BIBLIOGRAPHY NGAN-OY, ME-ANN A. APRIL...
BIBLIOGRAPHY
NGAN-OY, ME-ANN A. APRIL 2013. Marketing Practices of Different Bakeries
in Bontoc Mountain Province. Benguet State University, La Trinidad, Benguet.
Adviser: David L. Joseph Bognadon, MCM.
ABSTRACT
The study was conducted to determine the marketing practices of the bakeries in
terms of products, pricing, promotion and place or distribution in Bontoc. Survey
questionnaire and interview were used in gathering data needed in the study. Tabular
analysis using percentage and frequency counts was used primarily to describe the data.
The most commonly product produced among the bakeries were pan de sal, pan de
coco, spanish bread, longjan, cinnamon, cheese and loaf. The products that provided them
the highest sale were pan de sal and spanish bread as claimed by most respondents. These
products had the highest sale because they were the bakery specialties, and because of the
quality that was soft and delicious.
All bakery respondents based their brand name on the name of the owners. This
brand projected and emphasized affordable price and the quality of the product. All
bakeries were using cellophane and some used paper bread bag as their packaging materials
and clear plastic container were used for cakes. The packaging label indicated the
expiration date of the product, name of the business and the ingredients.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
Almost all bakeries claimed that their objective in pricing their product was to make
it affordable at the same time make it sure that it is competitive. The pricing method they
used are cost based pricing and competition based pricing. The best pricing method was
the cost based pricing method because their customers and volume of sale increased.
Respondents used personal selling, advertisement; direct marketing and public
relation as their marketing tools. Advertisement was the best promotional tool because it
promoted their product and increased their customers. Respondents used sari-sari store as
their market outlet. Most maintained their outlet by delivering complete order and reached
their market outlet by delivering products for free. All respondent also claimed that they
did not have a particular market segments.
The researcher concluded that bakeries lack of product and place or distribution
strategies, thus it is recommended that they must improve their product by improving their
packaging and labelling of the product and must aim a wider target area or a large number
of market outlets.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
INTRODUCTION
Rationale
Marketing is one of the areas of responsibility of a business. It consists of all
activities designed to generate and facilitate any exchange intended to satisfy human needs
and wants. These activities are to plan and produce, price, promote and distribute product
or services to target markets. All these activities must work together to assure successful
marketing and in order to achieve organization objectives.
In our country, marketing of commodities varies widely. These variations are
related to several factors, foremost of which are marketing practices involve in the
movement of the products from the point of production to the ultimate consumer.
Moreover, the efficiency of marketing often depends on marketing practices that are
employed by the business. According to Maletsky (2010) marketing practices is a
transactional by nature and focus on price, product, place and promotion to determine what
benefits and cost they would consider acceptable to reach consumer effectively.
Bakery is an establishment which produces and sells flour-based food baked in an
oven such as bread, cakes, pastries, pies and similar foods. These products most especially
bread is a part of daily consumption habitudes of almost all the nation in the world. It is
the main food for daily consumption as stated by Popescu et al., (2006); this is why bakery
products manufacturing was, is and always be the society main occupation.
Bontoc is the 3rd class municipality and capital Town of Mountain Province,
Philippines. According to the latest census, it has a population of 24, 798 people in 5,035
household. The municipality has the highest number of businesses which is 660. This
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
study intends to know what are the marketing practices employed by the owners or
manager in their bakery. With the expectation that this study will provide information that
can guide the different bakeries in improving their strategies to have a better product and
sale in the market, for those who intend to engage in bakery business.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
REVIEW OF LITERATURE
The Bakery
Bakery or baker’s shop is an establishment which produces and sells flour-based
food baked in an oven such as bread, cakes, pastries and pies. It may sell its products
locally, distribute them regionally or nationally, or export them to other countries. Along
with bakeries, the industry consists of the equipment, supplies, and delivery drivers used
to support the industry. Bakeries are the main component of the bakery industry, and
produce the actual goods. Bakery sales may be retail, wholesale, or a combination of both.
