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TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES- MANILA

Fluctuation Proceeds: Street Vendor’s Various Strategic Method

Considering the Shifting Possibility of Change in Their Income

A Thesis
Presented to the
Senior High School Department
Technological Institute of the Philippines- Manila

In Partial Fulfillment
Of the Requirements for
Practical Research 2

By:

Aguilar, Jonh Henry

Briza, Raine Emerald
Daquiz, Jeanne James
David, Aisha Maeryl
Soniega, Patrick
Villazana, Joy ann
Vitales, Vince Joseph

12-ABM-A1

September 27, 2019

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Chapter Two

Introduction

This chapter presents the gathered review of related literature and

studies of the researchers which are both from local and foreign sources.

This part includes the brief analyzing, summarizing, and critical thinking for

the paper to be explained conceptually and rationally since clarifying the

details of the chosen topic will be the one focused by the researchers.

Vendor’s strategies in the name of business are the main focus of the

study whether this could change their income or not, of course each has

their own unique strategy and gimmick in attracting a lot of customers but

for further elaborate explanation regarding with this many reviews of

related studies and literature was summarized and analyzed by the

researcher. Reviewing others papers and thesis with common variables or

topics will essentially give researchers the capability of breaking down the

idea of their chosen topic proficiently.

Review of Related Literature

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(Integrative Review)
(PennState Extension, 2019) Street food is wide variety that offers

from burger and fries to specialty gourmet. Then being said, the first step

in the business plan is to know the kind of food you will be serving. If you

plan to serve typical street food, you need to know how you will shine

among your competitors. In any kind of food, you will be serving, you

always have to think that you must give them quality not the quantity, you

must give them a good quality of foods you will be serving. The strategy

you will be making is not only in the events that you wished to target, but

on the things like, how many competitors will be present in the events you

are going and also the people that will be there. This part is not easy, but

you can always begin on thinking about the street vendors related to

yours. Typically, serving a generic fare in an event where food is the

secondary option and gourmet street in an event where food is the main

focus. Even if you have the good elements in business, you fail on things.

Although thinking of, it is not your fault, you need to be ready for the

possibility. You need to save money in case of these possibility. The

success of your street food depends on the promotion that your products

will have. The branding become effective if it has strong and memorable

story on how you started your business. Social media can also help you to

have potential customers. These are the few things you need to cover for

your business plan.

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According to the article GradesaFixer (2019) Street food vendors

are scattered everywhere in the Philippines they are commonly found near

sidewalks, school buildings, huge establishments are their primary

consumers. One of the most commonly found street food in the

Philippines are banana cue each of these banana cue vendors their own

unique strategy in terms of getting the attention of their consumers.

According to Nena Desucatan her marketing strategy is making the taste

of the banana cue unique to other competitors. Aling Nena makes sure

that her costumers are satisfied with the taste of her banana cue. Another

banana cue vendor named jocelyn Bayani her strategy is buying cheap

ingredients and materials needed this strategy helps make a profit in

selling banana cue. Allain Lulu who is an english-speaking banana cue

vendor. Due to his English speaking skills he grabs to attention of his

consumers through communication to make it easy sell his food.

(Mjoka, J., Selepe, M., Du Preez, C., 2018) Street food vendors

sold different foods to make their product stand out of its competitors. The

food vendors will have the same target customer the biggest one that will

contribute them is the students then the community. The students will

become their number one priority since they have more numbers. The

food vendors will also have to pick a certain location which there are
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people staying in the area all the time. Street food vendors will always go

where the people are because where the customers have gathered, food

vendors should also promote their product to make it stand out

Year 2018, Eko Handoyo and Avi Budi Setiawan conducted

research regarding the street vendors' survival strategies. It is said that the

street vendors are an example of an informal sector of a business that is

directly to the government. It is also said that those illegal street vendors

are mistreated by the city government just because they occupy public

spaces. Some of the street vendors- the 14 vendors they interviewed

belong to the illegal or unregistered street vendors continue to sell at the

riverbank of Banjir Kanal Barat even though they are prohibited or ousted

by the government just for them to survive in their daily lives or to provide

their daily needs in life. In this, it proves that they their lives were very

rough, and they even need to risk their lives just to fulfill their family needs.

And since those street vendors are not educated or does not have enough

educational skills in terms of business, no enough capital, the only way for

them to brawl for their lives was influenced by the word "bonek" which

means "brave to fight for their lives and for the family they love". In the

conclusion part of their research first, it is stated that being in a low-level

society the only option you got is being a street vendor for you to survive

or provide your need. Second the reason why street vendors used public
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spaces is because there are limitation and that is the reason why it is

unfeasible for them to occupy the location with an accountability. Also, it is

easy to peddle merchandise and lastly because of the lack attention of the

government towards the welfare of street vendors.

