Saint Raphael Academy

Augustinian Recollect Sisters

Cor. Aguinaldo & Don B. de Erquiaga Sts. Legazpi City
A.Y. 2020-2021

Competition among Street Food Vendors:

Hepa Lane in Legazpi City

A Feasibility Study

Presented to the Senior High School Faculty of St. Raphael Academy

In Partial Fulfillment of the requirements

For Practical Research

By:

Alexis B. Cepeda

Frances Joie B. Balleta

Alysa Hilary A. Solano

 ACKNOWLEDGEMENT

We would like to offer this work to the people who humbly extended their arms and

have dedicated their time, skills, and expertise in accomplishing this simple, yet, precious

work. Without these people, we would not be able to come up with this prized work.

Mrs. Dondith T. Gravito, the Practical Research 1 teacher, for sharing her knowledge,

skills, and expertise in creating a research work, for helping us to come up with the title of

this study, and for the countless reminders and constructive suggestions for the work to be

more improved, effective, and consistent.

Mr. Ryan A. Bañares, the Research teacher II, for continuing the research study that

was given to us by the first practical research subject, and for the countless tips and

techniques shared to us which made a huge contribution to the feasibility study.

Mr. Jony Daep, one of the members of the Panel of Examiners, for giving his helpful

insights and suggestions that brought success to the attainment of the objectives of this study.

Mrs. Ana Liza Laguilles, the School Librarian, for allowing us to use the books and

other resources in the library that helped us in completing the study.

Mrs. Rosario Almonacid, Mr. Ian Napire, Mrs. Cecilia Bitancur, Mrs. Arlyn Marmol,

and Ms. Allieza Mae Ropal, our respondents, for their help and transparency during the

interview we conducted for the research. The information they have given helped us complete

this study.

Researchers’ parents, for supporting us morally and financially on the process of their

research study, for serving as motivation, inspiration and for being part of the reason why we

are striving and determined to achieve our goals in life.

 The teachers, for giving their time for us to do our feasibility study, for giving tips,

pieces of advice, and motivation especially when we needed them the most.

The classmates, the whole ABM 12, for helping us on some parts of the feasibility

study, and for the contentment they gave in times of pressure in making this study.

The Almighty God, for giving us the needed knowledge, perseverance, wisdom,

guidance and blessings to successfully finish the feasibility study.

A. B. C

F. J. B. B

A. H. A. S
 Table of Contents

TITLE PAGE i

ACKNOWLEDGEMENT ii

TABLE OF CONTENTS iv

LIST OF FIGURES vi

LIST OF TABLES vi

CHAPTER 1

1.1 Introduction 1

1.2 Statements of the Problem

1.3 Objectives of the Study

1.4 Significance of the Study

1.5 Scope and Delimitation

Notes

CHAPTER 2

2.1 Feasibility Study

2.2 Review of Related Literature

2.2.1 Related Literature

2.2.2 Related Study

2.3 Conceptual Framework

2.4 Theoretical Framework

Marketing Strategy
 2.4.1 Context

2.4.2 Company

2.4.3 Collaborators

2.4.4 Customer

2.4.5 Competitor

CHAPTER 3

RESEARCH DESIGN AND METHODOLOGY

3.1 Research Design

3.2 Research Instrument

3.3 Research Participant

3.4 Research Procedure

3.5 Statistical Treatment of Data

CHAPTER 4

DATA ANALYSIS AND FINDINGS

4.1 Demographics of the Interviewees

4.2 Research Findings

CHAPTER 5

CONCLUSION AND RECOMMENDATIONS

5.1 Conclusion

5.2 Recommendation
 List of Figures

Figures Page

Figure 1 Conceptual Paradigm

Figure 2 Theoretical Paradigm

Figure 3 Statistical Analysis

List of Tables

Tables Page

Table 1 Overview of the Findings

CHAPTER 1
1.1 INTRODUCTION

Food is an important part of our lives. It is why understanding and improving the

growth, process, and transportation of food is essential. The food industry mostly covers a

complex set-up of activities concerning the supply, consumption, and catering of foods and

services across the world. Because of its compound activities it employs a huge number of

skilled and unskilled workers. Food industry also includes finished and partially prepared

food products. ¹

Food industry is a complicated global set of businesses that supply the food the

world consumes. This involves agriculture, where the raising of crops, livestock and seafood

are done. Also, manufacturing of food, known as farm machinery and supplies, is done.

Furthermore, food processing is also implemented, where the raw ingredients are converted

to food. If there is food processing, marketing is also present in which between the food

company and consumer, events occur. Now, food service takes place wherein, regulations

are also implemented for the consumer’s health and the marketer’s image and reputations.

Food industry is responsible at providing food for everyone. Street food vending is

on hand with providing food to low-and-middle-income consumers, in urban areas on a daily

basis. Food industry plays a wide range of satisfying the needs of the people, under this is

the selling of street foods to attain the hunger of an individual. Street food vendors continues

to develop the economy of food industry by offering cheaper-priced foods to everyone

especially to people who are not able to afford other expensive foods just to lessen their

eagerness when it comes to food consumption.

Consumption is a procedure which consumes items such as food, non-food and

services. According to Piekut, 2009 its main objective is to satisfy human needs, however it
should be acknowledged that it has also become an important representation of the living

standards, the criterion of structuring culture, and the manner in which consumers ' identity

is expressed today.

