 6.31 | 299 | 5.20 | 2015 | 5,138 | 363 | 7.07 | 308 | 6.00 | 2016 | 4,478 | 363 | 8.11 | 317 | 7.09 | 2017 | 3,770 | 363 | 9.63 | 327 | 8.67 | c. Facial with Whitening Mask | 2013 | 11,783 | 726 | 6.16 | 581 | 4.93 | 2014 | 11,349 | 726 | 6.40 | 598 | 5.27 | 2015 | 10,875 | 726 | 6.68 | 616 | 5.67 | 2016 | 10,358 | 726 | 7.01 | 635 | 6.13 | 2017 | 9,798 | 726 | 7.41 | 654 | 6.67 |

B. Body Treatments a. Body Scrub | | | Years | Unsatisfied demand(in hours) | Normal capacity(in hours) | Market share based on normal capacity (%) | Capacity based on occupancy rate (in hours) | Market share based on occupancy rate (%) | 2013 | 18,066 | 1,452 | 8.04 | 1,162 | 6.43 | 2014 | 16,468 | 1,452 | 8.82 | 1,197 | 7.27 | 2015 | 14,748 | 1,452 | 9.85 | 1,233 | 8.36 | 2016 | 12,900 | 1,452 | 11.26 | 1,270 | 9.84 | 2017 | 10,917 | 1,452 | 13.30 | 1,308 | 11.98 | b. Shiatsu/Swedish Massage | | | 2013 | 127,813 | 9,924 | 7.76 | 7,939 | 6.21 | 2014 | 127,820 | 9,924 | 7.76 | 8,177 | 6.40 | 2015 | 127,700 | 9,924 | 7.77 | 8,423 | 6.60 | 2016 | 127,444 | 9,924 | 7.79 | 8,675 | 6.81 | 2017 | 127,043 | 9,924 | 7.81 | 8,936 | 7.03 | c. Traditional Hilot | | | 2013 | 12,355 | 726 | 5.88 | 581 | 4.70 | 2014 | 12,208 | 726 | 5.95 | 598 | 4.90 | 2015 | 12,040 | 726 | 6.03 | 616 | 5.12 | 2016 | 11,848 | 726 | 6.13 | 635 | 5.36 | 2017 | 11,632 | 726 | 6.24 | 654 | 5.62 |

C. Foot and Hand Treatments a. Foot spa | | | Years | Unsatisfied demand(in hours) | Normal capacity(in hours) | Market share based on normal capacity (%) | Capacity based on occupancy rate (in hours) | Market share based on occupancy rate (%) | 2013 | 26,330 | 2,969 | 11.28 | 2,375 | 9.02 | 2014 | 26,032 | 2,969 | 11.41 | 2,447 | 9.40 | 2015 | 25,688 | 2,969 | 11.56 | 2,520 | 9.81 | 2016 | 25,296 | 2,969 | 11.74 | 2,596 | 10.26 | 2017 | 24,852 | 2,969 | 11.95 | 2,674 | 10.76 | b. Pedicure | | | 2013 | 13,597 | 1,614 | 11.87 | 1,291 | 9.49 | 2014 | 13,118 | 1,614 | 12.30 | 1,330 | 10.14 | 2015 | 12,593 | 1,614 | 12.81 | 1,370 | 10.88 | 2016 | 12,021 | 1,614 | 13.42 | 1,411 | 11.74 | 2017 | 11,399 | 1,614 | 14.16 | 1,453 | 12.75 | c. Manicure | | | 2013 | 11,777 | 1,872 | 15.89 | 1,498 | 12.72 | 2014 | 11,252 | 1,872 | 16.64 | 1,542 | 13.71 | 2015 | 10,680 | 1,872 | 17.53 | 1,589 | 14.88 | 2016 | 10,061 | 1,872 | 18.61 | 1,636 | 16.27 | 2017 | 9,390 | 1,872 | 19.94 | 1,686 | 17.95 |

VI. PRICE STUDY

Price is used to indicate the value of a good or service when it is paired with its perceived quality. The prices of the services provided by ARMY fitness and wellness center was set after considering the demand for the services, price of competitors, and the price that the customers are willing and able to pay for as well. Above all, the prices were set to cover the cost of providing these services and other incidental costs in order to run the business operations smoothly and make the business profitable.
ARMY Fitness and Wellness center elected to use the cost plus method in setting its services’ prices. This is done by adding a mark-up on top to the cost of the services. Detailed computation of the service prices are presented in the Technical Study. Also, the prices were set in view of the competitor’s charging prices.

