RRS: ASSESSING THE INFLUENCE OF MARKETING STRATEGIES FOR

CONSUMER PREFERENCES ON COCONUT OIL PRODUCTS IN BROOKE'S

POINT, PALAWAN

Chapter II

Review of Related Literature

This chapter provides a comprehensive review of the literature and studies related to the assessment of the
influence of marketing strategies on consumer preferences for coconut oil products in Brooke's Point, Palawan. It focuses
on themes like the various marketing strategies employed for coconut oil products, consumer preferences, and the context
of Brooke's Point in Palawan. The purpose of this review is to examine existing knowledge, research, and theories that
inform the current study.

Marketing Strategy Impact

According to the study by Lola Domnina B. Pestaño and Wilfredo I. Jose, traditional copra processing methods in
the Philippines lead to the production of copra and crude coconut oil (CNO) containing aflatoxin and polycyclic aromatic
hydrocarbons (PAH), resulting in reduced market prices for copra-related products globally. Their research aims to
enhance the quality of coconut products by employing modern engineering and technology, exemplified by the Wijose
Process, which achieves a 94.7% recovery rate for coconut fruit parts and waste materials. This study's findings on
innovative processing methods directly relate to assessing the influence of marketing strategies for consumer preferences
on coconut oil products in Brooke's Point, Palawan.

Pestaño, L. D. B., & Jose, W. I. (2016). Engineering an Improved Coconut Processing System in the Philippines at
the Farm-Level. Journal of Advanced Agricultural Technologies, 3(1), 58–62. https://doi.org/10.18178/joaat.3.1.58-62

The study "Linking the Coconut Farmers in the Philippines to Better Market Opportunities through Community-
based Participatory Action Research" by Rodyard B. Madiclum (2023) from Capiz State University – Burias Campus,
innovative marketing strategies significantly improve the economic conditions of coconut farmers in Brooke's Point,
Palawan. Through activities like capacity building and digital marketing, coconut farmers can enhance their market reach
and income from coconut oil products, contributing to sustainable community development. This study underscores the
importance of such strategies in assessing consumer preferences for coconut oil products in Brooke's Point, Palawan.

B. Madiclum, R. (2023). Linking the Coconut Farmers in the Philippines to Better Market Opportunities through
Community-based Participatory Action Research. Sustainable Energy and Environment Review, 1(1), 57–67.
https://guinnesspress.org/assets/articles/pdf/seer-6-M-52450-GP.pdf
Consumer Preferences and Trends

According to Surban's study on exporting coconut oil from the Philippines to Finland, marketing strategies play a
crucial role in differentiating coconut oil products in a competitive market. The research indicates that entrepreneurs,
particularly sole proprietors, must carefully navigate the challenges posed by established market players to gain consumer
acceptance. In Brooke's Point, Palawan, local coconut oil producers can learn from these insights. Effective marketing
strategies that highlight the unique qualities of their products can help them stand out and appeal to consumer preferences.
This approach is key to overcoming market entry barriers and achieving success in both local and international markets.

Surban, S. (2018). Doing Business in Finland as a Sole Proprietor in the Philippines : The implications involved
in exporting coconut oil. Retrieved from www.theseus.fi website: https://www.theseus.fi/handle/10024/147189

A study by Cañeda and Bathan in the Journal of Economics, Management & Agricultural Development (Vol. 5,
No. 1), efficient marketing strategies for virgin coconut oil (VCO) involve a well-organized value chain from farmers to
consumers. The study found that Quezon had the most effective channel, which focused on quality production methods,
stable pricing, and efficient distribution. The insights from this study can be applied to Brooke's Point, Palawan, where
marketing strategies must address consumer preferences for coconut oil products. Key recommendations include adopting
proven production techniques, ensuring consistent quality, and establishing cooperative arrangements between producers
and buyers to enhance market efficiency. These strategies are crucial to meeting consumer demand and achieving
economic growth in the region.

Menz, K., Predo, C., Rodriguez, U-Primo., Ramirez, P., Esguerra, S., Garces, L., … Mojica, L. (2019). Journal of
Economics, Management & Agricultural Development. Retrieved from
https://jemad.cem.uplb.edu.ph/wp-content/uploads/2021/02/JEMAD-FINAL-VOL-5-NO-1.pdf#page=42

Market Dynamics in the Coconut Oil Industry

Tanago, R., & Kaluge, D. (2019). The export quantity of coconut oil in the Philippines is not significantly
impacted by factors such as the price of coconut oil, crude palm oil, virgin olive oil, or the country's GDP. This insight is
critical for assessing the influence of marketing strategies on consumer preferences for coconut oil products in Brooke's
Point, Palawan, as it suggests that local consumer behavior might be more influenced by direct marketing efforts rather
than broader economic variables.

