RATIONALE where Balingasag proudly offers the most fresh and

RATIONALE

 

            Philippines is known as
the country that has it all, wherein rich in resources and blessed with
creative individuals who genuinely produce a wide variety of products that are
as good as or even better than imported ones. Mariculture is the primary and
often source of income in Balingasag, Misamis Oriental, most depend on fishing
for their livelihoods.

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            Mariculture in the Philippines
refers to the culture of fishes, shellfish, seaweeds and other commodities in
cages, pens, stakes and rafts in marine environment. Ten years after
launching the first mariculture park organized and managed by the country’s
government fishery agency, and the nationwide promotion of this program, only
273 ha or 0.54% of the 50,150 ha total area planned for development
has been established. Mariculture has
not met its expected results due to a number of problems (Marine Policy:
Salayo, Perez, Garces, Pido, 2012).

            The name Balingasag was derived from
the words “baling” which means fishing net and “kasag” means crab. The town
popularized the beauty of mariculture and its abundant of marine resources. One
of their well-known resources is milkfish also known as “bangus” where
Balingasag proudly offers the most fresh and healthy milkfish in the continent.
They produced variety of products with the main component of bangus such as raw
milkfish, boneless milkfish, and bottled milkfish in corn oil.

            On the other hand, the Balingasag
Municipality established the Women’s Association of Balingasag since 2012 to
give empowerment and provide sustainable livelihood to all the women in
Balingasag, Misamis Oriental. The program was run by 70 women registered member
of the association under the supervision of the Women’s Association Board. The
Women’s Association of Balingasag mainly produces the Balingasag finest
products with the main component of milkfish.

 

            The Balingasag Municipality –
Department of Agriculture together with the Balingasag – Local Government Unit
established the first Balingasag Fish Processing Plant in order to give
livelihood to the people of Balingasag. The Women’s Association run the
processing plant to produced products, one of their product is the homemade
Bottled Bangus in Corn Oil.

            The product is a new entrant in the
market industry, and it needs to have a strong and consistent promotion in
order to establish a name that is known to the majority and to gain momentum to
its potential collaborators, networks, and especially in the eyes of the
consumers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONCEPTUAL / THEORETICAL FRAMEWORK

 

 

 

 

 

 

 

 

 

                                                                                 

                                                                                 
 © Entrepreneurial Insights

 

      This paper examines the Marketing Mix of
the Organization. It aims to have a comprehensive assessment of the 4 aspects namely
the Place, the Product, the Promotion, and the Price.

Place

      Balingasag is well- known of its capacity
to produce milkfish as it has an ecosystem that is suitable for raising aquatic
culture. The Balingasag Women have an easy access to the unprocessed milkfish;
Production site is in close proximity from the Balingasag Mariculture park (source
of fresh milkfish).

Product

       The product is home- made by women
volunteers in the organization who are trained under the program of the Bureau of Fisheries and Aquatic Resources
(BFAR) in producing bottled milkfish product. The organization produces
other milkfish products such as Boneless Milkfish, Bottled Milkfish in Corn oil
and the new introduced product, Bottled Alamang. The Bottled bangus in corn oil
has a shelf life of one year.

Price

          The price does not vary even if there
is a high or less supply of raw milkfish. You can buy the product for a price
of Php 95 pesos per bottle. The bottle and sealed packaging are imported from
Cagayan de Oro City. It garners a gross profit of Php 7 / bottle.

Promotion

           The Organization is tied under the Local
Government of Balingasag, all of their product promotion passes through the board
of the organization and the Local Government Unit. They heavily rely in the LGU
for promotion under the Department of tourism, DTi- Negosyo Centers and the
Department of Agriculture.

            This research paper intensively
gathers information on the promotion area of their bottled Milkfish product; it
would examine the effectivity of the Marketing Strategy used in promoting the
bottled milkfish. The effectiveness is measured through the Sales Promotion
capacity in converting it into sales while in consideration with the other
aspects of the Marketing Mix.