Table 25
Comparison of Business’ Service Prices against Competitors’ (in Pesos) Services | ARMY | Fitness Edge | | Cardio Kickboxing | 120 | | | Boxing | 120 | 150 | | Muay Thai | 120 | | | Gym | 90 | 140 | |

Services | ARMY | Body and Sole | Let’s Face It | A.Facial Treatments | | | | 1.Facial | 305 | 300 | 245 | 2.Facial w/ rejuvenating mask | 375 | 650 | | 3.Facial w/ whitening mask | 375 | 550 | | B.Body Treatments | | | | 1.Body scrub | 400 | 550 | 510 | 2.Shiatsu/Swedish massage | 320 | 500 | 450 | 3.Traditional Hilot | 310 | 800 | | C.Foot and hand treatments | | | | 1.Foot spa | 280 | 300 | 270 | 2.Pedicure | 130 | 150 | 130 | 3,Manicure | 120 | 120 | 120 | VII. Factors affecting the market
The chosen target market being the young and middle aged men in Baguio City will greatly affect the success of ARMY Fitness and Wellness Center. The market will dictate whether the company will be gaining profits or incurring losses depending on whether the services offered by the business will be patronized by them or not. The following are some of the factors that would affect the decision-making process of the market: a. Price This is the most basic aspect that a consumer is looking into, whether the services offered are within the range they can afford. Considering all other items constant, generally, as the prices of the products increases inversely the demand decreases. Keeping this in mind, the proponents ensured that the prices set are reasonable and that customers will indeed get the value of their money when they avail the services offered by ARMY Fitness and Wellness Center.

b. Competition
With more and more fitness and wellness centers put up in the city, market becomes saturated thus making competition more prevalent. That is why the proponents of the business decided to target only a specific segment of the market, a niche market composed of young and middle aged men in the city. This would allow the business to capitalize on customers who are accessible, that is growing fast enough, and that is not owned by one established vendor already. To do away with the cut-throat competition, the business targeted only a smaller yet still profitable market.

c. Consumer Preferences and Lifestyle
The proponents understand that clients have varying tastes and preferences as dictated by their lifestyle that is why the business provide a variety of services and programs they can choose from either for fitness or wellness. Likewise, the promoters of the study intend to incorporate advertising and promotional activities that would keep and capture the clients’ interest.

d. Economy This greatly affects the market of the business’ services due to its unstableness. The changes in the availability and cost of the resources or raw materials used directly affect service cost. If the prices of raw materials are high it could lead to a higher selling price of the product. If the supplies of raw materials are unavailable there would be a less services to be rendered thereby demand is not sufficed.

e. Consumer’s Income
The purchasing power of an individual depends on its income. As an individual’s income increases, his marginal propensity to spend also increases. This may imply more demand for the establishment’s service since the clients can avail these more often.

f. Population Growth The demand for the service is expected to increase as the population of the established niche market increases.

g. Technological Advances Due to the continuous improvement in technology, equipment and machineries of the business may be rendered obsolete. The promoters of the study mean to keep up with this advances entailing additional capital investment in the future but by doing so, the greater productivity and efficiency maybe achieved. VIII. Marketing Strategies
ARMY Fitness and Wellness Center attempts to provide services that are somehow different than the competitors’ that is, by catering specifically to the fitness and wellness needs of the young and middle aged male segment of the market. The proponents intend to establish a niche market in order to capitalize on these customers who are accessible, that is growing fast enough, and that is not owned by one established vendor already. So to speak, this niche market is considered as a highly specialized market aiming to survive among the competition from numerous companies. The young and middle aged men in Baguio City are considered by the proponents as the subset of the market on which ARMY Fitness and Wellness Center’s specific services are focusing. This market niche enabled the proponents to define the specific service features to be provided by the business in order to satisfy the specific market’s needs, which is to create fitness and wellness atmosphere tailored fit for men.

As part of the marketing strategy to be incorporated by the company, promotional planning and development of messages are to be applied to connect with potential buyers. Marketing materials, such as internet sites, brochures, personal communications, public image and others that integrate credible claims, motivational messages, and consistent images are integrated to the marketing strategies to connect to (and build loyalty with) niche market consumers. To do this, the following are intended by the proponents to become part of their advertising and promotional plan:

* During the establishment’s opening, for the first two days, hold an open house. * Distribute brochures and/or fliers that include some color photos of the establishment, the equipment available, wellness services offered, or whatever is relevant to the business. * Broaden the marketing program to include some public relations by advertising the company’s business through printed ad specifically through the Baguio Midland Courier. The said advertisement will be printed for at least 2 Sunday issues every month for the first year, once a month on the succeeding years or whenever special promos are to be advertised. This will cost the company Php 185.00 per column per inch. * To coincide with the above marketing idea, the proponents intend to distribute advertisements online through facebook, twitter, other social network sites and blogs. * Radio Commercial would also be a way; the said advertisements will be aired through the local FM Radio Stations in Baguio such as K–Lite and I-Fm. The advertisement will be aired at around 3pm to 5pm since it is the most probable time that people are tuned in to their radios. * From the staff employed, the company will be having a customer service team in order to keep in touch with the clients, who would gather comments and suggestions for the improvement of our services and do call clients to update them about any promos.