Retail bakeries are also cafes, serving coffee and tea to customers who wish to consume
baked goods on the premises. Many other bakery shops provide services for special
occasion such as wedding, birthday parties, or even business affairs (Ashokkumar, 2009).
Marketing
Marketing is the business function that identifies customer’s needs and wants’,
determine which the target markets the organization can serve best, and appropriate
products, services, and programs to serve these markets. Business must search for buyers,
identify their needs, design good products and services, set price for them, promote them,
and store and deliver them. Thus each company must divide up to the total market, choose
the best segments and design strategies for profitability serving chosen segments better
than its competitors do. This process involves three steps: market segmentation, market
targeting, and market positioning (Griffin and Elbert, 2002).
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
Market segmentation pertains to the division of the market which consists of many
types of customers into persons with similar needs and wants. The marketer has to
determine which segment offers the best opportunity for achieving company objectives.
This segments are (1) geographic segmentation calls for dividing the market into different
geographic units such as nation, regions, states, countries, cities or neighborhoods. Many
companies today are localizing their products, advertising, promotion, and sales efforts to
fit the needs of individual regions, cities and even neighborhood (Kotler & Armstrong,
1999). (2) Demographic segmentation divide market into group based on variables such as
age, gender, family size, family life cycle, income, occupation, education and religion, race
and nationality. According to Rajeeve (2012) demographic factors are the most popular
basis for segmenting customer groups, largely because consumer needs, wants, and usage
rates often vary closely with demographic variables. Even when market segments are first
defined using other basis, such as personality or behavior, their demographic characteristics
must be known in order to assess the size of the target market and to reach it efficiently.
(3) Psychographic segmentation divides buyers into different groups based on social class,
lifestyle or personality and characteristic. (4) Behavioral segmentation divides the buyers
into groups based on their knowledge, attitudes, uses or response to products. Many
marketers believe that behavior variables are the best starting point for building market
segments. Most companies enter a new market by serving a single segment and if this
proves successful, they add segments (Petter and Olson, 2008).
After a company has defined marketing segments and identifies its market segment
opportunities it has to decide how many and which ones to target. Market targeting involves
evaluating each market segments attractiveness and selecting one or more segments to
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
enter. There are five patterns of target market selection (1) single segments concentration
which the company may select a single segment, through concentrated marketing, the firm
gains a strong knowledge of the segments needs and achieve a strong market presence. (2)
Selective specialization, here the firms select a number of segments each objectively,
attractive and appropriate. This multi segments coverage strategy has an advantage of
diversifying the firm’s risk. (3) Product specialization, here the firm specializes in making
a certain product that it sells to several segments. Through a product specialization strategy,
the firm builds a strong reputation in the specific product area. (4)Market specialization,
here the firm concentrates on serving many needs of a particular customer group. The firm
gains a strong reputation in serving this customer group and become a channel for their
products that the customer group could use, and (5) Full market coverage, the firm attempts
to serve all customer groups with all the products they might need (Kotler and Armstrong,
1999).
Company should target segments in which it can generate the greatest customer
value and sustain it overtime. A company with limited resources might decide to serve only
one or a few special segments. This strategy limits sales but can be very profitable
(Rajeeve, 2012).
Once a company has decided which segments of the market it will enter, company
decide what position it wants to occupy in the segments. Market positioning is arranging
for a product to occupy a clear distinctive and desirable place the product occupies relative
to competitors in consumer minds. Thus marketers plan positions that distinguish their
products from competing brands and give them the greatest strategic advantage in their
target market (Kotler andArmstrong, 2004).