 

 

 

 

 

 

 

 

STATEMENT
OF THE PROBLEM

 

                    
I.       
       Bottled milk fish of the women’s
association of Balingasag has developed a new and unique product that they
could sell in their town or even to other cities. As they continue to operate
in their business, the group has observed that there is something wrong in
terms of their information dissemination when it comes to promoting their
locally made products to other places or even in their own hometown despite
their 3-4 year stint in selling the bottled milkfish which has a great effect
in their sales.

 

                   
II.       
Specific
Problem

 

Objective
1: The Problems Encountered by the
Association

                                                1.1       Internal (Association’s Premises)

                                                1.2       External
(Resources)

                                                1.3                  Customer satisfaction (in terms of
product)

 

Objective
2: Location / Demographic

                                                1.1       Production Area

                                                1.2       Distribution

                                                1.3
     Product Placement

                                   

Objective
3: The Association’s Current Status in
Product Promotion

                                                1.1   Strategies of Product Promotion

                                                1.2   SWOT Analysis of the Bottled Milkfish
Product

                                                1.3   E-commerce

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SIGINIFICANCE OF THE STUDY

 

STUDENTS.      

             
The findings will give information to students on how they can improve
the effectiveness on sales promotion most especially on local products. It will
give the student’s realization on proper implementation of strategies to
further the flow of sales promotion. At the end of this study, students would
finally know that sales will never arise if there is a major trouble on the
management itself or the strategy being planned and implemented.

 

TEACHERS.        

              The data given would guide the
teachers, most especially business teachers on how they would further assess
their students on sales, not just how to increase sales but also how to
increase it on a long term plan. The best starting point of educating people on
business is on business students and passing it through time and a lot of
people.

SOCIETY.

             This study actually opens up more
access to the mass. Since local products are mostly unknown, a lot of people
will tend to know and appreciate more homemade and local products in the
region. This will also help the community on finding affordable and worth it
products along the neighborhood.

 

FUTURE RESEARCHERS.  

               The study will benefit and help
future researchers as their guide. The study can also open in development of
this study.

 

 

 

 

 

Chapter II

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVIEW OF RELATED LITERATURE

 

      This section reviews the related written works and
studies of how effective the sales promotion of the Bottled milkfish of
Balingasag Women Asso. This holds a number researches both in local and foreign
setting to provide more information and knowledge to the study with right and
authentic background, insights, and investigation.

 

1. Milkfish in the Philippines

In
the section of ” Milkfish marketing
in the Philippines.”, (2010) Nerissa D. Salayo stated
that milkfish marketing literature showed that meeting the            milkfish demand-supply gaps, in
geographic and temporal sense, is an   immediate
market objective for the Philippines:

 

Milkfish produced from
aquaculture is one of the most traded fish in local markets and it also
provides export earnings for the Philippines. Annual per capita consumption of
milkfish among Filipinos is 4 kg which comprise the major portion of the 25 kg
annual intake of all types of fresh fish. Increasing milkfish production from
aquaculture constitutes the strategies for securing fish food supply,
especially for the growing middle- and low-income households.

There is enormous
challenge for the industry in view of the declining productivity of capture
fisheries, the emerging preference for organic food and value-added forms
arising from socio-cultural      transformations
and lifestyle changes among consumers. (Salayo.N.(2010) Milkfish
marketing in the Philippines)

 

 

 

There
is money in milkfish production in the Philippines.

  One real constraint to expanding
production from aquaculture is the lack of knowledge or information on the
economic relationships between inputs      and
output, in other words between what goes into a pond and what   comes out. In the case of Philippine milk-fish
farming, the inputs include           everything
from seed (fry or fingerlings) to farm labor, feed, fertilizers, pond             maintenance and repairs, rental and
pesticides. Some other variables that             can
affect production relate to the experience of the farmer and the size,          age and tenure of his ponds, as well as
their geographic location. The Philippine milkfish industry involves at least
150,000 people servicing farms totaling close to 180,000 ha which produce some
115,000 tons annually. Recognizing the importance of the contribution that
knowledge of these relationships can make to this industry, the Fishery
Industry Development Council (FIDC), the Bureau of Agricultural Economics (BAEcon)
and the International Center for Living Aquatic Resources      Management (ICLARM) jointly undertook in
1979/80 a study of milkfish input-output
relationships in a broad sample of 324 farms over the whole          archipelago. (Chong, K.C. (1982)