Nowadays, people are more practical in choosing food that will satisfy their hunger

and desires. Instead of spending their spare money on buying foods from restaurants and fast

food chain, people choose to spend it on street food. Hence, street food offers an accessible

source of food to subordinate people. Hiamey et al. (2013) found in a study investigating

street food consumption in Ghana that people buy street food because of its convenience,

sensory appeal such as great taste and pleasant smell, quality of nutrition, cost savings, and

social benefits achieved such as being stylish and trendy. They stated that every

socioeconomic group intakes street food six times a week on average. In another survey by

Vieira-Cardoso et al. (2014) with 1004 Brazilian respondents, researchers found that at least

once a day 1/3 of the consumers purchase street food.

Street foods frequently represent local traditional cultures and operate in endless

variety. The raw ingredients as well as the production of street food beverages, snacks and

meals are very diverse. Vendors ' stalls are usually located outside and under a roof that is

easily accessible from the street. They have minimal-cost seating facilities that are often

basic. Their marketing success is highly based on place and word-of-mouth promotion

(Winarno and Allain, 1991). ²

Street food vending has various types it may be the selling of food beverages, snacks

and meals but they are all known as prepared and ready to eat foods. Such foods are located

anywhere as it is known as street food so they are found along the street. Street foods are

bought by some people at a very low cost. Costumers more prefer to buy cheaper and easy to

find foods nearby to satisfy their need in food rather than spending their money for
expensive foods that are only limited and not enough. Street food vending's good

development will depend on the location and costumer's perception.

According to Tinker (1999), street food is known as a trend in developing countries

providing easy, accessible, and cheap food to low- and middle-income consumers. It is also

regarded not only as an alternative for the poor but as a source of unique tourist gastronomic

experience (Torres-Chavarria & Phakdee-auksorn, 2017).

Selling street food is found all over the world, but varies widely between regions and

cultures because it reflects the tradition and culture people. FAO (1989) defined street food

as ready-to-eat foods and drinks prepared and sold by hawkers, especially in streets and other

similar places of the public. Most of the street food is classified as fast food and finger food.

They're preferable to other average restaurant meals. It is often sold from a portable food

booth, food cart, food truck, and is intended for immediate use. Street food is also known as

delicious and affordable food.

Street food is, therefore, more than just a cheap food, it compresses a wider

sociological, political, and economic range. Every street food business is usually small in

size, needs simple skills, minimal facilities and small amounts of capital, thus they are very

numerous and have significant income that it found to be a source of a family meal. Selling in

the streets has job creation potential also for some of those who find work in the street food

industry, are having a difficulty in obtaining jobs in the formal sector.

“Many people lack proper housing and cooking facilities,” explains economic

journalist Ian Steele as to why the street food industry is proliferating, particularly in Asia.

“With increasing costs and the difficulty of procuring fuel, the only immediate alternative is

to turn to street foods. As more women work outside home, there is less time for cooking.”

Women play a very significant role in the street food industry worldwide. Surveys showed
that women were engaged in 90% of Philippine businesses, 53% in Senegal and 40% in

Indonesia (Tinker and Cohen, 1985).

Because of its low cost and convenience, millions of low- and middle-income

consumers eat street food especially in rural areas. It also leads to authentic tourist culinary

experiences, offering a connection between food, place, and tourism. Tacio (2012) stated that

it is an integral part of the landscape and culture of Filipinos. They are known to enjoy the

average three meals a day plus merienda (snacks). They race to the streets to satisfy their

hunger for their favorite street foods for a few pesos. Street food is more than just a

convenient food source in the Philippines.³

1. 2 STATEMENTS OF THE PROBLEM

1. What strategies do the food stalls employ to stand out among all the other stores that

have the same business as them?

2. What is the most effective marketing strategy based on the rate of income of the

vendors?

3. What are the reasons for choosing that kind of business?

4. What are the factors that affect their business?

1.3 OBJECTIVES OF THE STUDY

In making this study, the researchers have the following objectives:

1. To be able to identify what strategies do the food stalls employ to stand out among

all the other stores that have the same business as them.

2. To know the most effective marketing strategy based on the vendors rate of income.

3. To know what are the reasons for choosing that kind of business.
 4. To know the factors that affects their business.

1.4 SIGNIFICANCE OF THE STUDY

The study is carried out to the benefit of the street food vendors, future researches,

businessmen and future businessmen.

Street food vendors. The outcome of this study will improve their marketing practices and

will help them identify the best way to meet the demands of the customer/s.

Future researchers. It can provide existing data for enhancement.

Businessmen. The study can act as a framework for performing and conceptualizing

businesses that offer unique strategies and solutions to the target market.

Future businessmen. This study will give them an idea on how to run a small business and

how to overcome circumstances that they might face.

1.5 SCOPE AND DELIMITATION

This study examines the competition of street food vendors as sources of competitive

advantage that would be good for micro businesses. It is based on interviews with specific

respondents as well as questionnaires among 5 street vendors particularly in Hepa Lane

located at Brgy. Kapantawan, Legazpi City. The interview will be followed by extensive

review and examination of the literature. The research was implemented during a field work

in 2020. Review of the literature and study of the findings of the field work were carried out

in the following period.

