Q2_Worksheet#1

APPLIED ECONOMICS

Principles, Tools, and Techniques

Brief introduction of the business:

The Philippines is a megadiverse country where five out of nine honey bee species in the world
are native. Because of that, there is a major potential in honey production and distribution.
Savory Honey is founded for the purpose of providing high quality honey that is fully organic and
natural in Taguig City. Our business offers two types of honey: Farm harvested honey and Wild
raw honey. Each comes with a packaged longneck bottle containing 750ml of honey. Sweet,
fruity, and delicious. Our product is described as a nectar of flavor. Savory Honey ensures the
quality that will benefit the Taguigeños.

Strengths:

1. What does your business do well?

- This business is good at providing affordable natural honey that has a lot of
benefits in a person's health. The product has a smaller price than the average
price of the bottled honeys. Thus, making it affordable for everyone. These honey
products are placed into glass bottles to maintain their quality. With the use of
technology and media, the business is available citywide and every Taguigeño
could order conveniently online.
2. Is your business strong on its market? (Do research and support with evidence)
- Stated by the report of the Global News Wire (2021), related to the demand of
honey worldwide, a research study stated that the global honey market is
approximately USD 80,000 Million in 2019 and expected to rise yearly. In that
statement, it is evident that honey has a high demand in the market. And also
according to a report by Dexter Cabalza (2020) from the Inquirer, at least 3 out of
4 honey products sold in the Philippines are just artificial honeys or fake honeys.
Consumers should be aware of fake products that they could buy in stores or
even online. With the assured quality of our products, it would guarantee our
customers that they would buy a quality authentic honey product.
3. Does your business have a strong sense of purpose and the culture to support that
purpose?
- Yes, the purpose of our business is to provide highly beneficial honey and to
ensure our customers that they would receive an authentic product, Savory
Honey only offers honey products that are farm harvested or wild raw honey
directly from a farm in Tagaytay. This promotes Filipino-made organic products
and our rich culture in honey-making. In contrast to using sugar, our fresh honey
is rich in antioxidants, this would give a lot of health benefits to people such that it
may help to prevent type 2 diabetes which is very common in our country.
Weaknesses:

1. What does your business do poorly?

- We think the business struggles on the transportation of our products. We still
don’t own a motorcycle or any vehicles that can help us deliver our product. We
can only deliver our products through meet-ups or via a third party courier like
Lalamove or Grab. This can cost a higher price for the customers due to the
shipping fees and can be an inconvenience. Also, because our business is new,
we have a low popularity within our social media accounts. This can be solved as
the Savory Honey gains more customers and followers. We need to keep our
accounts active and interacting.
2. What problems could be avoided?
- One problem that could be avoided is honey spoilage. Our product won’t get
spoiled or go bad especially if it is stored and sealed properly. Also, Honey has a
low moisture content and is naturally antimicrobial. This keeps the honey from
going bad for a long period of time. This is advantageous for us because we can
keep our stocks longer without the fear of it wasting away.
3. Are there any potential financial difficulties?
- One bottle of honey can be used for two weeks to a month. It depends on the
usage of the customers but it can be a factor for a delayed return of capital. It can
be a potential problem for our financial status but we can solve it by having more
customers that are in need of quality honey. We can either be a supplier for
another business or find resellers.

Opportunities:

1. Are industry trends moving upward?

- Yes, In 2020, the global honey market was estimated at USD 9.21 billion, with a
compound annual growth rate (CAGR) of 8.2 percent projected. High demand for
nutritious food products, such as honey, is a prominent driver driving market expansion,
as people become more aware of the benefits of living a healthy lifestyle. Honey is high
in vitamins, minerals, calcium, and antioxidants, all of which are beneficial to your health.
Honey also contains several medical characteristics, including the ability to boost
metabolic activity, control blood pressure, lower the risk of diabetes, and even treat burn
burns. Honey is utilized in a variety of applications other than food and beverages, such
as cosmetics and pharmaceuticals, which is expected to boost the market growth.
2. Do new markets exist for your products or services?
- Unfortunately, there are no well-known new markets that offer savory honey that we
have. Even though honey is a popular product that can be used as a medicine,
ingredient, and even a daily dessert, they still can’t maximize how they will effectively
market their product. One of the most common existing markets is the supermarket or
grocery store, wherein you might get “fake honey”. As for our business, it can be
 accessed through our online shops that will guarantee our customers have authentic and
freshly harvested honey. We can guarantee by having our product tested and verified.
3. Are there any potential new technologies you can exploit?
- Like the situation that we have now, several businesses have schemes or technologies
that they can offer their product to their customers. For those of us who are new to this
industry, we are still looking for methods to make our product more enjoyable for our
customers. As our company's mission is to provide a genuine and high-quality type of
honey in the most accessible and cost-effective manner possible, we strive to make our
clients happy.

Threats

1. Who are your competitors?

- Our competitors are companies that sell and produce honey. Retailers and other small
business owners who sell bottles of honey are also a competitor. There will be
differences in the quality of the product, quantity that is being sold in the public, and
prices it is being sold at.
2. What are competitors doing well?
- The competitors are doing well in advertising their product and how the customers are
familiar with their brand. They have unique selling propositions that attract customers
and possible customers. Since they have good advertising their sales are also
increasing.
3. What obstacles do you face?
- Obstacles that can be faced in the future is an increase in the price of honey from the
suppliers. Additionally, transportation problems faced while delivering the honey,
decrease of buyers, or lack of staff.
4. Are there troubling changes in your business environment such as technologies, laws,
and regulations? (do research, support with evidence, provide sources)
- As honey is believed to be healthier, demand for honey will increase as a substitute for
sugar and other sweeteners, with that more people will buy honey. The price will
increase until it is the price consumers are willing to buy and suppliers are willing to
supply. But as the demand for honey increases, the population of bees will decrease and
suppliers will increase the price, leading the business to increase its price as well.

References:

Honey market size, share: Industry Analysis Report, 2021-2028. Honey Market Size, Share |
Industry Analysis Report, 2021-2028. (n.d.). Retrieved December 1, 2021, from
https://www.fortunebusinessinsights.com/industry-reports/honey-market-100551.

https://www.globenewswire.com/news-release/2021/02/18/2178045/0/en/Worldwide-Demand-of
-Honey-Market-Share-Calculated-to-Reach-Over-USD-10-840-Mn-By-2026-Report-by-Facts-Fa
ctors.html
https://newsinfo.inquirer.net/1371359/3-of-4-honey-brands-in-ph-fake-says-study

https://www.ipophil.gov.ph/news/pure-and-raw-protecting-local-honey-and-its-indigenous-harves
ters/

Honey Market Share Analysis: Industry Report, 2021-2028. Honey Market Share Analysis |
Industry Report, 2021-2028. (n.d.). Retrieved December 1, 2021, from
https://www.grandviewresearch.com/industry-analysis/honey-market.

Jenny McCoy February 12, 2018. (n.d.). Why you should think twice before buying grocery store
Honey. Cooking Light. Retrieved December 1, 2021, from
https://www.cookinglight.com/news/grocery-store-honey-laundering.

Group 4 ABM 12- A

Amar, Evan Andrew

Catig, Lorraine

Lantin, Rea Zeryll

Moquete, Rojan

Sumagaysay, Atasha