THE MARKETING ASPECT

Objectives of the Marketing Aspect

 Objective 1; Build Community

Cater your marketing toward promoting brand referrals from current customers
and offer preferred treatment through rewards. Creating a loyalty program or
incentives for those that are repeat customers can not only assist with retention, it
can also increase units per sale if you work your strategy right.

 Objective 2; Increase Brand Awareness

To be ever present in their mind when they are ready to purchase, and you can do
so both through organic and paid marketing.

 Objective 3; Data Driven Decision

Ensuring the business has the right tools to collect data and segment customers is
pivotal in enhancing the customer experience and gaining conversion with
customers. To improve our margin include managing markdowns and sales,
resisting discounting in selling, managing shrinkage, improving relationship with
suppliers, improving product mix and visual merchandising.

Industry Analysis

a. Business Location Analysis

The Real Rice will be located at Zone 4, Brgy. Handumanan. Since this location
don't have enough rice retailer and a lot of people travel in the city to buy some
rice probably this is the best location for our business.

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 1

 Exhibit 4. Real Rice Street View

Exhibit 5. Real Rice Map

Location

b. Opportunities and Threats

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 2

 Table 2. Opportunities and Threats

OPPORTUNITIES THREATS
 Increasing population  Entry of new competitors
 Opportunity to purchase a The Threat of New Entrants exerts a
smaller retailer to increase significant influence on the ability of
market share current companies to generate a
 Market development profit. When new competitors enter
The market development will lead to into an industry offering the same
dilution of competitor’s advantage products or services, a company’s
and enable our business to increase its competitive
competitiveness compare to the other  Natural Calamities
competitors.  Price wars among the
competitors are almost
always terrible news for the
majority of companies who
get caught up in them. Price
lowering reduces profit
margins and, in some
situations, can result in
companies losing money and
possibly exiting the market.
Profits are down, which
means there are fewer
resources available to fund
capital expenditure.

Environmental Analysis

a. Demographic Environment

According to PhilAtlas, Brgy, Handumanan 2020 Census was 29,396.

This represented 4.89% of the total population of Bacolod. The household
population of Handumanan in the 2015 Census was 27,008 broken down

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 3

 into 6,054 households or an average of 4.46 members per household.

The computed Age Dependency Ratios mean that among the population of
Handumanan, there are 44 youth dependents to every 100 of the working
age population; there are 9 aged/senior citizens to every 100 of the
working population; and overall, there are 53 dependents (young and old-
age) to every 100 of the working population.

[Link]

In view of that we have positioned our Real Rice Retail store to the service
of Zone 4 Brgy. Handumanan. Our prospect consumers are the following
groups of people and corporate organizations:

- Households

- Restaurants

- Eatery

b. Economic Environment

Rice remains the agricultural commodity with foremost political and

economic significance in the Philippines. As a major staple, rice accounts
for 35 percent of average calorie intake of the population and as much as
60-65 percent of the households in the lowest income quartile (David and
Balisacan, 1995). Moreover, rice farming is the source of income and
employment of 11.5 million farmers and family members. Rice
contributes 13 percent to the Consumer Price Index (CPI), 16 percent to
the Gross Value Added (GVA) of agriculture, and 3.5 percent to the Gross
Domestic Product (GDP) (Gonzales, 1999). Due to its economic
importance, rice has become the central focus of government agricultural
policies. [Link]

c. Natural Environment

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 4

 One with goals of sustainable development, Real Rice Retail store will use
a biodegradable materials in packaging of the rice which are not harmful
to the environment. It does not only protect the environment but its
reusable.

d. Technological Environment

The development in the field of technology which affects business by new

inventions of productions and other improvements in techniques to
perform the business work. Those technological factors which impact the
business operation are called technological environment.

e. Political Environment

Rice has been a crucial political commodity since the Commonwealth

since it is a staple food and calorie source for the majority of the
population, particularly in low-income groups, as well as a source of
employment and income for a diverse collection of people who make up
the demand and supply chain.

f. Legal Environment

The business legal environment plays a very important role in determining

the success of any businesses around the globe. The government taxes that
are being imposed among other regulatory measures help to promote
economic growth and to protect consumers from exploitation and other
illegal factors. Prior to establishing or when in the process of running a
business, accordingly,it is imperative to understand the role of regional tax
measures, legal factors affecting business and regulatory measures in the
determination of how your business is affected. Another measure to help
your business adapt to legal issues in its environment is the understanding
of regulatory measures and to account for all your regional economic
analysis. [Link]
environment/

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 5

Market Analysis

Demand Conditions:

