Leon Guinto Memorial College, Inc.

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MARKETING STRATEGIES OF SELECTED GROCERY STORES IN

ATIMONAN QUEZON

In partial fulfillment on Research Project

Amora, Precious Claire A.

Lusterio, Criscelle Ann G.

Ferwelo, Jan Leigh S.

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CHAPTER I

INTRODUCTION

Business plays a major role within the society. Almost half of the population of

the country entered the world of business. As business improved the quality of life for

people and create a higher standard of living. It is a way for individuals to provide

goods and services to consumers at the same time make a profit. However, the

business that makes the most do not focus on the profits alone. It is also considered the

quality of the products and services that may offer to the consumer. It will be an aspect

to increase the expectation of the consumers

Quality is an important factor when it comes to any product or service, with the

high market competition, quality has become the market differentiator for almost all

products and services. Providing high quality also helps businesses build positive

reputation and enhance profitability in the long run.

Furthermore, Grocery store become popular because this is a self-service shop

offering a variety of food, beverages and household products, organized into sections.

Grocery store in general are needed as easy, affordable, free options resulting in

people having more time being together.

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Background of the Study

Pag Asa is considered as one of the main popular Grocery stores in Atimonan,

Quezon. It has made a mark in the industry by serving fast and good that satisfy every

customer. The business system is made simple and easy to operate. Through the

franchise

package is cost friendly and affordable, system compliance is a must. Pag Asa is also

one of the popular or main groceries in Atimonan that most of our parents mainly

buying groceries. People especially the oldest one is fond of having grocery because

the price is very affordable even though there are so many customers that are in line

when cash out those items that they bought.

This grocery is strategically located in Manuel L. Quezon St. Atimonan,

Quezon it stands in street corners to make them more accessible to those looking for a

quick but inexpensive grocery. Their product is very affordable they are not too

expensive, so anyone can buy a grocery into a small amount of money, this grocery is

hugely popular among the town because of its value for money.

Caparros Mart is also one of the grocery store in Atimonan, Quezon that most

with proper service, this is located on Zone IV Atimonan, Quezon. It is also one of the

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famous grocery stores here in Atimonan because it has more space and also provides

good service to all customers. Apart from the ordinary goods of other grocery stores,

this grocery store also sells a few school supplies that other groceries do not have.

Another beauty of this grocery is that because it has a large space it makes consumers

feel comfortable because they are not crowded and its prices are also affordable.

Micos is also a grocery store here in Atimonan, Quezon with small space

because it is simple and not large unlike other grocery store here in Atimonan but it

also has good service and the prices is also affordable. What most shoppers like here is

a quick payment process because you don’t have to wait long to be able to pay for

your purchases because there is always a small queue because most shoppers here

have very few purchases so you can finish immediately. This is also located in Zone

IV it is opposite the Atimonan market so consumers can see this grocery store

immediately.

The aspiration of this study is to know if the selected grocery store offers a good

quality of product and service through comparative assessment. By that researcher can

know if the worth of the product and service equal to the money that the customers

about to change.

Statement of the Problem

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-This study primarily aims to achieve the following objectives:

1. What is the demographic profile of the respondents in terms of:

1.1 Age

1.2 Sex

1.3 Frequency of Going

1.4 Intention

1.5 Commonly Bought Items

2. What is the perception of the consumer on the quality of the product and service of

Pag Asa, Caparros and Micos in connection with 7P’s of marketing?

2.1 Product

2.2 Price

2.3 Place

2.4 Promotion

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2.5 People

2.6 Process

2.7 Packaging

Significance of the Study

The results of the study will be a great contribution to the following:

Business Owner/s

The result of this study will be beneficial in a way that they can gain

information about the quality of product and service customers perceived at. It will be

their reference in improving their quality system if needed.

Employees

The employees will be aware on the standards of rendering their services and

products to the customers, in that the customers will be satisfied with their services.

