BIBLIOGRAPHY QUITOYAN, JANICE I. APRIL 2009....
BIBLIOGRAPHY
QUITOYAN, JANICE I. APRIL 2009. Supply Chain of Kerobee Farm Products.
Benguet State University, La Trinidad Benguet.
Adviser: Clifton D. Llanes, BSU.
ABSTRACT
This study was conducted to Identify and describe the structure of the Kerobee
Farm products supply chain, determine the major chain actors, identify and Describe the
distribution chain and analyze the product flow involved and identify the performance of
Kerobee farm in terms of marketing.
The study was conducted in Ambiong La Trinidad Benguet, at the Kerobee farm
and with its three major outlet located in La Trinidad and in Baguio City.
For the structure of Kerobee farm products supply chain, from Kerobee farm to
the three different outlets ( Benguet State University marketing center, La Trinidad
Organic Products, Good Shepherd) to the end-user.
Kerobee farm produces the apiary products, then distributes to its retailers (the
Benguet State University marketing center, La Trinidad Organic Products, Good
Shepherd). It links Between Kerobee farm to the end-user, the packaging supplier
It makes standard packaging materials for Kerobee farm products.
Kerobee farm are very innovative, they produce quality products by using organic
materials. Kerobee farm shows its concern for health of its consumers by producing a
variety of products beneficial to the health of its consumer.
Recommendations for Kerobee farm are, Kerobee farm’s culture of producing
consumer friendly products laudable. This attitude should be continued. However, in
order to better understand and serve the consumers, the farm needs to determine the
acceptability of their products and scan for the specific preferences of the consumers.
This will help them in decision as to what innovations must be done or what product lines
to be added. Kerobee farm should acquire Bureau of Food and Drugs license in order to
expand his market and for the assurance of the consumers that his products are safe and
has, efficacy, purity, and a good quality. The farm should consider offering products in
sizes or forms more convenient to consumers.
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TABLE OF CONTENTS
Page
Bibliography.……………………………………………………………….. i
Abstract………………………………………………………………........... i
Table of Contents………………………………………………....... ……... iii
INTRODUCTION………………………………………………………..... 1
Rationale of the study ……………………………………………... 1
Statement of the Problem ………………………………………...... 4
Objective of the Study …………………………………………...... 4
Importance of the Study …………………………………………… 5
Scope and Limitation of the Study ………………………………....
5
REVIEW OF LITERATURE……………………………………………… 6
Apiary ……………………………………………………………... 6
Marketing ………………………………………………………….. 6
Market Practice …………………………………………….…….... 11
Marketing Culture ………………………………………………….
14
Aspect of Product Development ………………………...………… 15
Product Innovation ………………………………………………… 16
Entrepreneurship ………………………………………………....... 16
Supply Chain ………………………………………………………. 17
Structure of supply chain……………………………………….......
17
Enterprise Diversification…………………………………………... 18
iii
Definition of terms…………………………………………………. 18
METHODOLOGY………………………………………………………….
20
RESULT AND DISCUSSION…………………………………………….. 21
Historical Background of the Firm…………………………………. 21
Production of Honey…………………………………………........... 21
Products of Kerobee Farm………………………………………….. 23
Packaging……………………………………………………............ 25
Inbound and Outbound Logistics
of Kerobee Farm…………………………………………………..... 25
Marketing…………………………………………………………… 26
Products of Kerobee Farm Being Sold
At Different outlet…………………………………………………… 27
Problem Encountered in Marketing
Kerobee Products………………………………………………….... 28
Actors in the Supply Chain………………………………………..... 29
Other Actors in the Supply Chain……………………………........... 29
General Product Flow for Kerobee Products
From the Kerobee Farm to the Different
Outlets to the End-Users……………………………………………. 29
Value Adding Activities…………………………………………….. 31
Product Payment Information Flows……………………………....... 32
Page
SUMMARY, CONCLUSION AND RECOMMENDATION………........... 33
Summary…………………………………………………………….. 33
Conclusion…………………………………………………………... 35
Recommendation…………………………………………………..... 35
iv
LITERATURE CITED…………………………………………….. ………. 37
APPENDIX…….…………………………………………………................ 39
A. Communication Letter…………………………………………… 39
B. Survey Questionnaire…………………………………………….. 40
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INTRODUCTION
Rationale of the Study
Beekeeping is an important component of agriculture. Aside from its nutritional
and economic contribution, it also contributes to ecological balance. This venture is
viewed as a potential industry for the development of the localities because it can provide
employment to people in the rural communities. Beekeeping can be dependable
agricultural occupation only when the beekeeper has the technical knowledge together
with effective marketing and financial management, and also farm record keeping skills.
Bees are chief agents in hastening the propagation of plants through cross
pollination. These bees are also used in various experiments to detect pollution, in soil
analysis and to some extent to determine the toxicity in plant. Honey is used mainly used
in the Philippines as health food. Pharmaceutical companies utilize it as a base for cough
syrup and energy drink. Pollen and royal jelly are components of energy pills and
capsules. Bee products are also used in beautifying agents by cosmetics companies.
American period is the start of beekeeping in the Philippines. Few people in the
Philippines were engaged in beekeeping, but still they cannot produce the demand in the
points to a great opportunity for entrepreneur to engage in beekeeping industry.
One producer of apiary products is Kerobee farm located in Ambiong La Trinidad
Benguet. Owned and operated by Mr. Romeo Awas Kimbungan, Kero is from the
combination of the family member’s name. One time, Mr. Romeo Kimbungan visited one
of his friends and noticed that his friend is engage in beekeeping. That was the start of his
interest in beekeeping. He then joined training on beekeeping. In 1992, he started
beekeeping with 5 colonies of bees having a working capital of P20,000. Mr. Kimbungan
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
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focus more on honey production until such time that he was able to register his business
at Department of Trade and Industry (DTI) with a trade name KEROBEE in 1997. His
products were tea, honey, bee pollen and honey wine, which is through fermentation. The
month of November is the start where flowers bloom until the month of April. This is the
time when bees go out and collect pollen from different flowering plants and bring it to
the colony. For the month of May until October, flowering plants are few so what he does
is supplemental feeding with sugar being mixed with water in a specific ratio. For
harvesting of honey, he has his machine that would extract honey. He personally delivers
his products using his own car. For about 16 years in beekeeping, the reason why his
business still exists is that he makes himself updated to the new technology in beekeeping
through internet especially on what’s going on in the world of beekeeping. As of now, he
has about 200 colonies of bees in Tublay, Tuba, Itogon, La Trinidad and Baguio. Mr.
Romeo Awas Kimbungan first products are honey and honey wine and his production
area is in LaTrinidad, his first outlets are located at Swap (small stalls) and in Mines
View (small stalls), but because of the unloyalty of the outlets he then decides to stop
delivering his product to them. Mr. Kimbungan convinces BSU Marketing Center to sell
his product by assuring that he will be the one in charge in advertising the products. Good
Shepherd are the one who convince Mr. Kimbungan to produce more volume of honey
for more products ensuring that they will help him in selling his products and LaTrinidad
organic products (LATOP) is also one of the major outlet of Kerobee farm. Mr.
Kimbungan develops different products like the different tea’s and the bee pollen, and as
of now he is trying to develop soap from honey He is also conducting seminar on basic
beekeeping where it is about PhP2000 per head.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
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Statement of the Problem
Given the multitude of products of Kerobee and the limited outlets it services
there is a need to:
1. Describe the supply chain adapted by Kerobee farm.
2. Determine main players of Kerobee farm’s in supply chain, in terms of their:
a. function
b. role
c. relationship
3. What is the performance of Kerobee farm in terms of its marketing?
Objective of the Study
Base on the need to understand Kerobee’s marketing channels, the study aims to:
1. Identify and describe the structure of the Kerobee farm products supply chain
and profile the major chain actors.
2. Identify and describe the distribution chain and analyze the products flow
involved as to:
a. Primary Activities
a1) Inbound logistics
a2) Outbound logistics
a3) Marketing
b. Support Activities
b1) Procurement
b2) Technology
b3) Human Resource Management
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
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b4) Firm Infrastructure
3. Describe the performance of Kerobee farm in terms of its marketing.
Importance of the Study
The study was conducted to document the admirable supply chain and marketing
culture of Kerobee farm as well as identify the unit channels for its products. As such,
result of the study could pinpoint which of the practices should be emulated by other
practitioners and entrepreneur to improve their operations, as well as identify the
marketing aspects that kerobee could improve upon thereby further strengthening its
operation and improving its performance. It will also describe the admirable supply chain
management of Kerobee farm. Over all, improved operation for individual
practitioners could aid in the efficiency of marketing apiary product and strengthening the
domestic apiculture industry.
Scope and Limitation of the Study
The study is limited to documenting the kerobee farm marketing culture, supply
chain and its marketing channels. Marketing culture refers to the firm’s attitude, values,
goals, and practices towards serving the market. Supply chain is a business processes,
from end user through original suppliers, supply chain will fulfill customer demands
through the most efficient use of resources, including distribution capacity, inventory and
labor. The marketing channels for its products will simply be identified and classified and
a simple profiling of buyers of products will be done.
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REVIEW OF LITERATURE
Apiary
An apiary (also known as bee yard) is the land or area where a person purposely
places multiple beehives for bees to live in. The apiary may be built to assist with
farming, to collect honey, or both. An apiary is beneficial to the farmland that surrounds
it because it encourages bees to stay in the area. In turn, bees aid in pollination, which
helps vegetables and fruit to grow. Typically, one beehive provides enough bees to
pollinate one acre of crops. In an apiary, multiple beehives are set on pallets. Special
scents are used to attract queen honeybees to the hives. While the queen sits in the
beehive, she sends her workers out to collect pollen and nectar from area flowers. The
pollen is used by the colony of bees as protein to keep them well nourished as they go
about their tasks. After the worker bees ingest the nectar they collect, they regurgitate it
and store it in the honeycombs within the beehive. This is how honey is made (Kietzman,
2003-2008).
Marketing
Marketing is not limited to business; marketing has a broad meaning,
In business marketing is an activity. Marketing activities and strategies result in making
products available that satisfy customers while making profits for the companies that
offer those products (Bellis, 1997).
A company’s marketing system must operate within the framework of forces that
constitute the system’s environment. These forces are either internal or external to the
firm. The internal forces are inherit to the organization and are controlled by
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management. The external forces, which generally cannot be controlled by the firm, that
are divided into two, the macro influence such as demography, economic conditions,
social and cultural forces, political and legal forces, technology, and competition. The
second one is the micro environment; this group includes suppliers, marketing
intermediaries, and customers. These micro elements, while external, are closely related
to specific company and are included as part of the company’s total marketing system
(Stanton, 1984).
The external macro environment is considerable effect on any marketing system;
Demography: tell marketers who current and potential customers are, where they are, and
how many are likely to buy what the marketer is selling. It the statistical study of human
population and its distribution, in terms of size, density, location, age, sex, race,
occupation, and other statistics. It is especially important to marketing executives,
because people constitute markets. Changes in the demographic environment can result in
significant opportunities and threats presenting themselves to the organization. Major
trends for marketers in the demographic environment include worldwide explosive
population growth; a changing age, ethnic and educational mix; new types of households;
and geographical shifts in population (Gautam, 2008).
Economic condition; people alone do not make a market. They must have money
to spend and be willing to spend it. The condition of the economy is significant force that
affects the marketing system of any organization. The economic environment consists of
factors that affect consumer purchasing power and spending patterns. Economic factors
include business cycles, inflation, unemployment, interest rates, and income. Changes in
major economic variables have a significant impact on the marketplace. For example,
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income affects consumer spending which affects sales for organizations. According to
Engel's Laws, as income rises, the percentage of income spent on food decreases, while
the percentage spent on housing remains constant (Gautam, 2008).
Social and cultural force; It is the most difficult uncontrollable variables to
predict. It is important for marketers to understand and appreciate the cultural values of
the environment in which they operate. The cultural environment is made up of forces
that affect society's basic values, perceptions, preferences, and behaviors, values and
beliefs include equality, achievement, youthfulness, efficiency, practicality, self-
actualization, freedom, humanitarianism, mastery over the environment, patriotism,
individualism, religious and moral orientation, progress, materialism, social interaction,
conformity, courage, and acceptance of responsibility. Changes in social/cultural
environment affect customer behavior, which affects sales of products. Trends in the
cultural environment include individuals changing their views of themselves, others, and
the world around them and movement toward self-fulfillment, immediate gratification,
and secularism (Gautam, 2008).