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
In positioning the product, the company first identifies possible competitive
advantage on which to build the position. To gain competitive advantage the company must
offer greater value to chosen target segments either by charging lower price than
competitors do or by offering more benefits to justify higher price. Then the company
positions the product as offering greater value, it must deliver that greater value. Thus
effective positioning begins with actually differentiating the company’s marketing offer so
that it gives consumer more value than they are offered by the competition. Once the
company has chosen a desired position, it must take strong steps to deliver and
communicate that position to target consumers. The company’s entire marketing programs
should support the chosen positioning strategy (Petter and Olson, 2008).
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
METHODOLOGY
Locale and Time of the Study
The study was conducted at Bontoc, Mountain Province from January to February
2013.
Respondent of the Study
The respondent of the study were the owners or the managers of all the bakeries in
Bontoc, Mountain Province.
Data Collection
Structured survey questionnaire were used as a tool in gathering the data. The
survey questionnaire was distributed to the owners or managers of all bakeries. Personal
interview was done to validate and gather additional information and also to confirm
information from the questionnaire.
Data Gathered
The data gathered were the marketing practices in terms of pricing, product,
promotion and place or distribution in Bontoc.
Data Analysis
The data that were collected was tabulated, analyzed and interpreted according to
the objective of the study.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
RESULT AND DISCUSSION
General Information of the Business
Table 1 presents the general information of the respondent bakeries in terms of
years of operation, beginning capital and monthly business income.
Years of operation. Almost all (90.91%) of the respondents have been in operation
for less than 10 years. Only one (9.09%) has been in operation for more than 20 years. This
implies that most respondent bakeries are relatively new in the industry.
Beginning capital. Putting up a bakery needs enough resources and other inputs to
start the operation. Four (36.36%) of the respondents had start- up capital of 10,000, two
(18.18%) start with 20,000, 30,000 and 50,000 and only one started up with more than
51,000.
Business income. Majority (72.73%) of the respondents claimed to have earn a
monthly income of less than 20,000 pesos.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to find out the marketing practices of the bakeries in
Bontoc, Mountain Province. Survey questionnaire and interview were used in gathering
data needed in the study. Tabular analysis using percentage and frequency counts was used
primarily to describe the data.
Among the respondent bakeries in Bontoc were 10 who are in operation of less than
10 years and only one who has been operating for more than 20 years. Four respondents
had started up a capital of 10,000, two started to operate with 20,000 another two who
started with 30,000 and also 2 for 50,00 and only one started to operate with a capital of
more than 51,000. Majority of the respondents claim to earn a monthly income of less than
20,000 pesos.
The most commonly product produced among the bakeries were pan de sal, pan de
coco, spanish, longjan, cinnamon, cheese and loaf. Other products produced were cakes,
“ensaymada” and buns. Among these products they produced most claimed that pan de sal
and spanish earn them the highest sale because it was the bakeries specialties, expertise
and because of the foremost quality of their product which is soft and delicious.
All bakery respondents based their brand name on the name of the owners. Many
respondents said that what their products project with the brand is that it emphasize
affordable price and only half claim to emphasize the quality of the product. All bakeries
are using cellophane and some use paper bread bag as their packaging materials and clear
plastic were used for cakes instead of box. The bakeries label their product by indicating
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
the expiration date of the product; four indicates the name of the business and only 3
indicates the ingredients.
Almost all bakeries claimed that their objective in pricing their product is to make
it affordable at the same time they make it sure that it is competitive. The pricing method
that majority of respondents are using is cost based pricing and competition based pricing.
Most claims that the best pricing method is the cost based pricing method and that their
basis is their increased in customer and volume purchased.
All respondents are displaying their product as their promotion. Aside from this the
bakeries were using personal selling by directly inviting customer. Seven are using
advertisement through radio and direct marketing through cell phone and six are using
public relation by conducting seminars. Respondents claimed that advertisement is the best
promotional tools. Majority claimed that these were the most effective promotional tools
because their bakeries are known widely and that their customer increased. Most of the
respondents claimed that building product awareness was their first objective.