(https://www.worldfishcenter.org/content/there-money-milkfish-production
philippines)

 

Dissemination and Adoption of Milkfish Aquaculture Technology in the Philippines.
Milkfish aquaculture in the Philippines dates back to the 14th   century. Today it accounts for 53% of national
aquaculture production of fish and
shellfish, with 99% of the harvest consumed domestically. Milkfish          is a mainstay in the Philippine diet
and traditionally considered the national           fish.
It is farmed under conditions ranging from freshwater ponds to marine        pens, but mostly in brackish ponds.
Milkfish production employs over         800,000
people and contributes to the tax base at all levels of government. It is vital to Philippine nutritional security,
providing 8% of all animal protein consumed. Unrealized potential exists for
earning foreign exchange through exports and for alleviating rural poverty
through employment. Milkfish aquaculture is therefore a natural target for
science-based          improvement and
sustainable expansion.

( http://pubs.iclarm.net/resource_centre/WF_2028.pdf
)

 

Historical and current trends in
milkfish farming in the Philippines

The Philippines ranks among the top 12      largest
fish producers in the world and the milkfish, Chanos chanos, is the        official national fish. The milkfish
production in the Philippines has             fluctuated
sharply, but on average, has relatively stagnated over the past   decade, partly due to the shrimp boom and low
price of milkfish. The milkfish industry has been responsible for the
significant loss of valuable mangrove swamps and forests. The loss of mangrove
means loss of habitats and biodiversity including nursery grounds for feeding
and refuge of commercial fishes, shrimps,
crabs and mollusks. Milkfish ponds in the       Philippines
are either privately owned or leased from the government. Brackish water fish
ponds are valuable real estate and good management adds to their value. For
milkfish farming, stocking rate should be based on the pond environment and
carrying capacity, and the fish size at stocking       and the market size desired.

(
https://repository.seafdec.org.ph/handle/10862/421?locale-attribute=en)

 

 

 

 

 

 

 

 

2. Marketing Strategies

Credit, whether provided by non-institutional sources of finance such as
fish traders, wholesalers or moneylenders or by financial institutions, fulfils
        the principal function of
advancing capital, either in cash or in kind. Credit      is needed to take advantage of economic opportunities such as
buying,           selling and processing
fish or other aquatic organisms . According in a        section of “Production, Accessibility, Marketing and
Consumption Patterns       of Freshwater
Aquaculture Products in Asia: A Cross-Country           Comparison”,(2001)
Celestino Olalo enumerate the role of credit in          marketing fish in the Philippines:

 

Credit has been crucial in:

                                    >
developing the fisheries sector, including aquaculture,

                            >
alleviating rural poverty,

                             > improving employment
opportunities,

                             > providing a
nutritional diet,

                             > increasing
export earnings.

         (http://www.fao.org/docrep/004/Y2876E/y2876e1a.htm)

 

 

 

 

 

 

 

In
the marketing strategies for the small enterprises, in the section of “13 Best
Marketing Strategies for Small Businesses”, (2017) Mary Lister said that:

 

The most basic type of local marketing is to use a business card.
You can give these out as you meet new people or begin work projects. This
enables the individual to refer to your business, website or phone number when
future contact is necessary.

You also need to design a specialized online local marketing strategy to
complement your offline marketing strategy, we all know the majority of people
search the internet to learn more about companies they are evaluating doing
business with.