Household population in Handumanan 29,396

Population who are not qualified as consumers (28.77%) 8,456

Net Potential Market 20,939

Multiply: Average amount spent of buyers P 250

Monthly spending P 5,234,750

Multiply: Annual buying frequency 25

Annual spending P30,868,750

Divide: Proposed average price P 36

Annual Demand 3,635,243 kilos

Supply Conditions:

Estimated Monthly Sales P 90,000

Multiply: Months in a year 12

Annual Sales P 1,080,000

Multiply: Number of competitors in the same location 3

Annual supply in pesos P 3,240,000

Divide: Average price of products based on survey of 38

supplier’s opinion

Annual Supply 85,263 kilos

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 6

 Measurement of Demand and Supply Quantum:

Annual demand 3,635,243

Less: Annual supply 85,263

Demand and supply gap 3,549,980 kilos

Based on the remaining demand of 3,549,980 kilos of rice using the Demand and Supply
Quantum, it is apparent that the market is not yet fully served. As a result, the proposed
business potential market feasibility since there are still many unsatisfied demands.

Based on the demand and supply quantum, it’s clear that the market is not yet fully
served based on the remaining demand of 4,483,526 units. Therefore, the proposed
business has potential market feasibility since there are still many unsatisfied demands.

The Marketing Program

a. Proposed Target Market

Our target market are the people living in the area of Zone 4, Brgy.
Handumanan Proper Bacolod City.

Exhibit 6. Zone 4, Goggle Map Image

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 7

 b. Product Strategy
Improvement of the product quality must be more attractive and in line
with the branding of products as a healthy food. It needs to be carried out
because more than 50% of the respondents stated that the rice is still not
clean and has impurity. Some farmers have been doing nice packaging for
their product using plastic material only without sufficient information
about the product.

LOCAL RICE
Exhibit 7. RC 222 Variety

Exhibit 8. RC 216
Variety

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 8

 Exhibit 9. Sinandomeng

Exhibit 10. White

Rose

IMPORTED RICE
Exhibit 11. Jasmine Special

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 9

 Exhibit 12. Dinorado

c. Price strategy
A lot of us are willing to buy rice since it become part of our tradition. We
love to eat white rice every morning, during lunch time or even during
dinner time. The Real Rice produced a survey that examine how much
amount will respondents willing to spent in buying a rice. Based on the
results, people are concern to the price and quality of products. So, the
business came up with the strategy to offer affordable and budget friendly
rice for customers and with that the business uses value-based pricing
strategy which setting a price on what customers believes in the worth of
what business is selling. Our business makes sure that all the rice we sell is
pure, new, and not old stock to ensure that the money of the customer buys
and pays us is worth-it to the product we sell. We guarantee that the price
of our product is equal to pure, new, and good quality of rice. Since, we
buy our rice stocks directly to the dealer, we will make our rice affordable
or cheaper price compared to other stores.

Table 3. Variety of Rice and Price per sack and per kilo

Variety of Rice Price per sack Price per kilo

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 10

 RC 222 ₱2,050.00 ₱41.00

RC 216 ₱2,050.00 ₱41.00

Sinandumeng ₱2,350.00 ₱47.00

White Rose ₱2,300.00 ₱46.00

Jasmine Special ₱2,650.00 ₱53.00

Dinorado ₱2,700.00 ₱54.00

d. Place Strategy – The location of the business will be established in Zone 4,

Brgy. Handumanan Proper, Bacolod City, a progressive place. The
proponents prefer this place because it is accessible to the target market
such as the people residing in that place.

Exhibit 13. Zone 4, Brgy. Handumanan

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 11

 e. Promotions Strategy – As of today, social media is very useful in
disseminating information. One way to promote the business is to advertise
your place to the customers using social media. In just one click, you can
communicate to other people even they are far away from you. The
business can showcase their products through posting pictures in the net.
We can also give out some flyers and putting tarpaulins to expand the
exposure of the business, it will be posted to the public are to attract more
potential customers and to make people be aware that the business is
existing.

Real Rice Facebook Link

[Link]

Exhibit 14. Real Rice Facebook Page

Exhibit 15. Real Rice Tarpaulin

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 12

 Exhibit 16. Real Rice Flyers

Presentation,

Demand Study

The following are the results of the survey conducted by the researchers:

Age Frequenc Percentag Figure 1. Age of Respondents

y e
20-35 30 30%

36-45 29 29%

46-60 25 25%

61 above 16 16%

TOTAL 100 100%

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 13
 16%
30%
25%
29%

20-35 36-45
46-60 61 above

Table 1. Age of Respondents

Figure 1 and Table 1 shows that 30% of the respondents are aged 20-35, 29% of
the respondents are aged 36-45, 25% of the respondents are aged 46-60, and 16%
of the respondents are aged 61 above. This means that most of the respondents are
aged 20-35 years old.