(Theoretical review)

The theory that is applicable is Game Theory (Zagare 1984)

whereas it is about putting yourself into the shoes of your rivals and

reason out from their perspective. It is somewhat similar because you

think of the possible ways to overcome your competitors or problems to

survive or to continue or exceed what is your goal. The theory that is

applicable is the theory of evolution (Darwin,1859) whereas it is about

coping with the environment you are in for you to survive. Just like in the

research, the street vendors find ways to provide for their daily needs and

cope with the environment or places they are in for them to endure a living

or day.

(Systematic review)

(Forkuor, J.B., Akuoko, K.O., Yeboah, E.H., 2017) This article

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contributes by giving a rational account and clear picture of fragmented

literature of the dynamic relationship between street vendors and city

regulators. The perception of people through fluid concept of power can

be seen that it is changing from time to time. Street vendors shows that

even though they are forced by organized political force they resist

through and through by using various strategies and approaches just to

avoid or resist the power of authorities since they continue to clear public

places which is the place of street food vendors. Street vendors and

regulators uses various strategy or power differently, to clearly emphasize

the two key stakeholders both must use their power to collaborate and

work together for the improvement of well-being of the vendors and the

general places the regulators want to protect, simply they must use their

ability to benefit both parties. To further deepen the study, they must

understand the negotiated setting of the streets in developing countries.

In a journal article conducted by Surakarta Municipality (2016), it

stated that street vendors are those who are positive for the organization,

government and negative effects on the occupied location, community,

government because they cause uncertainty, harassment, hindrance to

the progress of the city, and the alternative is that a lot of street vendor

shave to be relocated to the market a relocation policy is risky, so support

from the public and the Local House of Representatives is extremely

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necessary. The goal of the program implemented by the government will

be simpler to create company assistance stimulus run as much as

possible, mentoring program is essential implement the relocation policy,

sometimes unexpected issues occur so that emergency planning is

needed. However, this section of the more strategic the location is, the

more street vendors will appear working as street vendor is simple and

profitable, and that's why an individual selects this street vendor work

business to absorb a lot of work. In additional to that, Street vendor is a

business that gives the poor, urban unemployed individuals work

opportunities. This business has notable endurance, they can survive

even when the country is setting currency crisis storms. Therefore, this

type of business is an asset that needs to be protected and further

empowered. The area government's policy guidelines are to protect the

oppressed individuals, along with this, so road sellers need a solution and

equipment depending on the size of their company to continue doing

corporation.

According to Munkoyo (2015), the research asked who the

participants are in the management of street vending and their roles; the

management strategies they used; the achievements and failures of these

approaches, if any; and finally, the reasons why challenges with street

vending management have continued. The sample consisted of forty

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street vendors, two Lusaka City Council (LCC) representatives, one Local

Government Ministry official, the President of the United Street Vendors

Foundation (USVEF) and six New Soweto Market vendors, making a

complete sample of fifty participants. Homogeneous purposeful sampling

was used, self-selected methods were used as well as snowball methods.

The results showed the involvement of the LCC and the USVEF in road

sales management. LCC's role is to ensure that sales do not take place in

the CBD as the practice is illegal under Statutory Instrument number 44 of

2007, which calls street sales as a public nuisance. The USVEF is the

medium of communication between the government and the vendors. The

strategies implemented include force; the LCC's relocation and media

awareness. Other policies planned by the LCC and the Local Government

Ministry are: gazette the streets of the CBD into particular merchandise;

formalize selling as a legal company and finally graduate selling as a

recognized and valued type of trade; and public partnering with the private

sector to build appropriate infrastructure for all street sellers. Therefore,

the research further showed that challenges with the management of road

sales persisted due to: elevated levels of poverty and absence of formal

employment; political interference; absence of law enforcement and; huge

migration of traders from different areas to Lusaka for business

possibilities as a strong client base is found in the primary roads and

streets of Lusaka.
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(Methodology review)

