Business Sustainability and Marketing Strategies among Sari-Sari Store

A Research Proposal Presented to the

Faculty of Bachelor of Science in Entrepreneurship

Carlos Hilado Memorial State University

In Partial Fulfillment

of the Requirements for the Degree

Bachelor of Science in Entrepreneurship

By

Celestial, Jennlyn M.

Crisostomo, Bea V.

Deguenio, Abegail D.

Dela Peña, Jay Aivan S.

Delijero, Joshua C.

Deligero, Arnel O.

Elera, Hardvey V.

Embiado, Ryjie L.

Guotana, Lemuel D.

Gutang, John Gabriel N.

Harisco, Aivan B.

Iwag, Richel Rose E.

February 2024
 Chapter 1

I. INTRODUCTION

Marketing practices play a crucial role in establishing and nurturing connections between a
business and its target markets, particularly in the context of competing in highly dynamic and
competitive markets. This principle holds true across various business domains. According to
Gleeson (2019), marketing transcends being merely a component of business success; it
embodies the essence of the business itself. Regardless of their scale or financial resources, all
enterprises rely heavily on effective marketing strategies. The term "marketing" encompasses a
wide array of activities related to promoting and selling a business's products or services. In the
context of micro-businesses, such as sari-sari stores, which are prevalent in Philippine urban
and rural areas, they serve as vital hubs offering daily necessities, food, and beverages.

Additionally, this widespread presence also signals intense competition within

communities, with many stores buying for a share of the limited market. The emergence of
24/7 convenience stores further intensifies this competition. While such dynamics foster a
healthy business environment, they also pose challenges to the longevity of individual sari-sari
stores. This trend is evident in Dapitan City, where sari-sari stores cluster together, often selling
similar products. This situation presents both advantages and disadvantages for the
community: fostering healthy competition while potentially hindering the long-term
sustainability of individual businesses. Recognizing the pivotal role of marketing in business
survival, researchers aimed to explore the marketing practices of sari-sari store owners in
Dapitan City, laying the groundwork for an extension program designed to enhance marketing
strategies and increase the likelihood of business longevity in 2020 (Arroyo, 2020; Alusen,
2018).
In the Philippines, there is a thriving neighbourhood full of sari-sari businesses, which are
stands that are usually carved out of the owners' places and sell a variety of goods in pieces or
smaller packages. These stores are common in neighbourhoods and are often used despite
their small size because of their proximity to residences and convenience when compared to
grocery stores. shops. Despite their low initial costs, these businesses contribute significantly to
household income.Everyone demands a significant and consistent rate of growth because small
and microbusinesses are essential to the economic growth of our country. The overall state of
the economy in our country is dependent upon the prosperity of these companies; thus, we
can't discount their significance. Due to their small production capacity and vulnerability to
even small negative changes in the macroenvironment, microbusinesses have restricted their
ability to manage risk (Cheng, Wang, and Wang, 2019). It is easy to upset the capital chain or
even declare bankruptcy when money is tight (Liu and Tan, 2020).

Sari-sari stores hold a prominent position in Filipino society and economy, serving as vital
centers for daily essentials and community engagement. Stemming from the Tagalog term
"sari-sari," meaning "variety," these small local shops offer a wide selection of goods, catering
to the immediate needs of nearby residents. However, with origins tracing back to pre-colonial
eras, sari-sari stores have evolved alongside Philippine society, adjusting to shifting economic
dynamics and consumer preferences. According to research by Reyes and Tiongson (2015),
these stores have become foundational elements of the Filipino retail landscape, particularly in
areas where access to larger supermarkets is limited, such as rural and urban communities.