Tanago, R., & Kaluge, D. (2019). What Factors Influencing Export Quantity for Indonesian and Philippine
Coconut Oil. Jurnal Ekonomi Dan Studi Pembangunan, 11(2). https://doi.org/10.17977/um002v11i22019p186

The study on the current scenario and development of the coconut industry by Then Kek Hoe et al., the coconut
industry has experienced significant growth, driven by the increasing demand for coconut-based products globally. With
coconut being cultivated in over 90 countries, including Brooke's Point, Palawan, it has emerged as a lucrative economic
crop. The study highlights the rapid expansion of coconut product varieties, including coconut oil, which is witnessing
rising demand in various international markets. Despite challenges such as invasive pests and diseases like Brontispa
longissima and lethal yellowing disease (LYD), the industry continues to flourish. Hence, assessing the influence of
marketing strategies for consumer preferences on coconut oil products in Brooke's Point, Palawan, becomes paramount in
understanding and leveraging the dynamic landscape of the coconut industry for sustainable growth and economic
development.

Then kek hoe. (2018, December). The Current Scenario and Development of the Coconut Industry. Retrieved
from ResearchGate website:
https://www.researchgate.net/publication/329530454_The_Current_Scenario_and_Development_of_the_Coconut_Industr
y

Product Differentiation and Branding

Laura J. Pham's study highlights that the coconut tree (Cocos nucifera L.) is a highly versatile crop, cultivated in
over 90 countries with a concentration in Asia and the Pacific. The Philippines is among the top producers, and coconut
oil is its most significant derivative. The demand for coconut oil has increased due to its unique medium-chain
triglycerides (MCTs), which have nutritional and health benefits, as well as its applications in biofuels and
cosmeceuticals. This broadening range of uses drives the need for effective marketing strategies. In Brooke's Point,
Palawan, the success of coconut oil products relies on aligning marketing strategies with evolving consumer preferences.
Pham's study suggests that virgin coconut oil, with its perceived health benefits, has gained popularity in international
markets. Moreover, coconut oil's antimicrobial properties, especially the lauric acid content, add to its appeal. These
insights into consumer trends and product benefits can guide the development of targeted marketing approaches to
enhance consumer engagement and product demand in the local context.

Pham, L. J. (2016, January 1). Chapter 9 - Coconut (Cocos nucifera) (T. A. McKeon, D. G. Hayes, D. F.
Hildebrand, & R. J. Weselake, Eds.). Retrieved from ScienceDirect website:
https://www.sciencedirect.com/science/article/abs/pii/B9781893997981000099

A study by Ferrer et al. on virgin coconut oil (VCO) production using low-pressure oil extraction shows how
innovations in processing can improve yield and quality. By optimizing drying temperature, centrifuge speed, and
centrifugation time, they reduced production time while maintaining product standards. This advancement in production
efficiency can impact marketing strategies by ensuring consistent product quality, which is crucial for attracting and
retaining customers. In Brooke's Point, Palawan, these innovations in VCO production can support marketing strategies
by emphasizing the benefits of locally produced coconut oil. The shorter production time and enhanced product quality, as
demonstrated by Ferrer et al., can be key selling points for marketers. Highlighting these aspects in marketing campaigns
can attract consumers seeking high-quality, sustainably sourced coconut oil, ultimately driving market growth in the
region.

Ferrer, P. J., Quilinguen, V. F., Rosario, J., & Pestaño, L. D. (2018). Process Design of Virgin Coconut Oil (VCO)
Production Using Low-Pressure Oil Extraction. MATEC Web of Conferences, 156, 02003.
https://doi.org/10.1051/matecconf/201815602003
Consmer Behavior Analysis

According to the study "Are We Going Nuts on Coconut Oil?" published in Gastroenterology, Critical Care, and
Lifestyle Medicine, the rise in sales and consumption of coconut oil can be attributed to effective marketing strategies.
However, recent findings suggest that despite its portrayal as a beneficial product, coconut oil may have adverse effects on
cardiovascular health, particularly by increasing low-density lipoprotein cholesterol (LDL-C). Therefore, assessing the
influence of marketing strategies on consumer preferences for coconut oil products becomes crucial, especially in light of
the need to align consumption with established dietary recommendations for saturated fats.

Sankararaman, S., & Sferra, T. J. (2018). Are We Going Nuts on Coconut Oil? Current Nutrition Reports, 7(3),
107–115. https://doi.org/10.1007/s13668-018-0230-5

The study by Dr. Maheswaran G. and Dr. Somasundaram R. S., delves into cognitive brand positioning using data
mining techniques, it is evident that consumer preferences in the coconut oil market are influenced by branding strategies.
With globalization allowing consumers a plethora of choices, brand positioning becomes crucial. The study's findings
align with the notion that consumers prioritize quality and are inclined towards branded coconut oil products, emphasizing
the significance of effective marketing strategies in shaping consumer preferences.