Political and legal force; to an increasing extent, every company’s conduct is
influence by the political legal process in the society. Legislation at all levels exercise
more influence on the marketing activities of an organization that on any other phase of
its operations. The political environment includes governmental and special interest
groups that influence and limit various organizations and individuals in a given society.
Organizations hire lobbyists to influence legislation and run advocacy ads that state their
point of view on public issues. Special interest groups have grown in number and power
over the last three decades, putting more constraints on marketers. The public expects
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organizations to be ethical and responsible. An example of response by marketers to
special interests is green marketing, the use of recyclable or biodegradable packing
materials as part of marketing strategy (Gautam, 2008).
Technology; technology has a tremendous impact on our lives, Technological
developments are the most manageable uncontrollable force faced by marketers.
Organizations need to be aware of new technologies in order to turn these advances into
opportunities and a competitive edge. Technology has a tremendous effect on life-styles,
consumption patterns, and the economy. Advances in technology can start new industries,
radically alter or destroy existing industries, and stimulate entirely separate markets. The
rapid rate at which technology changes has forced organizations to quickly adapt in terms
of how they develop, price, distribute, and promote their products (Gautam, 2008).
Competition; people basically buy want satisfaction in the form of product or service
benefits. Adopting the marketing concept means that an organization must provide
greater customer value than its competitors. Being good is not good enough if a
competitor is better. It is impossible for an organization to develop strong competitive
positioning strategies without a good understanding of its competitors and the strengths
and weaknesses of the competitors (Gautam, 2008).
The external micro, three environmental farces are a part of marketing system but
are external to the company. These are the firms market, suppliers, and marketing
intermediaries. While generally classed as noncontrollable forces. These external
elements can be influenced to a greater degree than the macro forces (Stanton, 1984).
The market; Organizations closely monitor their customer markets in order to
adjust to changing tastes and preferences. A market is people or organizations with wants
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to satisfy, money to spend, and the willingness to spend it. Each target market has distinct
needs, which need to be monitored. It is imperative for an organization to know their
customers, how to reach them and when customers' needs change in order to adjust its
marketing efforts accordingly. The market is the focal point for all marketing decisions in
an organization (Gautam, 2008).
Suppliers; are organizations and individuals that provide the resources needed to
produce goods and services. They are critical to an organization's marketing success and
an important link in its value delivery system. Marketers must watch supply availability
and monitor price trends of key inputs. If there is a breakdown in the link between the
organization and its suppliers, the result will be delays and shortages that can negatively
impact the organization's marketing plans. On the other hand, positive and cooperative
relationships between the organization and its suppliers can lead to enhanced service and
customer satisfaction (Gautam, 2008).
Marketing intermediaries; Like suppliers, marketing intermediaries are an
important part of the system used to deliver value to customers. Marketing intermediaries
are independent organizations that aid in the flow of products from the marketing
organization to its markets. The intermediaries between an organization and its markets
constitute a channel of distribution. These include middlemen (wholesalers and retailers
who buy and resell merchandise). Physical distribution firms help the organization to
stock and move products from their points of origin to their destinations. Warehouses
store and protect the goods before they move to the next destination. Marketing service
agencies help the organization target and promote its products and include marketing
research firms, advertising agencies, and media firms. Financial intermediaries help
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finance transactions and insure against risks and include banks, credit unions, and
insurance companies (Gautam, 2008).
Market Practice
In order to achieve your marketing objectives you need to have a strategy that
includes different elements - the various parts of the marketing mix. Calling it a mix
reminds you to try and get the balance right between the different elements. It is easy to
assume that one part of the mix is wrong, when in fact it is another (Webber, N.D).
It is important for an organization to have a good understanding of the marketing
mix. Each element is important when developing a marketing plan. (Michigan State
University)
Product. Manufacturing is essential for generating wealth and improving the
standard of living. Product development is a broad field of endeavor dealing with the
design, creation, and marketing of new products. Sometimes referred to as new
productdevelopment (NPD), the discipline is focused on developing systematic methods
for guiding all the processes involved in getting a new product to market (Anonymous,
N.D).
The product offered by an organization is what the business entity is all about.
While we tend to think of products as object we can see and touch, the term product may
be used in offering intangible service and ideas as well. Because products often have
values for buyers that transcend their intrinsic qualities then product then is define as
marketers offering as perceived by the market (Buell, 1984).
Managing product includes planning and developing the right products or service to be
marketed by the company. Strategies are needed for changing existing products, adding
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new ones, and taking other actions that affect the assortment of product carried. Strategic
decisions are also needed regarding branding, packaging, and other various other product
feature (Stanton, 1984).
What you are trying to sell to the customer. An organization needs to have an in
depth understanding about what it is they are marketing. Development of the product’s
size, quality, design, brand name, and packaging are important when trying to match with
customer’s needs and wants. An organization should explain how their product’s features
benefit the customer (Chulick, n.d).
Price. The most of us price is the amount we pay a retailer as an exchange for a
product. Retailer, of course, may charge what they wish since manufacturers legally
cannot dictate the retailer's price. In pricing management must determine the right base
price for its product. It must then decide on strategies concerning discounts, freight
payments, and other price related variables (Stanton, 1984).
Entrepreneurs have different basis and strategies in pricing their products. To set
specific price level that achieve their pricing objective, Managers may include other
pricing method, and this methods include cost-plus pricing, target return pricing, value-
base pricing, psychological pricing. Managers have the opportunities to design, innovate
new pricing model that better meet the need of the firm and the consumers (Anonymous,
2007-2008).
What is the highest amount that the customer will pay for the product or service?
Many times setting the incorrect price level is the beginning of the end for an
organization. An organization must be sure that the price is not too high or too low.
Mistakes either way will hurt the organization’s income. When an organization is starting
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out, it is important that they focus their price levels on breaking-even. A break-even
analysis is necessary to determine the price to set to avoid a loss (Chuclick, n.d).
Promotion. Promotion covers all the activities involve in market communication
and persuasion, namely, advertising, personal selling, sales promotion, and publicity.
Promotion is the ingredient used to inform and persuade the market regarding a
company’s products (Stanton, 1984).
The method in which the customer will gain knowledge about the product and be
persuaded to purchase it. There are many different types of promotional activities that can
be used to help gain knowledge, exposure, and desire to purchase (Chuclick, n.d).
Place/Distribution. Even though market intermediaries are primarily a non
controllable environmental factor, a marketing executive has considerable latitude when
working with them. Management responsibilities is to select and manage the trade
channels through witch the products will reach the right market at the right time and to
develop a distribution system for physically handling and transporting the product trough
this channels (Stanton, 1984).
Where the customer meets the product. The question is how does the customer get
to that place? An organization needs to make sure the product or service they are offering
is in the appropriate location where its target markets can reach. It is also important to
look at the transportation that could be necessary to reach its customers and the
geographical barriers that might exist. A B&B will not get many visitors if they have to
travel on a poorly lit, gravel road (Chuclick, n.d).
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Marketing Culture
Market Culture” is a relative term used to describe the attention an organization
focuses on markets and the skills used to create value for customers.
Strong market culture firms believe the purpose of a business is to create superior
customer value, profitably. Research shows that companies with a weak market culture
deliver financial performance that is inferior to competitors with a strong market culture.
(Anonymous, 2007).
Noella (2002) stated that in promote a marketing culture from the top. Partners
should demonstrate a commitment to the importance of marketing to all personnel by
sharing stories of marketing success at firm-wide and department meetings, developing
expectations and tracking systems for time spent on marketing initiatives, and providing
incentives for personnel who bring in accounts. Create a strategic plan. Develop and use a
strategic marketing plan as a blueprint for activities throughout the year. Develop a
personal marketing program. A program can empower each individual to set clear
business development goals, widen their professional network, and learn how to approach
and close a new account. Train your people. Professional service providers can increase
their ability and comfort with bringing in business when they receive training regularly.
Develop a strong brand. Present your culture and capabilities at their best to the public.
Share information about your brand, culture, and philosophies to all personnel at
orientations and firm meetings so they become true ambassadors when dealing with the
public. Get help from marketing consultants. Accountants often do not know where to
begin when it comes to marketing. Start by discussing your culture and business goals in
relation to market opportunities (Noella, 2007).
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Aspect of Product Development
Product development is a broad field of endeavor dealing with the design,
creation, and marketing of new products. Sometimes referred to as new product
development (NPD), the discipline is focused on developing systematic methods for
guiding all the processes involved in getting a new product to market. There are a number
of organizations dedicated to supporting product development professionals, such as the
Product Development and Management Association (PDMA) and the Product
Development Institute (PDI). According to the PDMA, the organization's mission is "to
improve the effectiveness of people engaged in developing and managing new products -
both new manufactured goods and new services. This mission includes facilitating the
generation of new information, helping convert this information into knowledge which is
in a usable format, and making this new knowledge broadly available to those who might
benefit from it" (Anonymous, 2008).
Multiple changes that took place in the marketplace in recent years, such as
shortening product life cycles and increasingly virtual and extended supply chains, have
made it more challenging for companies to successfully complete product development
initiatives. To meet these challenges, companies must continue to develop Product
Development processes and exploit information technology, while focusing on both
effectiveness (doing the right things) and efficiency (doing things right) in addressing
innovation and product development (The Product Development Challenge, 2005).
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Product Innovation
Innovations had better be capable of being started small, requiring at first little
money, few people, and only a small limited market The myth that products are
developed by lone geniuses in their labs, who turn sudden inspiration into practical
innovation "wasn't quite true even in Thomas Edison's day, and it certainly isn't true
today," writes Michael Hammer.2 "Reality is far more complex. Talent and inspiration are
necessary but not sufficient. To create and launch nearly any new product today requires
skills.” Product/service innovation is the result of bringing to life a new way to solve the
customer's problem – through a new product or service development – that benefits both
the customer and the sponsoring company (Drucker, n.d).
Entrepreneurship
Entrepreneurship is vital for stimulating economic growth and employment
opportunities in all societies. The culture of a community also may influence how much
entrepreneurship there is within it. Different levels of entrepreneurship may stem from
cultural differences that make entrepreneurship more or less rewarding personally. A
community that accords the highest status to those at the top of hierarchical organizations
or those with professional expertise may discourage entrepreneurship. A culture or policy
that accords high status to the "self-made" individual is more likely to encourage
entrepreneurship (Holden, 2007).
Supply Chain
People use different names for chains of activities and organizations. When they
emphasise the operations, they refer to the process; when they emphasise marketing, they
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call it logistic channel; when they look at the value added, they call it value chain, when
they see how costumer demands are satisfied, and they call it demand chain. And when it
is emphasizing the movement of the materials and will use the general term of supply
chain. A supply chain consists of the series of activities and organization that materials
move through on their journey from initial supplier to final customer. In reality,
organization does not work from isolation, but each one acts as a supplier, and then it acts
as a supplier when it delivers material to its own customers. Every product has its own
unique supply chain, and these can be both long and complicated (Waters, 2003).
Structure of the Supply Chain
The simpliest view of a supply chain has a single product moving through series
of organization, each of which somehow adds value to the product. Taking one
organization’s point of view, activities in front of it moving materials inwards are called
upstream; those after the organization moving materials outward are called downstream.
In practice, most organizations get materials from many different suppliers, and sell
products to many different customers. Each product has its own supply chain, and their is
a big huge number of different configurations. Supply chain diverges to meet demand
from different type of customer. Then the supply chain divides into separate strands with
the same product following alternative routes (Waters, 2003).
Supply chain exist to overcome the gaps created when supplier are some distant
away from customers. They allow operations that are best done or can only be done at
locations that are distant from customers or source of materials. Moving materials
between geographically separate operations, supply chain allows mismatches between
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supply and demand. When there is excess supply, stocks are build-up in the supply chain
(Waters, 2003).
Enterprise Diversification
Diversification is an effective way of reducing income variability. It is the
combining of different production processes. For instance, diversification can include
different crops, combinations of crops and livestock, different end points in the same
production processes. For instance, diversification can include different crops,
combinations of crops and livestock, different end points in the same production process
(such as different selling weights), or different types of the same crop (such as yellow,
white, waxy, or high-protein corns). Diversification can also be achieved through
different income sources, such as off-farm employment for smaller farms. Effective
diversification occurs when low income from one enterprise is simultaneously offset by
satisfactory or high incomes from other enterprises. It typically reduces large year-to-year
variations in income. However, diversification is becoming increasingly costly, as capital
investment requirements become greater. Diversification can ensure adequate cash flow
for meeting production costs, debt obligations, and family living needs (Murphy, 2005).
Definition of Terms
Apiary. It is a place where bees are kept, a collection of hives or colonies of bees
kept for their honey.