NOTES:

1. Food Industry - an overview | ScienceDirect Topics

https://www.sciencedirect.com/topics/economics-econometrics-and-finance/food-industry

2. Street foods in developing countries: lessons from Asia

http://www.fao.org/3/u3550t/u3550t08.htm

3. https://voffice.com.ph/Business-tips-Philippines/2019/03/27/street-food-in-manila-are-

they-safe/

Zeynep K., and Bahattin Ö. Ph.D, Understanding Street Food Consumption: A Theoretical

Model Including Atmosphere and Hedonism (2017)

 CHAPTER II

2.1 FEASIBILITY STUDY

A feasibility study is an examination of the efficacy of the project. The feasibility

research focuses on trying to address the central question of “should we continue with the

proposed project concept?” All of the study's activities are aimed at helping to answer this

question. Feasibility studies may be used in several ways but primarily concentrate on

proposed business projects. Hawkers and those with a business idea should carry out a

feasibility study to assess the project viability before starting with the development of the

business. Determining early that a business idea won't succeed will save time, money, and

heartache. A sustainable business venture is one in which the business will produce

sufficient cash flow and income, survive the risks it will face, remain viable in the long term

and fulfil the objectives of the owners. The business could be a new start-up business, an

acquisition of an established business, an extension of current business operations or a

business plan for an existing business.

The feasibility result is a project whose background conditions and objectives have

been clearly defined in terms of its central objective and possible marketing strategies, the

potential market share that can be achieved, the corresponding production capacity, the

location of the facility, the existing raw materials, the appropriate technology and

mechanical equipment and, where necessary, the environmental impact as required. The

financial aspect of the analysis covers the scale of the investment, including net working

capital, production and marketing expenses, sales profits and the return on capital invested.

(Behrens and Hawraneck 15)

This chapter will be discussing the related literature and studies, conceptual and

theoretical framework of the study. The theoretical framework will be broken down into the
marketing analysis. The marketing aspect analysis is the 4cs: company, context, customer,

and competitors.

2.2 REVIEW OF RELATED LITERATURE

This chapter presents the review of related literature. It focuses on the articles, studies,

books and other references related to the research. Those that were involved in this chapter

helps in familiarizing the data and information that are appropriate and similar to the present

study.

2.2.1 RELATED LITERATURE

All business uses marketing strategy to allure new customer and to have a guide on

how to attain the objective of the business.

According to Hill, M. E (2013) from the book entitled “Marketing Strategy: The

Thinking Involved”, price acts as a guide for customers to determine the market value of an

item in services. Prices function as a thing to capture the attention of a consumer in terms of

competition, so that the customer compares one brand to another.

According to Chukuezi (2010), notes that street food sales play an important socio-

economic role in terms of prospective jobs, providing special incomes for women in

particular and providing food at affordable costs primarily to the lower income groups in the

cities.

According to Khairuzzaman et.al. (2014), street foods vending offers economic

benefits to vendors; however most of street foods vendors are often with poor knowledge of

food safety.

According to Esquire (2017), officials' negative attitude towards street food vendors is

often a result of concern over poor hygiene and disease spread. Governments, lacking staff to
enforce rules and regulations, have difficulty regulating street food firms. These businesses

can be seen as a hindrance to the traditional food distribution system's "modernization"

because they compete with licensed eating establishments that have significantly higher

operating costs. In fact, there is the general belief that more is better in food processing.

Eventually, traffic in centers of highly congested cities may be obstructed by vendors. This

has caused some governments to try to remove vendors from some parts of a city, generally

without success. Vast street food industries include large amounts of capital and millions of

people, yet often do not get the official recognition they deserve.

An early work by Fernandez (2013) focused that, clearly, street foods serve a need.

Public eating is done on the streets in a country where the restaurant tradition is young, and

the economic conditions poor . For workers and passers-by who cannot afford restaurants and

go home just to eat, street food is for them. It's for the traveller, the wanderer, the worker who

keeps old hours and doesn't have any food at home; for students who have limited time

during class breaks; for a husband and wife who doesn't want to go home empty-handed, and

doesn't have time to make home-cooked foods.

Fernandez also takes into consideration the two main factors, namely economic and

cultural. In economic terms, she depicted a street food procedure as a small, fast, cash

operation in which there is no need for credit and no credit is given. She also emphasized the

need for manpower is low and contained within the family; the only qualifications required

are those of cooking and selling and these are attained without formal education. It is a day-

to-day, cash-to-cash, person-to-person, small business ideal for developing countries such as

the Philippines, where a large portion of the population is below the poverty line and

constitutes the future street food sellers and buyers. On the other hand, street food business

cultural factors make food out in the open, in the market and in the city, not uncommon, not

at odds with indoor meals. And if the meal at home can be spread out on the street, the
restaurant will certainly eat it. Therefore, most Filipinos are quite relaxed with street food-

except perhaps those who were brought up with rigid Western ideas about place ownership

and sanitation objectivity. Of course, there is a notion of meals as stopping points, as

landmarks of the day. Big meals are required in case or to prevent hunger, but one may eat

between them to "tide over" hunger: pantawid gutom, literally "cross-over" between hungers,

to bridge them. The street snacks fill this role, and maybe that is why they are not considered

"serious" meals despite "unserious" names such as "adidas," "helmet" and "walkman".

Fernandez also characterized the vendors ' situation and conditions as all outpatients,

without permanent stalls, and carried their products in baskets and pots, on foot, in carts, and

on horseback. Hence, street food in the Philippines is not just an option for busy working

people with no time to cook, and an economic phenomenon in a developing country for

difficult times. In particular, it is a community gathering rooted in a sense of the street as a

common space, in an awareness of meals as time-moving, as fluid feasts that make up their

own spaces and form their own meanings – at home or in the village or in the street.

Tacio (2012) explained that it is an essential component of Filipino environment and

culture. We are known to enjoy the three meals a day, on average. Street food is an important

part of metropolitan food intake on a daily basis to millions of low and middle-income

consumers in city areas. It is inexpensive, affordable and if eaten correctly it offers a

somewhat nutritious and balanced meal. It is a part of the food industry that is rarely subject

to scrutiny, regulation and safety analysis. Cooking areas in the street food industry are

generally poor as regards environmental and sanitary requirements.

