MARKET ANALYSIS.pdf

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I
PURPOSE OF THE STUDY
Evidently, rice is being majorly grown in Asian countries like China and India;
in Middle East; in Russia, South America and USA. Rice (bigas for tagalog) is a staple
food and one of the world’s most important food crops. It is also considered as a fixed
food serving in most Filipino meals. On the other hand, wholesaling and retailing rice
are major marketing activities, which bring together the potential supplier and
customer both for purposes of satisfaction.
The purpose of this study is to assess the market structure, customer's
satisfaction, productivity and competitiveness of rice retailers in the municipality of
Lavezares, province of Northern Samar. Secondary data were collected from
respective rice retailers’ businesses and attached Local Government Unit (LGU)
agencies, survey and interview of the various retailers and customers were also
conducted.
GOALS AND OBJECTIVES
The primary goal and objective of this market analysis is to:
1. Provide quality rice products in Lavezares market;
2. Provide sound and competent services for customer’s satisfaction; and
3. Maintain competitiveness and productivity for preference and customers’
patronage.

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II
INDUSTRY OVERVIEW
As the name of the business implies, rice retailing stores basically retail
processed and bagged rice. Rice retail stores primarily purchase rice from wholesalers
and retail them directly to end consumers – customers. The Rice Retail Stores
industry, just like most businesses in the retailing industry, depends on strong
consumer spending to spur the demand for industry products. Over the last half a
decade, the economy has begun recovering from recessionary declines with both the
Consumer Confidence Index and disposable income increasing.
In the history of the Philippine Commerce and Industry, local and international
trades, has developed major business activities in agriculture, manufacturing,
production, marketing (wholesaling and retailing), financing and cooperatives. These
trading are very evident with an organization composed of qualified professionals,
managers, investors and labor forces who bind themselves to common objectives and
mission to provide competent services for people and profit. In response to the need
to develop and structure local entrepreneurship, the venture in wholesaling and
retailing rice can be one of the businesses with greatest value and contribution to
people. In the first place, rice has been the great demand of consumers, the suppliers
and retailers are then called to facilitate distribution and make profit out of the
business.
Going forward, as the economy of the Philippines continues to recover and
consumers are expected to loosen their discretionary budgets, the industry is
anticipated to experience growth. The Rice Retail Stores industry is indeed a major
sector of the economy of the Philippines and they generate several billions annually
from loads of rice retail stores scattered all around the country. Like other business
operations, rice wholesaling and retailing enterprise is definitely a contributory factor
in the sustainability of target consumers who make sure they are adequately supplied
with the basic food necessity. With the licensing effort of the National Food Authority
(NFA), the business can be regulated ad be assured of its legal operation and
functions viewed as aid to promote productive rice dealership and to promote quality
and affordable rice products.
INDUSTRY SIZE
The Philippines is the world’s eighth-largest rice producer. Its cultivable land
totals a 5.4 million hectares. Rice area harvested has expanded from nearly 3.8 million
hectares in 1995 to about 4.4 million hectares in 2010. However, the country’s rice
area harvested is still very small compared with the other major rice-producing
countries around the Asia. More than two-thirds (69%) of its rice area is irrigated. The
country’s production increased by a third, from 10.5 million in 1995 to 15.8 million in
2010. Seventy-one percent of rice production came from irrigated areas. Although,
yield improved from 2.8 t/ha in 1995 to 3.6 t/ha in 2010, it was still way below the yield
potential of modern varieties.

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Rice is a staple food for most Filipinos across the country. The nation’s per
capita rice consumption increased from 93.2 kilogram per year in 1995 to 123.3
kilogram per year in 2009. Similarly, per capita caloric intake from rice increased from
917 kcal per day in 1995 to 1,213 kcal per day in 2009. Protein requirements from rice,
on average, increased from 29.7% in 1995 to 34.8% per person per day in 2009.
MARKET TRENDS
If you are conversant with the Rice Retail Stores Industry, you will quite agree
that the changes in disposable income, consumer sentiment, and ever-changing
eating habits are major growth drivers for sales in this industry. No doubt, a massive
rise in consumer confidence has also contributed in helping the industry experience
remarkable growth, but uneven performance in these drivers has led to slightly
constrained revenue growth for the Rice Retail Stores Industry. So also, the rising
demand for organic rice, as a result of increasing disposable income and consumer
sentiment, will result in revenue growth.
Rice retail store business has been in existence for as long as human started
trading goods, but one thing is certain, the rice retail store industry is still evolving. The
introduction of technology and subsequently homed delivery options, online grocery
and rice retail store has indeed helped in reshaping the industry.
It is now a common phenomenon for rice retail stores and grocery outlets to
leverage on technology to effectively predict consumer demand patterns and to
strategically position their store to meet their needs; in essence, the use of technology
helps retailers to maximize supply chain efficiencies. No doubt data collected from
customers goes a long way to help rice retail stores and grocery stores serve them
better.
PROJECTED GROWTH
There are top 20 rice producing provinces that
strategically distributed in the three major islands of the
Philippines. The provinces were selected based on the
paddy production volume and their strategic importance
to the rice trade. Furthermore, these areas are
considered the most favorable rice-growing areas in the
Philippines, producing an average of 9.8–12.23 million
tons per year (65% of total annual paddy produced).
Each province was ranked based on its percentage
share to total paddy output using 5-year average paddy
production data from 2010 to 2014. Also included in the
study were wholesale rice markets in Metro Manila,
Cebu, Cagayan de Oro City, and Davao City, which
represent the major demand trading centers of milled
rice in the country. The major ports are also located in
big cities where major transshipments of milled rice for
domestic and import markets are carried out.
Figure 2.1 Projected Growth of
Rice Retailers Industry