Consumers

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This study can help them to know the accurate quality of product and service

that will rendered to them. The consumers will know more about the stall through the

findings of this study.

Future Researchers

This research has several limitations. It is an exclusively literature research and

the hypothesis is not tested by an analysis. There are several store attributes that

determine the choice of a customer for a grocery store, but since the limited time and

space of this research a choice has been made for five relevant and important

attributes. Further research on the effect of all attributes should be examined to get a

complete view of the choice for a marketing strategy of selected grocery of Atimonan,

Quezon.

Scope and Limitation of the Study

This research focuses on the comparative analysis of the quality of the product

and  service being rendered by Pag Asa Smart Grocery Store, Caparros Mart and

Micos. The respondents of this study are the selected Ordinary Consumers that are

buying groceries in Pag Asa, Caparros and Micos. The researchers will select only

those ordinary consumers who are already experienced the product as well as the

service given by the chosen grocery. In order to collect all necessary data, we should

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list not totally all the definition of term which is related to the product Quality refers to

the collection of features and characteristics of a product that contribute to its ability to

meet given requirements. We used the Product Quality as the features that meet

customer’s needs. In order to collect all necessary data needed, the researchers will

use construct of Comparative Questionnaire

Definition of Terms

To ensure better understanding to the research work, certain terms used by the

researchers were denotationally and operationally defined as follows:

Marketing Strategy

Refers to a business's overall game plan for reaching prospective consumers

and turning them into customers of their products or services. A marketing strategy

contains the company's value proposition, key brand messaging, data on target

customer demographics, and other high-level elements.

Product Quality

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Means to incorporate features that have a capacity to meet consumer needs

(wants) and gives customer satisfaction by improving products (goods) and making

them free from any deficiencies or defects

Perceived Service

Is what the customer believes or perceives that he or she has actually received

from the hospitality organization (after the service experience).

Quality

Is a function of how the customer views the product/service that he or she

receives.

Service Quality

Refers to a customer’s comparison of service expectation as it relates to a

company’s performance. It is one by the employees of the selected grocery store and it

is a feature that firms the perception of the respondents.

Consumers

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Refer to a person those who already have experience shopping at selected

grocery stores. They are the selected consumers who will serve as the respondents of

the study.

CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the different literature and studies that are related and

relevant to the study.

Related Literature

This review consists of books, articles, documents that focus on the same

subject matter or other concepts of the study.

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Foreign Literature

The web has become an opportunity for the marketers to add value to products

and services. The phenomenal growth and rising of the popularity of the internet and

the world wide web has become a key to attract more consumers and businesses to

engage the benefits of electronic commerce. This commerce is sited as any form of

business transaction in which the parties interact electronically rather than by physical

changes or direct physical contact.

This has transformed the traditional commerce and enhanced sales and changes of

merchandise and information. It is not just considered as single entity of technology

but a combination of technologies were applications, processes, business strategies are

necessary to do business electronically. The availability of goods and services with the

click of a mouse is changing the global setting. Consideration of the websites design

and operations are dependent upon the nature of business activities and target

consumers. A website must be simple and focused site to succeed that is easy to build,

maintenance-free, low cost, trustworthy, and a powerful track-builder and customer-

converter.

Saving the right tool and the right product alone doesn't ensure the success of

the website. To be effective, the website must be designed with the target audience as

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foremost consideration. Website designers must balance design considerations

andcapabilities with client objectives and the consumers level of understanding in the

modern technology.

It is critical for companies to know how do they attract customers to their

website, engage them to turn into paying customers and also retain them in returning

to your website. Online communications techniques used to achieve goals of brand

awareness, familiarity and favorability and to influence purchase intent by

encouraging users of digital media to visit a web site to engage with the brand or

product and ultimately to purchase online through traditional media channels such as

by phone or in-store

Local Literature

In the Philippines, EnCommerce is mostly being implemented by major

retailers and multinational corporations for bank-to-bank exchange number of

business-to-consumer transactions have emerged through the years such as auctions,

online shopping, and online banking This just shows that Filipino businesses welcome

this new opportunity in selling goods since of the population is using Internet. This

new marketing strategy will not only benefit those big companies but also the small

businesses who cannot afford to advertise their products just by creating a website in a

very a fordable cost would make the business grow in terms of sales and enhance the

company image as well.

