EVALUATION OF THE GROWTH AND PROFITABILITY OF

SELECTED SARI-SARI STORE IN ATIMONAN, QUEZON; A BASIS TO

PROPOSE A MARKETING PLAN

Thesis Presented to

The Faculty of College of

Bachelor of Science in Business Administration

Leon Guinto Memorial College Inc.

Atimonan, Quezon

In Partial fulfillment of the Requirements for the Degree

Bachelor of Science in Business Administration
Major in Marketing Management

KARREN S. MANALO

MARK JOSEPH B. MANGALUS

ZENIA CALAYO
 Chapter 1

THE PROBLEM AND ITS SETTINGS

Introduction

The neighborhood sari-sari store is part of daily for the average Filipino. Any essential

household good that might be missing from one’s pantry from basic food items like coffee and

margarine to the necessities like mosquito coils, soap, shampoo and matches is most

conveniently purchased from the sari-sari store nearby at affordably portioned quantities,

sometimes even or credit.

As years passed by, the endless needs and wants of people are still growing. Most of the

people spend their money in buying any goods or products for the fulfillment of the daily needs

in their lives. Apart from the most affluent communities, the sari-sari store is a constant feature

of residential neighborhoods in the Philippines both in rural and urban areas, prolife rating even

in the poorest squatter communities.

Business Growth is a stage where the business reaches the point for expansion and

additional options to gain more profit. Business growth is a function of the business lifecycle,

industry growth trends, and the owners desire for their business growth.

Profitability is the ability of a business to earn profit. A profit is what is left of the supply

revenue a business generates after it pays all expenses directly related to the generation of the
revenue, such as producing a product, and other expenses related to the conduct of the business

activities.

The research study aims to know the evaluation of the growth and profitability of selected

sari-sari store in Atimonan, Quezon. By evaluating the growth and profitability of the selected

sari-sari store, owners will help to maintain their business to be more profitability. They will

aware what happening to their business, if they are going be more successful or they are going to

lose the business. If their business is gained more profit or their business is growing. In the other

hand they can also help other people that want to open up a business like a sari-sari store.

Owners of selected sari-sari store will give some tips to those people who want to build their

own sari-sari store in near future.

Background of the study

The sari-sari store become Philippines phenomenon common business for its very

household good at afford ably-portioned quantities, some sari-sari stores located at place where

they run the business without knowing and consent of the building owner. Sari-saris tore is a part

of the Filipino daily life living. Filipino builds their own business to earn more income even

they’re working to their specific job. The more it seen in many places, the more we convince to

know about the business.

` Atimonan is composed of forty two barangay’s and the researchers target respondents

will be thirty sari-sari store. The study will be conducting in the town of Atimonan Quezon, the
town of Atimonan has four poblacion. The thirty sari-sari store as respondents will be divided

into four. Their sari-sari store will measure how their store grow and how to be profitable

As we are resident of Atimonan, Quezon we will be conduct a study about the evaluation

of the growth and profitability of selected sari-sari store in Atimonan, Quezon. By conducting

this study we will be aware how sari-sari store will measure how the business will grow and be

profitable.

The role of this study is to know the growth and profitability of selected sari-sari store

and evaluate it. To know the process of how grow this kind of business and also how can a sari-

sari-store be profitable. This study will be benefiting the owners; it will help them to understand

their own business. Also propose them proper marketing plan.

Statement of the problem

This study aims to know the evaluation of the growth and profitability of selected sari

sari stores in Atimonan Quezon.

Specifically, this study seeks to answer the following:

1. What are the demographic Profile of the respondents in terms of:

1.1 Age

1.2 Gender

1.3 Education Attainment

1.4 Estimated Monthly Income

2. How to measure the evaluation of the growth of selected sari-sari store in terms of:

2.1 Profit

2.2 Owner’s Behavior

2.3 Customer Satisfaction

3. How to measure the evaluation of the profitability of selected sari-sari store in terms of:

3.1 Price

3.2 Product

3.3 Place

4. Is there a significant impact to sari-sari store that evaluate the growth and profitability of their

store?

