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Marketing Strategies and Financial Performance of Retail Outlets in Lucena City

This document discusses a study on the marketing strategies and financial performance of 251 retail outlets in Lucena City, Philippines. The study aims to uncover key strategic areas for retailers in the "new normal" environment and determine strategies that can help improve business value. Specifically, the study will analyze the different marketing strategies used by retailers and examine their impact on financial performance, as measured by contribution margin ratio. The results are intended to provide information to help retailers achieve stability and success amid increased competition during the ongoing pandemic.

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John Michael Cabasa
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516 views5 pages

Marketing Strategies and Financial Performance of Retail Outlets in Lucena City

This document discusses a study on the marketing strategies and financial performance of 251 retail outlets in Lucena City, Philippines. The study aims to uncover key strategic areas for retailers in the "new normal" environment and determine strategies that can help improve business value. Specifically, the study will analyze the different marketing strategies used by retailers and examine their impact on financial performance, as measured by contribution margin ratio. The results are intended to provide information to help retailers achieve stability and success amid increased competition during the ongoing pandemic.

Uploaded by

John Michael Cabasa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Marketing Strategies and Financial Performance

of Retail Outlets in Lucena City

Introduction
In the province of Quezon, Lucena is considered a highly urbanized city.

Because of the amount of people and the standard of living in this area, many

entrepreneurs choose to locate their businesses here. Given the demand and potential

of the targeted clients, the city is also a business center where many people come to

holiday. Micro businesses are one of the customer's preferred options because they can

afford to buy while also having a variety of options. Despite the fact that Covid-19

instances are on the rise, businesses have expanded their offers to meet the bulk of

Filipinos' consumption needs. Owners offer to combine and sell bulk items in traditional

sari-sari businesses – frequently referred to be family-run of neighborhoods presenting

a wide selection of food and vital items – as the number of necessary needs grows.

Retail is one of the chains of distribution channels that play an important role in the

delivery of goods and services to the end customers. Meanwhile, the retail definition by

(Gilbert, 2003) is any business that directs its marketing effort towards satisfying the

final customer based upon the organization of selling goods and service as a means of

distribution. Of these terms, retail is a business that becomes the last chain of the

distribution channel. Retail also can be divided into two categories, the modern retail

and the traditional retail (Tambunan, 2004; Utomo, 2011). Both of the retail categories

have different characteristics. One of the intermediaries in the marketing channel is

retailers. A retailer is a merchant or occasionally an agent or a business enterprise,

whose main business is selling directly to the end consumers for non-business use. The
retailer performs many marketing activities such as buying, selling, grading, risktrading,

and developing information about customer's wants. According to (Sullivan and Dennis,

2002), retailer is a dealer or trader selling goods in small quantities or more pedantically

the one who repeats or relates. Based on (Vinod, 2005), retailing is a very complex

business. Getting the right product to the right store with the right quantity at the right

time with the right price at the lowest cost of delivery is a very challenging task.

Retailing also consists of multiple factors including location selection, pricing and

promotions, distribution, market response, lifetime value of retail customers,

merchandising, customer loyalty programs, private labels, price matching and return

policies, new products, e-tailing, retailer–manufacturer interactions, product assortment

and stock-outs, retail branding, and customer satisfaction (Kamakura, Kopalle, &

Lehmann, 2014). Currently there are 251 Retail Outlets based in Lucena City. The

current globalization market has made companies to see the internationalization of their

activities as a way to remain competitive. Marketing strategy has become important tool

globally for any organization to remain in competitive market environment and was

stronger. Aremu and Lawal (2012) sees strategy as a pattern of resource allocation

decisions made throughout an organization. This encapsulates both desired goals and

beliefs about what are acceptable and most critically unacceptable means for achieving

them. Aremu and Lawal, (2012) say that strategy implies that the analysis of the market

and its environment, customer buying behavior, competitive activities and the need and

capabilities of marketing intermediaries. Marketing strategy therefore, can be defined as

a method by which a firm attempt to reach its target markets. Marketing strategy starts

with market research, in which needs and attitudes and competitors' products are
assessed and continues through into advertising, promotion, distribution and where

applicable, customer servicing, packaging, sales and distribution. Marketing strategy

must focus on delivering greater value to customers and the firm at a lower cost

(Chiliyaet al, 2009). Owomoyelaet al, (2013) also see marketing strategy as way of

providing a quality product that satisfies customer needs, offering affordable price and

engaging in wider distribution and back it up with effective promotion strategy.

Marketing strategy is a vital prerequisite of Industry's ability to strengthen its market

share and minimize the impact of the competition. The marketing function is assigned

for obtaining and gathering financial resources from the environment in order to

guarantee continued firm operations (Anderson 1982). Almost every industry with its

increasing competitiveness is putting this function on a very important level. That is why

a company needs to implement this marketing strategy in order to be successful and

financially stable comparing to its opponents. This is the reason why, the

implementation of marketing strategy and its influence to the company financial

performance is becoming very important as a topic for practitioners, but also for

researchers interested in marketing and finance fields. During years, this research

concerning the influence of the marketing strategy on financial performance of the

companies, has taken different and even conflicting route. The measure of financial

performance used for the study was contribution margin ratio (Magoon, 2008).

Contribution margin ratio, calculated by dividing operating income by revenue, is a 6

financial ratio measuring profitability, and it reflects the efficiency with which an

organization achieves its financial performance. And, as a result of our research, we'd

like to uncover some crucial areas in their firms, given how many of them employ
strategic thinking in this new normal. As a result, this study will help to the economic

situation by providing the required information for retail outlets expecting to achieve the

"new normal" until the community returns to "normal." Under this premise, the

researchers deemed it important to conduct investigation on the strategies and

performances of the Retail Outlets sector in Lucena City in order to determine the

different strategies that would be implemented by the owners and managers to help

improve the value of each enterprise.


References:

List of Companies in Lucena City, Philippines - Companies in Lucena City - Page 1

(businesslist.ph)

1TII07128.pdf (uajy.ac.id)

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