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Philippine terms have yet to fully tap the potentials of EnCommerce that will

help them to compete in domestic and global markets. In the process of preparing

themselves to conduct e-commerce, these terms will be changing the way they do

business. These changes are expected to have an impact on the welfare of Philippine

workers.

In general, it discusses the changes in the nature of work from the front to back

is likely within the sectors performing services employment demand for this industry,

they may be focused away from agents and blue collared workers, toward higher

management and executive star of Filipinos entered the 41st century, local e-

commerce transaction reached at least one billion transaction sales growth annually. If

this trend continues, figures can reach up to billion as more businesses conduct online

transactions. If significant economic growth takes place in the next 5 years, these

estimates may even double or triple.

For consumers or buyers, this is most likely to take the form of lower search

costs and better information on products and prices. There could be drastic savings in

production and delivery costs of electronic or digital goods as well. Information and

Communication Technology has become and will continue to be an integral part of the

day-to-day life every Filipino across all levels of our society.

The occurrence of communication technology around the world necessitates

that government get on a cohesive and coordinated strategy on how to prepare its

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citizens to survive, live and thrive in a digital world. The main objective of the paper is

to have a competitive society where everyone has a reliable, fordable and secure

information access in the Philippines.

Although the decade of the 1980’s has seen a major increase in a range of

efforts by both developing and industrialized countries to market themselves as

attractive locations for foreign direct investment, existing research has been biased

toward the role of investment incentives and policy reform in these activities. Current

efforts, however, include not only the use of investment incentives and attempts to

improve the investment climates of countries, but also marketing techniques such as

advertising, missions, seminars, direct marketing of various forms, and service

activities

The goal of these marketing techniques is to inform prospective investors

about a country’s potential as an investment site, and to persuade them to set up

operations in that country.

For this study, we defined these marketing efforts as ‘investment promotion’.

We set out in this research to add to the existing knowledge by focusing on aspects of

investment promotion, especially the effectiveness of particular promotional

techniques, that remain under-researched.

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As stated by Trivellas (2010) Quality is based on the following characteristics

of products and services ranked according to perceived importance: flavor and taste

value for the money, nutrient content, presentation and packaging, variety and

availability, systematic ordering and selling feeling of security in the food,

environment and service.

Quality is considered as a competitive weapon. Generally, a high product

quality attracts a high price. Product quality has considerable influence in the

determination of the firm profit.

Foreign Studies

The Center for International Business Education and Research conducted a

study entitled: “Marketing Strategies for Mature Products in Developing Countries: A

case Study of South Korea” by Francis M. Ulgado, Moon Kyu Lee and Iu Ku Lee.

This paper examines the impact of various marketing strategies on the performance of

products under the maturity stage of the product life cycle in a developing country like

South Korea. Results of the study indicated that the competitive environment of the

maturitystage in South Korea can be further classified into four distinctive types and

that different strategies have different effects on product performance under each type

of environment.

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The study also reports that generally, vertical integration and product/service

improvement strategies have the most significant influence on product performance

under the maturity stage in South Korea. In 1998, Kalyanaran conducted a study

entitled “Market Entry Strategies-Pioneer versus Late Arrivals”. This study revealed

that in most cases, being the first in the market provides a significant and sustained

market share advantage over the later entrants, and that pioneers with a distinctive

presence in the market place need to be in a position to react, or even better, anticipate

potential entrants and increase the barriers to entry. The researcher further concluded

that a later entrant or a pioneer seeking to foil new comers needs to have a thorough

understanding of the entry and defensive strategies available, a good sense of timing

and a game plan for decision making.