Significance of the Study

This study will is evaluated the growth and profitability of the selected sari-sari store.

This study is significant to the following:

Entrepreneurs

Specifically sari-sari store owners, this will help them know, the knowledge about the

growth and profitability to overcome challenges and the evaluation that were identified in this

study.
Future Entrepreneurs

This will help them learn knowledge about the how to engage in a business like sari-sari

store and also learn some ways to overcome those.

Business and Management students

As students preparing to the enter the world of business, this study will help them

understand the reality of the path that they may take in the future and make this as a guide if they

are planning to run sari-sari stores or apply what they learn in this study if their family is already

engage in a business like sari-sari stores.

Customers

This study will help them understand the side of the store owner where they buy

products to satisfy their daily needs and for them to avoid unreasonable demands and complain

without knowing the opposite side.

School

This study will help them gain more knowledge and awareness about the sari-sari store

entrepreneurs and may serve as future reference for the students, faculties and staffs.

Future Researchers

The findings of this study will provide them knowledge and may serve as their reference

for related research studies.

Researchers

This study will help them discover and understand how to will growth and be profitability

the sari-sari stores and have an effective way of perceiving one of the industries they will be

entering in the near future.

Scope and Limitations

This study will focus on the evaluation of the growth and profitability of sari-sari stores

operating in Atimonan, Quezon. The respondents of the study are 30 sari-sari store owners

residing at Zone I Poblacion, at Zone II Poblacion, Zone III Poblacion and at Zone IV Poblacion

in Atimonan Quezon.

In order to find out the result, the researchers will determine the growth and profitability

of sari-sari store by interviewing the respondents. Also, the researcher made a questionnaire for

this study.

Definition of Terms:

For better understanding of the study, the following terms are conceptually and

operationally defined:

Sari-sari store

Conceptual: a neighborhood variety store found in the Philippines.

Operational: an entrepreneurship that is owned by the respondents of the study.

Owners

Conceptual: a person who starts a business and is willing to risk loss in order to make

money (Merriam Webster)

Operational: a person who owns a sari-sari store.

Growth

Conceptual: a stage in the process of growing (Merriam Webster)

Operational: a result or development of the business

Profitability

Conceptual: affording profits : yielding advantageous returns or results (Meriam

Webster)

Operational: ability to prove that the business is have a financial gain

Behavior

Conceptual: the way in which someone conducts oneself or behaves (Merriam Webster)

Operational: The way of act of the owner.

Customer

Conceptual: one that purchases a commodity or service (Merriam Webster).

Operational: a person that buying in the store.

Satisfaction

Conceptual: fulfillment of a need or want (Merriam Webster).

Operational: The fulfillment that you will give in your customer.

Pricing

Conceptual: the amount of money given or set as consideration for the sale of a specified

thing (Merriam Webster).

Operational: This refers to the that customer will pay

Product

Conceptual: something that is made or grown to be sold or used (Merriam Webster).

Operational: The one that going to sell in the store.

Place

Conceptual: a building or area that is used for a particular purpose (Merriam Webster).

Operational: refers to the location of the store.

 Chapter 2

REVIEW OF RELATED LITERATURE AND RELATED STUDIES

This chapter contains ideas, finished thesis, articles and conclusion about growth and

profitability of a business. This is composed of related literature and related studies sources that

helps the present research study to have relevant and related facts.

Related Literature

The study authored by Webber, P (2017) entitled “Small business growth: strategic goals

and owner preparedness” aims to examine the significant relationship between perceived small

business success and the SBOs preparedness to grow their business. The survey of 340 business

owners revealed that there was significant relationship between perceived success and growth

preparedness. Only 11.8% have higher desire for continued growth and success which in turn

make them worthy of assistance because of their good disposition in the group. This entails that

the more prepared the business owners are, the lesser the problems were for them. They were

more likely to head towards growth and were more attractive to investors or policymakers.