Apiculture. It is keeping of bees especially on large scale.
Culture. It is a set of shared attitudes, values, goals, and practices that
characterizes an institution or organization.
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Innovation. It is the introduction of something new idea, method or device.
Market. It is a meeting together of people for the purpose of trade by private
purchase and usually not by action.
Marketing. It is an aggregate of functions involved in moving goods from
producers to consumers.
Product. It is something that is marketed or sold as a commodity.
Radical. It is relating to or constituting a political group association with views,
practices, and policies of extreme change.
Value. It is a fair return or equivalent in good, services, or money for something
exchange.
Supply chain. It is coordination of operations with all the companies involved in
the entire sequence of suppliers that contribute to the creation and delivery of a product
or service. Effective supply chain management can provide an important competitive
advantage for a business marketer, resulting in improved communication and
involvement among members of the chain, increased motivation, and decreased costs.
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METHODOLOGY
Locale and Time of the Study
The study was conducted in Ambiong La Trinidad Benguet, at the
Kerobee farm and with its outlet located in LaTrinidad and Baguio City. The study was
conducted on January 2009.
Research Instrument
Interview guide for Kerobee farm, outlet, and end-user was prepared and used in
collecting data and relevant information. Contained in the interview guide for Kerobee
are Questions related to its marketing practices. Question in the interview guide for
outlets were on the problems encountered in selling Kerobee products.
Respondent of the Study
The respondent of the study was Kerobee’s owner/proprietor and other personnel
involved with marketing of products in market development, key personnel of the major
Kerobee outlets and some end-users.
Data Collection
Primary data was gathered through personal interview with the use of interview
guides. Secondary data was gathered using media documentation on Kerobee or the
apiculture industry. The marketing channels and supply chain for Kerobee products was
traced and documented. Then interview was done with key personnel of the major outlet
for Kerobee products and some of the end-users.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
20
RESULT AND DISCUSSION
Historical Background of the Firm
Kerobee farm started in 1992, having only 5 colonies and 5 hives boxes of bees in
La Trinidad with a working capital of P20,000. The owner Mr. Romeo Awas
Kimbungan, focus more on honey production. His products before are honey and honey
wines which are through fermentation.
As of now he has 200 colonies and 400 hive boxes, and other machines and
equipment for his business like carpentry machine, planer, extractor, honey filter, tanks,
foundation molder machines, and also a car used for delivery. Kerobee can produce 2.5
tons of honey in the whole year but still not enough to meet the demand of the market. He
personally manages the business, with the help of his one steady worker, and sometimes
his 3 pull out workers which are his relative. The Kerobee objective is to continue to
serve the market, producing apiary products that are organic.
Production of Honey
Table 1 shows the different activities in producing honey, artificial feeding is
applicable only in the month of May-October where flowering plants are few and it will
take two people to feed the 200 colonies in five different places, once in every week.
Brood rearing is done by two people once in every week, the treatment of the disease can
be done by two people twice in a year and the last activity in producing honey is
harvesting which is done by two person in five days in the different places of the farm.
There are problems Mr. Kimbungan encountered in the production of honey this
are, the birds eating bees, theft, storm’s and disease cause by the mite’s. He can manage
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
21
some difficulties like the birds eating bees, by using fire works, but according to him it is
not practical because it is too expensive. He can also manage the disease cause by mites
by managing the colony properly and according to him the mite’s are born together with
the egg while the egg grew the mite also grew. The space that the bee egg should occupy
it is being occupied by the mites eggs. But he manages this by using a beehive with
smaller hole exactly for the bee egg only. This will prevent the egg mites to grow
together with the bee egg.
Table 1. Activities in producing honey
ACTIVITIES HUMAN
LABOR FREQUENCY
Mild Feeding
2
Once a week
Brood Rearing
2
Once a week
Treatment of Disease
2
Twice a year
Harvesting
2-3
Five times a year
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
22
Products of Kerobee Farm
Table 2 shows the different products of Kerobee farm the year introduce and the
description for each products. Mr. Kimbungan develops different products that assures
good quality by using organic materials for the health benefits of the consumer.
Table 2. The different products of Kerobee farm
PRODUCTS
WHEN INTRODUCED
DESCRIPTION
Honey
pure honey 1997 100% pure natural honey
creamed honey
2000
100% pure natural none
pasteurize honey. It has
natural ingredient
calamansi with honey
2000
No
preservatives,
pure
honey and fresh Calamansi
Bee Pollen
bee pollen propolis
2006
The most complete nutrient
(human consumption)
from honeybee, the perfect
food of life. It has complete
vitamins,minerals, enzymes,
amino acid and natural anti-
bacteria
bee pollen propolis
2007
For better Cock breeding
( cock breading
Tea
banaba herbal tea w/
2003
It lowers blood sugar,
honey
reduce weight, help regulate
blood pressures, good for
the kidneys, aids the
digestive system
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
23
Table 2. Continued…
PRODUCTS WHEN
INTRODUCED
DESCRIPTION
Gipas herbal tea w/
2003
Popular tea in the Cordillera
honey
Used as alternative
medicine for diarrhea and it
is relative of green tea
Lemon grass herbal
2004
Organic, cleans body
tea w/ honey
toxins, rich in vitamin C,
reduces fever, stomach
cramps and eases arthritis
pain
Yakon herbal tea w/
2005
Made from organic
honey
materials
Dandelion herbal tea
2002
It helps prevent formation
w/ honey
of kidney stone
Strawberry herbal tea
2004
elevates the rate of
w/ honey
urination, it can cure
diarrhea, arthritis, rheumatic
and soothes the stomach
Wine
Honey wine
1997
Pure natural honey with
dandelion, banaba, lemon
grass and fermented in
indigenous yeast.
Rice wine w/ honey
2004
Organic rice with pure
honey. It is fermented in
indigenous yeast.
Honey blue berrywine
2006
Organic honey with wild
organic blue berry and
forest water. Fermented in
indigenous yeast.
Shiitake wine w/
2008
Organic Shiitake with pure
honey
natural honey. Fermented in
indigenous yeast.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
24
Packaging
Mr. Kimbungan is buying his packaging materials (bottles) from SMB or from
Asia Brewery. He chose SMB and Asia Brewery because they are the only producer of
standard bottles in the Philippines. He ensures safe product delivery to the market for the
end-users, the packaging serves a number of different functions including preservation,
containment, and convenience, the labeling of his product packaging protects the contents
against environmental, physical, and mechanical hazards, during storage and distribution.
Packaging contains the food and keeps it secure until it is used. Packaging is also a means
of providing useful information to the consumers; it also serves as a communication to
the firm. In addition, food packages provide convenience they unitize or group products
together in useful amounts, have features like easy opening, dispensing, resealing after
use, and so on. Finally, a successful, effective food package should fulfill many other
requirements. Mr. Kimbungan contract Printing Press to print the designs for his
packagings. It provides a way of identifying the contents, attractive or eye-catching
packaging helps to sell the product, and it provides a means of fulfilling any regulatory
requirements concerning labeling of foods.
Inbound and Outbound Logistic of Kerobee Farm
The supplies of raw materials is the inbound logistic, and the shipment of Kerobee
farm to the different outlet is the out bound. Mr. Romeo Awas Kimbungan chooses BSU
Marketing Center, LATOP, and Good Shepherd as his main outlets because of the
reasons that they are accessible to buyers, they sale fast, they pay on time, they have good
cooperation and they have good reputation, the good reputation of the farm reflects on the
quality of his products. La Trinidad Organic Products (LATOP) sells only organic base
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
25
products while Benguet State University (BSU) marketing center is going to organic
products and Good Shepherd are more concerned in the quality of the product they are
selling, this are the qualities of the outlet that reflects on his product. The qualities of the
outlet will reflect on Mr. Kimbungan’s product
BSU
(MARK
ETING)
SUPPLIER
OF RAW
END
KEROBEE FARM
MATERIA
GOOD
USE
LS
SHEPH
ERED
R
La
Trinidad
Organic
Product
Figure 1. Inbound and outbound logistic of Kerobee farm
Marketing
Delivering of Kerobee product is done by Mr. Kimbungan himself to his 3
different respective outlet, one in Baguio (Mines View, Good Shepherd) and two in
LaTrinidad (km.5, Benguet State University marketing and LaTop). The products are
transported to the outlet through his own car.
The price of honey, bee pollen, and tea’s are base on the production cost and the wines
are base on the market price. There is a high demand of honey but low supply that’s one
reason why the price of apiary products is too high.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
26
Promotion activities done by Kerobee are advertising specifically in radio
(DZWT) every Friday. He also joins local trade faire and distributes flyers to give more
information about the product.
Table 3 shows the scheduled delivery of Kerobee farm to its outlet depends if the
market outlet has disposed the products.
Products of the Kerobee Farm Being
Sold at Different Market Outlet
Table 4 shows the different products of Kerobee farm and what products the
different outlets are selling. BSU Marketing Center is almost selling all the products of
Kerobee farm except for the bee pollen for cocks, because it is not accessible to the
buyers. LATOP are Selling Pure honey, creamed honey, Calamansi with honey, Bee
pollen Propolis (for human consumption and cock), they only sell some tea this are lemon
grass herbal tea with honey, Yakon herbal tea with honey and Dandelion herbal tea with
honey because of the reasons that this products are accessible to the buyers in Km.5.
Good Shepherd don’t sell wines and bee pollen because it is not accessible to the buyers.
Table 3. Scheduled delivery of products to the outlets
OUTLETS
Schedule
BSU Marketing Center
Once a Month
LATOP
Twice a Month
Good Shepherd
Every Week
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
27
Table 4. List of products of the Kerobee farm being sold at different market outlet
PRODUCTS OF KEROBEE
BSU
LATOP GOOD
MARKETING
SHEPERED
CENTER
Honey
Pure honey
/
/
/
creamed honey
/
/
/
Calamansi with honey
/
/
/
Bee Pollen
Bee pollen Propolis
/
(man consumption)
Bee pollen propolis
/
(cock consumption)
Tea
Lemon grass herbal tea with honey
/
/
/
Yakon herbal tea with honey
/
/
/
Dandelion herbal tea with honey
/
/
Strawberry herbal tea with honey
/
/
Gipas herbal tea with honey
/
/
Wines
Shiitake wine with honey /
Rice wine with honey /
Honey wine /
Blue berry Wine with honey /
Problem Encountered in Marketing Kerobee Products
Problems encountered in Marketing Kerobee products are, in BSU Marketing
Center they have Problem in Bureau of Food and Drugs (BFAD) License, it ensure
the safety, efficacy, purity, and quality of processed foods, drugs, diagnostic reagents,
medical devices, cosmetics and household hazardous substances through state-of-the-art
technology, as well as the scientific soundness and truthfulness of BFAD license, this can
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
28
affect the preference of buyers in buying Kerobee products. In LaTop the problem that
they encountered is the consumer more prefer per pieces instead of box because
according to them it is more affordable than those in the boxes. In Good Shepherd they
did not encounter any problem in selling Kerobee products. Production information for
the protection of public health that Kerobee farm don’t have
Actors in the Supply chain
Kerobee
farm. They are the one who produce honey, process, package and
transport in the different outlet.
Individual consumer. They are the buyers of Kerobee product for food
consumption, beverage and also for present. Most consumers are tourist according to the
different outlets. Consumer respondent of this study have indicated a high satisfaction on
the quality of the products they acquire from the different outlet
Retailers. Retailers (BSU, LaTop, and Good Sheered) sell to the end-user; they
also help in marketing Kerobee product. They influence buyers on choices.
Other Actors in the Supply Chain
Supplier packaging materials. They provide standard packaging materials for
Kerobee farm. The payment is in cash term basis and they also offer discount
General Product Flow for Kerobee Products
From the Kerobee Farm to the Different
Outlets to the End-Users
Figure 2 show the general product flow for Kerobee products from the Kerobee
farm to the different outlets to the end-users.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
29
Kerobee farm, the different outlets (LaTop, BSU marketing center, and good
shepherd) and the end-user shares different information. Kerobee farm shares information
about the products like it is organic, clean and use of pure honey and organic materials.
Kerobee farm choices the different outlet because of this reasons; accessibility of buyer’s,
fast sale’s, they pay on time; they have good reputation, and have good cooperation’s.
The outlet shares information such as when to deliver, what products are easily dispose
and what are not, they also serve as the bridge of buyers feedback to Kerobee farm. The
end-user are mostly tourist, 100% of them are 30 years old and above.