Choices Frequenc Percentag Figure 2. Sex of the

y
34%
e Respondents
Male 66% 34 34%

Female 66 female 66%

male

TOTAL 100 100%

Table 2. Sex of the Respondents

Figure 2 and Table 2 shows that 66% of the respondents are Female, and 34% of
the respondents are Male. This means that the most respondents who will buy at
our store are Female.

Choices Frequenc Percentag

y e Figure 3. Civil Status of the respondents
Single 17 17% 17%

Marrie 83 83%
d 83%
FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 14
TOTAL 100 100%
Single Married
 Table 3. Civil status of the respondents

Figure 3 and Table 3 shows that 83% of the respondents are married and 17% of
the respondents are single. This means that most of the respondents who will buy
at our store are married.

6%
Choices 18%
Frequenc Percentag
14% Figure 4. Monthly Income of the
y e respondents
Below 18 18%
5,000
5,001- 32 32%
30% 32%
10,000
10,001- 30 30%
20,000
Below 5,000
Above 5,001-10,000
14 14%
10,001-20,000 20,001 above
20,000
Prefer not to say
Prefer 6 6%
not to say
TOTAL 100 100%

Table 4. Monthly Income of the Respondents

Figure 4 and Table 4 shows that 32% of the respondents’ monthly income are
5,001-10,000, 30% of the respondents’ monthly income are 10,001-20,000, 18%
of the respondents’ monthly income are below 5,000, 14% of the respondents’
monthly income are above 20,001, and 6% of the respondents’ monthly income
are prefer not to say. This means that the majority of the respondents’ monthly
income are 5,001-10,000.

Choices Frequency Percentag

e
5 kilos 32 32%
10 kilos 67 67% Figure 5: Respondents’
kilos of rice they consumed in a
FT-CRD-119-00 |35
STIkilos 1
WEST NEGROS UNIVERSITY 1% II
– Chapter 15
50 kilos O 0
week
TOTAL 100 100
 15%

55% 30%

0%

5 kilos 10 kilos
35 kilos 50 kilos

Table 5. Respondents’ kilos of

rice they consumed in a week
Figure 5 and Table 5 shows
that there are 67% of the respondents can consumed 10 kilos in a week,
32% of the respondents’ consumed 5 kilos in a week, and 1% of the
respondents’ consumed 35 kilos in a week. This means that the majority of
the respondents consumed 10 kilos in a week.

Choices Frequency Percentage Figure 6. Respondents’ prefer to

buy at the following market
Hypermarket 2 2%

Market 56 56%

Sari-Sari Store 38 38%

Others 4 4%

TOTAL 100 100%

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 16

 Table 6. Respondents’ prefer to 2%
4%
buy at the following market

Figure 6 and Table 6 shows that 38%

56% of the respondents prefer to

56%
buy rice at the Market, 38% of the Hypermarket Market
Sari-Sari Store Others
respondents prefer to buy rice at
the Sari-sari store, 4% of the
respondents’ are others, and 2% of the respondents’ are Hyper Market. This
means that the majority of the respondents are prefer to buy at the Market.

Choices Frequenc Percentag Figure 7. Respondents’ prefer to buy

y e in sacks or in kilo
In sacks 56 56%
44%
56%
In kilos 44 44%

Total 100 100%

In sacks In kilos

Table 7. Respondents’ prefer to

Figure 7 and Table 7 shows that 56% of
buy in sacks or in kilos.
the respondents’ prefer to buy in sacks
and 44% of the respondents’ prefer to
buy in kilos. This means that the majority of the respondents prefer to buy
in sacks.

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 17

 12%

Choices Frequency Percentag

Figure 8. Respondents’ consumption of
e
88% sack of rice in a month
1 sack 88 88%

1 ½1 sacks
sack 1 1/2 sacks
12 12%

TOTAL 100 100%

Figure 8 and Table 8 shows

that 88% of the respondents’
consumption in a month are 1 sack, Table 8. Respondents’ consumption
of rice in a month
and 12% of the respondents’
consumption in a month is 1 ½ sack
of rice. This means that the majority of the respondents’ consumption in a
month is 1 sack.

Figure 9. Respondents’ prefer variety of rice

2%
Choices Frequency Percentag Table 9. Respondents’ prefer
e
variety of rice
Local Rice 98 98%

98%
Imported 2 2%
Rice Figure 9 and Table 9 shows
TOTAL
Local Rice 100
Imported Rice 100% that 88% of the respondents prefer
the variety of rice are Local rice
and 2% of the respondents’ prefer imported rice. This means that most of
the respondents’ prefer
Local Rice.
2% 1%

35%

Choices Frequenc Percentag Figure 10. Respondents’ willingness to buy at

62%
store that has a free gifts such as umbrellas, t-
shirts, calendar, etc.