According to Aung and Thaw (2011), there has been a lot of discussion about how

vendors should be allocated and about the existence of this informal business in a lively

downtown area as in the past the authority has often expelled the selling permission on the
road side. The authority has often blamed them for their intrusion on the crowded Yangon's

public place. Nonetheless, after the 2012 political transition, vendors were permitted to do

their business without fees to the authority but within the time frame from 3 pm to 8 pm, out

of respect for vendors ' socio-economic welfare.

2.2.2 RELATED STUDY

According to a recent study conducted by Dr. Dexter R. Buted & Dr. Alex P. Yiagan

(2014) entitled Street Food Preparation Practices, Filipinos are known to enjoy three meals a

day on average, including desserts and "merienda". One of the virtues Filipinos have in its

creativity to make up most of everything into something fresh, inventive and cost-effective,

including food. People from other countries may tend to dine and eat pizzas when feeling

hungry. On the other side, Filipinos are rushing to the streets to satisfy their hunger for a few

pesos of favorite Pinoy street food. These street foods are easily found outside the school

gates, churches, parks, and even in malls where most exotic delicacies are offered.

According to the research paper done by Greg Roche (2010),“The development and

implementation of the New Australian food safety standards”, stated that the main food

processors supported food safety measures, including programs for food safety such as the

value of safe and appropriate food. There are three phases in the food program, namely

definition and implementation, evaluation and the quality of the food safety system. This

norm sets out particular food handling measures relevant to the collection, storage,

processing, display, packaging, transport, disposal and recall of food, the construction of food

premises, including water supply, sewerage, waste, ventilation and lighting, food premises

floors, walls, and ceilings.

According to Lin & Yamao (2014), "Street food safety in Yangon", a case study on

street food vendors that addressed the socio-economic and manufacturing aspects of the
people involved clearly demonstrated street food stalls are not under control when compared

with the registered stationary food stalls. However, vendors did not have to pay tax, their

presence was not legally recognized like other neighboring developing countries like

Thailand, India and Malaysia. But it has been proposed that street food stalls should be

licensed under YCDC surveillance and the sanitary condition of street food production should

be controlled. The majority of vendors had good health and personal hygiene skills. They will

have to put their skills into action. To ensure this, awareness-raising initiatives sponsored by

the authority and regular surveillance should be implemented at street food sales in Yangon.

Marketing Strategy is a process that allows a company to focus limited resources on

the best sales opportunities and thus achieve a sustainable competitive advantage (Easy-

marketing-strategies). According to Hernandez M. R. et al., on their study “Marketing

Strategies of Small Business Owners in the Wet Section of Daraga Public Market”, every

business, big and small, must have a strategy to have an advantage to the other business.

According to King S. (2018), on his study "Marketing Strategies for small business

sustainability", small restaurant owners must allocate more resources toward social media

marketing to increase brand loyalty, profits and ROI. Also, to incorporate word of mouth as a

marketing strategy to improve their business because word of mouth is one of the effective

marketing strategies that sustains profits. He also added Brand differentiation as a suggestion

of a marketing strategy. He pointed out that marketing strategy is the key for the business

specifically small business to become profitable or thus sustain profits all throughout the

process.

Based on the thesis of Tavonga N. (2014) ,“Operations Of Street Food Vendors And

Their Impact On Sustainable Urban Life In High Density Suburbs Of Harare, In Zimbabwe”,

it has shown that street food purchases are a dynamic community development instrument, as
they perform a very essential socio-economic function especially in Harare and Zimbabwe in

general. Street food vending is the foundation of an alternative street economy that is friendly

to people and can be both environmentally sensitive and resource efficient with the requisite

institutional and infrastructural support. This is also far from being an obstacle to growth and

sustainable development. Street food is a significant but undeveloped aspect of the food and

nutrition in Zimbabwe. Also, it helped lessen unemployment, increased vendor incomes and

provides low-cost and nutritious native meals to urban residents. This significant role is

revealed by protections that such revenues, through poor hygiene, creates a major source of

foodborne diseases and cause overpopulation in the area. This has often legitimized local

authorities' harassment of street hawkers. Government should recognize street food industry

through regulations, and introduce a code of practice for street food vendors.

According to Eko H., & Avi B. S., in their study, “JEJAK Journal of Economics and

Policy Vol 11 (1) (2018) Street Vendors (PKL) as the Survival Strategy of Poor

Community”, street vendors mostly belong to the middle and lower class. For individuals

from middle to lower class, like street vendors (PKL), it is understood that life is a bad thing

and work is a way of living. Non-work means street vendors won't survive. Work is the core

of human life and has to work for as long as man lives. The street vendors are aware of all the

restrictions that are imposed and the inability to access jobs that require high demands. The

street vendors therefore have to select the way by trading or selling services on the streets

including public places. Some of them are employed to sell food (rice) and drinks, sell

household appliances, fisheries, and carpentry equipment, open a repair shop, trade in fuel,

and become furniture craftspeople. Those are done only to satisfy the family's needs.

Eventually the street vendors "survive" as they continue to work. The only choice is to

become street vendors for low-level community groups. It is the most sustainable way to

sustain life. On the other hand, the first survival strategy is what the street vendors have
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chosen, namely to satisfy the everyday life’s needs to survive. Street vendors use public

spaces such as roadside and sidewalks because there are restrictions that make it impossible

to occupy paying sites, roads and sidewalks are strategic places to sell goods; and lack of

government attention to the needs and well-being of street vendors.

