Creating links to modern retailers in the Philippines

Supermarkets have expanded rapidly throughout the world. Today it is common

to find modern retailers not only in industrialized countries, but in cities and towns
across Asia, Africa and Latin America. This rise of supermarkets brings potential
opportunities for farmers – and also many obstacles. On the one hand, supermarkets
offer a significant channel through which to reach potential customers, many of whom
are relatively wealthy and willing to pay good prices. On the other hand, selling to
supermarkets is not easy. Modern retailers have strict quality standards and delivery
demands which are hard to meet, especially for smallholder farmers. In addition,
supermarkets do not pay their providers immediately, delaying their payments for weeks
and even months.

The Upland Marketing Foundation was established to help farmer cooperatives

and other community-based organizations in the Philippines overcome the obstacles
that prevent them from reaching the potentially lucrative possibilities offered by
supermarkets. The Foundation is an intermediary that helps connect farmers to modern
retailers through marketing, branding and financial services. One of the foundation’s
most successful customers is Pecuaria Development Cooperative, a rice growers’
cooperative from the southern part of Luzon Island. Pecuaria was already a well-
established and strong cooperative, but it knew that it had to find new business
opportunities if it was to remain relevant and profitable. About ten years ago, the
members of Pecuaria realized that organic rice might well be the opportunity they were
looking for. At the time, there was very little production of organic rice, so the
cooperative decided to tap into a niche that nobody else was exploiting. Supermarkets
in Metropolitan Manila appeared to be the ideal outlets for reaching potential customers.
But how to become a supplier for modern retailers? This is when the partnership with
the Upland Marketing Foundation took off. The cooperative had the production system
in place, and the foundation provided the support and financing needed to meet the
requirements of the new buyers.

Over the years, Upland Marketing helped Pecuaria to develop better and more
attractive packaging, and it began to sell the rice under the Foundation’s brand.

The cooperative has also received advice on how to develop new products that
can target different types of consumers. In short, the partnership has allowed Pecuaria
to create attractive products and to effectively put them on the market. In addition to
providing marketing support, Upland Marketing Foundation helps cooperatives like
Pecuaria to deal with the problem of delayed payment by supermarkets. Producers
establish a clear commitment in terms of volumes to be supplied, and the foundation
makes frequent and regular payments to the cooperative.

Source: https://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---
coop/documents/instructionalmaterial/wcms_644684

Student No. Last Name First Name

120180301 Candido Ma. Ahnnie Jhen M.
120180327 Frayna Jhemary Anne R.
120181523 Serna Mak Charlie E.
120180298 Lacanlale Shaira Mae O.
Introduction

A supermarket is a self-service store that sells a broad selection of food,

beverages, and household supplies. This store is more significant and has a more
incredible selection than traditional grocery stores. However, it is smaller and offers a
more limited selection than a hypermarket or big-box market. However, in common
usage in the United States, the term "grocery store" refers exclusively to supermarkets
and is not used to relate to other types of establishments that sell groceries.

Typically, supermarkets have fresh meat, fresh fruit, dairy, deli items, and baked
goods. Additionally, shelf space is reserved for canned and packaged goods and
various non-food items, such as cookware, household cleaners, pharmacy products,
and pet supplies. Some supermarkets also sell non-food items such as alcohol (where
authorized), medication, and apparel. In contrast, others sell a far broader selection of
non-food items such as DVDs, athletic equipment, board games, and seasonal items
(e.g., Christmas wrapping paper in December).It is not easy to sell to supermarkets.
Modern retailers have stringent quality standards and delivery requirements that are
difficult for smallholder farmers to achieve. Additionally, supermarkets do not pay their
suppliers promptly, delaying payments for weeks, if not months.

Discuss the roles of cooperatives in the above study.

Serve as a conduit for the distribution of agricultural products from farmers to

retailers. This channel comprises many entities that support transactions and physical
exchanges by performing transactional, logistical, and facilitation functions. This is to
bridge the divide between the manufacturer and the product's consumer, regardless of
whether the parties are located in the same town or thousands of kilometers apart. The
distribution channel is described as the most efficient and effective method of delivering
a product to the customer. The channel is made up of many institutions that support
transactional and physical exchanges.

