C. Demand

Kinect Game Hub is a new business that offers a unique kind of entertainment. Its

demand would be computed based on different factors. The population of target market

and its growth rate, gross market acceptability, acceptable target market, and annual

frequency are considered in projecting the demand for five years.

POPULATION OF EMPLOYEES

Given that Kinect Game Hub is within the Poblacion District, the population

within the range of 20-30 years old of the district for the past five years was determined.

Since, there is no available data for the employment rate per district; we used the rate for

the entire Davao City to solve for the Population of Employees.

YEAR POPULATION(20-30 Y.O)

EMPLOYMENT RATE

POPULATION(EMPLOYEES-20-30

Y.O)

AS % OF PRIOR

DEMAND2007 30,133 95.1% 28,656 -2008 31,097 95.7% 29,760 3.85%2009 32,092 93.8% 30,102 1.15%2010 33,119 93.9% 31,099 3.31%2011 34,179 93.9% 32,094 3.20%

Table 1: Population of Employees for the past 5 years

TOTAL11.51%

AVERAGE GROWTH RATE 2.88%

The population of employees for the last five years is increasing. Even though the

employment rate is inconsistent, the population of employees is still increasing because of the

increasing population of people with ages 20-30 years old.

Table 2: Projected Population of Employees for the next 5 years

(Prior year’s demand plus 2.88% thereof)

Given this projected population of Employees, Kinect Game Hub’s demand will have a

potential increase in the future.

ACCEPTABLE TARGET MARKET

Table 3: Computation of Acceptable target market

YEAR POPULATION OF EMPLOYEES

GROSS MARKET ACCEPTABILITY

ACCEPTABLE TARGET MARKET

2016 36,990 59% 24,4132017 38,055 59% 25,1162018 39,151 59% 25,8402019 40,278 59% 26,5842020 41,438 59% 27,349

The Acceptable Target Market can be computed by multiplying the population of

employees ( from table 2) to the gross market acceptability. The gross market acceptability can

be based on the proponent’s market survey on who are willing to avail of the service offered by

Kinect Game Hub in the future. Out of 195 respondents, 177 said yes thus arriving at 91%. Then

YEAR POPULATION(Employees-20-30 y.o.)

2016 36,9902017 38,0552018 39,1512019 40,2782020 41,438

out of the 177 respondents who said yes, we narrowed down the percentage by counting the

respondents who said that they are willing to spend Php 240 per hour for a game room with a 4

person-capacity, thus getting the gross market acceptability of 115 respondents or 59%.

Table: Computation of Annual Frequency

FREQUENCYRESPONDENTS

(a)

ANNUAL EQUIVALENT

(b)

ANNUAL FREQUENCY in average per

person(a*b)

Everyday 3 360 days 1080Once a week 48 52 weeks 2496Twice a week 30 104 weeks 3120Thrice a week 2 156 weeks 312Once a month 57 12 months 684Twice a month 37 24 months 888

TOTAL 177 8580

Annual Frequency = ANNUAL FREQUENCY in average per person Total number of Respondents (Willing to avail)

= 8580 177

= 48

The Annual Frequency can be based on the market survey done by the proponents. The

number of respondents for each kind of frequency is multiplied by the annual equivalent to get

the Annual Frequency in average per person. The annual equivalent is the corresponding number

of days, weeks, or months for a year depending on the kind of frequency. Then, the total Annual

Frequency in average person computed previously is divided to the total number of respondents

who are willing to avail of the service offered by Kinect game hub. The annual frequency for

Kinect game Hub is 48 times.

DEMAND FOR KINECT GAME HUB

Table: Demand for Kinect Game Hub

YEAR ACCEPTABLE TARGET MARKET

ANNUALFREQUENCY

ANNUAL DEMAND

2016 21,824 48 1,047,552

2017 22,452 48 1,077,696

2018 23,099 48 1,108,752

2019 23,764 48 1,140,672

2020 24,449 48 1,173,552

In finding the Projected Annual Demand for five years, the proponents considered the

population of employees, gross market acceptability, acceptable target market and annual

frequency. But in the table above, only the acceptable target market and annual frequency are

shown for simplicity given that other factors not shown above were already computed in the

previous tables. The acceptable target from table 3 is multiplied to the annual frequency from

table 4 to get the annual demand for each year. As a result, Kinect game Hub will have the

annual demand for the year 2016 of 1,047,552 persons and so on.

The projected annual demand of Kinect Game Hub can still be affected by many factors.

One of such is the major expenditure items to which their income translate to. An example would

be expenses on food, transportation, house rent and utilities. Another is the

http://www.numbeo.com/cost-of-living/city_result.jsp?country=Philippines&city=Davao