According to de Lange (2017), investors prefer to invest in a socially responsible model

at a national context than those environmentally sustainable firms. The research reasoned that

this was because of the slow payback of investment related to environmental sustainability but a

country with socially responsible policies were cheaper, offer good conditions for well

productive labor, and creates a better place to live in while their investments grow. A study

conducted by Osborne, S. W. (2017) aims to do profiling of business owners in rural

Pennsylvania and determine their awareness of publically funded business assistance programs
using 364 business owners. The study revealed that profile of the respondents was not significant

with their awareness of the programs. However, sustainability and survival leading to growth of

Sari-Sari Stores (Small Neighborhood Variety Stores) operating in 2017 for more than 1 year in

Barangay Potrero, Malabon City, Philippines awareness of the program was higher among

companies that have reported growth plans for the next three years.

According to (Davis, 2017) who developed “The Iceberg Theory of Success”, the

excellent metaphor for success is a much larger part hidden beneath the iceberg or what is visible

above the waterline. It means that the visible part of the iceberg is the success and

accomplishments that every one of us can see and the hidden part of it is the efforts to achieve an

outcome.

The growth of literature in a field may sometimes appear to counter the scholarly goal of

developing a greater understanding of dynamics among variables and contexts. The unplanned

organic growth of a field may introduce many complex, competing, and occasionally

counterintuitive arguments that could prevent scholarly dialogue from advancing. Well-

conducted review articles synthesize these arguments and provide stronger evidence. Naturally,

research fields advance when studies are designed to build logically on the findings of prior

studies. Such “review studies” then reconcile conflicting findings, identify any research gaps,

and suggest exciting new directions for a given field of research with reference to different

methodology, theory, and contexts.

Related Studies

Profitability is one of the vital elements for performance evaluation, showing the

proportion of profit in comparison with asset investment, equity, or sales. Improving profitability

is one of the key tasks for enterprises, especially in the context of international economic

integration today in Vietnam. Because only a stable economy with high profitability can provide

enough financial resources for sustainable development, therefore, can attract attention and

investment from internal and international investors. Not only being a reliable basis for

evaluating business performance, profitability also is a useful tool for forecasting the

performance of businesses in the future. Profitability reflects shareholders’ wealth, and

accordingly, appeals to investors. This is the reason why identifying different factors affecting

directly or indirectly to profitability is an essential research theme in economics, strategic

management, accounting and finance.

According to (Vic, 2017), many Filipinos who run small businesses falter to register their

business in the government agencies including the Bureau of Internal Revenue (BIR),

Department of Trade and Industry (DTI) and Mayor’s office because they are afraid that their

business will be audit by the BIR and examine by the government. They are also bothered by

how expensive and time-consuming the process will be in getting the business license. And they

also think that other business owners are not registering so they do the same.

However, the legitimacy of a business is important to be successful not only in the

operation but also in marketing. This can be an ace to earn trust from the customers. The

business should be publicly accessible. If it is not legal, the goal of attracting more possible
customers will not be achieved. Having a good faith and being noble in following rules and

regulation will help the entrepreneur succeed (Vic, 2017).

In an analysis of Porter’s five forces, sari-sari store industry has relatively high

competition because of the high threat of new entrants due to low barrier to entry. Some factors

to identify if the competition is intense are when there are many competitors, products can be

easily substituted, and customer loyalty is low. Since sari-sari store is still a popular business

given that the ratio now is one sari-sari store for every 100 people (Castro, 2017) and that it

covers 30% to 40% of the total retail sales in the Philippines (Lorenciana, 2017). However, it is

becoming hard for sari-sari stores to stay in the competition, especially if they are located in rural

community because stores are multiplying, getting near to each other, and market area is getting

small for each retailer. Products can be easily substituted because a single sari-sari store may also

have similar products with the others because those may be in demand, and customer loyalty is

low because other may choose those that are more convenient to them. Meanwhile, the threat of

new entrants is high due to low barrier to entry such as capital and legal requirements Regalio, in

his article in Insight Philippines (2017) said, “Give a Filipino thousand pesos and he probably

will use this sum as a start-up capital for a small retail business.” From that statement, it can be

concluded that a small amount of capital is a good start; there may be chances, an owner’s

capable neighbor may be attracted when the store is earning and open his own the next day. For

the legal requirements, we may find other sari-sari stores unregistered. In fact, the BIR increases

their efforts in searching those unregistered small scale-businesses including sari- sari stores

(Tempo Online, 2018).