Most of the respondents used the sari-sari store as their market outlet. Most
maintain their outlet by delivering complete order and many bakeries reached their market
outlet by delivering product for free. Respondents claim that aside from retailers they sell
their product directly to customers. All respondent also claim that they do not have a
particular market segments.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
Conclusions
The following conclusions were drawn from the study:
1. The most common products produced by the bakeries are pan de sal, pan de coco,
spanish, longjan, cinnamon, cheese and loaf. Other products produces are cakes,
“ensaymada” and buns. Pan de sal and spanish are the best product because it has the
highest sale and it is soft and delicious;
2. Packaging materials used by the bakeries are cellophane and paper bag for bread
and clear plastic for cakes. The primary concern of the bakeries on the type of packaging
materials they used is the protection of the product and less for other consideration to help
in promoting the product. This is further shown by the lack of product details or information
on their labels;
3. The pricing method that usually used by the bakeries were the cost based pricing
and competitive based pricing. This means that bakeries were not only considering the
profit of the business but they make sure that it was affordable at the same time consider
its competitiveness in the market;
4. Bakeries in Bontoc applied advertising trough radio, tarpaulin and posters, personal
selling trough direct inviting customers and door to door selling, direct marketing trough
cell phone and public relation through seminars as their promotional tools and advertising
through radio was the best promotional tools; and,
5. Majority of the bakeries prefer sari-sari store as their market outlet rather than
canteen this shows that distribution channels of this bakeries are limited and they do not
target a wider or larger number of outlet for their product.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
Recommendations
Based on the conclusion of this study, in order to have the best marketing practices,
the bakeries must make sure that their product is the best and has the quality which is soft
and delicious. Marketing strategies should not directed for profit only. Packaging materials
must protect their product and serve as a marketing tool and package must also be attractive
and informative, capable of being used as a competitive weapon to project a product image.
Labels must be complete of details like name of producer, time and place of production.
The labels must contain the information such the package size and contents, product claims
and list of ingredients all of this must deserve careful attention during product planning
because these are important features of products. For cake producers it is recommended
that they should consider custom-made boxes and other packaging materials with the logo
of the bakery.
It is recommended for the business to use cost based pricing where in price is based
on achieving a given margin over and above cost of manufacturing, marketing and
distribution. In the study most of the bakeries in Bontoc has a single target market outlet
for the product. Promotional tool is recommended for wider market. Consider also the good
site location because these are important advantage in the market.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
LITERATURE CITED
ANNON. 2006. Packaging of Products. Retrieve on November 20 at http://www.
Packaging/ bakery- products.Html.
ASHOKKUMAR, Y., 2009. Theory of Bakery and Confectionary. Retrieve on November
20 at http:// www. Theory/ Bakery/confectionary.
BENNETT, P. D. 1988. Marketing. USA: McGraw- Hill Companies Inc. Pp. 286-287.
BRENNAN, R., CANNING, L. & MCDOWELL, R. 2007. Business to Business
Marketing. SAGE Publication Inc. Pp. 195, 204.
BUELL, V. P. 1984. Marketing Management. USA: McGraw- Hill Companies Inc. Pp. 24.
EVANS, J. R & BERMAN, B. 2002. Marketing. USA: Atomic Dog Publishing. P. 338.
GREGOIRE, M. B. & SPEARS, M. C. 2004. Food Service Organization 5ed Upper Saddle
River. New Jersey: Prentice Hall. Pp. 578-579.
GRIFFIN, R. W. & ELBERT, R. J. 2002. Business 6ed. New Jersey: Prentice Hall Inc. P.
296.
HUGHES, R. J., KAPOOR, J. R. & PRIDE, W. M. 1996. Business 5ed. Boston: Houghton
Mifflin Company. Pp. 404, 407.
KOTLER, P. & ARMSTRONG, G. 1999. Principle of Marketing. New Jersey: Prentice
Hall, Inc. Pp. 202, 212, 215, 220.
KOTLER, P. & ARMSTRONG, G. 2004. Principle of Marketing. New Jersey: Prentice
Hall, Inc. Pp. 254, 259, 274-275, 566.