A Cognitive Brand Positioning Exploration with Data Mining. (2016). Asian Journal of Research in Social
Sciences and Humanities, 6(11). Retrieved from https://www.indianjournals.com/ijor.aspx?
target=ijor:ajrssh&volume=6&issue=11&article=072

Marketing and Product Development

Ni Kadek Sri Guntari et al. (2021), Business Development Strategy on Traditional Coconut Oil Production during
the Covid-19 Outbreak. The challenges faced by traditional coconut oil businesses, such as low purchasing power and
production, underscore the need for effective marketing strategies. Assessing the influence of marketing strategies on
consumer preferences for coconut oil products, particularly in Sulang Village, could leverage strengths like unique taste
and close proximity to key markets while addressing weaknesses like low production during the pandemic. Such insights
can inform strategic decisions, like prioritizing consignments with merchants, to sustain and enhance traditional coconut
oil businesses amidst turbulent market conditions.

Guntari, N. K. S., Putu Oka Suardi, I. D., & Parining, N. (2021). Business Development Strategy on Traditional
Coconut Oil (Lengis Tanusan) Production during the Covid-19 Outbreak. SOCA: Jurnal Sosial, Ekonomi Pertanian, 15(2),
357. https://doi.org/10.24843/soca.2021.v15.i02.p11

According to the study by Gina El Safira, Yuni Sari, and Dadang Waluyo on Virgin Coconut Oil (VCO) business
analysis, which assessed economic income and feasibility, marketing strategies play a crucial role in influencing consumer
preferences for coconut oil products. Their findings underscore the significance of understanding consumer preferences
and implementing effective marketing strategies to capitalize on the economic potential of VCO products.

Safira, G. E., Sari, Y., & Waluyo, D. (2023). Virgin Coconut Oil (VCO) Business Analysis in Terms of Economic
Income. Journal of Economics Business Industry, 1(2), 56–62. https://doi.org/10.59976/jebin.v1i2.19
Marketing Strategy Effectiveness

The study by Liu Xia and Siska Setiya Dewi, analyzes the trade specialization and competitiveness of Indonesian
coconut oil in the international market, there is a significant opportunity to assess the influence of marketing strategies on
consumer preferences for coconut oil products. With Indonesia's demonstrated comparative advantages and strong
competitiveness in the global market for both crude and virgin coconut oil, understanding consumer preferences through
effective marketing strategies becomes crucial for sustaining and enhancing this competitive edge.

Xia, L., & Dewi, S. S. (2022). Analysis of Trade Specialization and Competitiveness of Indonesian Coconut Oil in
the International Market (2010-2020). Open Journal of Business and Management, 10(01), 245–262.
https://doi.org/10.4236/ojbm.2022.101015

According to the study by Suci Wulandari and Jelfina C. Alouw in the IOP Conference Series: Earth and
Environmental Science, which focuses on designing business models for rural agroindustry to enhance the value of
coconut products, understanding consumer preferences through marketing strategies is crucial. By assessing the influence
of marketing strategies on consumer preferences for coconut oil products, we can inform the development of effective
business models that integrate market demands with rural agroindustry capabilities. This aligns with the purpose-led
publishing ethos of the IOP Conference Series, emphasizing practical solutions for adapting agricultural production, thus
contributing to sustainable rural development.

Wulandari, S., & Alouw, J. C. (2021). Designing business models for rural agroindustry to increase the added
value of coconut. IOP Conference Series: Earth and Environmental Science, 807(2), 022013.
https://doi.org/10.1088/1755-1315/807/2/022013

Gunawan, I., Vanany, I., Widodo, E., & Mulyana, Ig. J. (2018). The study on Improving Traceability System in
Indonesian Coconut Oil Company, focuses on identifying Critical Traceability Points (CTPs) in the supply chain,
understanding consumer preferences becomes paramount. Assessing the influence of marketing strategies on consumer
preferences for coconut oil products aligns with this objective, as it aids in refining the traceability system by
incorporating consumer-driven insights into product development and distribution strategies. By integrating consumer
feedback into the traceability framework, the company can enhance its ability to track product origins and optimize supply
chain efficiency, ultimately ensuring product quality and meeting consumer demands effectively.

Gunawan, I., Vanany, I., Widodo, E., & Mulyana, Ig. J. (2018, December 1). Improving Traceability System in
Indonesian Coconut Oil Company. https://doi.org/10.1109/IEEM.2018.8607800