Mr. Apollo Ignacio, a starting entrepreneur wants to establish a pork retailing business in Barangay Apar. He
wants to know if this business is worth his capital and effort. He did a marketing research and found out that there
are 400 families with an average of seven members per family. He did a survey and found out that only 335 families
eat pork and they consume and average of 3 kilos every five days. There are three other pork retailers in the area
that have been there for 3 years already, and they have equal market shares of 25% each. Mr. Alfonso plan to
capture the 25% of the market. The average net profit per kilo is P10. How big is the market size and what could be
the potential market share of Juanito's pork retail business? Mr. Alfonso decided to reduce the markup by P3.
wants to know if this business is worth his capital and effort. He did a marketing research and found out that there
are 400 families with an average of seven members per family. He did a survey and found out that only 335 families
eat pork and they consume and average of 3 kilos every five days. There are three other pork retailers in the area
that have been there for 3 years already, and they have equal market shares of 25% each. Mr. Alfonso plan to
capture the 25% of the market. The average net profit per kilo is P10. How big is the market size and what could be
the potential market share of Juanito's pork retail business? Mr. Alfonso decided to reduce the markup by P3.
Answers & Comments
Answer:
SEEING that selling pork is a profitable business, a former pork butcher opened his own meat business.
Jonathan Alfornon, 29, opened his own meat store last week at the Naga Public Market after 15 years of working as a butcher.
Growing up without parents, Alfornon grew up in the hands of his aunt, a known entrepreneur in the municipality. His aunt runs a piggery, sells pork and operates an eatery.
The then 14-year old Alfornon decided to help his aunt in the business by assisting pork butchers in packing meat orders. Later on, he learned to use butcher’s cutlery for deboning and cutting pork meat in retail portions.
Seeing he was performing well as a butcher, Alfornon’s aunt started to hand him small amounts of money until on he was regularly receiving P2,500 a week from her.
Alfornon also established loyal customers, increasing revenues for his aunt’s business.
When he started his own family in 2011, he remained a pork butcher. But he dreamed of opening his own meat shop.
Alfornon initially thought it would remain a dream because he did not have enough capital to start a business with. With the help of a US-based friend, he was given P50,000 to start a meat shop.
Last Wedneday, Alfornon finally opened his dream business.
He mans the operation by himself, from dealing with piggery owners, buying pigs and preparing the meat for sale.
In a day, Alfornon prepares around 80 kilos of pork. He said he earns at least P3,000 daily.
Alfornon said in an interview that it is easy to make money selling pork. He said that what he makes in a day in his new business used to take him a week to earn.
Although running his own business means more work, Alfornon said it is more fulfilling. Less than a week of operation, Alfornon said he already has repeat customers. He said some of his customers before are also supporting him now.
He said he is even happier now with his aunt supporting his new undertaking.