KOTLER, P. 2000. Marketing Management. New Jersey: Prentice Hall. P. 383.
KOTLER, P & KELLER, K. L. 2006. Marketing Management 12ed. New Jersey: Pearson
Education Inc. Pp. 551, 558.
MALETSKY, J. 2010. Describing Marketing Practices. Retrieve on November 20 at
http://www.Describing /marketing- practices/ University of Pretoria.html.
PAPCO-O, 2010. Marketing Practices of Different Bakeries in La Trinidad Benguet. Under
Graduate Thesis, Benguet State University, km5 La Trinidad, Benguet.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
PERREAULT, W. D. JR. & McCARTHY, E. J. 2000. Essentials of Marketing. USA:
McGraw- Hill Companies Inc. Pp. 180, 190.
PETTER, J. P. & OLSON, J. C. 2008.Consumer Behavior and Marketing Strategy 8ed.
New York: McGraw-Hill Companies Inc. Pp. 373, 383, 399.
POPESCU, D. V., ONETE, B. C., NISTOREAN, P. 2006. The Bread necessity or Trifle?
“Trade Magazine” no.1, Bucharest, P. 6.
PORTER, M. E. 1985. Competitive Advantage: Creating and Sustaining Superior
Performance. New York: Free Press. P. 383.
RAJEEVE, L. 2012. Market Segmentation Strategies. Retrieve on November 20 at
http://www. buzzle.com/ articles/market-segmentation-strategy.Html.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
NGAN-OY, ME-ANN A. APRIL 2013. Marketing Practices of Different Bakeries
in Bontoc Mountain Province. Benguet State University, La Trinidad, Benguet.
Adviser: David L. Joseph Bognadon, MCM.
ABSTRACT
The study was conducted to determine the marketing practices of the bakeries in
terms of products, pricing, promotion and place or distribution in Bontoc. Survey
questionnaire and interview were used in gathering data needed in the study. Tabular
analysis using percentage and frequency counts was used primarily to describe the data.
The most commonly product produced among the bakeries were pan de sal, pan de
coco, spanish bread, longjan, cinnamon, cheese and loaf. The products that provided them
the highest sale were pan de sal and spanish bread as claimed by most respondents. These
products had the highest sale because they were the bakery specialties, and because of the
quality that was soft and delicious.
All bakery respondents based their brand name on the name of the owners. This
brand projected and emphasized affordable price and the quality of the product. All
bakeries were using cellophane and some used paper bread bag as their packaging materials
and clear plastic container were used for cakes. The packaging label indicated the
expiration date of the product, name of the business and the ingredients.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
Almost all bakeries claimed that their objective in pricing their product was to make
it affordable at the same time make it sure that it is competitive. The pricing method they
used are cost based pricing and competition based pricing. The best pricing method was
the cost based pricing method because their customers and volume of sale increased.
Respondents used personal selling, advertisement; direct marketing and public
relation as their marketing tools. Advertisement was the best promotional tool because it
promoted their product and increased their customers. Respondents used sari-sari store as
their market outlet. Most maintained their outlet by delivering complete order and reached
their market outlet by delivering products for free. All respondent also claimed that they
did not have a particular market segments.
The researcher concluded that bakeries lack of product and place or distribution
strategies, thus it is recommended that they must improve their product by improving their
packaging and labelling of the product and must aim a wider target area or a large number
of market outlets.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
INTRODUCTION
Rationale
Marketing is one of the areas of responsibility of a business. It consists of all
activities designed to generate and facilitate any exchange intended to satisfy human needs
and wants. These activities are to plan and produce, price, promote and distribute product
or services to target markets. All these activities must work together to assure successful
marketing and in order to achieve organization objectives.
In our country, marketing of commodities varies widely. These variations are
related to several factors, foremost of which are marketing practices involve in the
movement of the products from the point of production to the ultimate consumer.