 Along this line, marketing is considered as having significant role in the business process.

Any business requires proper marketing for it to grow and successfully reach its target audience,

buyers, and the people whom such products are intended for (Aveta Business Institute [ABI] ).

Among all of the advantages of developing a marketing strategy, the ultimate one is that

it makes all of the planning becomes easier - not just the marketing. Marketing strategy also

allows you to have a tool to increase your retail sales and helps you become more effective in

doing efforts because you know who you are talking to in the first place (Phibbs, 2017).

Marketing for small scale businesses like sari-sari stores is important because low businesses like

these are generic, which need to be known for people to patronize and gain sales. The success of

these businesses depends on the marketing ability of the owners and marketing efforts to keep

the business in the competition (Sims, 2013). This study aimed to reach the people of the

community particularly the store owners by assessing the marketing needs of the sari-sari store,

as well as the marketing capability.

Synthesis

In relation to our study, this theory makes us realize that every successful entrepreneur

should overcome challenges in able to reach their goals and make their dream, a successful

entrepreneur. Challenges have a big part of business growth. Success repeatedly dazzles people

so that they will not notice the great efforts they need to make in order to achieve a possibly

great outcome. In real life, hard work, failures, sacrifice, determination, sacrifice, disappointment

and dedication makes success possible.

 Facing the daily challenges is also a way of evaluation of the growth and profitability of

the business. They can be aware what the problem and what is the impact to them. That way they

can think of a solution to prevent it from happening again.

Research Paradigm

Evaluation of the
Input

growth of selected

Output
sari-sari store in
terms of: Evaluation of the
Process

•Profit growth and

•Owners Behavior profitability of
•Customer Satisfaction
selected sari sari
Analysis of survey stores in the town
through of Atimonan
Evaluation of the questionaire and
profitability of Quezon: A basis for
selected sari-sari interview a proposed
store in terms of: marketing plan
•Price
•Product
•Place

Figure 1. Evaluation of the growth and profitability of selected sari-sari store in the
Atimonan, Quezon

The paradigm present the input will focus on how to measure the evaluation of the

growth of the selected sari-sari store in terms of: Profit, Owner’s Behavior and Customer

Satisfaction and how to measure of evaluation of the profitability of selected sari-sari in terms

of: Price, Product and Place. The researchers will emphasize the of growth and profitability of

selected sari- sari store in the town of Atimonan Quezon.

 Chapter 3

RESEARCH METHODOLOGY

This chapter deals with the research method, sample size, description of the respondent,

data gathering instrument, research instrument and statistical treatment.

Research Method

This study will be quantitative approach of research using a descriptive method of

research. Specifically, this survey will lead to collecting the information and data from the

respondents came from the owners of the store to know about their business. Basically, the

descriptive method will be used in the study that aims to gather important data that will use to

understand the information that is gathered from the respondents.

Data gathered will use the validated the answer to the questionnaires. The questionnaire

was divided into two parts the first part is demographic profile of the respondent and the second

part is question that will measure the evaluation of growth and profitability of selected sari-sari

store.

Sample Size

The respondent of this study will be the owners of selected sari-sari store. The total

licensed sari-sari store in Atimonan Quezon is 109 stores and the target population of researcher

28% out of 109. . The total population of customer as a respondent will be chosen through

simple random sampling.