2.3 CONCEPTUAL FRAMEWORK

The researchers initially conduct researching and reviewing of review related

literature and studies which are concerned in examining and identifying strategies used by

street food vendors in selling their products. To be able to attain the objective of the study,

the researchers will also gather data through conducting a personal interview using a semi-

structured questionnaire to chosen respondents. After the results has been gathered, the

researchers will interpret the data to come up with the conclusion based on the strategies used

by street food vendors of Hepa Lane in Legazpi City.

INPUT PROCESS

Figure 1: Conceptual Paradigm

OUTPUT
2.4 THEORETICAL FRAMEWORK

MARKETING STRATEGY

A large volume of analysis of consumers, competitors, and the company itself takes

place until actions that concern the specific components of the marketing strategy are made.

It represents our perception that worthy marketing decisions of marketing management are

focused on rational, comprehensive, and evidence-based knowledge of the competition and

the environment of the business. The research needed to provide the basis for a successful

strategic marketing plan should concentrate on four elements of the overall situation that can

affect the adequacy and potential effectiveness of a given strategy.

The 5Cs should be used in conducting a business analysis and a background

assessment of the situation at hand, as follows:

1. Context

2. Company

3. Collaborators

4. Customers, and

5. Competitors

To help track and analyze these components, marketers have built various analytical

frameworks, methods of data collection and statistical tools. In addition, the evolution of

telecommunications and computer technology is rising quicker and faster. Almost every day,

more advanced analytical instruments are available.

2.4.1 CONTEXT

Context offers coverage in areas that may impact a company, but where the company

exercises no or minimal power. We analyze macro-environmental factors, e.g. external

factors.

The flow of the business in Hepa Lane in Legazpi City is being affected because of

the number of competitors that have little to none difference in the products they are selling.

It is inevitable for a business to have one or no competitors, especially in Hepa Lane, because

it is one of the go-to places to buy ready-made foods here in Legazpi City. As it is an already

known place to the consumers, it causes some starting-up businessmen to have their business

in that particular place.

2.4.2 COMPANY

Company analysis provides a framework for a successful marketing plan for the

company's own internal capital, skills and strategies. This is identical to the mission,

objectives, business strategy, strengths and weaknesses, the basis for competitive advantage,

financial and other performance objectives, and the descriptions of the brand/product.

This section can help the researchers in determining the competitive strategy of each

chosen respondents, which is the hawkers in Hepa Lane in Legazpi City, on how they

manage their business considering their business' strengths and weaknesses. SWOT analysis

may be used to conduct this portion of the study. SWOT stands for Strengths, Weaknesses,

Opportunities, and Threats. It allows the observer to make a broad list, narrow it down, and

form an action plan.

2.4.3 COLLABORATORS

Collaborators are entities that enable or boost the ability of a business to offer its

particular product or service in the manner it does. Suppliers and distributors are one of the

examples to be considered as collaborators.

Some of the hawkers in Hepa Lane, Legazpi City have their own suppliers or

distributors especially those who have wide range of business and are selling well in that

particular place. However, only few of them have collaborators in their business because

most of the street food businesses in Hepa Lane are known to be as micro-enterprises or those

businesses that are small and employs a small number of people. In most cases, the owner

itself is also the store clerk and the cook of the business.

2.4.4 CUSTOMER

Customer analysis is essential to any successful business strategy. If a business does

not know who its customers are or what its customers want, it cannot satisfy the needs of the

customers.

The customers who buy goods are one of the most important aspects of any business.

By having a good understanding of who the consumers are, what they want, and how well the

product suits their needs, business owners can be much more successful in producing the

products that the consumers want to purchase and will continue to purchase. Owners can also

be more informed when it comes to their marketing efforts. It will enable them to sell their

goods to the right audience and know what terminology and symbolism relate to their

potential customers. Customer analysis is one of the best ways to learn about products and

businesses. By finding out what consumers like and what they don't like about the products

and the business, owners can gain a first-hand perspective into what matters most.
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2.4.5 COMPETITOR

Competitor analysis is a technique for identifying main competitors and researching

their products, distribution, and marketing strategies. By doing this kind of analysis, business

owners can generate positive business strategies that could strengthen their business.

Competitor analysis allows for understanding the ins and outs of how the market operates.

By using this analysis, the Hepa Lane street food vendors will have advanced

knowledge of how other vendors generate their business. Through that, they will have a heads

up on what strategic method in marketing they should employ in their own business to make

it stable and prosperous in that particular location.

Figure 2: Theoretical Paradigm

 CHAPTER III

RESEARCH DESIGN AND METHODOLOGY

3.1 RESEARCH DESIGN

The methodology the researchers used is qualitative research design, specifically the

phenomenological research method, as the study focuses on the Competition among Street

Food vendors in Legazpi City, particularly in Hepa Lane. Phenomenological method explores

what people experienced and focuses on their experience of a phenomenon. In order to help

sales representatives efficiently close sales using styles that suit their personality, companies

use this approach to build processes. This study is more in need of observation of the

phenomena as they occur naturally.

Qualitative research method is implemented since the study is all about how the chosen

respondents make use of their marketing strategies despite of having the common business in

one place. The researchers found that phenomenological design would best suit their

research, as respondents could better characterize their conceptual encounters about their

competencies among Hepa Lane vendors. The primary objective of the method is to describe

the events occurring as it exists at the time the research was done according to its nature, and

to discover the factors of the particular phenomena. The problem they face in terms of their

competitions will strengthen their system.