(Outlet)
GOOD
SHEPERED
KEROBEE
FARM
(Outlet)
LATOP
End- User
(Outlet)
BSU
Marketing
Figure 2. Product Flow from Kerobee farm to end-User
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
30
Table 5. Roles and function activities of key actor in the supply chain and value-
Adding activities of Kerobee products
ACTOR ROLE FUNCTONS/VALUEADDING
ACTIVITIES
Kerobee Farm
Apiary product Producer
Production of honey
Processing
Packaging
Transporting
Selection of outlet
Retailers
Link between Kerobee Purchase Kerobee product
(BSU, LATOP, Good farm and the end-user
required
Shepherd)
Display prepared product
influence buyers for choice
For storage of the product
Introduce and promote product
to the consumer
Individual Consumer
End-user
Choose and purchase preferred
product
Other Participant in the Chain
Packaging Supplier
Makes standard
packaging materials for
Kerobee products
Value Adding Activities
Making the honey products available to the end-user certainly requires value
adding activities on the part of Kerobee farm and retailers.
Aside for producing honey, Kerobee farm also have lot of activities before
distributing their product to the outlet, there will be Mild Feeding, Brood Rearing,
Treatment of Disease, extraction of honey, fermentation, processing, packaging, and
transporting to the different outlets. All of this is added to the value of the product.
Another way of adding value to the product is through storage of the products.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
31
Kerobee outlets also function to maintain a familiar place (display area) from
which buyers could find the product easily, and they influence buyers as to what they
should be buying. For making sure that there are readily available Kerobee products for
the end-user to simply pick-up, the retailers shoulder the risk of tied-up funds on
maintaining inventory.
Product Payment and Information Flows
Mr. Romeo Awas Kimbungan acquire information on technology from the
internet, And attended Different seminars one is the seminar conducted by the LATOP on
the technology in how to engage in organic beekeeping. And there are cases where he
learns from doing experiments/trials in his farms.
For the price of the product, Kerobee base it on the production cost (honey, tea)
and in the prevailing market price (wine). The high price of his product according to him
shows that Kerobee product has a high quality. The outlets pay the products upon
receiving it by check basis.
Through the availability and accessibility of outlet to communication facilities
like cell phone and land line (call) that Kerobee have the knowledge when to deliver
products to his different outlets, Kerobee also deliver products on time this avoids out of
stocks in the outlets.
Since most of the end-users are tourist the retailers influence the end-users as to
what they should purchase for their needs.
The kinds of information shared are more on delivery the time of delivery, what
products to be deliver and the quantity to be delivered.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
32
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to describe the supply chain adapted by Kerobee farm,
Determine main players of Kerobee farms in supply chain and identify the performance
of Kerobee farm in terms of its marketing. The study was conducted in Ambiong La
Trinidad Benguet at the Kerobee farm and with its three major outlets located in Baguio
City and La Trinidad. The respondents were [personally interviewed with the aid of open
and close ended questionnaire.
Kerobee farm started in 1992, having only 5 colonies and 5 hives boxes of bees in
La Trinidad with a working capital of P20, 000. The owner Mr. Romeo Awas
Kimbungan, focus more on honey production. His products before are honey and honey
wines which are through fermentation.
As of now he has 200 colonies and 400 hive boxes, and other machines and
equipment for his business like carpentry machine, planer, extractor, honey filter, tanks,
foundation molder machines, and also a car used for delivery. Kerobee can produce 2.5
tons of honey in the whole year but still not enough to meet the demand of the market. He
personally manages the business, with the help of his one steady worker, and sometimes
his 3 pull out workers which are his relative. The Kerobee objective is to continue to
serve the market, producing apiary products that are organic.
The different activities in producing honey are mild feeding, brood rearing,
treatment of disease, and harvesting. The problems encountered in production of honey
are the birds eating bee’s, theft, storm, and disease cause by mite’s, Mr. Kimbungan can
manage some of the problems like the birds eating bee’s and the disease cause by mite’s.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
33
The different product of Kerobee farm are honey, bee pollen, tea and wine, they
are all made of organic materials. It has different health benefits for the consumers and it
assures good quality.
In marketing of Kerobee products there are problems encountered this are lack of
BFAD licenses that ensures safety, efficacy, purity, quality of process foods, diagnostic
reagents, medical devices, cosmetics and hazardous substance through innovating, and
that some consumers prefer more tea’s per pieces instead of per box for it is more
convenient.
The actors of the supply chain of Kerobee products are Kerobee farm, one
producer of honey, they process package and transport in the different outlets. The
individual consumers, they are the buyers of Kerobee products for food consumption,
beverage, and also for present. Retailers (BSU marketing center, LATOP, Good
Shepherd) sell to end-users; they also help in marketing Kerobee products and influence
buyers on choices. Lastly the supplier of packaging materials that provide standard
packaging for Kerobee farm.
Mr. Romeo Awas Kimbungan acquire information on technology from the
internet, And attended Different seminars one is the seminar conducted by the LATOP on
the technology in how to engage in organic beekeeping. And there are cases where he
learns from doing experiments/trials in his farms. For the price of the product, Kerobee
base it on the production cost (honey, tea) and in the prevailing market price (wine). The
high price of his product according to him shows that Kerobee product has a high quality.
The outlets pay the products upon receiving it by check basis. Through the availability
and accessibility of outlet to communication facilities like cell phone and land line (call)
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
34
that Kerobee have the knowledge when to deliver products to his different outlets,
Kerobee also deliver products on time this avoids out of stocks in the outlets. Since most
of the end-users are tourist the retailers influence the end-users as to what they should
purchase for their needs. The kinds of information shared are more on delivery the time
of delivery, what products to be deliver and the quantity to be delivered.
Conclusions
Based on the findings of this study the following conclusion are drawn
1.
Kerobee farm produce products based on what it’s proprietor sees as
beneficial to the health of its consumer. The farm constantly adds to its product liner
2.
The different apiary products are sold to the different outlet which are the
BSU marketing center, LATOP, and Good Shepherd, are chosen by Mr. Kimbungan
because he sees these outlets as appropriate representative of his products to the
consumers, that is, organic based and healthy products.
3.
The marketing channels have problem regarding the lack of BFAD license
of Kerobee farm that assures the safety, efficacy purity and quality of process foods, drug
diagnostic, reagents, medical devices, cosmetics and house hold hazardous substance
through innovation process of Kerobee farm.
4.
Some consumers prefer to purchase tea per piece because it is more
convenient than those in boxes.
Recommendations
1.
Kerobee farm’s culture of producing consumer friendly products laudable.
This attitude should be continued. However, in order to better understand and serve the
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
35
consumers, the farm needs to determine the acceptability of their products and scan for
the specific preferences of the consumers. This will help them in decision as to what
innovations must be done or what product lines to be added.
2.
Kerobee farm should acquire BFAD license in order to expand his market
and for the assurance of the consumers that his products are safe and has, efficacy, purity,
and a good quality.
3. The farm should consider offering products in sizes or forms more
convenient to consumers.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
36
LITERATURE CITED
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STANTON, W.1984. Fundamental of Marketing. McGraw Hill Book Company, New
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Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
38
APPENDIX
Communication Letter
Benguet State University
College of Agriculture
Department of Agriculture Economics
and Agribusiness Management
La Trinidad Benguet
Sir/Madam:
Warm greetings!
The undersigned is a fourth year student Bachelor of Science in Agribusiness
(BSAB) student majoring in Enterprise Management. I am presently conducting a
research entitled “SUPPLY CHAIN OF KEROBEE PRODUCTS” in partial fulfillment
for the requirement of the course AB200.
In this connection, I ask a portion of your precious time to answer the attached
questionnaire. Please answer it correctly and honestly for the success of this study. Rest
assured that information you will give be kept with utmost confidentiality.
Thank you very much for your cooperation.
Respectfully yours
JANICE I. QUITOYAN
Researcher
Noted by:
CLIFTON D. LLANES
Adviser
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
39
APPENDIX B.1
Survey Questionnaire
Kerobee Farm
1. What is the Business objective/goal of Kerobee?
2. How much is the beginning capital?
3. What are the beginning capitals of the firm?
4. What are the current capitals of the firm?
5. Where do you buy material use for the product?
Name of the firm
Materials
( where)
Reason
6. Where are the locations of the farm?
7. What are the activities in producing honey? How many human labors are
required?
8. How do you choice your workers?
9. What are the problems encountered in producing honey?
10. What are the products offer, when introduced, modification, reasons and identified
target market?
11. What are your promotion activities?
Advertising
Personal
selling
Sales promotion
Publicity
Public relation
12. What Mode of selling communication?
__whisper “bulungan”
__by touch “radio”
__through agent
__personal negotiation with the seller __hand
held
radio
__contact buyers through media like cell phone
13. What are the information shared with the outlet? ___________________________
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
40
______________________________________________________________
14. What are the resources shared with the outlet? __________________________
_______________________________________________________________
15. Why did you chose your current outlet
Accessibility
of
buyer’s
Hours
open
Fast sales
Payment
on
time
They
have
good
reputation
Have
good
cooperation
16. Do you suggest to retailers a selling price?
__Yes
__No
17. Did you use price to penetrate the market? If yes, how?
__offered at high price to convey high quality to target market
__Offered at comparatively low price
18. Where is your market outlet?
Products
Market outlet
Description
19. What is the method of sale?
__Cash
__Barter
__Credit/partial payment
__Other pls. specify
20. How do you price your product?
__Based on the prevailing market price of competing branch
__Mutually
agreed
price
__suggested retail price
__Base on the cost of raw materials __retail price
__Premium
pricing
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
41
APPENDIX B.2
B.2 Survey Questionnaire
Kerobee Outlet
Name of Business:_____________________________________________________
Location of Business: ___________________________________________________
Number of years selling Kerobee products:
__ Less than one year
__ One year
__ Two years
__ other; pls. specify
What products of Kerobee farm are you selling? _____________________________
What products of Kerobee are easily disposed? ______________________________
What products of Kerobee are not easily disposed? ___________________________
What are the problems encountered in selling Kerobee products? ________________
What possible solutions to the problem do you suggest? _______________________
How many times Kerobee deliver their products?
__once a month
__ twice a month
__three times a month
__others, pls. specify
Who are the usual buyers of Kerobee products according to age, gender, civil status?
__ Below 20 __21-25 years old
__ 26-30 years old
__above 30
Male__% female__%
Single__%
married__%
widowed__%
divorce__%
Feedback of buyers on Kerobee product? ______________________________
__________________________________________________________
Information on Kerobee products for share to customer? __________________
_____________________________________________________________
Terms and condition of Kerobee?
Delivery:
______________________________________________________
Pricing:
_________________________________________________
Schedule:
______________________________________________________
Regulation impose on Kerobee: __________________________________________
_____________________________________________________________.
Type of information shared with Kerobee? __________________________________
Type of support to Kerobee? _____________________________________________
Reason for selling Kerobee product? ______________________________________
Source of information (marketing practices, pricing etc.)?
__radio (specify radio program)
__TV (specify TV program
__organization (specify name of organization)
__buyers
__other
store
__others pls. specify
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
42
APPENDIX B.3
Survey Questionnaire
Kerobee end-user
Name (optional): _______________________________________
Age: ____________________
Gender: _______________________________
Marital Status:
__single
__married __separated
__widowed
Educational Attainment:
__ No formal education
__elementary graduate
__high school graduate
__ Vocational graduate
__ college graduate
__ other, pls. specify
House hold size: ________________________________________________
Annual house hold income: _____________________________________
Major source of Income: ________________________________________________
Number of years you have been buying Kerobee products: _____________________
Reasons for buying Kerobee product? ______________________________________
______________________________________________________________
Where do you buy Kerobee products? ___________________________________
Reason for choice of outlet: _______________________________________
What product of Kerobee do you buy often? ______________________________
How often do you buy Kerobee Products? ________________________________
Is the price worth the product?
__too expensive for its quality
__just
right
__too low to reflect its quality
What are the benefits you get from the product? ___________________________
Source of information on Kerobee product? _________________________________
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
QUITOYAN, JANICE I. APRIL 2009. Supply Chain of Kerobee Farm Products.
Benguet State University, La Trinidad Benguet.
Adviser: Clifton D. Llanes, BSU.
ABSTRACT
This study was conducted to Identify and describe the structure of the Kerobee
Farm products supply chain, determine the major chain actors, identify and Describe the
distribution chain and analyze the product flow involved and identify the performance of
Kerobee farm in terms of marketing.
The study was conducted in Ambiong La Trinidad Benguet, at the Kerobee farm
and with its three major outlet located in La Trinidad and in Baguio City.
