STRATEGIC PLAN USED TO INCREASE PROFIT OF SARI-SARI

STORE OWNERS OF SOGOD BACACAY ALBAY

A Thesis
Presented to the
Faculty of Education

In Partial Fulfilment of the

Requirement for the Degree

Bachelor of Science
in Business Administration

ABEGAIL BLANCO
LEA O. IBARRA
JONA O. BELMONTE
CHRIS ANN ASPURIAS
SHANICE EMBILE
MYRA CABRIA
RICA MAE ARBOLEDA
ANNIE BOLAÑOS
CRISTOPHER BRON
NICOLE CIPRES
IAN CARLOY
EZEKIEL RAMOS

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 Table of Contents

Goal/ Objective----------–--------------------------------------------------------------------------------- 4
Acknowledgement----------------------------------------------------------------------------------------- 5

Chapter 1------------------------------------------------------------------------------------------------- 6–8

Introduction

Statement of the Problem

Scope and Delimitation

Significance of the Study

Chapter 2----------------------------------------------------------------------------------------------- 9–17

Review of Related Literature

Review of Related Study

Gap Bridged by the Study

Definition of Terms

Theoretical Framework

Conceptual Framework

Chapter 3 --------------------------------------------------------------------------------------------- 18–19

Research Design

Sources of Data

Research Instruments

2
 Data Gathering Procedure

Appendix A / Bibliography--------------------------------------------------------------------------- 20

Appendix B ----------------------------------------------------------------------------------------------- 21

3
Goal/ Objective

This research will focus on ways to increase profits, attract more clients, sell

more goods, and please customers in order to meet the demands of the residents of

Barangay Sogod Bacacay Albay. What role this strategic plan will play in helping them

make more money and how they would handle the regular customers of their sari-sari

store.

The proprietor of a sari-sari store needs a strategic plan in order to establish the

company’s overarching objectives and create a strategy for achieving them. In order to

sustain their monthly profit and be able to apply the several techniques they used in

order for the development of the firm, they must devote time, effort, and money.

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 Acknowledgement

First of all, to the Almighty God who gave them blessings and guidance

throughout this study. Gave knowledge, strong self-esteem, listen to the prayers, and

most of all gave strength.

To beloved parents, who showed support, sincere understanding, and provided

financial assistance all the time. Also, for the doubtless consent of letting researchers

go into some other houses along the course of this study.

To Mr. Marlon Andayog for his patient understanding and encouragement

throughout the research. Furthermore, taught and guide us well in our study for our own

good.

To Mrs. Vic Barcellano for allowing researchers to utilize materials in the

barangay sogod useful for the accomplishment of this study.

To their friends, for sharing the ideas and helping this research to make this

study possible. For supporting and believing that they can make it and always being

there to cheer up.

The Proponents

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 CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Introduction

There was a neighborhood convenience store at every Filipino’s door or even

only a few feet away before foreign convenience stores arrived in the Philippines. It was

a sari-sari store, also known as a small neighborhood variety store, which was mostly

run by women and elderly people. It was so convenient that someone could stop in the

middle of an emergency to make a quick purchase. The name “sari-sari,” which means

variety in Filipino, refers to a wide range of things for sale, including necessities for the

home, common building materials, cosmetics, and even monthly bill payment. Most of

these stores continued to thrive and remain sustainably profitable despite the potential,

popularity, and their long history.

The majority of sari-sari stores today are constructed of cement, although they

used to be mostly made of wooden houses. Inside, they frequently offered goods like

sauces, preserved foods, beverages, candies, detergent, bathroom supplies, and

occasionally wet fresh things.

According to Bonnin (2004):50 and Mintyse (1995), 11 of all exti-ati outlets at

lumide are situated in residential neighborhoods and are often run out of a section of the

owner’s home (Bonnin (2004):780; Maintyre (1696); Silverio (1982). Right from the

beginning, the number of sari-sari stores has been steadily rising.

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 This thesis contends that small business owners (of sari-sari stores) have the

ability to alter the form and character of their businesses across the community of

Bacacay, Albay, in particular the Sogod. Since the previous three decades, researchers,

academics, and practitioners have given small business businesses considerable

thought as the economic engine driving global economic progress.

This study will focus on the entrepreneurial abilities of business owners, their

ages, and the marketing strategies they employ in order to build client loyalty and boost

their monthly income.

Statement of the Problem

This study aims to answer the following questions regarding to the Marketing Strategy

used by sari-sari store owners.