3.2 RESEARCH INSTRUMENT

The information is gathered through observations and furthermore pieces of

information will be collected through personal interviews using a semi-structured

questionnaire. The researchers will be giving questions for the respondents to answer. They

will also record the audio of the interview, with the consent of the respondents, and by
following the precautionary measures in doing so, that will be transferred in a Google drive

for easy access of future reference. The researcher decided to use this instrument for future

interviews so that the respondents would express completely their thoughts and feelings

towards the topic.

Interview guide/questions to prospective respondents:

1. What do you sell?

2. How would you describe your business to someone that knows nothing about

it?

3. Why did you open your business in hepa lane?

4. How much is your capital in putting up your business?

5. What marketing strategy do you implement?

6. Have you tried any marketing strategies in the past and, if so, how did they

work out?

7. How much income you have in first week versus present?

8. Did your business help you financially? In terms of what (food, education of

kids)?

9. Do you have loyal customers?

10. How can you assure the loyalty of your customer?

11. How do you interact with you competitors?

12. Why did you come up with this business even if you know that you’ll have a

lot of competitors?
 13. What does your business do that no one else can? What makes you different

from everyone else in heap lane?

14. Will you recommend this kind of business to other people who want to have

the same business?

15. What can you advice to those who are starting this kind of business?

3.3 RESEARCH PARTICIPANT

The research will be choosing 5 street food vendors as respondents. They will be

selected from Hepa Lane in Legazpi City. The respondents will be chosen based on their

willingness to answer the questions prepared by the researchers to gather data information.

3.4 RESEARCH PROCEDURE

The researchers will be gathering more data by conducting interviews to the

respondents with the use of questionnaires, audio recordings. The interview will be

implemented to find out about the experiences and the perceptions of the respondents about

the topic. Other data and related studies were gathered through books, thesis and internet for

further understanding.

3.5 STATISTICAL TREATMENT OF DATA

The researchers will use the following formula as a tool to analyze and determine the

strategies used by the street food vendors of Hepa Lane in Legazpi City in selling their

products.
 The most common formula to get the Return on Investment percentage involves

subtracting the total investment in marketing from the total revenue, then dividing the number

by the total investment. Multiply the resulting number by 100.

ROI = [(Marketing Expense – Revenue) / Total Investment] * 100

Return on Investment is the amount of money the vendors generate after making an

investment. The formula is used to calculate the effectiveness of the marketing strategy done

by the respondents.
 CHAPTER IV

DATA ANALYSIS AND FINDINGS

4.1 DEMOGRAPHICS OF THE INTERVIEWEES

In Hepa Lane, Legazpi City, the street vending business is dominated by adults,

equally both females and males. Most of them have been operating their business for years

already, while others are just starting. All of them came from different places and have

experienced selling from place-to-place. They don't have any sources of income to provide

for their daily living after street food vending business because of the high demand for the

products they are selling.

4.2 RESEARCH FINDINGS

This section of the chapter contains the data findings obtained by the researchers from

the interview conducted to the chosen respondents regarding the competition among street

food vendors of Hepa Lane in Legazpi City. The data were extracted and analyzed according

to the objective of the study.

Street Food Vendor #1

Name: Rosario Almonacid - LEC-LEC CHICKEN

According to Mrs. Almonacid, the owner of Lec Lec Chicken, she had been selling

the same product since day one which is a variety of affordable and ready-to-eat chicken

foods. The reason why she decided to put up that kind of business is to have a normal life.

Wherein she guaranteed that it helped their family financially. Php 50,000.00 was the

approximate capital she had in putting up her business. Her marketing strategy is focusing on

the proper preparation of the foods. She had been operating her business for 15 years, and the
same marketing strategy is what she's still implementing. In her first week of selling, the only

income her business has been receiving is only up to 500 pesos a day compared to now,

which is more than just doubled up. According to her, to maintain the loyalty of her

customers, she remains the same. Mrs. Almonacid didn't change from how she was known by

her customers from the very beginning. The same goes for the "timplada" of her chicken

products. Despite having a lot of competitors she still considers them as her family. She even

stated that "nagtinda kami digdi para mag-negosyo, bako makiiwal". Knowing that her

business will have many competitors in Hepa Lane, she still chooses to market there. With

her faith in herself and the thought in her mind that if others are capable of selling

successfully in that place, then she can, too. Cleanliness is what she believed that makes her

business unique from others. She will a hundred percent recommend her kind of business to

other future business owners and leave them with a piece of advice that always maintain their

costumers and have longer patience to have a successful business.

To know the effectiveness of the strategy used by the business, the formula ROI =

[(Marketing Expense – Revenue) / Total Investment] * 100 is used.

Where:

Marketing expense = 5% of the Total Investment

Revenue = The business earns approximately 1, 000 pesos a day now. Multiply it to

the number of days in a week, then weeks in a month. Also, multiply the product to 12

for the months in a year, since we are computing the estimated annual income of the

business. Therefore, Revenue is (Php 7,000 * 4) * 12 = Php 336, 000.

Total Investment = The capital of the business, which is Php 50, 000.

ROI = [(Marketing Expense – Revenue) / Total Investment] * 100

 ROI = [(5% of 50, 000 – 336, 000) / 50,000] * 100

ROI = [(2, 500 – 336, 000) / 50, 000] * 100

ROI = (333, 500/ 50, 000) * 100

ROI = 6.67 * 100

ROI = 667%

The result of the Return on Investment in Lec-Lec chicken proves that the marketing

strategy used in operating the business is remarkably effective.

