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 BACKGROUND

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.

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.

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

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

conducting this survey we will be aware how sari-sari store will grow and be profitable.

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

thirty sari-sari store.

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
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:

To the 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.

To the 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.

To the 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.

To the 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.

To the 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.
 To the Future Researchers, the findings of this study will provide them knowledge and

may serve as their reference for related research studies.

To the 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.

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.

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

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

entrepreneur, come true.

 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.

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 is 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.

Research Paradigm
Input

Evaluation of the

Output
growth of selected
sari-sari store in terms
Process

of: Evaluation of the

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

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

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.

Sample Size

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

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 respondent will be provide 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

Before the study is conducted, a cover letter will be attached to the survey to explain

the purpose of this research and its relevance. The researchers will ask the permission from the

owner of the establishment through an approval letter of Research Adviser to allow conducting

the survey. The researchers will explain to the owner of the store that they really need their

help through cooperation by giving a necessary information and data that will serves as a

primary data for the study.

Research Instrument

The research 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.

P=n/N*100

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

INSTRUMENTATION

Range Code Meaning

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 DA SDA
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 D SDA
A
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.