1. What is the socio-demographic profile of the respondents in terms of

1.1 Sex

1.2 Age

1.3 Highest Educational Attainment

1.4 Years in Business Operation

1.5 Source of Capital and estimated monthly income

2. What are the factors affecting the income of the respondents?

3. How are this marketing strategy help them increase their monthly income?

4. Difficulties encountered by store owners

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Scope and Delimitation

In Sogod Bacacay, Albay, the researcher will pick five to ten (5-15) sari-sari

stores. They were chosen because, according to Hammer et al. (2003), “as one’s

experience of cultural difference becomes more complex and sophisticated, one’s

potential competence in intercultural relationship increases.” They already have

sufficient knowledge of the marketing strategy for growing a small business into a large

one.

Significance of the Study

This study will significantly affect and help the following:

Future Researcher. This study will serve as bases in the application to another

system or to further enhance their study.

Sari-Sari Store Owners. In which they may consider the most practical method

to keep and improve their approach to handling such business. This study may be taken

into account by the owner as another way to analyze the always evolving company

sector.

To the community. They can adopt some of the sari-sari store owners’ business

strategies.

Future Researchers. It will be of tremendous assistance to future researchers in

their efforts to undertake new, more comprehensive studies regarding research

methods and topics other than sari-sari stores.

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 Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter discusses the related literature that the researchers has acquired

and understand in formulating this study. The correlation and gaps of the present study

to the reviewed literature and studies are found in this chapter.

Review of Related Literature

There are sari-sari stores almost everywhere in the Philippines. Sari-sari store is

a phenomenon that is clearly here to stay, and it is one of the main sources of livelihood

for a significant number of Filipino families. They are only scarcely visible in upscale

villages and subdivisions inhabited by very wealthy families who buy their supplies of

convenience goods at supermarkets.

Sari-sari store is one form of a Filipino family run retail business. This kind of

stores are the urban and rural convenience stores that Filipinos are used to and are

investing ever since prior to the arrival of the Spaniards in the 1500’s the word sari-sari

incans “various kinds” in English translation, which is real in the idea of the sari-sari

store because there are really “various kinds of its for sale. One distinct idea about that

store is that it allows people to purchase their needs in Times or singular item basis The

Philippine Towel Guide, 2016) Its convenience was beyond exaggnation that someone

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can interrupt an emergency to buy something as immediately as possible Despite of the

opportunity popularity and in presence for decades; majority of these stores stayed not

to grow but only to exist and the sustainable.

It cannot be denied that the neighborhood sari-sari store is already a part of the

daily life of average Filipino (Kirhat, 2007), It was estimated by a study of Bonnin in

2004 that about 93 percent of all sari-sari stores nationwide are located in residential

areas and are typically operated from a portion of the owner’s house. Anything you

might have missed in your regular trip to the Department Stores from basic food items

to other necessities like deodorant, matches, powder and even mobile phone load is

most conveniently purchased from the sari-sari store nearby at affordably portioned

quantities, sometimes even on credit.

According to a study by Parilla (2015), the number of sari-sari has increased in

both urban and rural areas. Additionally, these stores compete based on their location

because they offer the same types of goods at comparable prices in both urban and

rural areas (Bonnin, 2004). According to market research studies by AC Nielsen, the

number of sari-sari stores nationwide increased by an estimated 88 percent between

1997 and 2000 (Bethge, 2003), 14 percent in 2002 (Bonnin, 2004), and 13 percent in

2003 (Capistrano, 2). (Amojelar, 2006).

 Although price markups are still significant and sari-sari stores continue to

expand, making over 90% of all retail outlets in the nation, store owners are aware that

there is too much competition (Bonnin, 2006). (Olarte and Chua, 2005),

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 Given how a sari-sari store works, these retail stores are patronized by people

since it provides convenience to all, and in today’s generation, a sari-sari store is almost

in every corner of the community. More Filipinos are fascinated to the sari-san store

community, which is part of the retail industry, since is one of the fastest and easiest

business venture they can get into envy to manage, home-based and has low operating

cost. Thus, continuously improve the Economy (Lucamiento, 2013), even the most

destiture group of squatters shacks, have a surprisingly large number of these stores.

Due to the significant danger of new competitors entering the market, the sari-

sari shop sector is extremely competitive. Given that there is now one sari-sari store for

every 100 people (Castro, 2016) and that it accounts for 30% to 40% of all retail sales in

the Philippines, sari-sari stores are still a flourishing industry (Lorenciana, 2014).

However, due of shop proliferation, proximity to one another, and dwindling market

share for each retailer, it is growing harder for sari-sari stores to remain competitive,

particularly if they are situated in rural communities. Products can be easily substituted

because a single vari-sar store may also have similar products with the others because

those may be in demand, and customer loyally how 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 (Jarevicius, 2013)

Regalio, in his article in Insight Philippines (2016) said. “Give 2 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 conchided that a small amount of capital is a good start,

there may be chances, an owner’s capable neighbour may be attracted when the store

is curning and open his own the next day. For the legal requirements, we may find other

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sari-sari stores unregistered in fact, the BIR increases their efforts in searching those

unregistered small scale-businesses including sari-sari stores (Tempo Online, 2017).

