CHAPTER 1

INTRODUCTION

BACKGROUND OF THE STUDY

Business is an organization or an enterprise entity that involves in commercial, industrial or

professional activities. A company negotiates their activities through good production, services offer or

retail of manufactured products. According to Brown and Petrello, business is an institution which

produces goods and services demanded by people. It means that business produce goods and services

needed by society. Thus, business helps us to get our daily necessities to help us survive in life.

Nowadays, especially here in the Philippines we can see a lot of business establishments

blooming from time to time. We can observe small scale businesses to large scale businesses. Even here

in Catanduanes we can see different business establishments which continuously making its name in the

whole province. One of such business establishments is the bakery. Bakery has been a big part for every

Catandunganon. As we all know bakery business has been one of the source of income of the

Catandunganons. Since Catandunganons love to eat, they always look for tasty and delicious foods. Some

of them are pastries, cakes and breads which are always present at parties and special occasions.

Most of the bakeries in Catanduanes operates their business with the use of modern equipment

and facilities to keep them up with their competitors. They sell their products in their own outlets thus

using the over-the-counter selling.

In the field of bakery business there is a large number of competitors because it is one of the

profitable kind of business. It is where we can see pure competition. Starting from the quality of products,

the price, and the location to their campaigns and advertisements. They offer unique kinds and flavour of

breads and pastries to catch the eyes of the customer.

 In order for the bakery business to achieve their objectives they use such strategies and tactics.

this strategies is their road map to meet their firm`s goals. This strategy is called as the marketing

strategy. This includes the 4P`s (Product, Price, Place and Promotion) of marketing which is needed to

create a long term business and to achieve success. According to Philip Kotler, "A Marketing mix is the

mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the

target market’’

Product is the most powerful competing instrument in the hands of the marketing manager. It is

the heart of whole marketing mix. If the product is not sound /attractive to the customers, no amount of

sales promotion, appropriate channel selection or price reduction will help to achieve the marketing

target. Hence, durability, quality, uses, etc. of the product are important from the marketing point of view.

(http://kalyan-city.blogspot.com/2010/05/marketing-marketing-mix-4-ps-of.html)

Distribution channel (Place), physical distribution is the delivery of goods at the right time and at

the right place to consumers. Physical distribution of product is possible through channels of distribution

which are many and varied in character. (http://kalyan-city.blogspot.com/2010/05/marketing-marketing-

mix-4-ps-of.html)

Promotion is the persuasive communication about the product offered by the manufacturer to the

prospect. Promotional activities are necessary for large scale marketing and also for facing market

competition effectively. Such activities are varied in nature and are useful for establishing reasonably

good rapport with the consumers. Advertising gives information and guidance to consumers. Brand

names are made popular through advertising. (http://kalyan-city.blogspot.com/2010/05/marketing-

marketing-mix-4-ps-of.html)

Price is one more critical component of marketing mix. It is the valuation of the product

mentioned by the seller on the product. Pricing has an important bearing on the competitive position of a

product. Pricing can also be used for capturing market and also for facing market competition effectively.
Pricing decisions and policies have direct influence on the sales volume and profits of the firm.

(http://kalyan-city.blogspot.com/2010/05/marketing-marketing-mix-4-ps-of.html)

In view of the above scenario, the researchers have thought of investigating the marketing

strategies of bakery owners in Virac, Catanduanes.

STATEMENT OF THE PROBLEM

This study determined the Profile and Marketing Strategies of Bakery Owners in Virac,

Catanduanes. Specifically, it sought to the following question:

1. What is the profile of bakery in terms of:

A. Location

B. Number of Employees

C. Average of Monthly Sales

2. What are the marketing strategies of bakery owners in terms of:

A. Product

B. Pricing

C. Place

D. Promotion

3. What are the problems the bakery owners encountered along the marketing strategies

employed?

4. What possible solution can be offered to lessen the problems?

SCOPE AND DELIMITATION

This study will focus on the profile of the business as well as the marketing strategies used by the

bakery owners in Virac, Catanduanes. This study covers the monthly income gained by the bakeries.

Likewise the ability of the employee in selling will be determined.

Virac had been chosen because it is the capital town in Catanduanes, and the center of trade in

the province.

This study will limit at our respondents and will only cover 15 operating bakeries which are

located at the downtown area of Virac, Catanduanes

SIGNIFICANCE OF THE STUDY

This study would give significant contribution to the following:

To the researchers, they will know the prevailing marketing strategies that bakery owners do.

To the bakery owners, they can use the results of the study as the guiding reference to the

strategies that they will use to keep them up and successful.

To the future business owner’s or entrepreneurs, they will know the best strategies and tactics

that they can use to make their business a successful one.

To the future researcher, the result of this study would serve as a reference for future and further

studies of bakery operations.

To the LGU’s or Local Government Unit, they can apply the strategies that businesses do in

order to help them in their work.

DEFINITION OF TERMS
 The following terms are defined to better understand our research:

Employee - The person who works in the business.

Product - refers to anything that can be offered to the customers such as bread, cake and etc.

Place - to make the product conveniently available to the target market consistent with their

purchasing pattern.

Promotion- to build and improve consumer demand. It has four components:

A. Advertising- to effectively inform or persuade the target market.

B. Public relations- to offer a positive image of the company and the brand.

C. Selling- to get consumers to buy

D. Sales Promotion- to convince customers to buy immediately.

Price- to make the product Affordable to the target market and reflect the value of benefits provided.

Marketing- Managing markets to bring about exchanges and refer for the purpose of creating Value

and Satisfying needs and wants.

Marketing Strategies – lays out target markets and the value proposition that will be offered based on an

analysis of the best market opportunities (Wiki).