Street Food Vendor #2

Name: Ian Napire - NAPIRE'S FRIED CHICKEN

According to Mr. Ian Napire, the owner of Napire's fried chicken, he always sells the

same product ever since he started his own business. He describes his business as to where

customers can buy affordable yet delicious foods. The reason why Mr. Napire decided to

open up his business in Hepa lane is that it is where a large number of people that can be

anyone's business potential customers are found. He prepared an approximate capital of

15,000 pesos in making his business happen. As part of the new generation, he made use of

technology, specifically social media to promote his own business, which is considered a

practical marketing strategy. Salestalk is one of his marketing strategies in the past which

worked out well and in fact, he's still applying it until now. According to Mr. Napire, in his

first week of selling, he earned almost 10,000 pesos of income. Now, the business generates

50% more than the first week, and that helped him a lot in his daily expenses. He said that to

maintain the loyalty of his customers, he ensured that the taste of his products stays the same.

He acts normal around his competitors, meaning he doesn't care that much or less. He knew
that he will be competing with a lot of other businesses, but he still tried to build his business

in Hepa Lane and see if it will grow, which eventually happened. He believed that his way of

serving his customer is what makes his own business different from others. He does

recommend his kind of business to those future entrepreneurs, and he advised that "Kahit

mahina o mabenta, laban lang".

To know the effectiveness of the strategy used by the NAPIRE'S FRIED CHICKEN,

the formula ROI = [(Marketing Expense – Revenue) / Total Investment] * 100 is also used.

Where:

Marketing expense = 5% of the Total Investment

Revenue = The business earns approximately 10, 000 pesos on the first week, but it

produces 50% more now. So, 50% of 10, 000 is 5, 000. Add it to the income on the

first week. Multiply it to the number of weeks in a month. Then, multiply the number

to 12 for the months in a year. Therefore, Revenue is (Php 15,000 * 4) * 12 = Php

720, 000.

Total Investment = The capital of the business, which is Php 15, 000.

ROI = [(Marketing Expense – Revenue) / Total Investment] * 100

ROI = [(5% of 15, 000 – 720, 000) / 15,000] * 100

ROI = [(750 – 720, 000) / 15, 000] * 100

ROI = (719, 250/ 15, 000) * 100

ROI = 47.95 * 100

ROI = 4, 795%
 The outcome of the Return on Investment in Napire's Fried Chicken indicates that the

marketing technique used in its operation is exceptionally successful.

Street Food Vendor #3

Name: Cecilia Bintancur - JB CHICKEN

As stated by Mrs. Cecilia Bitancur, the owner of JB Chicken, she never changes the

variety of the foods she's selling, it is always the same. Street foods are very well known

that's why Mrs. Bitancur doesn't bother to describe it further. She said that her business was

not located in Hepa lane in the first place, she was just told to move there by the authority

because of some policies to be followed. According to Mrs. Bitancur, she had a capital of

approximately 7, 000 pesos to start up her business. Her marketing strategy is that she always

makes sure that her sauce has its unique taste that customers will be looking for over and over

again. She can't determine yet how much income she earned because it hasn't been a week

since she started selling in Hepa lane. She guaranteed that her business helped her a lot in

terms of everything. Since Mrs. Bitancur's business is new to Hepa lane she doesn't have any

loyal customers yet. In terms of her competitors, she doesn't care that much about them. She

only focuses on her own business and what she has to do to earn money for a living.

To know the effectiveness of the strategy Mrs. Bitancur applied in her business, the

formula ROI = [(Marketing Expense – Revenue) / Total Investment] * 100 is used as well.

Where:

Marketing expense = 5% of the Total Investment

Revenue = Since the owner cannot give an exact or even an approximate amount of

income she earned, we, the researcher, assumed that she would gain 800 pesos in a

week. As many people go to Hepa lane, there are also many potential customers.
 Multiply the assumed amount of income to the weeks in a month. Then multiply the

results to 12 for the months in a year. Therefore, the assumed annual revenue of the

business is (Php 800 * 4) * 12 = Php 38, 400.

Total Investment = The capital of the business, which is Php 7, 000.

ROI = [(Marketing Expense – Revenue) / Total Investment] * 100

ROI = [(5% of 7, 000 – 38, 400) / 7,000] * 100

ROI = [(350 – 38, 400) / 7, 000] * 100

ROI = (38, 050/ 7, 000) * 100

ROI = 5.44 * 100

ROI = 544%

Street Food Vendor #4

Name: Arlyn Marmol - BOPIS DE LEGAZPI

Mrs. Arlyn Marmol, the owner of Bopis de Legazpi and the head of the street vendors

in Hepa lane, stated that she had been selling since the year 2013, and she tried selling

various types of foods already. Her business has explored so much. Mrs. Marmol even said

confidently that her business is already well known by everyone which is why characterizing

it is not that much needed. She clarified that 1,500 pesos before is already enough to start her

business and, she was able to buy the things and ingredients needed to build her business

compared to now that 6, 000 is the approximate amount of capital to make a trade happen.

She also always makes sure that the price of her products is "abot-kaya" which means

affordable. Her business income depends on how many she's going to sell, and in the first

week of operating the business, Mrs. Marmol said that it was slow. However, her business
now is exceptionally growing which became her family's source of income, which helped

them in their daily living. Because of her amazing perseverance, her business has now gained

a lot of loyal customers. Mrs. Marmol's mindset is that she does not think that there is a

competition happening because all her focus is on how she will be able to sell all of her

products at the end of the day. She also generalized that Hepa lane's street foods are way

more different compare to the foods found in the mall, which is very much pricy. Mrs.

Marmol had recommended her kind of business to others already. She gave them a bit of

advice that they must put their focus on growing their own business.

To outline the effectiveness of the strategy applied in Mrs. Marmol’s business, the

formula ROI = [(Marketing Expense – Revenue) / Total Investment] * 100 is used.