(Rajabu, N., 2015) Qualitative research methods are the one used

by this study. All of the data are gathered by the researchers by

conducting many interviews and focus groups discussion, by this the

researchers has the chance to analyze all of the gathered information by

simply using qualitative content analysis through identifying relevant

themes in the data. The said data has been collected in two phases, the

first phase is the part were conducting one on one interview has been

done by simply asking the chosen respondents with relevant questions

regarding with the study for the researchers to be able to clearly explore

the idea of the respondents. The second phase was done through focus

group discussion wherein five to six groups were administered for the

discussion to start. The idea of this is to know and share all the experience

experienced by the respondents and everyone are given the time to

speak. The study was carried in Dar es Salaam, the economic hub of

Tanzania since it is the most populated and it has the largest number of

street food vendors. Furthermore, they are selected for the convenience,

accessibility and proximity for the researchers. The study sought to

understand how street vendors communicate their products. The result

showed that numerous strategies are being employed by the vendors to

share and communicate their products to their customers. This can be

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done through the word of mouth, personal selling, points of sale display,

price reduction, free product technique, and place location as the most

common promotion strategies used by street vendors.

According to Anuradha (2015) a street food vendor in Mumbai

gives another piece of chaat (the food the vendor sells) to his first-time

customers makes the vendor unique to this other competitors. By just

simply offering another chat to his first-time customers the makes a

positive attitude towards the costumers not only that his unique to his

competition he immediately built up a customer loyalty to his consumers.

(Lucan, S.C., Wylie-Rosett, J., 2013) In the exploration of street

food vendors is a source of food especially in low income communities in

low income communities in Quiapo, Maynila. Street vendors often do rely

on the location and the number of people surrounding that location on

which to establish the of their small business. They have to project an eye-

catching stall and food to have an impact on the customers perception.

Street vendors talk to their customers at all, but some to create a bond

with them and have a nice impact on both the customer and food vendor.

Business strategies was quite limited and varied in line with the
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street vendor's relationships with other actors and business practitioners

(Walsh, 2014). Street vending and markets helps informal employment

and part timer to have opportunities by providing additional income for

them. Vendors helps in terms of sustaining decent standard of living for

the migrant workers. Street vending changes urban life; having new

transit, opening of condominiums and flourishing of frozen food industry,

many of the street vendors are easily to adapt and flexible but not all of

them can do it.

(Integrative Review)

(Bhargava, R.,2010) In the world of small businesses, it is important

that you will make your customers to have a memorable experience about

your business, your personality will help you, if you talk to your customers

they can have a good time buying your product. In a business, the

vendors doesn't missed the pat of putting headlines or signage of their

business, the potential customers need to understand what do you have in

just a small amount of time, the headlines or signage will help a business

to let the people know what product are you selling. Also, through the

headlines, you can tell your potential buyers what you can do for them and

you will lead to have a lot of engagement to tour customers and you can

have more higher sales. You should know where the people are or where
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does the people go because it can help you to have higher success in

selling your products. A vendor put a lot of effort to bring their business to

the people. You also need to remember that you need to be the best

among the others, you have to find a perfect product so that you can be

different to others or you can have a twist so that you can attract more

people. If you start in something good in the start it will give a reputation to

the buyers. You need to know what really is your product, because it gives

other feeling to the customers if the vendors knows his/her product well,

they can give you good advice about certain products, their expertise is

one of the things you are buying. You can also encourage by using only

your mouth because it helps a customer to have more loyalty in your store

or business. If you are speaking in the right language help you to invite

customers, the way that you are going to promote and the language itself

gives immediate connection because they able to speak to you

individually. There are different things on how you can attract your

customers in buying your product or in buying in your stall/business. In a

small business, you will not miss to have a chitchat with the vendors while

enjoying your food for example. Also using headlines/signage can help

you to be known especially if your signage is different one. You should

always think about where the people are, it is like knowing where people

often go or where is a popular spot for you to sell your products. Just need

to make sure you have a special thing that others do not have, make sure
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your product is different from the other, buy before that you need to know

your product or why really is your product. This kind of things will help to

have a better kind of service to the customers.

(Theoretical Review)

There is a theory that is proposed by Rodriguez (2010) that a small

business would have external and internal factors that will affect the

business due to is competitors and customers suddenly change to the

market. A researcher has concluded that preparing a management style

and strategy is very important to the vendors following strategies target

customers, adaptation to sudden changes in the business environment,

and promotion of the product. To remain consistent the business owners

must put out a carefully thought plan. So that the business will always be

progressing even if there are obstacles

In 2007, Sharma conducted a research regarding the strategies in

urban that can be a solution for the street vendors in Mumbai for them to

blend or fit in the modern society. Because some of the street vendors in

Mumbai could not integrate or blend to the usual public space look and

that they failed to fit in. They represent poverty as they were viewed in the

city. However, it is said that it is inappropriate, foolish and unfair if they just
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remove them because they still provide goods and services to the citizens

or customers. And that is the only way or business they can do to earn a

living. They even tried to oppose and argued to the government just to

stay. This study aims to offers a good design as a solution instead of

street market will be remove to the city. And it proves that even a street

vendor is effective and important form of retailing.