Small businesses like retail store really and a nation on its escalation. The size

doesn’t matter because it alloses flexibility and more rapidly decision-making because

of its distinctiveness of innovation, drive and competence (Kropp, Lindsay & Shoham,

2006).

Owning a small business has an advantages and disadvantages Advantages:

like one can’t fire you; one decides your work schedule, gain thorough understanding

and opportunities about business. Disadvantages like money and savings consumption,

demanding duties and unlikable experience losing capital (Collins-2013). If a small

enterprise be unsuccessful, the major causes is lack of planning. Unacceptable

financing and poor management. When starting a small business, there are only two

possibilities, achievement or failure. Because of its size, mismanagement will certainly

result its own death and it cannot learn from its own mistikes (Longenecker, Minore and

Palich, 2006).

Review of Related Study

According to Webber, a 2017 study titled "Small Business Growth Strategic

Goals and Owner Preparedness" intends to investigate the important link between

perceived small business success and the SBOS's capacity to expand their company.

The poll of 340 business owners found a strong correlation between perceived success

and growth readiness. Only 11.8% have stronger ambition for continuous growth and

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achievement which in turn make them deserving of aid because of their positive

disposition in the group. This involves that the better prepared the firm owners are, the

fewer the troubles were for them. They were more likely to go in the direction of growth

and more alluring to politicians or investors.

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 inore

attractive to investors or policysackers

Marketing strategy has become an important tool globally for any organization to

immaia in competitive market environment and was stronger. Marketing strategy is a

vital prerequisite of industry’s ability to strengthen its market share and minimize the

impact of the competition (Adewale, Adesola & Dyewale, 2013). Also see mackening

strategy as way of providing quality product that satisfies customer needs, offering

affordable price and engaging in water distribution and back it up with effective

promotion strategy (Adewale et al, 2013)

Marketing strategy draws its strength from the overall componite strategy. It

maybe defined as those marking programmes and tactics, designed to achieve the

objectives of an organization. A marketing strategy outlines the strategic direction and

tactical plants that marketing tears must implement to support the company’s overall

objectives (Ehita, 2015)

According to Haghighinus, Suttart, Ebrahani Roghuman. (2013) performance can

be measured based on growth, market share and profitability. The higher the indices the

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greater the performance of the business and vice versa. Ardjoumun and Asma (2015)

further defined performance in terms of output such as profitably or quantified

objectives. This means that performance of SME’s has to do with both behavior and

results. These explanation covers achievements af anticipated levels as ell as objective

review and setting. When the behavior of management is right the anticipated levels of

output would be achieved and vice vena direction, then this positively affect the

performance of SME’s. Some strategies which could affect performance of businesses

are the product quality, marketing communication and relationship marketing.

Struggles faced by the sari-sari store that hinders survival and sustainability. The

research done by Malapit, HI (2007) aimed to describe the business model of Filipino

sari-san stores as well as the underlying problems of the system. The research

described sari-sari stores were prevalent in low to moderate income communities. The

common struggles faced by sari-sari stores were collection of debts and insufficient

funds due t lack of accounting Sari-sari stores offer credit on goods as well as credit

extension as a sales generating strategy The business owners were also debtors

themselves by asking “bumbay” or indian money lenders to lend the money. This money

lenders offers “5” which means repaying the loaned amount of 5 with 1 or 20% interest.

The research described the unique model of sari-sari stores were products may act as

capital for payment for credits. The research concludes that the primary reason that

hinders survival and stainability of the sari-sari stores were lack of record keeping,

inability to manage the store scientifically, diversion of inventory and product use, and

the small mentality.

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 (Maseko. 2011) stipulated that micro and small business like the sari-sari store.

Recordkeeping is the backbone of one’s business Keeping accurate accounting records

actually creates a profitable business (Germain, 2010) found that most business

operators of sulla taniness perceived recordkeeping as a method of recovering initial

investiment in the form of cush at the end of the accounting period. (Howard, 2013)

emphasized that any small businesses failed to keep adequate records. These failures

fead to major problems and quite possibly the closing of the business. Evidence shows

that keeping good records helps to increase the chances of business survival. In eence,

the SME awers or manager should be personally involved in record keeping (Sun, 2016

Proper record keeping eures long-term sustainability of the business and anticipates

long-sena prospects.

Gap Bridged by the Study

This study sought to identify the strategic imperative by San Sari Store to

enhance total sales.

The study has been done so that the researcher may get a sense of the

approach from the material in relevant studies and publications. There have been

studies done in regard to the research, but no general studies have been done on the

strategic strategy used to exercise the sales of sari-sari stores. The majority of sari-sari

stores were unable to recognize the significance of location. This study was done to find

out how well-versed and effective sari-sari stores were at using various strategies to

boost sales.