Local Studies

Soriano (2008) revealed in his study that the most notable among the problems

in marketing management of the small and medium businesses in Western Tarlac is

low price, followed by unresponsiveness of the products to customer needs, no

customer, high promotional cost, stiff competition, and declining demand because of

the presence of many firms and continuous increase in prices of products.

Also, he concluded the retailing businesses in Tarlac are more of self-

organized and  are not being controlled by bigger organization such as main branch or

Mother Company. They have good strategies when it comes to providing products to

the customers. The businesses are also more of “customers and business centered”

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because they purchase goods in large quantities for their customers and for their

concerned with inventory control because that is one of the factors that determine their

costs.

Furthermore, the SMEs in Western Tarlac are generally customer oriented

when it comes to the generation of new product ideas. The competitive strategies that

they adopt suggest the great importance given by them towards price and quality to

differentiate themselves from their competitors. When it comes to pricing, the firms

favor the competition-based pricing in setting prices for their products. The business

also gives due consideration to cost when it comes to pricing their products and

services. The businesses have high regard for quality and pricing as competitive

advantage. The product improvement strategies of the businesses involved in the study

seemed to favor the customers. Beery (2000) concluded that some firms will still

require long term capital financing to undertake investments as they did in The Old

Economy. Some will requireventure capital to start up a new business because of the

size and risk of the business. Some will still require the availability of short-term loans

to continue their operation.

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Research Paradigm

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CHAPTER Ⅲ

METHODOLOGY

This chapter covers the various methods that help and guide researcher in the

development of the study. Research Locale The study was conducted in Brgy. Rizal

located on Atimonan, Quezon since the chosen respondents are consumers of the said

barangay.

Respondents

The respondents of this study are the selected Consumers in Brgy. Rizal

Atimonan Quezon. The researchers took 20 customers of Pag Asa, 20 customers of

Caparros and 20 customers of Micos for the study. The researchers chose the snowball

sampling method in which the researchers oicks the first few samples and either

recruits them or asks them to recommend other consumers who became the customer

of the Pag Asa, Caparros and Micos whom is believed to give an exact information

regarding to the study.

Research Design

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This study utilized a quantitative approach that measures the number of the

respondent’s population and the result of the survey. Researchers also utilized a

descriptive research design which involved observing and describing the behaviour of

the subject while comparative method essentially compares two groups in an attempt

to draw a conclusion about them.

Data Gathering

The researchers secured a survey permit approved by the principal and the

research adviser to allow the researchers to conduct the study. Due to the pandemic the

researchers are not able to go from one section to another on collecting the

accomplished questionnaire, instead of that researchers used an online platform to

gather information regarding to the study. After the questionnaires have been

accomplished the results were be tallied and tabulated. These data become the basis of

analysis and interpretation.

Instrumentation

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A survey questionnaire was used as data gathering instruments to be able to get

all the information needed in the survey. The questionnaire include the Likert scale of

Strongly Agree(SA), Agree(A), Disagree(D), and Strongly Disagree(SD), it is also

divided into two parts. The first part is about the Demographic Profile of the

respondents such as age, gender and grade level. The second part is all about the

quality factors which are the 7P’s of marketing

Table 1

Likert Scale

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Statistical Treatment

The data from the respondents will be gathered, tallied, tabulated and analyzed

by the researchers. The following formula was used to obtain the needed data.

1. Percentage

Percentage formula was used to present the percentage of the demographic

profile of the respondents in terms of age, sex, grade level and social status.

P=

Where: P is the percentage

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f = frequency

N= Total number of respondents

100 = constant

2. Weighted Mean

Weighted mean formula was used to know the perception of the customer on

the

quality of the product and service of the selected burger stall in terms of 7P’s of

Marketing.

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WM = 4

Where: WM is the weighted mean

f = frequency

N = total number of respondents

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