Moreover, the efficiency of marketing often depends on marketing practices that are
employed by the business. According to Maletsky (2010) marketing practices is a
transactional by nature and focus on price, product, place and promotion to determine what
benefits and cost they would consider acceptable to reach consumer effectively.
Bakery is an establishment which produces and sells flour-based food baked in an
oven such as bread, cakes, pastries, pies and similar foods. These products most especially
bread is a part of daily consumption habitudes of almost all the nation in the world. It is
the main food for daily consumption as stated by Popescu et al., (2006); this is why bakery
products manufacturing was, is and always be the society main occupation.
Bontoc is the 3rd class municipality and capital Town of Mountain Province,
Philippines. According to the latest census, it has a population of 24, 798 people in 5,035
household. The municipality has the highest number of businesses which is 660. This
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
study intends to know what are the marketing practices employed by the owners or
manager in their bakery. With the expectation that this study will provide information that
can guide the different bakeries in improving their strategies to have a better product and
sale in the market, for those who intend to engage in bakery business.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
REVIEW OF LITERATURE
The Bakery
Bakery or baker’s shop is an establishment which produces and sells flour-based
food baked in an oven such as bread, cakes, pastries and pies. It may sell its products
locally, distribute them regionally or nationally, or export them to other countries. Along
with bakeries, the industry consists of the equipment, supplies, and delivery drivers used
to support the industry. Bakeries are the main component of the bakery industry, and
produce the actual goods. Bakery sales may be retail, wholesale, or a combination of both.
Retail bakeries are also cafes, serving coffee and tea to customers who wish to consume
baked goods on the premises. Many other bakery shops provide services for special
occasion such as wedding, birthday parties, or even business affairs (Ashokkumar, 2009).
Marketing
Marketing is the business function that identifies customer’s needs and wants’,
determine which the target markets the organization can serve best, and appropriate
products, services, and programs to serve these markets. Business must search for buyers,
identify their needs, design good products and services, set price for them, promote them,
and store and deliver them. Thus each company must divide up to the total market, choose
the best segments and design strategies for profitability serving chosen segments better
than its competitors do. This process involves three steps: market segmentation, market
targeting, and market positioning (Griffin and Elbert, 2002).
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
Market segmentation pertains to the division of the market which consists of many
types of customers into persons with similar needs and wants. The marketer has to
determine which segment offers the best opportunity for achieving company objectives.
This segments are (1) geographic segmentation calls for dividing the market into different
geographic units such as nation, regions, states, countries, cities or neighborhoods. Many
companies today are localizing their products, advertising, promotion, and sales efforts to
fit the needs of individual regions, cities and even neighborhood (Kotler & Armstrong,
1999). (2) Demographic segmentation divide market into group based on variables such as
age, gender, family size, family life cycle, income, occupation, education and religion, race
and nationality. According to Rajeeve (2012) demographic factors are the most popular
basis for segmenting customer groups, largely because consumer needs, wants, and usage
rates often vary closely with demographic variables. Even when market segments are first
defined using other basis, such as personality or behavior, their demographic characteristics
must be known in order to assess the size of the target market and to reach it efficiently.
(3) Psychographic segmentation divides buyers into different groups based on social class,
lifestyle or personality and characteristic. (4) Behavioral segmentation divides the buyers
into groups based on their knowledge, attitudes, uses or response to products. Many
marketers believe that behavior variables are the best starting point for building market
segments. Most companies enter a new market by serving a single segment and if this
proves successful, they add segments (Petter and Olson, 2008).