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 18

Strongly Agree Agree Neutral
Disagee Strongly Disagee
 y e
Strongly 62 62%
Agree

Agree 35 35%

Neutral 2 2%
Disagree 1 1%

Strongly 0 0
Disagree

Total 100 100%

Table 10. Respondents’ willingness to buy at

store that has a free gifts such as umbrellas, t-
shirts, calendar, etc.
Figure 10 and Table
10 shows that 62% of
the respondents’ willingness to buy at store that have a free gift such as
umbrellas, t-shirt, calendars, etc. are Strongly Agree, 35% of the
respondents’ willingness to buy at store are Agree, 2% of the respondents’
willingness to buy at store are Neutral, 1% of the respondent willingness to
buy at store are Disagree. This means that most of the respondents’
willingness to buy at store that have a free gift such as umbrellas, t-shirt,
calendars, etc. are Strongly Agree.

1%
8%
Choices Frequenc Percentag
y e
Strongly 55 55%
36%
Agree 55%

Agree 36 36%

Strongly Agree Agree

Neutral Disagree
FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 19
Strongly Agree
 Figure 11. Respondents’ more likely to buy at
stores that is already known in the area

Neutral 8 8%

Disagree 1 1%

Strongly 0 0
Disagree
TOTAL 100 100%

Table 11. Respondents’ more likely to buy at

stores that is already known in the area

Figure 11 and Table 11 shows that 55% of the respondents are more likely
to buy rice at stores that is already known in their area are Strongly Agree,
36% of the respondents are Agree, 8% of the respondents’ are Neutral, and
1% of the respondents are Disagree. This means that the most of the
respondents are more likely to buy rice at stores that is already known in
their area are Strongly Agree.

12%
Choices Frequenc Percentag Figure 12. Respondents who influences
y 46%
e by the staffs friendliness to buy at store
Strongly 46 46%
42%
Agree
Agree 42 42%
Neutral 12 12%
Strongly Agree Agree
Neutral
Disagree 0 Disagree 0
Strongly Agree

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 20

 Strongly 0 0
Disagree
TOTAL 100 100%

Figure 12. Respondents who influences

by the staffs friendliness to buy at store
Figure 12 and Table 12
shows that 46% of the respondent influences the staff friendliness to buy at
store are Strongly Agree, 42% (42 families) are Agree and 12% (12
families) are Neutral in Zone 4, Brgy. Handumanan Proper.

1%
9%
Choices Frequenc Percentage
Figure 13. Respondents who more
y
likely to buy at store that have many
Strongly 52 52% 52% variety of rice
38%
Agree

Agree 38 38%

Neutral 9 9%
strongly agree agree
neutral disagree
Disagree
strongly disagree 1 1

Strongly 0 0
Disagree

TOTAL 100 100%

Table 13. Respondents who more likely to

buy at store that have many variety of rice

Figure 13 and Table 13 shows that 52% of the respondents are more likely
to buy rice at store that has many different variety of rice are Strongly
Agree, 38% of the respondents are Agree, 9% of the respondents are

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 21

 Neutral, and 1%of the respondents are Disagree. This means that most of
the respondents are more likely to buy rice at store that has many different
variety of rice are Strongly Agree.

1%

Choices Frequenc Percentag 22%

Figure 14. Respondents who influences by
y e
the store layout about their44%
decision to buy
at store and the cleanliness of the store
Strongly 44 44%
Agree 33%

Agree 33 33%
strongly agree agree
Neutral 22 22% neutral disagree
strongly agree

Disagree 1 1%

Strongly 0 0
Disagree

TOTAL 100 100%

Table 14. Respondents who influences by

the store layout about their decision to buy
at store and the cleanliness of the store

Figure 14 and
Table 14 shows that 44% of the respondents influences their decision to the
store layout and the cleanliness of the store are Strongly Agree, 33% of the
respondents influences their decision to the store layout and the cleanliness
of the store are Agree, 22% of the respondents influences their decision to
the store layout and the cleanliness of the store are Neutral, and 1% of the
respondent are Disagree. This mean that most of the respondents influences
their decision to the store layout and the cleanliness of the store are
Strongly Agree.

FT-CRD-119-00 | STI WEST NEGROS UNIVERSITY – Chapter II 22

FT-ARA-020-00 | STI WEST NEGROS UNIVERSITY– Chapter II
23