For the structure of Kerobee farm products supply chain, from Kerobee farm to
the three different outlets ( Benguet State University marketing center, La Trinidad
Organic Products, Good Shepherd) to the end-user.
Kerobee farm produces the apiary products, then distributes to its retailers (the
Benguet State University marketing center, La Trinidad Organic Products, Good
Shepherd). It links Between Kerobee farm to the end-user, the packaging supplier
It makes standard packaging materials for Kerobee farm products.
Kerobee farm are very innovative, they produce quality products by using organic
materials. Kerobee farm shows its concern for health of its consumers by producing a
variety of products beneficial to the health of its consumer.
Recommendations for Kerobee farm are, Kerobee farm’s culture of producing
consumer friendly products laudable. This attitude should be continued. However, in
order to better understand and serve the consumers, the farm needs to determine the
acceptability of their products and scan for the specific preferences of the consumers.
This will help them in decision as to what innovations must be done or what product lines
to be added. Kerobee farm should acquire Bureau of Food and Drugs license in order to
expand his market and for the assurance of the consumers that his products are safe and
has, efficacy, purity, and a good quality. The farm should consider offering products in
sizes or forms more convenient to consumers.
ii
TABLE OF CONTENTS
Page
Bibliography.……………………………………………………………….. i
Abstract………………………………………………………………........... i
Table of Contents………………………………………………....... ……... iii
INTRODUCTION………………………………………………………..... 1
Rationale of the study ……………………………………………... 1
Statement of the Problem ………………………………………...... 4
Objective of the Study …………………………………………...... 4
Importance of the Study …………………………………………… 5
Scope and Limitation of the Study ………………………………....
5
REVIEW OF LITERATURE……………………………………………… 6
Apiary ……………………………………………………………... 6
Marketing ………………………………………………………….. 6
Market Practice …………………………………………….…….... 11
Marketing Culture ………………………………………………….
14
Aspect of Product Development ………………………...………… 15
Product Innovation ………………………………………………… 16
Entrepreneurship ………………………………………………....... 16
Supply Chain ………………………………………………………. 17
Structure of supply chain……………………………………….......
17
Enterprise Diversification…………………………………………... 18
iii
Definition of terms…………………………………………………. 18
METHODOLOGY………………………………………………………….
20
RESULT AND DISCUSSION…………………………………………….. 21
Historical Background of the Firm…………………………………. 21
Production of Honey…………………………………………........... 21
Products of Kerobee Farm………………………………………….. 23
Packaging……………………………………………………............ 25
Inbound and Outbound Logistics
of Kerobee Farm…………………………………………………..... 25
Marketing…………………………………………………………… 26
Products of Kerobee Farm Being Sold
At Different outlet…………………………………………………… 27
Problem Encountered in Marketing
Kerobee Products………………………………………………….... 28
Actors in the Supply Chain………………………………………..... 29
Other Actors in the Supply Chain……………………………........... 29
General Product Flow for Kerobee Products
From the Kerobee Farm to the Different
Outlets to the End-Users……………………………………………. 29
Value Adding Activities…………………………………………….. 31
Product Payment Information Flows……………………………....... 32
Page
SUMMARY, CONCLUSION AND RECOMMENDATION………........... 33
Summary…………………………………………………………….. 33
Conclusion…………………………………………………………... 35
Recommendation…………………………………………………..... 35
iv
LITERATURE CITED…………………………………………….. ………. 37
APPENDIX…….…………………………………………………................ 39
A. Communication Letter…………………………………………… 39
B. Survey Questionnaire…………………………………………….. 40
v
INTRODUCTION
Rationale of the Study
Beekeeping is an important component of agriculture. Aside from its nutritional
and economic contribution, it also contributes to ecological balance. This venture is
viewed as a potential industry for the development of the localities because it can provide
employment to people in the rural communities. Beekeeping can be dependable
agricultural occupation only when the beekeeper has the technical knowledge together
with effective marketing and financial management, and also farm record keeping skills.
Bees are chief agents in hastening the propagation of plants through cross
pollination. These bees are also used in various experiments to detect pollution, in soil
analysis and to some extent to determine the toxicity in plant. Honey is used mainly used
in the Philippines as health food. Pharmaceutical companies utilize it as a base for cough
syrup and energy drink. Pollen and royal jelly are components of energy pills and
capsules. Bee products are also used in beautifying agents by cosmetics companies.
American period is the start of beekeeping in the Philippines. Few people in the
Philippines were engaged in beekeeping, but still they cannot produce the demand in the
points to a great opportunity for entrepreneur to engage in beekeeping industry.
One producer of apiary products is Kerobee farm located in Ambiong La Trinidad
Benguet. Owned and operated by Mr. Romeo Awas Kimbungan, Kero is from the
combination of the family member’s name. One time, Mr. Romeo Kimbungan visited one
of his friends and noticed that his friend is engage in beekeeping. That was the start of his
interest in beekeeping. He then joined training on beekeeping. In 1992, he started
beekeeping with 5 colonies of bees having a working capital of P20,000. Mr. Kimbungan
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
2
focus more on honey production until such time that he was able to register his business
at Department of Trade and Industry (DTI) with a trade name KEROBEE in 1997. His
products were tea, honey, bee pollen and honey wine, which is through fermentation. The
month of November is the start where flowers bloom until the month of April. This is the
time when bees go out and collect pollen from different flowering plants and bring it to
the colony. For the month of May until October, flowering plants are few so what he does
is supplemental feeding with sugar being mixed with water in a specific ratio. For
harvesting of honey, he has his machine that would extract honey. He personally delivers
his products using his own car. For about 16 years in beekeeping, the reason why his
business still exists is that he makes himself updated to the new technology in beekeeping
through internet especially on what’s going on in the world of beekeeping. As of now, he
has about 200 colonies of bees in Tublay, Tuba, Itogon, La Trinidad and Baguio. Mr.
Romeo Awas Kimbungan first products are honey and honey wine and his production
area is in LaTrinidad, his first outlets are located at Swap (small stalls) and in Mines
View (small stalls), but because of the unloyalty of the outlets he then decides to stop
delivering his product to them. Mr. Kimbungan convinces BSU Marketing Center to sell
his product by assuring that he will be the one in charge in advertising the products. Good
Shepherd are the one who convince Mr. Kimbungan to produce more volume of honey
for more products ensuring that they will help him in selling his products and LaTrinidad
organic products (LATOP) is also one of the major outlet of Kerobee farm. Mr.
Kimbungan develops different products like the different tea’s and the bee pollen, and as
of now he is trying to develop soap from honey He is also conducting seminar on basic
beekeeping where it is about PhP2000 per head.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
3
Statement of the Problem
Given the multitude of products of Kerobee and the limited outlets it services
there is a need to:
1. Describe the supply chain adapted by Kerobee farm.
2. Determine main players of Kerobee farm’s in supply chain, in terms of their:
a. function
b. role
c. relationship
3. What is the performance of Kerobee farm in terms of its marketing?
Objective of the Study
Base on the need to understand Kerobee’s marketing channels, the study aims to:
1. Identify and describe the structure of the Kerobee farm products supply chain
and profile the major chain actors.
2. Identify and describe the distribution chain and analyze the products flow
involved as to:
a. Primary Activities
a1) Inbound logistics
a2) Outbound logistics
a3) Marketing
b. Support Activities
b1) Procurement
b2) Technology
b3) Human Resource Management
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
4
b4) Firm Infrastructure
3. Describe the performance of Kerobee farm in terms of its marketing.
Importance of the Study
The study was conducted to document the admirable supply chain and marketing
culture of Kerobee farm as well as identify the unit channels for its products. As such,
result of the study could pinpoint which of the practices should be emulated by other
practitioners and entrepreneur to improve their operations, as well as identify the
marketing aspects that kerobee could improve upon thereby further strengthening its
operation and improving its performance. It will also describe the admirable supply chain
management of Kerobee farm. Over all, improved operation for individual
practitioners could aid in the efficiency of marketing apiary product and strengthening the
domestic apiculture industry.
Scope and Limitation of the Study
The study is limited to documenting the kerobee farm marketing culture, supply
chain and its marketing channels. Marketing culture refers to the firm’s attitude, values,
goals, and practices towards serving the market. Supply chain is a business processes,
from end user through original suppliers, supply chain will fulfill customer demands
through the most efficient use of resources, including distribution capacity, inventory and
labor. The marketing channels for its products will simply be identified and classified and
a simple profiling of buyers of products will be done.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
5
REVIEW OF LITERATURE
Apiary
An apiary (also known as bee yard) is the land or area where a person purposely
places multiple beehives for bees to live in. The apiary may be built to assist with
farming, to collect honey, or both. An apiary is beneficial to the farmland that surrounds
it because it encourages bees to stay in the area. In turn, bees aid in pollination, which
helps vegetables and fruit to grow. Typically, one beehive provides enough bees to
pollinate one acre of crops. In an apiary, multiple beehives are set on pallets. Special
scents are used to attract queen honeybees to the hives. While the queen sits in the
beehive, she sends her workers out to collect pollen and nectar from area flowers. The
pollen is used by the colony of bees as protein to keep them well nourished as they go
about their tasks. After the worker bees ingest the nectar they collect, they regurgitate it
and store it in the honeycombs within the beehive. This is how honey is made (Kietzman,
2003-2008).
Marketing
Marketing is not limited to business; marketing has a broad meaning,
In business marketing is an activity. Marketing activities and strategies result in making
products available that satisfy customers while making profits for the companies that
offer those products (Bellis, 1997).
A company’s marketing system must operate within the framework of forces that
constitute the system’s environment. These forces are either internal or external to the
firm. The internal forces are inherit to the organization and are controlled by
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
6
management. The external forces, which generally cannot be controlled by the firm, that
are divided into two, the macro influence such as demography, economic conditions,
social and cultural forces, political and legal forces, technology, and competition. The
second one is the micro environment; this group includes suppliers, marketing
intermediaries, and customers. These micro elements, while external, are closely related
to specific company and are included as part of the company’s total marketing system
(Stanton, 1984).
The external macro environment is considerable effect on any marketing system;
Demography: tell marketers who current and potential customers are, where they are, and
how many are likely to buy what the marketer is selling. It the statistical study of human
population and its distribution, in terms of size, density, location, age, sex, race,
occupation, and other statistics. It is especially important to marketing executives,
because people constitute markets. Changes in the demographic environment can result in
significant opportunities and threats presenting themselves to the organization. Major
trends for marketers in the demographic environment include worldwide explosive
population growth; a changing age, ethnic and educational mix; new types of households;
and geographical shifts in population (Gautam, 2008).
Economic condition; people alone do not make a market. They must have money
to spend and be willing to spend it. The condition of the economy is significant force that
affects the marketing system of any organization. The economic environment consists of
factors that affect consumer purchasing power and spending patterns. Economic factors
include business cycles, inflation, unemployment, interest rates, and income. Changes in
major economic variables have a significant impact on the marketplace. For example,
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
7
income affects consumer spending which affects sales for organizations. According to
Engel's Laws, as income rises, the percentage of income spent on food decreases, while
the percentage spent on housing remains constant (Gautam, 2008).
Social and cultural force; It is the most difficult uncontrollable variables to
predict. It is important for marketers to understand and appreciate the cultural values of
the environment in which they operate. The cultural environment is made up of forces
that affect society's basic values, perceptions, preferences, and behaviors, values and
beliefs include equality, achievement, youthfulness, efficiency, practicality, self-
actualization, freedom, humanitarianism, mastery over the environment, patriotism,
individualism, religious and moral orientation, progress, materialism, social interaction,
conformity, courage, and acceptance of responsibility. Changes in social/cultural
environment affect customer behavior, which affects sales of products. Trends in the
cultural environment include individuals changing their views of themselves, others, and
the world around them and movement toward self-fulfillment, immediate gratification,
and secularism (Gautam, 2008).
Political and legal force; to an increasing extent, every company’s conduct is
influence by the political legal process in the society. Legislation at all levels exercise
more influence on the marketing activities of an organization that on any other phase of
its operations. The political environment includes governmental and special interest
groups that influence and limit various organizations and individuals in a given society.
Organizations hire lobbyists to influence legislation and run advocacy ads that state their
point of view on public issues. Special interest groups have grown in number and power
over the last three decades, putting more constraints on marketers. The public expects
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
8
organizations to be ethical and responsible. An example of response by marketers to
special interests is green marketing, the use of recyclable or biodegradable packing
materials as part of marketing strategy (Gautam, 2008).
Technology; technology has a tremendous impact on our lives, Technological
developments are the most manageable uncontrollable force faced by marketers.