 

Although
price discounts are by far the most common form of sales promotions employed by
firms, the increasing use of premiums as a         promotional
strategy may imply that they are occupying a more important place in the
promotional strategy. Since price discounts are quite costly             and can reduce consumers’ reference
prices, under-mine perception of      quality,
and hurt brand equity, it is crucial to know what type of promotion is    the most preferred and valued by consumers.
As the most recent works in the field have argued that the promotional benefit
level is an important determinant of promotional effectiveness, this research
reports the results       of two
experimental studies that investigated the interaction effect between promotional
benefit level and promotion type across three levels of benefit (low, moderate,
high). The results obtained suggest that at high benefit lev-els price
discounts are more effective than premiums, while the oppose-site occurs at low
levels. However, a similar evaluation of promotional tools was found at
moderate benefit levels. The findings offer     guid-ance
to managers who might benefit from knowing what is the best strategy to promote
their products and services. Our work also extends prior related research
because, to this date, the effectiveness of price      discounts and premiums across promotional benefit levels is an             under-researched issue. © 2009 Wiley
Periodicals, Inc.

(http://onlinelibrary.wiley.com/doi/10.1002/mar.20315/epdf?r3_referer=wol            &tracking_action=preview_click&show_checkout=1&purchase_referrer=l.            messenger.com&purchase_site_license=LICENSE_DENIED
)

 

3. Condition of the milkfish in the Philippines

The
bulk of the milkfish produced in the Philippines is consumed fresh, although small
amounts of canned milkfish are now appearing on the     market. As they do for most fishery products, brokers play a key
role in the           disposition of
milkfish. They provide the crucial link between producers and     fish buyers, performing important facilitating
functions such as selling,         pricing,
and, often, supplying credit. About 60 per cent of milkfish farmers             in the country use brokers.
Nevertheless, the husbandry of milkfish calls f  or
the producer to assume some marketing functions also, before the milkfish reach
the brokers. For example, at the farm level, some sorting and grading take
place, as many farmers believe these practices attract buyers and allow
producers to take advantage of price differentials by size and grade.
Consequently, some value is being added to the product before          it leaves the farm.

( http://archive.unu.edu/unupress/unupbooks/80346e/80346E0a.htm
)

 

The
viability of any agricultural endeavor is one of the main concerns of planners
and policy makers in the agricultural and fishery sector. In             support of this concern, goals and
strategies are geared towards increasing
productivity and profitability. Thus, there is a need for adequate             and relevant marketing information
which would include marketing   structure,
cost and margins, prices and other marketing-related information. The Bureau of
Agricultural Statistics (BAS) recognizes the need for such marketing
information and has incorporated the generation of such in its data system.
While data on prices has been regularly-generated, the other marketing
information are collected periodically. These are limited to   selected types of crop, livestock and fishery
commodities.                                               

(http://psa.gov.ph/psada/index.php/catalog/69
)

 

4.Promotion of the local products

Promotions
to the consumer include coupons, rebates, in-store temporary price cuts,
feature advertising, and in-store displays. In analyzing promotion effects, we distinguish
between immediate effects (the impact in           the week t the promotion is
implemented), medium-term effects (the             weeks surrounding week t) and long-term
effects (that take place after the             medium-term
effects). Much of the work on sales promotion has focused       on the sales promotion bump. The goal in
modeling this bump is to allocate     the
increase in sales that occurs in period t to one or more of the
sources             listed in the second
column of Table 2.1. The timing of the sources contributing the bump may
be in week t itself (immediate effect) or in the surrounding weeks
(medium-term effect). We discuss the immediate and       medium-term effects in Sects. 2.1–2.5. The effects of
sales promotions on            consumer
behavior beyond the sales promotion bump are classified as             long-term effects. These effects are
list in Table 2.1 as well and discussed             in more detail in Sect. 2.6.

(
https://rd.springer.com/chapter/10.1007/978-3-319-56941-3_2 )

 

Promotions to the
Trade

Manufacturers
use promotional discounts to the trade as an incentive for         the trade to buy more of the brand, and
to sell more to consumers by   passing
through at least part of the discount. The key two phenomena that        determine the effectiveness of trade promotions
are forward buying             (Sect. 2.8)
and pass-through (Sect. 2.9). In Sect. 2.11 we present decision            models for manufacturers who want to
optimize their trade promotions,   and in
Sect. 2.12 we discuss models for retailers who want to optimize pass-through and forward-buying

(https://rd.springer.com/chapter/10.1007/978-3-319-56941-3_2  )

 

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