Where:

Marketing expense = 5% of the Total Investment

Revenue = Since the owner didn’t give an exact or even an approximate amount of

income she earned, we, the researcher, assumed that she gained 1, 000 pesos a day.

As she was in the business for how many years now, she already has loyal customers.

She also sells various ready-to-eat foods. Multiply the assumed amount of income to

the weeks in a month. Then multiply the outcomes to 12 for the months in a year.

Therefore, the assumed annual revenue of the business is (Php 7, 000 * 4) * 12 = Php

336, 000.

Total Investment = The capital of the business, which is approximately Php 6, 000.

We didn’t use the original capital of the business since it was way back on 2003, and

the prices of goods are different now from before.

 ROI = [(Marketing Expense – Revenue) / Total Investment] * 100

ROI = [(5% of 6, 000 – 336, 000) / 6,000] * 100

ROI = [(300 – 336, 000) / 6, 000] * 100

ROI = (335, 700/ 6, 000) * 100

ROI = 55.95 * 100

ROI = 5,595%

Street Food Vendor #5

Name: Allieza Mae Ropal (representative) - CHERRY'S INASAL

According to Allieza Mae Ropal, the representative of Cherry's Inasal, and the niece

of the owner, is that they had been selling the same variety of street foods since then. She

described their business as to where customers can purchase delicious foods. Regarding the

marketing strategy used in operating the business, Ms. Ropal was not able to answer. But

from what we, the researchers, have observed is that the owner knows how to entertain and

pursue the customers into buying their product, and that is a good kind of service. Ms. Rapol

stated that her uncle's business helped him a lot in his life. And they do have plenty of loyal

customers, and their way of maintaining their loyalty is by making sure the deliciousness of

the foods. Her uncle is a friendly type of person, that's why he doesn't see any competition

happening. The wide range of their stall is what she believed makes her uncle's business

different from others, and the choices of food to buy are enormous. She does recommend her

uncle's business to others who want to have the same business. She also advised them to

always maintain the cleanliness of the place and the food.

 To identify the effectiveness of the strategy applied in the business, the formula ROI

= [(Marketing Expense – Revenue) / Total Investment] * 100 is used also.

Where:

Marketing expense = 5% of the Total Investment

Revenue = Since we didn’t have the chance to talk to the owner, we didn’t get an

exact or even an approximate amount of income the business generates. Therefore an

assumption is made where the business’ revenue is 2, 000 pesos a day. The business

sells various ready-to-eat foods, grilled food to be exact, which has a higher price

range than the usual tusok-tusok foods that made us come up with this assumption.

Multiply the assumed amount of income to the days in a week, then weeks in a month.

Then multiply the outcome to 12 for the months in a year. Therefore, the assumed

annual revenue of the business is [(Php 2, 000 * 7)* 4] * 12 = Php 672, 000.

Total Investment = The capital of the business was not determined also but based on

the stall stand and the equipment needed to operate the business, we concluded that

the total investment made by the owner is approximately 60,000 pesos.

ROI = [(Marketing Expense – Revenue) / Total Investment] * 100

ROI = [(5% of 60, 000 – 672, 000) / 60,000] * 100

ROI = [(3, 000 – 672, 000) / 60, 000] * 100

ROI = (669, 000/ 60, 000) * 100

ROI = 11.15 * 100

ROI = 1,115%
 NAME OF THE
INCOME
STALL
CAPITAL
PRESENT (per
1ST WEEK
week)
LEC-LEC
50, 000 500 1, 000
CHICKEN
NAPIRE'S FRIED
15, 000 10, 000 15, 000
CHICKEN
JB CHICKEN 7, 000 400 800
BOPIS DE
6, 000 3,500 7,000
LEGAZPI
CHERRY'S INASAL 60, 000 7,000 14,000

Return on Investment
60 55.95

50 47.95

40

30

20
11.15
10 6.67
3.38
0
LEC-LEC NAPIRE'S JB CHICKEN BOPIS DE CHERRY'S
CHICKEN FRIED LEGAZPI INASAL
CHICKEN

Table 1. Overview of the findings

Table 2. Statistical Analysis

 Therefore, we concluded that among those 5 chosen street food vendors as the

respondents of our study, Bopis de Legazpi is the most outstanding one because of its high

business performance. This also means that the marketing strategy they are using which is

maintaining the affordable price of their product is effective.

 CHAPTER V

CONCLUSION AND RECOMMENDATIONS

5. 1 CONCLUSIONS

Street foods are almost found everywhere. They are known to be the ready-to-eat

foods wherein it'll only cost the customers in a very low yet reasonable price. Street foods are

highly in demand resulting for more street food vendors to arise and that is why we, the

researchers, have conducted a study in a certain place where most of the street food vendors

are located, the famous Hepa lane here in Legazpi city. This study has shown

5.2 RECOMMENDATIONS

Throughout the process of making this research paper, the aims of the researcher have

been achieved. The gathered data findings had met the objectives of the study. The

researchers were able to identify the marketing strategies used by each of the chosen

respondents in Hepa Lane, Legazpi City, and to whose marketing strategy was the most

effective one. The researchers confidently recommend this research for accountancy,

business, and management track because of the business related to the said track it can

provide. This paper can also be used for other research purposes. This study that the

researchers have conducted meticulously will also help those future researchers and other

students in discovering more how street food vendors overcome the struggle of having a lot

of competitors. This will stand as a guide to those future entrepreneurs who want to decide to

build their own business in the said certain place that the researchers have focused on. This

study shows how street food businesses work and survive even though there are countless of

this kind of business all over the place.