Organizations need to be aware of new technologies in order to turn these advances into
opportunities and a competitive edge. Technology has a tremendous effect on life-styles,
consumption patterns, and the economy. Advances in technology can start new industries,
radically alter or destroy existing industries, and stimulate entirely separate markets. The
rapid rate at which technology changes has forced organizations to quickly adapt in terms
of how they develop, price, distribute, and promote their products (Gautam, 2008).
Competition; people basically buy want satisfaction in the form of product or service
benefits. Adopting the marketing concept means that an organization must provide
greater customer value than its competitors. Being good is not good enough if a
competitor is better. It is impossible for an organization to develop strong competitive
positioning strategies without a good understanding of its competitors and the strengths
and weaknesses of the competitors (Gautam, 2008).
The external micro, three environmental farces are a part of marketing system but
are external to the company. These are the firms market, suppliers, and marketing
intermediaries. While generally classed as noncontrollable forces. These external
elements can be influenced to a greater degree than the macro forces (Stanton, 1984).
The market; Organizations closely monitor their customer markets in order to
adjust to changing tastes and preferences. A market is people or organizations with wants
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
9
to satisfy, money to spend, and the willingness to spend it. Each target market has distinct
needs, which need to be monitored. It is imperative for an organization to know their
customers, how to reach them and when customers' needs change in order to adjust its
marketing efforts accordingly. The market is the focal point for all marketing decisions in
an organization (Gautam, 2008).
Suppliers; are organizations and individuals that provide the resources needed to
produce goods and services. They are critical to an organization's marketing success and
an important link in its value delivery system. Marketers must watch supply availability
and monitor price trends of key inputs. If there is a breakdown in the link between the
organization and its suppliers, the result will be delays and shortages that can negatively
impact the organization's marketing plans. On the other hand, positive and cooperative
relationships between the organization and its suppliers can lead to enhanced service and
customer satisfaction (Gautam, 2008).
Marketing intermediaries; Like suppliers, marketing intermediaries are an
important part of the system used to deliver value to customers. Marketing intermediaries
are independent organizations that aid in the flow of products from the marketing
organization to its markets. The intermediaries between an organization and its markets
constitute a channel of distribution. These include middlemen (wholesalers and retailers
who buy and resell merchandise). Physical distribution firms help the organization to
stock and move products from their points of origin to their destinations. Warehouses
store and protect the goods before they move to the next destination. Marketing service
agencies help the organization target and promote its products and include marketing
research firms, advertising agencies, and media firms. Financial intermediaries help
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
10
finance transactions and insure against risks and include banks, credit unions, and
insurance companies (Gautam, 2008).
Market Practice
In order to achieve your marketing objectives you need to have a strategy that
includes different elements - the various parts of the marketing mix. Calling it a mix
reminds you to try and get the balance right between the different elements. It is easy to
assume that one part of the mix is wrong, when in fact it is another (Webber, N.D).
It is important for an organization to have a good understanding of the marketing
mix. Each element is important when developing a marketing plan. (Michigan State
University)
Product. Manufacturing is essential for generating wealth and improving the
standard of living. Product development is a broad field of endeavor dealing with the
design, creation, and marketing of new products. Sometimes referred to as new
productdevelopment (NPD), the discipline is focused on developing systematic methods
for guiding all the processes involved in getting a new product to market (Anonymous,
N.D).
The product offered by an organization is what the business entity is all about.
While we tend to think of products as object we can see and touch, the term product may
be used in offering intangible service and ideas as well. Because products often have
values for buyers that transcend their intrinsic qualities then product then is define as
marketers offering as perceived by the market (Buell, 1984).
Managing product includes planning and developing the right products or service to be
marketed by the company. Strategies are needed for changing existing products, adding
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
11
new ones, and taking other actions that affect the assortment of product carried. Strategic
decisions are also needed regarding branding, packaging, and other various other product
feature (Stanton, 1984).
What you are trying to sell to the customer. An organization needs to have an in
depth understanding about what it is they are marketing. Development of the product’s
size, quality, design, brand name, and packaging are important when trying to match with
customer’s needs and wants. An organization should explain how their product’s features
benefit the customer (Chulick, n.d).
Price. The most of us price is the amount we pay a retailer as an exchange for a
product. Retailer, of course, may charge what they wish since manufacturers legally
cannot dictate the retailer's price. In pricing management must determine the right base
price for its product. It must then decide on strategies concerning discounts, freight
payments, and other price related variables (Stanton, 1984).
Entrepreneurs have different basis and strategies in pricing their products. To set
specific price level that achieve their pricing objective, Managers may include other
pricing method, and this methods include cost-plus pricing, target return pricing, value-
base pricing, psychological pricing. Managers have the opportunities to design, innovate
new pricing model that better meet the need of the firm and the consumers (Anonymous,
2007-2008).
What is the highest amount that the customer will pay for the product or service?
Many times setting the incorrect price level is the beginning of the end for an
organization. An organization must be sure that the price is not too high or too low.
Mistakes either way will hurt the organization’s income. When an organization is starting
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
12
out, it is important that they focus their price levels on breaking-even. A break-even
analysis is necessary to determine the price to set to avoid a loss (Chuclick, n.d).
Promotion. Promotion covers all the activities involve in market communication
and persuasion, namely, advertising, personal selling, sales promotion, and publicity.
Promotion is the ingredient used to inform and persuade the market regarding a
company’s products (Stanton, 1984).
The method in which the customer will gain knowledge about the product and be
persuaded to purchase it. There are many different types of promotional activities that can
be used to help gain knowledge, exposure, and desire to purchase (Chuclick, n.d).
Place/Distribution. Even though market intermediaries are primarily a non
controllable environmental factor, a marketing executive has considerable latitude when
working with them. Management responsibilities is to select and manage the trade
channels through witch the products will reach the right market at the right time and to
develop a distribution system for physically handling and transporting the product trough
this channels (Stanton, 1984).
Where the customer meets the product. The question is how does the customer get
to that place? An organization needs to make sure the product or service they are offering
is in the appropriate location where its target markets can reach. It is also important to
look at the transportation that could be necessary to reach its customers and the
geographical barriers that might exist. A B&B will not get many visitors if they have to
travel on a poorly lit, gravel road (Chuclick, n.d).
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
13
Marketing Culture
Market Culture” is a relative term used to describe the attention an organization
focuses on markets and the skills used to create value for customers.
Strong market culture firms believe the purpose of a business is to create superior
customer value, profitably. Research shows that companies with a weak market culture
deliver financial performance that is inferior to competitors with a strong market culture.
(Anonymous, 2007).
Noella (2002) stated that in promote a marketing culture from the top. Partners
should demonstrate a commitment to the importance of marketing to all personnel by
sharing stories of marketing success at firm-wide and department meetings, developing
expectations and tracking systems for time spent on marketing initiatives, and providing
incentives for personnel who bring in accounts. Create a strategic plan. Develop and use a
strategic marketing plan as a blueprint for activities throughout the year. Develop a
personal marketing program. A program can empower each individual to set clear
business development goals, widen their professional network, and learn how to approach
and close a new account. Train your people. Professional service providers can increase
their ability and comfort with bringing in business when they receive training regularly.
Develop a strong brand. Present your culture and capabilities at their best to the public.
Share information about your brand, culture, and philosophies to all personnel at
orientations and firm meetings so they become true ambassadors when dealing with the
public. Get help from marketing consultants. Accountants often do not know where to
begin when it comes to marketing. Start by discussing your culture and business goals in
relation to market opportunities (Noella, 2007).
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
14
Aspect of Product Development
Product development is a broad field of endeavor dealing with the design,
creation, and marketing of new products. Sometimes referred to as new product
development (NPD), the discipline is focused on developing systematic methods for
guiding all the processes involved in getting a new product to market. There are a number
of organizations dedicated to supporting product development professionals, such as the
Product Development and Management Association (PDMA) and the Product
Development Institute (PDI). According to the PDMA, the organization's mission is "to
improve the effectiveness of people engaged in developing and managing new products -
both new manufactured goods and new services. This mission includes facilitating the
generation of new information, helping convert this information into knowledge which is
in a usable format, and making this new knowledge broadly available to those who might
benefit from it" (Anonymous, 2008).
Multiple changes that took place in the marketplace in recent years, such as
shortening product life cycles and increasingly virtual and extended supply chains, have
made it more challenging for companies to successfully complete product development
initiatives. To meet these challenges, companies must continue to develop Product
Development processes and exploit information technology, while focusing on both
effectiveness (doing the right things) and efficiency (doing things right) in addressing
innovation and product development (The Product Development Challenge, 2005).
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
15
Product Innovation
Innovations had better be capable of being started small, requiring at first little
money, few people, and only a small limited market The myth that products are
developed by lone geniuses in their labs, who turn sudden inspiration into practical
innovation "wasn't quite true even in Thomas Edison's day, and it certainly isn't true
today," writes Michael Hammer.2 "Reality is far more complex. Talent and inspiration are
necessary but not sufficient. To create and launch nearly any new product today requires
skills.” Product/service innovation is the result of bringing to life a new way to solve the
customer's problem – through a new product or service development – that benefits both
the customer and the sponsoring company (Drucker, n.d).
Entrepreneurship
Entrepreneurship is vital for stimulating economic growth and employment
opportunities in all societies. The culture of a community also may influence how much
entrepreneurship there is within it. Different levels of entrepreneurship may stem from
cultural differences that make entrepreneurship more or less rewarding personally. A
community that accords the highest status to those at the top of hierarchical organizations
or those with professional expertise may discourage entrepreneurship. A culture or policy
that accords high status to the "self-made" individual is more likely to encourage
entrepreneurship (Holden, 2007).
Supply Chain
People use different names for chains of activities and organizations. When they
emphasise the operations, they refer to the process; when they emphasise marketing, they
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
16
call it logistic channel; when they look at the value added, they call it value chain, when
they see how costumer demands are satisfied, and they call it demand chain. And when it
is emphasizing the movement of the materials and will use the general term of supply
chain. A supply chain consists of the series of activities and organization that materials
move through on their journey from initial supplier to final customer. In reality,
organization does not work from isolation, but each one acts as a supplier, and then it acts
as a supplier when it delivers material to its own customers. Every product has its own
unique supply chain, and these can be both long and complicated (Waters, 2003).
Structure of the Supply Chain
The simpliest view of a supply chain has a single product moving through series
of organization, each of which somehow adds value to the product. Taking one
organization’s point of view, activities in front of it moving materials inwards are called
upstream; those after the organization moving materials outward are called downstream.
In practice, most organizations get materials from many different suppliers, and sell
products to many different customers. Each product has its own supply chain, and their is
a big huge number of different configurations. Supply chain diverges to meet demand
from different type of customer. Then the supply chain divides into separate strands with
the same product following alternative routes (Waters, 2003).
Supply chain exist to overcome the gaps created when supplier are some distant
away from customers. They allow operations that are best done or can only be done at
locations that are distant from customers or source of materials. Moving materials
between geographically separate operations, supply chain allows mismatches between
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
17
supply and demand. When there is excess supply, stocks are build-up in the supply chain
(Waters, 2003).
Enterprise Diversification
Diversification is an effective way of reducing income variability. It is the
combining of different production processes. For instance, diversification can include
different crops, combinations of crops and livestock, different end points in the same
production processes. For instance, diversification can include different crops,
combinations of crops and livestock, different end points in the same production process
(such as different selling weights), or different types of the same crop (such as yellow,
white, waxy, or high-protein corns). Diversification can also be achieved through
different income sources, such as off-farm employment for smaller farms. Effective
diversification occurs when low income from one enterprise is simultaneously offset by
satisfactory or high incomes from other enterprises. It typically reduces large year-to-year
variations in income. However, diversification is becoming increasingly costly, as capital
investment requirements become greater. Diversification can ensure adequate cash flow
for meeting production costs, debt obligations, and family living needs (Murphy, 2005).
Definition of Terms
Apiary. It is a place where bees are kept, a collection of hives or colonies of bees
kept for their honey.
Apiculture. It is keeping of bees especially on large scale.
Culture. It is a set of shared attitudes, values, goals, and practices that
characterizes an institution or organization.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
18
Innovation. It is the introduction of something new idea, method or device.
Market. It is a meeting together of people for the purpose of trade by private
purchase and usually not by action.
Marketing. It is an aggregate of functions involved in moving goods from
producers to consumers.
Product. It is something that is marketed or sold as a commodity.
Radical. It is relating to or constituting a political group association with views,
practices, and policies of extreme change.
Value. It is a fair return or equivalent in good, services, or money for something
exchange.