 The primary data for this study will be obtained from the answers of the respondents on

the store on the given sets of the questionnaire. By giving a set of questionnaire to the owners of

sari-sari store and examining their choice of answer. The respondents will be provided the

necessary data and information for their sari-sari store. The gathered data and information will

help the researcher and to success of this study. The researchers will use sampling or the

representative size of thirty sari-sari store owners

Description of the Respondent

This research study will be focus on the growth and profitability of sari-sari store.

Respondent should be owners or the co-owner if of the sari-sari store in Atimonan, Quezon. The

information that will give by the respondents is given with full disclosure, which means that

one’s personal information or presented information is disclosed.

Data Gathering Procedure

In accomplishing this study, the following procedures or steps will be considered:

The first step of the researcher will be before conducting a study is to attached a cover

letter and explain the purpose of this study and its relevance. The researcher will ask the

permission to the owners of the establishment through an approval letter of Research Adviser to

allow conducting the survey.

 Secondly, after the explanation the researcher will give the questionnaire to the owners

and explaining it to them.

Third, after collecting and analyzing data the researcher will identify the result and

needed to the conclusion of the study.

Research Instrument

The researchers will use researchers-made questionnaire as an instrument to obtain data

that shows the evaluation of growth and profitability of selected sari-sari store. The said

instrument was to the owners of sari-sari store.

The study will be use structured questionnaire using Likert Scale. The total population of

customer as a respondent will be chosen through simple random sampling. The questionnaire is

used as an instrument to gather data that contains two parts. Part one contains with multiple

choice question regarding the respondent’s demographic profile and part two which has one a 2

table that contains 6 categories of growth and profitability of sari-sari store which will be check

by respondents if they have experienced any of those and rate it.

Statistical Treatment

The researchers will analyze and interpret the responses of the respondents to the

questionnaire through the statistical treatment in order to arrive at a definite interpretation of

result for each of the variable.

 1. Percentage

All of the data will be measured by computing the frequency distribution and percentage.

By using the percentage scale, the total frequency of the respondent was computed.

n
P= * 100
N

Where:

P= Percentage

n= Number of respondents

N= Total number of respondent

2. Weighted Mean

The weight mean of the responses will be in evaluated the growth and profitability of sari

sari store. The formula was:

WM = ( 4f + 3f + 2f +1f )

TF
Where:

W= Weighted mean

f = Frequency

TF= Total Frequency

Scale

Range Code Interpretation

4.21-5.00 SA Strongly Agree

3.41-4.20 A Agree

1.81-2.60 DA Disagree

1.00-1.80 SDA Strongly

Part I.

Name : _____________________________________________________

Direction: Kindly check the needed information.

1. What is your demographic profile :

Age :

16- 20 years old 20- 25 years old 25-30 years old

Gender: Female Male

Civil Status:

Single Married Divorced Widow

Educational Attainment:

Elementary Graduate High School Graduate College Graduate

Part II.

Directions: Please rank them according to your best choice. Kindly put a check the choice you

want in the blank provided.

SA- Strong Agree A- Agree DA- Disagree SDS- Strong Disagree

GROWTH Sari Sari Store

Profit SA A U D SDA
A
1. Small profit is okay.
2. By opening your store in holiday will gain an extra profit.
3. The more time your store is open the more your sales increases.
Owners Behavior
1. Greeting customer in a friendly way.
2. More patience is needed to be successful.
3. Handling stress over your personal life to give a good service.
Customer Satisfaction
1. Enticing them to buy again.
2. Do you think have a great impact in your customer?
3. Does your store become more pleasant than the other stores?

PROFITABILITY Sari Sari Store

Price SA A U DA SDA
1. Price of your product is affordable.
2. High price product will make customer think it’s a good brand.
3. Sudden increase in price of your product is reasonable.
Product
1. Giving quality product will be a large impact in your store.
2. Giving a bundle discount to your product will make your store
known.
3. Offering different brand but same quality product.
Place
1. Open in 13 to 15 hours.
2. The store is accessible.
3. Surrounding by nice ambiance will make customer comfortable.