Definition of Terms

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Profit –The financial benefit realized when revenue generated from a business activity

exceeds the expenses, costs, and taxes involved in sustaining the activity in question.

Variety– is a quality similar to diversity or difference. Some feel having variety in life is

much more exciting than doing the same routine day in and day out.

Strategy– is a general plan or set of plans intended to achieve something, especially

over a long period.

Success– the accomplishment of an aim or purpose.

Theoretical Framework

Multiple factors allow sari-sari store owners enhance their total sales. Location of

the store, the community’s fundamental requirements, appropriate pricing, calculating

daily profit, and maintaining product quality are all important factors. These products

should be able to satisfy the daily demands of potential clients. A pleasant client

experience will go a long way toward luring them back to your shop. Choose direct

suppliers so that they may provide cheaper prices for the goods to be sold. It’s better to

just compare your selling prices with those of other business owners after doing further

research on how much your products are selling for. Sales and costs should be carefully

tracked on a daily basis. Keep the gains apart from your own funds and save them.

Conceptual Framework

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 Maintaining a daily levels of inventory, keeping an eye on cash flows, figuring out

which products are the most lucrative and in demand, and renewing inventory are a few

business-related challenges. Such a routine could be experienced while doing chores

for certain houses or caring for the children of some business owners. Some store

owners are unable to manage these responsibilities, endangering their company. Lack

of family support and expertise in managing finances and other obligations. Customers

who owe you money may become aggressive when reminded of their commitments,

and the owner has overdue bills. These do not promote retail sales and instead cause

businesses to collapse.

INPUT

1. Demographic Profile of Sari-Sari Store owner.

2. Factors affecting their income
3. Marketing strategy to increase the profit.
4. Difficulties encountered.

PROCESS

Data Gathering through Survey Questionnaires

Evaluating and analyzing the information gathered

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 OUTPUT

A guidelines for Sari-Sari Store owner that includes the

marketing techniques to be used in day-to-day
operations of the business.

Strategies and variables that affect sari-Sari store

profitability.

Figure 1: Framework showing the flow of the research entitled Strategic

Plan Used to Increase Profit of Sari-Sari Store Owners of Sogod, Bacacay, Albay.

Chapter III

RESEARCH DESIGN AND METHODOLOGY

This chapter discusses the research design and methods utilized to collect data

needed to accomplish the study. It also includes sources of data, respondents, data

gathering procedure, search instruments and statistical treatment.

Research Design

To further this investigation, the research will employ a qualitative study

methodology. This study's goal is to understand the marketing practices employed by

sari-sari shop owners in Sogod Bacacay, Albay. This research also intends to assist

others, particularly those who desire to launch a small business. Using a search

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questionnaire, qualitative research entails describing a specific circumstance in depth.

Phenomenology is the research design used in this study. In order to determine the

marketing strategy of the owners of sari-sari stores in Sogod, Bacacay, Albay,

phenomenology is used. Phenomenology is concerned with the study of experience

from the perspective of the individual. This design of methods is particularly effective at

bringing to the pure the experiences and perceptions of individuals from their own

perspective.

Sources of Data

This research used primary and secondary sources of data. The primary source

of data is from internet, books, thesis writings and any other related sources for this

study. The secondary source of data is from survey questionnaire.

Research Instruments

The researchers looked into several methods and strategies that sari-sari store

owners employ to boost their monthly sales. For this reason, the researcher intends to

interview the proprietors of sari-sari shops. The proprietors of the chosen sari-sari

stores will get questionnaires from the researchers as part of their study. The survey

questionnaire is distributed by researchers, and the chosen proprietors of sari-sari

shops respond. The researcher will gather and examine the data once the respondent

completes the survey.

Data Gathering Procedure

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 Data collection is done via survey questionnaires. One of the tools is a

questionnaire, which is made up of arbitrary questions that are required for getting data

from respondents. Individual responses should result in outcomes.

Appendix A

Sari_Stores Small Neighborhood Variety Stores

https://condura.com/condura-guide/how-to-manage-and-maximize-your-sari-sari-stores-

profits/

https://www.scribd.com/doc/295515322/Financial-Managqement-Among-Sari-sari-

Store-Owners-in-Toril-Davao-City

https://www.scribd.com/document/467799556/2-chaper-1-to-5-mao-nani-hah

https://www.coursehero.com/file/82755259/chapter-1-5docx/

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https://www.scribd.com/document/342261629/Sari-sari-store-reseacrh-study

Appendix B

Name:

Age:

Educational Attainment:

Years in business:

Name of sari-sari store:

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 1. What are the factors that affects your income in Sari-Sari Store?

2. How are this marketing strategy help you increase your monthly income?

3. What are the difficulties that you encountered while running the business?

22