Supply chain. It is coordination of operations with all the companies involved in
the entire sequence of suppliers that contribute to the creation and delivery of a product
or service. Effective supply chain management can provide an important competitive
advantage for a business marketer, resulting in improved communication and
involvement among members of the chain, increased motivation, and decreased costs.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
19
METHODOLOGY
Locale and Time of the Study
The study was conducted in Ambiong La Trinidad Benguet, at the
Kerobee farm and with its outlet located in LaTrinidad and Baguio City. The study was
conducted on January 2009.
Research Instrument
Interview guide for Kerobee farm, outlet, and end-user was prepared and used in
collecting data and relevant information. Contained in the interview guide for Kerobee
are Questions related to its marketing practices. Question in the interview guide for
outlets were on the problems encountered in selling Kerobee products.
Respondent of the Study
The respondent of the study was Kerobee’s owner/proprietor and other personnel
involved with marketing of products in market development, key personnel of the major
Kerobee outlets and some end-users.
Data Collection
Primary data was gathered through personal interview with the use of interview
guides. Secondary data was gathered using media documentation on Kerobee or the
apiculture industry. The marketing channels and supply chain for Kerobee products was
traced and documented. Then interview was done with key personnel of the major outlet
for Kerobee products and some of the end-users.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
20
RESULT AND DISCUSSION
Historical Background of the Firm
Kerobee farm started in 1992, having only 5 colonies and 5 hives boxes of bees in
La Trinidad with a working capital of P20,000. The owner Mr. Romeo Awas
Kimbungan, focus more on honey production. His products before are honey and honey
wines which are through fermentation.
As of now he has 200 colonies and 400 hive boxes, and other machines and
equipment for his business like carpentry machine, planer, extractor, honey filter, tanks,
foundation molder machines, and also a car used for delivery. Kerobee can produce 2.5
tons of honey in the whole year but still not enough to meet the demand of the market. He
personally manages the business, with the help of his one steady worker, and sometimes
his 3 pull out workers which are his relative. The Kerobee objective is to continue to
serve the market, producing apiary products that are organic.
Production of Honey
Table 1 shows the different activities in producing honey, artificial feeding is
applicable only in the month of May-October where flowering plants are few and it will
take two people to feed the 200 colonies in five different places, once in every week.
Brood rearing is done by two people once in every week, the treatment of the disease can
be done by two people twice in a year and the last activity in producing honey is
harvesting which is done by two person in five days in the different places of the farm.
There are problems Mr. Kimbungan encountered in the production of honey this
are, the birds eating bees, theft, storm’s and disease cause by the mite’s. He can manage
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
21
some difficulties like the birds eating bees, by using fire works, but according to him it is
not practical because it is too expensive. He can also manage the disease cause by mites
by managing the colony properly and according to him the mite’s are born together with
the egg while the egg grew the mite also grew. The space that the bee egg should occupy
it is being occupied by the mites eggs. But he manages this by using a beehive with
smaller hole exactly for the bee egg only. This will prevent the egg mites to grow
together with the bee egg.
Table 1. Activities in producing honey
ACTIVITIES HUMAN
LABOR FREQUENCY
Mild Feeding
2
Once a week
Brood Rearing
2
Once a week
Treatment of Disease
2
Twice a year
Harvesting
2-3
Five times a year
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
22
Products of Kerobee Farm
Table 2 shows the different products of Kerobee farm the year introduce and the
description for each products. Mr. Kimbungan develops different products that assures
good quality by using organic materials for the health benefits of the consumer.
Table 2. The different products of Kerobee farm
PRODUCTS
WHEN INTRODUCED
DESCRIPTION
Honey
pure honey 1997 100% pure natural honey
creamed honey
2000
100% pure natural none
pasteurize honey. It has
natural ingredient
calamansi with honey
2000
No
preservatives,
pure
honey and fresh Calamansi
Bee Pollen
bee pollen propolis
2006
The most complete nutrient
(human consumption)
from honeybee, the perfect
food of life. It has complete
vitamins,minerals, enzymes,
amino acid and natural anti-
bacteria
bee pollen propolis
2007
For better Cock breeding
( cock breading
Tea
banaba herbal tea w/
2003
It lowers blood sugar,
honey
reduce weight, help regulate
blood pressures, good for
the kidneys, aids the
digestive system
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
23
Table 2. Continued…
PRODUCTS WHEN
INTRODUCED
DESCRIPTION
Gipas herbal tea w/
2003
Popular tea in the Cordillera
honey
Used as alternative
medicine for diarrhea and it
is relative of green tea
Lemon grass herbal
2004
Organic, cleans body
tea w/ honey
toxins, rich in vitamin C,
reduces fever, stomach
cramps and eases arthritis
pain
Yakon herbal tea w/
2005
Made from organic
honey
materials
Dandelion herbal tea
2002
It helps prevent formation
w/ honey
of kidney stone
Strawberry herbal tea
2004
elevates the rate of
w/ honey
urination, it can cure
diarrhea, arthritis, rheumatic
and soothes the stomach
Wine
Honey wine
1997
Pure natural honey with
dandelion, banaba, lemon
grass and fermented in
indigenous yeast.
Rice wine w/ honey
2004
Organic rice with pure
honey. It is fermented in
indigenous yeast.
Honey blue berrywine
2006
Organic honey with wild
organic blue berry and
forest water. Fermented in
indigenous yeast.
Shiitake wine w/
2008
Organic Shiitake with pure
honey
natural honey. Fermented in
indigenous yeast.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
24
Packaging
Mr. Kimbungan is buying his packaging materials (bottles) from SMB or from
Asia Brewery. He chose SMB and Asia Brewery because they are the only producer of
standard bottles in the Philippines. He ensures safe product delivery to the market for the
end-users, the packaging serves a number of different functions including preservation,
containment, and convenience, the labeling of his product packaging protects the contents
against environmental, physical, and mechanical hazards, during storage and distribution.
Packaging contains the food and keeps it secure until it is used. Packaging is also a means
of providing useful information to the consumers; it also serves as a communication to
the firm. In addition, food packages provide convenience they unitize or group products
together in useful amounts, have features like easy opening, dispensing, resealing after
use, and so on. Finally, a successful, effective food package should fulfill many other
requirements. Mr. Kimbungan contract Printing Press to print the designs for his
packagings. It provides a way of identifying the contents, attractive or eye-catching
packaging helps to sell the product, and it provides a means of fulfilling any regulatory
requirements concerning labeling of foods.
Inbound and Outbound Logistic of Kerobee Farm
The supplies of raw materials is the inbound logistic, and the shipment of Kerobee
farm to the different outlet is the out bound. Mr. Romeo Awas Kimbungan chooses BSU
Marketing Center, LATOP, and Good Shepherd as his main outlets because of the
reasons that they are accessible to buyers, they sale fast, they pay on time, they have good
cooperation and they have good reputation, the good reputation of the farm reflects on the
quality of his products. La Trinidad Organic Products (LATOP) sells only organic base
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
25
products while Benguet State University (BSU) marketing center is going to organic
products and Good Shepherd are more concerned in the quality of the product they are
selling, this are the qualities of the outlet that reflects on his product. The qualities of the
outlet will reflect on Mr. Kimbungan’s product
BSU
(MARK
ETING)
SUPPLIER
OF RAW
END
KEROBEE FARM
MATERIA
GOOD
USE
LS
SHEPH
ERED
R
La
Trinidad
Organic
Product
Figure 1. Inbound and outbound logistic of Kerobee farm
Marketing
Delivering of Kerobee product is done by Mr. Kimbungan himself to his 3
different respective outlet, one in Baguio (Mines View, Good Shepherd) and two in
LaTrinidad (km.5, Benguet State University marketing and LaTop). The products are
transported to the outlet through his own car.
The price of honey, bee pollen, and tea’s are base on the production cost and the wines
are base on the market price. There is a high demand of honey but low supply that’s one
reason why the price of apiary products is too high.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
26
Promotion activities done by Kerobee are advertising specifically in radio
(DZWT) every Friday. He also joins local trade faire and distributes flyers to give more
information about the product.
Table 3 shows the scheduled delivery of Kerobee farm to its outlet depends if the
market outlet has disposed the products.
Products of the Kerobee Farm Being
Sold at Different Market Outlet
Table 4 shows the different products of Kerobee farm and what products the
different outlets are selling. BSU Marketing Center is almost selling all the products of
Kerobee farm except for the bee pollen for cocks, because it is not accessible to the
buyers. LATOP are Selling Pure honey, creamed honey, Calamansi with honey, Bee
pollen Propolis (for human consumption and cock), they only sell some tea this are lemon
grass herbal tea with honey, Yakon herbal tea with honey and Dandelion herbal tea with
honey because of the reasons that this products are accessible to the buyers in Km.5.
Good Shepherd don’t sell wines and bee pollen because it is not accessible to the buyers.
Table 3. Scheduled delivery of products to the outlets
OUTLETS
Schedule
BSU Marketing Center
Once a Month
LATOP
Twice a Month
Good Shepherd
Every Week
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
27
Table 4. List of products of the Kerobee farm being sold at different market outlet
PRODUCTS OF KEROBEE
BSU
LATOP GOOD
MARKETING
SHEPERED
CENTER
Honey
Pure honey
/
/
/
creamed honey
/
/
/
Calamansi with honey
/
/
/
Bee Pollen
Bee pollen Propolis
/
(man consumption)
Bee pollen propolis
/
(cock consumption)
Tea
Lemon grass herbal tea with honey
/
/
/
Yakon herbal tea with honey
/
/
/
Dandelion herbal tea with honey
/
/
Strawberry herbal tea with honey
/
/
Gipas herbal tea with honey
/
/
Wines
Shiitake wine with honey /
Rice wine with honey /
Honey wine /
Blue berry Wine with honey /
Problem Encountered in Marketing Kerobee Products
Problems encountered in Marketing Kerobee products are, in BSU Marketing
Center they have Problem in Bureau of Food and Drugs (BFAD) License, it ensure
the safety, efficacy, purity, and quality of processed foods, drugs, diagnostic reagents,
medical devices, cosmetics and household hazardous substances through state-of-the-art
technology, as well as the scientific soundness and truthfulness of BFAD license, this can
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
28
affect the preference of buyers in buying Kerobee products. In LaTop the problem that
they encountered is the consumer more prefer per pieces instead of box because
according to them it is more affordable than those in the boxes. In Good Shepherd they
did not encounter any problem in selling Kerobee products. Production information for
the protection of public health that Kerobee farm don’t have
Actors in the Supply chain
Kerobee
farm. They are the one who produce honey, process, package and
transport in the different outlet.
Individual consumer. They are the buyers of Kerobee product for food
consumption, beverage and also for present. Most consumers are tourist according to the
different outlets. Consumer respondent of this study have indicated a high satisfaction on
the quality of the products they acquire from the different outlet
Retailers. Retailers (BSU, LaTop, and Good Sheered) sell to the end-user; they
also help in marketing Kerobee product. They influence buyers on choices.
Other Actors in the Supply Chain
Supplier packaging materials. They provide standard packaging materials for
Kerobee farm. The payment is in cash term basis and they also offer discount
General Product Flow for Kerobee Products
From the Kerobee Farm to the Different
Outlets to the End-Users
Figure 2 show the general product flow for Kerobee products from the Kerobee
farm to the different outlets to the end-users.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
29
Kerobee farm, the different outlets (LaTop, BSU marketing center, and good
shepherd) and the end-user shares different information. Kerobee farm shares information
about the products like it is organic, clean and use of pure honey and organic materials.
Kerobee farm choices the different outlet because of this reasons; accessibility of buyer’s,
fast sale’s, they pay on time; they have good reputation, and have good cooperation’s.
The outlet shares information such as when to deliver, what products are easily dispose
and what are not, they also serve as the bridge of buyers feedback to Kerobee farm. The
end-user are mostly tourist, 100% of them are 30 years old and above.
(Outlet)
GOOD
SHEPERED
KEROBEE
FARM
(Outlet)
LATOP
End- User
(Outlet)
BSU
Marketing
Figure 2. Product Flow from Kerobee farm to end-User
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
30
Table 5. Roles and function activities of key actor in the supply chain and value-
Adding activities of Kerobee products
ACTOR ROLE FUNCTONS/VALUEADDING
ACTIVITIES
Kerobee Farm
Apiary product Producer
Production of honey
Processing
Packaging
Transporting
Selection of outlet
Retailers
Link between Kerobee Purchase Kerobee product
(BSU, LATOP, Good farm and the end-user
required
Shepherd)
Display prepared product
influence buyers for choice
For storage of the product
Introduce and promote product
to the consumer
Individual Consumer
End-user
Choose and purchase preferred
product
Other Participant in the Chain
Packaging Supplier
Makes standard
packaging materials for
Kerobee products
Value Adding Activities
Making the honey products available to the end-user certainly requires value
adding activities on the part of Kerobee farm and retailers.