After a company has defined marketing segments and identifies its market segment
opportunities it has to decide how many and which ones to target. Market targeting involves
evaluating each market segments attractiveness and selecting one or more segments to
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
enter. There are five patterns of target market selection (1) single segments concentration
which the company may select a single segment, through concentrated marketing, the firm
gains a strong knowledge of the segments needs and achieve a strong market presence. (2)
Selective specialization, here the firms select a number of segments each objectively,
attractive and appropriate. This multi segments coverage strategy has an advantage of
diversifying the firm’s risk. (3) Product specialization, here the firm specializes in making
a certain product that it sells to several segments. Through a product specialization strategy,
the firm builds a strong reputation in the specific product area. (4)Market specialization,
here the firm concentrates on serving many needs of a particular customer group. The firm
gains a strong reputation in serving this customer group and become a channel for their
products that the customer group could use, and (5) Full market coverage, the firm attempts
to serve all customer groups with all the products they might need (Kotler and Armstrong,
1999).
Company should target segments in which it can generate the greatest customer
value and sustain it overtime. A company with limited resources might decide to serve only
one or a few special segments. This strategy limits sales but can be very profitable
(Rajeeve, 2012).
Once a company has decided which segments of the market it will enter, company
decide what position it wants to occupy in the segments. Market positioning is arranging
for a product to occupy a clear distinctive and desirable place the product occupies relative
to competitors in consumer minds. Thus marketers plan positions that distinguish their
products from competing brands and give them the greatest strategic advantage in their
target market (Kotler andArmstrong, 2004).
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
In positioning the product, the company first identifies possible competitive
advantage on which to build the position. To gain competitive advantage the company must
offer greater value to chosen target segments either by charging lower price than
competitors do or by offering more benefits to justify higher price. Then the company
positions the product as offering greater value, it must deliver that greater value. Thus
effective positioning begins with actually differentiating the company’s marketing offer so
that it gives consumer more value than they are offered by the competition. Once the
company has chosen a desired position, it must take strong steps to deliver and
communicate that position to target consumers. The company’s entire marketing programs
should support the chosen positioning strategy (Petter and Olson, 2008).
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
METHODOLOGY
Locale and Time of the Study
The study was conducted at Bontoc, Mountain Province from January to February
2013.
Respondent of the Study
The respondent of the study were the owners or the managers of all the bakeries in
Bontoc, Mountain Province.
Data Collection
Structured survey questionnaire were used as a tool in gathering the data. The
survey questionnaire was distributed to the owners or managers of all bakeries. Personal
interview was done to validate and gather additional information and also to confirm
information from the questionnaire.
Data Gathered
The data gathered were the marketing practices in terms of pricing, product,
promotion and place or distribution in Bontoc.
Data Analysis
The data that were collected was tabulated, analyzed and interpreted according to
the objective of the study.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
RESULT AND DISCUSSION
General Information of the Business
Table 1 presents the general information of the respondent bakeries in terms of
years of operation, beginning capital and monthly business income.
Years of operation. Almost all (90.91%) of the respondents have been in operation
for less than 10 years. Only one (9.09%) has been in operation for more than 20 years. This
implies that most respondent bakeries are relatively new in the industry.
Beginning capital. Putting up a bakery needs enough resources and other inputs to
start the operation. Four (36.36%) of the respondents had start- up capital of 10,000, two
(18.18%) start with 20,000, 30,000 and 50,000 and only one started up with more than
51,000.
Business income. Majority (72.73%) of the respondents claimed to have earn a
monthly income of less than 20,000 pesos.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to find out the marketing practices of the bakeries in
Bontoc, Mountain Province. Survey questionnaire and interview were used in gathering
data needed in the study. Tabular analysis using percentage and frequency counts was used
primarily to describe the data.
Among the respondent bakeries in Bontoc were 10 who are in operation of less than
10 years and only one who has been operating for more than 20 years. Four respondents
had started up a capital of 10,000, two started to operate with 20,000 another two who
started with 30,000 and also 2 for 50,00 and only one started to operate with a capital of
more than 51,000. Majority of the respondents claim to earn a monthly income of less than
20,000 pesos.