Assists at times of financial distress in order to maintain its basis. As a result of

their investment in the local community, co-ops can flourish and contribute to the growth
of the community they serve. Provides guidance and suggestions on how to innovate
and develop their own business. Provides high-quality products and services that are in
line with market trends.

Explain how upgrading can help the cooperative to achieve their objectives?

Upgrading improves the enterprise's capacity to serve additional customers. It

can only improve its members' financial returns through commercial interactions. These
will ensure that the volume of member transactions remains stable or increases. With
rising competition, it can only do so by continuously improving services while
maintaining competitive pricing. Improved service may entail diversifying the services
available to members or upgrading the delivery of existing services.

Cooperative enterprises have the potential to address local concerns such as

market failures and stimulate economic development. It has extensive experience
establishing cooperatives from the ground up, assisting growing cooperatives in
strengthening their governance structures and engaging members, and establishing
innovative cooperative structures, such as joint ventures and apex organizations, to
successfully access global markets.

Analyze how the cooperative uses the marketing mixes in different situations.

Product- Upland Marketing assisted them in developing better and more

appealing packaging for their products in order to attract more customers.

Price - When it comes to price, Producers make a firm commitment in terms of

volume, and the foundation communicates with them frequently.

Payments to the cooperative must be made on a regular basis.

Promotion - Business expansion to accommodate and attract more consumers,

depending on the service that the customers would take.

People - They recruit a knowledgeable employee who will offer suggestions and
innovate for the benefit of the customers.
Evaluate Pecuaria’s overall marketing strategies.

Pecuaria's entire marketing strategies are excellent measures toward the

cooperative's continued dominance and effective market penetration. As indicated in the
case study, Upland Marketing assisted Pecuaria in developing more attractive
packaging over time, and the company began selling rice under the Foundation's brand.
Packaging is a critical strategic problem, affecting everything from buyers' initial image
to environmental policies and cost-cutting. Packaging is thus a critical topic across
multiple disciplines, with the ability to enhance revenues, reduce costs, and ensure
compliance with environmental regulations and legislation.

Packaging's primary marketing function is to emphasize why a customer would

purchase a particular product. This could be something as simple as a description of the
product. This could also be emotive, conveying the product's values. For instance, an
informed consumer may desire to purchase foods grown locally. A great marketing
technique for businesses committed to local production would be to emphasize this fact
prominently on the package.

Additionally, the cooperative has gotten guidance on producing new items that
appeal to a variety of market segments. In short, the partnership permitted Pecuaria to
develop attractive items and promote them efficiently. Additionally, we provide
marketing assistance.

This marketing strategy is called Diversification. As previously said, a

diversification strategy is a corporate growth strategy identified by a corporation as a
means of expanding into new areas. That description defines diversification strategy.
However, it provides no insight into why diversification is an ideal business growth
strategy for some businesses or how it is applied.

Businesses diversify in order to increase profitability. Diversification is a strategy

adopted by corporations to grow into new markets and sectors. This is accomplished by
adding new products, services, and features that appeal to the clients in these new
areas.
 By broadening their reach and appeal, firms can explore new revenue streams
that can significantly improve revenues. Apart from increasing profitability, businesses
diversify for a range of other reasons. For example, diversity can help a business
mitigate the risk of an industry slump, improve brand image, and act as a defense
mechanism against the aggressive competition.

Summary

To summarize things up, marketing is substantial to the success of a

cooperative. A marketing cooperative's objective is to benefit its members by increasing
their margins, maintaining control of its product until it reaches the point of sale, and
securing a reliable and consistent market for its products. As discussed in the case
study, Upland Marketing Foundation has greatly helped different cooperatives and
organizations for their businesses to grow their market and the business itself.

References

https://en.wikipedia.org/wiki/Supermarket

https://courses.lumenlearning.com/boundless-marketing/chapter/marketing-
channels-in-the-supply-chain

https://www.fao.org/3/w5069e/w5069e05.htm