Aside for producing honey, Kerobee farm also have lot of activities before
distributing their product to the outlet, there will be Mild Feeding, Brood Rearing,
Treatment of Disease, extraction of honey, fermentation, processing, packaging, and
transporting to the different outlets. All of this is added to the value of the product.
Another way of adding value to the product is through storage of the products.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
31
Kerobee outlets also function to maintain a familiar place (display area) from
which buyers could find the product easily, and they influence buyers as to what they
should be buying. For making sure that there are readily available Kerobee products for
the end-user to simply pick-up, the retailers shoulder the risk of tied-up funds on
maintaining inventory.
Product Payment and Information Flows
Mr. Romeo Awas Kimbungan acquire information on technology from the
internet, And attended Different seminars one is the seminar conducted by the LATOP on
the technology in how to engage in organic beekeeping. And there are cases where he
learns from doing experiments/trials in his farms.
For the price of the product, Kerobee base it on the production cost (honey, tea)
and in the prevailing market price (wine). The high price of his product according to him
shows that Kerobee product has a high quality. The outlets pay the products upon
receiving it by check basis.
Through the availability and accessibility of outlet to communication facilities
like cell phone and land line (call) that Kerobee have the knowledge when to deliver
products to his different outlets, Kerobee also deliver products on time this avoids out of
stocks in the outlets.
Since most of the end-users are tourist the retailers influence the end-users as to
what they should purchase for their needs.
The kinds of information shared are more on delivery the time of delivery, what
products to be deliver and the quantity to be delivered.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
32
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to describe the supply chain adapted by Kerobee farm,
Determine main players of Kerobee farms in supply chain and identify the performance
of Kerobee farm in terms of its marketing. The study was conducted in Ambiong La
Trinidad Benguet at the Kerobee farm and with its three major outlets located in Baguio
City and La Trinidad. The respondents were [personally interviewed with the aid of open
and close ended questionnaire.
Kerobee farm started in 1992, having only 5 colonies and 5 hives boxes of bees in
La Trinidad with a working capital of P20, 000. The owner Mr. Romeo Awas
Kimbungan, focus more on honey production. His products before are honey and honey
wines which are through fermentation.
As of now he has 200 colonies and 400 hive boxes, and other machines and
equipment for his business like carpentry machine, planer, extractor, honey filter, tanks,
foundation molder machines, and also a car used for delivery. Kerobee can produce 2.5
tons of honey in the whole year but still not enough to meet the demand of the market. He
personally manages the business, with the help of his one steady worker, and sometimes
his 3 pull out workers which are his relative. The Kerobee objective is to continue to
serve the market, producing apiary products that are organic.
The different activities in producing honey are mild feeding, brood rearing,
treatment of disease, and harvesting. The problems encountered in production of honey
are the birds eating bee’s, theft, storm, and disease cause by mite’s, Mr. Kimbungan can
manage some of the problems like the birds eating bee’s and the disease cause by mite’s.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
33
The different product of Kerobee farm are honey, bee pollen, tea and wine, they
are all made of organic materials. It has different health benefits for the consumers and it
assures good quality.
In marketing of Kerobee products there are problems encountered this are lack of
BFAD licenses that ensures safety, efficacy, purity, quality of process foods, diagnostic
reagents, medical devices, cosmetics and hazardous substance through innovating, and
that some consumers prefer more tea’s per pieces instead of per box for it is more
convenient.
The actors of the supply chain of Kerobee products are Kerobee farm, one
producer of honey, they process package and transport in the different outlets. The
individual consumers, they are the buyers of Kerobee products for food consumption,
beverage, and also for present. Retailers (BSU marketing center, LATOP, Good
Shepherd) sell to end-users; they also help in marketing Kerobee products and influence
buyers on choices. Lastly the supplier of packaging materials that provide standard
packaging for Kerobee farm.
Mr. Romeo Awas Kimbungan acquire information on technology from the
internet, And attended Different seminars one is the seminar conducted by the LATOP on
the technology in how to engage in organic beekeeping. And there are cases where he
learns from doing experiments/trials in his farms. For the price of the product, Kerobee
base it on the production cost (honey, tea) and in the prevailing market price (wine). The
high price of his product according to him shows that Kerobee product has a high quality.
The outlets pay the products upon receiving it by check basis. Through the availability
and accessibility of outlet to communication facilities like cell phone and land line (call)
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
34
that Kerobee have the knowledge when to deliver products to his different outlets,
Kerobee also deliver products on time this avoids out of stocks in the outlets. Since most
of the end-users are tourist the retailers influence the end-users as to what they should
purchase for their needs. The kinds of information shared are more on delivery the time
of delivery, what products to be deliver and the quantity to be delivered.
Conclusions
Based on the findings of this study the following conclusion are drawn
1.
Kerobee farm produce products based on what it’s proprietor sees as
beneficial to the health of its consumer. The farm constantly adds to its product liner
2.
The different apiary products are sold to the different outlet which are the
BSU marketing center, LATOP, and Good Shepherd, are chosen by Mr. Kimbungan
because he sees these outlets as appropriate representative of his products to the
consumers, that is, organic based and healthy products.
3.
The marketing channels have problem regarding the lack of BFAD license
of Kerobee farm that assures the safety, efficacy purity and quality of process foods, drug
diagnostic, reagents, medical devices, cosmetics and house hold hazardous substance
through innovation process of Kerobee farm.
4.
Some consumers prefer to purchase tea per piece because it is more
convenient than those in boxes.
Recommendations
1.
Kerobee farm’s culture of producing consumer friendly products laudable.
This attitude should be continued. However, in order to better understand and serve the
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
35
consumers, the farm needs to determine the acceptability of their products and scan for
the specific preferences of the consumers. This will help them in decision as to what
innovations must be done or what product lines to be added.
2.
Kerobee farm should acquire BFAD license in order to expand his market
and for the assurance of the consumers that his products are safe and has, efficacy, purity,
and a good quality.
3. The farm should consider offering products in sizes or forms more
convenient to consumers.
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
36
LITERATURE CITED
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STANTON, W.1984. Fundamental of Marketing. McGraw Hill Book Company, New
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Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
38
APPENDIX
Communication Letter
Benguet State University
College of Agriculture
Department of Agriculture Economics
and Agribusiness Management
La Trinidad Benguet
Sir/Madam:
Warm greetings!
The undersigned is a fourth year student Bachelor of Science in Agribusiness
(BSAB) student majoring in Enterprise Management. I am presently conducting a
research entitled “SUPPLY CHAIN OF KEROBEE PRODUCTS” in partial fulfillment
for the requirement of the course AB200.
In this connection, I ask a portion of your precious time to answer the attached
questionnaire. Please answer it correctly and honestly for the success of this study. Rest
assured that information you will give be kept with utmost confidentiality.
Thank you very much for your cooperation.
Respectfully yours
JANICE I. QUITOYAN
Researcher
Noted by:
CLIFTON D. LLANES
Adviser
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
39
APPENDIX B.1
Survey Questionnaire
Kerobee Farm
1. What is the Business objective/goal of Kerobee?
2. How much is the beginning capital?
3. What are the beginning capitals of the firm?
4. What are the current capitals of the firm?
5. Where do you buy material use for the product?
Name of the firm
Materials
( where)
Reason
6. Where are the locations of the farm?
7. What are the activities in producing honey? How many human labors are
required?
8. How do you choice your workers?
9. What are the problems encountered in producing honey?
10. What are the products offer, when introduced, modification, reasons and identified
target market?
11. What are your promotion activities?
Advertising
Personal
selling
Sales promotion
Publicity
Public relation
12. What Mode of selling communication?
__whisper “bulungan”
__by touch “radio”
__through agent
__personal negotiation with the seller __hand
held
radio
__contact buyers through media like cell phone
13. What are the information shared with the outlet? ___________________________
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
40
______________________________________________________________
14. What are the resources shared with the outlet? __________________________
_______________________________________________________________
15. Why did you chose your current outlet
Accessibility
of
buyer’s
Hours
open
Fast sales
Payment
on
time
They
have
good
reputation
Have
good
cooperation
16. Do you suggest to retailers a selling price?
__Yes
__No
17. Did you use price to penetrate the market? If yes, how?
__offered at high price to convey high quality to target market
__Offered at comparatively low price
18. Where is your market outlet?
Products
Market outlet
Description
19. What is the method of sale?
__Cash
__Barter
__Credit/partial payment
__Other pls. specify
20. How do you price your product?
__Based on the prevailing market price of competing branch
__Mutually
agreed
price
__suggested retail price
__Base on the cost of raw materials __retail price
__Premium
pricing
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
41
APPENDIX B.2
B.2 Survey Questionnaire
Kerobee Outlet
Name of Business:_____________________________________________________
Location of Business: ___________________________________________________
Number of years selling Kerobee products:
__ Less than one year
__ One year
__ Two years
__ other; pls. specify
What products of Kerobee farm are you selling? _____________________________
What products of Kerobee are easily disposed? ______________________________
What products of Kerobee are not easily disposed? ___________________________
What are the problems encountered in selling Kerobee products? ________________
What possible solutions to the problem do you suggest? _______________________
How many times Kerobee deliver their products?
__once a month
__ twice a month
__three times a month
__others, pls. specify
Who are the usual buyers of Kerobee products according to age, gender, civil status?
__ Below 20 __21-25 years old
__ 26-30 years old
__above 30
Male__% female__%
Single__%
married__%
widowed__%
divorce__%
Feedback of buyers on Kerobee product? ______________________________
__________________________________________________________
Information on Kerobee products for share to customer? __________________
_____________________________________________________________
Terms and condition of Kerobee?
Delivery:
______________________________________________________
Pricing:
_________________________________________________
Schedule:
______________________________________________________
Regulation impose on Kerobee: __________________________________________
_____________________________________________________________.
Type of information shared with Kerobee? __________________________________
Type of support to Kerobee? _____________________________________________
Reason for selling Kerobee product? ______________________________________
Source of information (marketing practices, pricing etc.)?
__radio (specify radio program)
__TV (specify TV program
__organization (specify name of organization)
__buyers
__other
store
__others pls. specify
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
42
APPENDIX B.3
Survey Questionnaire
Kerobee end-user
Name (optional): _______________________________________
Age: ____________________
Gender: _______________________________
Marital Status:
__single
__married __separated
__widowed
Educational Attainment:
__ No formal education
__elementary graduate
__high school graduate
__ Vocational graduate
__ college graduate
__ other, pls. specify
House hold size: ________________________________________________
Annual house hold income: _____________________________________
Major source of Income: ________________________________________________
Number of years you have been buying Kerobee products: _____________________
Reasons for buying Kerobee product? ______________________________________
______________________________________________________________
Where do you buy Kerobee products? ___________________________________
Reason for choice of outlet: _______________________________________
What product of Kerobee do you buy often? ______________________________
How often do you buy Kerobee Products? ________________________________
Is the price worth the product?
__too expensive for its quality
__just
right
__too low to reflect its quality
What are the benefits you get from the product? ___________________________
Source of information on Kerobee product? _________________________________
Supply Chain of Kerobee Farm Products / Janice I. Quintoyan. 2009
Document Outline
- Supply Chain of Kerobee Farm Products
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- Rationale of the Study
- Statement of the Problem
- Objective of the Study
- Importance of the Study
- Scope and Limitation of the Study
- REVIEW OF LITERATURE
- Apiary
- Marketing
- Market Practice
- Marketing Culture
- Aspect of Product Development
- Product Innovation
- Entrepreneurship
- Supply Chain
- Structure of the Supply Chain
- Enterprise Diversification
- Definition of Terms
- METHODOLOGY
- RESULT AND DISCUSSION
- Historical Background of the Firm
- Production of Honey
- Products of Kerobee Farm
- Packaging
- Inbound and Outbound Logistic of Kerobee Farm
- Marketing
- Products of the Kerobee Farm BeingSold at Different Market Outlet
- Problem Encountered in Marketing Kerobee Products
- Actors in the Supply chain
- General Product Flow for Kerobee ProductsFrom the Kerobee Farm to the DifferentOutlets to the End-Users
- Value Adding Activities
- Product Payment and Information Flows
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- Summary
- Conclusions
- Recommendations
- LITERATURE CITED
- APPENDIX