Operating on a micro-retail framework, sari-sari stores typically occupy compact spaces within
residential neighborhoods, ensuring easy accessibility for customers. They provide a diverse
range of products, including essential food items, snacks, beverages, toiletries, and household
necessities, often displayed on simple shelves or in cabinets. The affordability and convenience
of sari-sari stores make them indispensable to many Filipinos, especially those reliant on them
for daily supplies. As highlighted by Santos and Capuno (2017), these stores play a crucial role in
addressing accessibility gaps, offering goods and services to communities where formal retail
infrastructure may be lacking.
Additionally, sari-sari stores serve as social hubs where neighbors gather not only to make
purchases but also to exchange news, gossip, and foster camaraderie. This social dimension
adds to their cultural significance and enduring popularity within Filipino neighborhoods. In
recent years, scholars and policymakers have increasingly recognized the socioeconomic
importance of sari-sari stores. Research by Reyes and Tiongson (2015) underscores their role in
fostering entrepreneurship and livelihood opportunities, particularly for women who often
manage these small businesses. Despite facing challenges such as competition from larger
retailers, supply chain limitations, and regulatory hurdles, sari-sari stores exhibit resilience and
adaptability, remaining integral to the social fabric of Filipino society.

Hanaysha and Hilman (2015) state that businesses have faced significant obstacles lately
regarding their sustainability practices; as a result, innovation is the primary means of
addressing these issues. Previous studies have emphasized the importance of various forms of
innovation in promoting the competitiveness and sustainability of businesses. According to
Fernández et al. (2018), businesses that focus on activities and use innovative processes, as well
as goods that guarantee increased energy efficiency and minimal use of resources, are more
valued in their surroundings. Also, they discovered that businesses that emphasize innovation
to reduce environmental effects frequently innovate in order to boost energy-related
effectiveness. While innovation capacities have long been recognized as important factors that
influence company performance and success, very few empirical studies have examined their
connections to business sustainability, especially in the context of SMEs.

In these highly competitive markets of today, businesses must constantly examine and
evaluate both their internal and external environment to understand the demands of their
target markets and then be able to effectively use the resources at hand in an effort to meet
new challenges and gain long-term competitive advantages (Kamboj & Rahman, 2017).
Businesses of all sizes have come to understand that consumers primarily assess them on the
basis of their social and environmental performance; as a result, their ability to meet customer
expectations is critical to the sustainability of their enterprises (Hussain et al., 2018). According
to some research on business sustainability (Ng & Rezaee, 2015; Yusoff et al., 2019), companies
that use sustainable business practices in their operations typically have higher brand values
and lower equity capital costs. According to Dyllick and Muff (2016), sustainable practices also
ensure societal well-being, reduce environmental emissions, and help businesses meet their
financial goals. Additionally, they claimed that lower risks and operating expenses for
sustainable businesses result in higher talent's desire to work with them, an established brand,
better distinct advantages, and a reputable business.

The researchers selected the subject of 'Business Sustainability and Marketing Strategies
Among Sari-sari Stores' due to our awareness of the essential function sari-sari stores fulfill in
community economies, especially in the Philippines where they are widespread. It is imperative
to grasp how these small enterprises can integrate sustainable methods alongside efficient
marketing approaches to ensure their enduring prosperity and contribute to economic and
environmental sustainability at the local level. Moreover, delving into this topic offers
significant insights for scholars and professionals engaged in sustainable business practices,
particularly concerning micro-enterprises.

References:

Pagara, E. E. (2022). Marketing Practices Among Sari-Sari Stores in Dapitan City: Basis for Proposed
Extension Program. International Journal of Multidisciplinary: Applied Business and Education Research,
3(7), 1302-1308.
Bancoro, J. C. M., Villagonzalo Jr, B. S., & Villanueva, I. T. (2023). Financial Attitude of Sari-Sari Store
Owners in Barangay Batinguel Dumaguete City towards Microfinancing. East Asian Journal of
Multidisciplinary Research, 2(4), 1749-1758.

Reyes, C. G., & Tiongson, C. R. (2015). The role of sari-sari stores in entrepreneurship and community
development. Philippine Institute for Development Studies.

Santos, F. E., & Capuno, J. J. (2017). Community store or sari-sari store? Local business in the Philippines.
Local Economy, 32(4), 376-396.

Hanaysha, J. R., Al-Shaikh, M. E., Joghee, S., & Alzoubi, H. M. (2022). Impact of innovation capabilities on
business sustainability in small and medium enterprises. FIIB Business Review, 11(1), 67-78.