(Theoretical Review)

The theory gray man can be applicable in this study because in

gray man a person trying to blend or fit in the society for them to survive in

the most dangerous time. It is somewhat similar in terms of blending in to

survive. In the study, it is suggesting a way to be suitable in their place for

them not to be disregarded or to stay and live to earn for a living.

In a journal article conducted by Mini Bhattacharya (Thakur, 2001)

street food vending in Guwahati: Survival strategy Stated that street food

vending is pervasive o urban avenues. Like most casual area exercises

nourishment distributing has been overlooked by financial organizers in

spite of its significance in giving business and modest administration this

paper fuses aftereffects of the investigation of road nourishment

distributing in Guwahati city by anthropological strategies regarding seller

status, demographic and so on. That discoveries are uncover that

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distributing is well spring sustenance urban poor, also, however named

unlawful it creates income for districts at last it gives an important

administration breaking cultural hindrances this paper blueprints measures

for help and improvement of road nourishment segment including

legitimizing this action

Synthesis

According to the Pennstate Extention the first step in creating a

business plan is to know the kind of food you will be serving not just to

know but to fully commit yourself to the identity of the food you are trying

to make or serve. If the path you want to take is serving typical street

foods, one must truly know how one will shine among the competitors

since having the typical street foods mean having many competitors and

for you to be able to standout one must look for different kinds of product

to serve the consumers. Remembering that you need to be the best

among the others is important and having a perfect product as well since

being unique and having a twist can attract more people. But that Is just

the start in the long process of success of your street food and it depends

on the factors presented. One of this is the promotion your product will

have like giving fliers or using new media as a way of promotion but this is

not the only thing that can help you reach your goal. Creating an eye-
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catching stall and foods which will also impact the customers perception

regarding with your product can also help.

As Bhargava presented, having the customer have a memorable

experience can also help one in having a successful business and the

vendor’s positive attitude will make this do. Since in all of the small

businesses, of course, one will not have missed the chance of having a

small chitchat with the customers. We all knew that street vendors talk to

their customers at all, but in some cases some tend to create a bond with

them and have a nice impact on both the customer and food vendor.

While in the middle of it you can enlighten the potential buyers about the

things one can do which means highers sales. And as Zagare have said “it

is about putting yourself into the shoes of your rivals and reason out from

their perspective”. is the most important part the paper has to say since

being a street food vendors always tend to have many competitors and to

overcome them and the problems arising, and to survive the demise one

must exceed one’s goal and understand beyond the boundary.

Mjoka, J., et., al. presented that as anyone can see street food

vendors are scattered everywhere, in every country you go to, they often

do rely on the number of people surrounding that location on which to

establish the of their small business. they can be found near sidewalks,

school buildings, huge establishments since this are their primary

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consumers and the other one they often rely to is their location which can

cause great impact on the sales. They reason out why street vendors

establish their stalls in public spaces, first is because limitation are

present, which cause for them not to occupy spaces with their own

responsibility. Also, it is told that it is easier to peddle merchandise in this

places and of course lastly government’s lack of attention to their welfare.

As the main subject of the paper, Rajabu’s research resulted that

numerous strategic methods are applied by the vendors not just to share

but also to communicate their products to their customers. Which can

done through the word of mouth, personal selling, points of sale display,

price reduction, free product technique, and place location as the most

common promotion strategies used by street vendors. Not only that but as

we suggested using management styles or strategies can be key in the

business’s progress, additionally business environment are known to

change quickly so the sudden changes should be an obstacle but the

vendor’s adaptation to it can make the business stable and consistent

The researchers have also found additional information which can

be useful for next studies. According to Walsh informal employment and

part timers can have the opportunity in the place of street vending since
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these kinds of markets nowadays provides additional income to those who

persevere and strategic. They have the opportunity since other vendors

helps them in terms of sustaining the wage given to them that many

migrant workers would want, but taking in mind that adapting to markets

are easy and flexible but only a few can only manage to survive.

The researchers have learned that in the place Amsterdam,

vendors with no background of education or doesn’t have enough skills

when it comes in business they brawl for their lives is the influence by the

word “bonek” that means “brave to fight for their lives and for the family

they love. These are some of Eko Handoyo and Avi Budi Setiawan

research have taught the researchers.