The most commonly product produced among the bakeries were pan de sal, pan de
coco, spanish, longjan, cinnamon, cheese and loaf. Other products produced were cakes,
“ensaymada” and buns. Among these products they produced most claimed that pan de sal
and spanish earn them the highest sale because it was the bakeries specialties, expertise
and because of the foremost quality of their product which is soft and delicious.
All bakery respondents based their brand name on the name of the owners. Many
respondents said that what their products project with the brand is that it emphasize
affordable price and only half claim to emphasize the quality of the product. All bakeries
are using cellophane and some use paper bread bag as their packaging materials and clear
plastic were used for cakes instead of box. The bakeries label their product by indicating
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
the expiration date of the product; four indicates the name of the business and only 3
indicates the ingredients.
Almost all bakeries claimed that their objective in pricing their product is to make
it affordable at the same time they make it sure that it is competitive. The pricing method
that majority of respondents are using is cost based pricing and competition based pricing.
Most claims that the best pricing method is the cost based pricing method and that their
basis is their increased in customer and volume purchased.
All respondents are displaying their product as their promotion. Aside from this the
bakeries were using personal selling by directly inviting customer. Seven are using
advertisement through radio and direct marketing through cell phone and six are using
public relation by conducting seminars. Respondents claimed that advertisement is the best
promotional tools. Majority claimed that these were the most effective promotional tools
because their bakeries are known widely and that their customer increased. Most of the
respondents claimed that building product awareness was their first objective.
Most of the respondents used the sari-sari store as their market outlet. Most
maintain their outlet by delivering complete order and many bakeries reached their market
outlet by delivering product for free. Respondents claim that aside from retailers they sell
their product directly to customers. All respondent also claim that they do not have a
particular market segments.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
Conclusions
The following conclusions were drawn from the study:
1. The most common products produced by the bakeries are pan de sal, pan de coco,
spanish, longjan, cinnamon, cheese and loaf. Other products produces are cakes,
“ensaymada” and buns. Pan de sal and spanish are the best product because it has the
highest sale and it is soft and delicious;
2. Packaging materials used by the bakeries are cellophane and paper bag for bread
and clear plastic for cakes. The primary concern of the bakeries on the type of packaging
materials they used is the protection of the product and less for other consideration to help
in promoting the product. This is further shown by the lack of product details or information
on their labels;
3. The pricing method that usually used by the bakeries were the cost based pricing
and competitive based pricing. This means that bakeries were not only considering the
profit of the business but they make sure that it was affordable at the same time consider
its competitiveness in the market;
4. Bakeries in Bontoc applied advertising trough radio, tarpaulin and posters, personal
selling trough direct inviting customers and door to door selling, direct marketing trough
cell phone and public relation through seminars as their promotional tools and advertising
through radio was the best promotional tools; and,
5. Majority of the bakeries prefer sari-sari store as their market outlet rather than
canteen this shows that distribution channels of this bakeries are limited and they do not
target a wider or larger number of outlet for their product.
Marketing Practices of Different Bakeries in Bontoc Mountain Province
NGAN-OY, ME-ANN A. APRIL 2013
Recommendations
Based on the conclusion of this study, in order to have the best marketing practices,
the bakeries must make sure that their product is the best and has the quality which is soft
and delicious. Marketing strategies should not directed for profit only. Packaging materials
must protect their product and serve as a marketing tool and package must also be attractive
and informative, capable of being used as a competitive weapon to project a product image.
Labels must be complete of details like name of producer, time and place of production.
The labels must contain the information such the package size and contents, product claims
and list of ingredients all of this must deserve careful attention during product planning
because these are important features of products. For cake producers it is recommended
that they should consider custom-made boxes and other packaging materials with the logo
of the bakery.
It is recommended for the business to use cost based pricing where in price is based
on achieving a given margin over and above cost of manufacturing, marketing and
distribution. In the study most of the bakeries in Bontoc has a single target market outlet
for the product. Promotional tool is recommended for wider market. Consider also the good
site location because these are important advantage in the market.
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NGAN-OY, ME-ANN A. APRIL 2013
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