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Figure 2.2 Philippines Milled Rice Production Annual Growth Rate
Table 2.1 Philippines Rice Retailers Growth Rate from 1960-2021

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III
CUSTOMERS AND TARGET MARKET
This market analysis and its existence is for everybody. It is open for service
without limiting the criteria of service extension with regards to sex, age, status,
religion, education and profession. The following list represents the major groups of
customers the research is targeting.
Customer by geographical territory (Municipality of Lavezares)
Balicuatro
Bani
Barobaybay
Caburihan
Caragas
Cataogan
Chansvilla
Datag
Enriqueta
Libas
Libertad
McArthur
Magsaysay
Maravilla
Ocad
Sabang-Tabok
Salvacion
San Agustin
San Isidro
San Jose
San Miguel
To-og
Urdaneta
Villa
Villahermosa
Age
According to the 2015 Census, the age group with the highest population in
Lavezares is 5 to 9, with 3,511 individuals. Conversely, the age group with the lowest
population is 80 and over, with 244 individuals.
Combining age groups together, those aged 14 and below, consisting of the the
young dependent population which include infants/babies, children and young
adolescents/teenagers, make up an aggregate of 35.81% (10,303). Those aged 15 up
to 64, roughly, the economically active population and actual or potential members of
the work force, constitute a total of 58.41% (16,804). Finally, old dependent population
consisting of the senior citizens, those aged 65 and over, total 5.78% (1,663) in all.
The computed Age Dependency Ratios mean that among the population of
Lavezares, there are 61 youth dependents to every 100 of the working age population;
there are 10 aged/senior citizens to every 100 of the working population; and overall,
there are 71 dependents (young and old-age) to every 100 of the working population.
The median age of 21 indicates that half of the entire population of Lavezares
are aged less than 21 and the other half are over the age of 21.
Income
The municipality is now classified as 4th class municipality with the agriculture
as it base. The average family income is Php. 3,000 to 3,500.00 a month. The primary
source of income is farming and fishing. Copra, abaca and palay are its basic
agriculture industry and boost off its marine products as competitive in the local
market. Local trade and service industry take a share in the income and practice

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profession also help generate revenues. Based on Poverty Incidence Survey of NSCB
in 2012, Lavezares has 48.6 percent poverty incidence and has ranked 16 out of 24
municipalities in the province.
Location
Lavezares is bounded on the west by the municipality of Allen, on the northwest
by San Bernardino Strait; on the south and southwest by the municipality of Victoria;
on the east by the municipality of Rosario, on the north by the municipality of Biri.
Occupation
Of the project 2007 population of 27,080 for 2009, 2,766 or 20.55 percent are
employed. Of this, 1,223 are male or 8.68 percent and 1,543 are female or 11.87. Most
of the population are drivers, construction workers, fisherman, and farmers.
Educational Level
Based on CBMS 2008, of the 23,605 five years old above, 21,331 are literate
while there are about 2,274 who are illiterate. This figure on illiteracy must be dealt
with by the education department especially its Alternative Learning Services.
Most of the population has attained elementary level of education which
numbers 13,344. There are about 5,625 who attained at least high school level of
education and there are only 50 who are college graduate. These figures mean that
the municipality is so very far from the ideal target that most of its populace should
have at least entered or at the most have finished college education. In the last ten
years, the Local Government with its Student Assistance Program has graduated
hundreds of scholars who are successful in their respective fields. It also maintains
Scholarship Fund for top honors in high school.

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IV
COMPETITOR ANALYSIS
1. Number of Competitors Prior and Projected Years
The proponents assumed a 2% rate of increase on the number of competitors
in a year, computed as follows:
a. For prior years:
𝑃𝑟𝑒𝑠𝑒𝑛𝑡 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐶𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑜𝑟𝑠
1 + 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒
Table 4.1
For Prior Years
YEAR COMPUTATION
NUMBER OF
COMPETITORS
2021 - 7
2020 7 ÷ 1.02 6.86
2019 6.86 ÷ 1.02 6.73
2018 6.73 ÷ 1.02 6.60
2017 6.60 ÷ 1.02 6.47
b. For projected years
𝑃𝑟𝑒𝑠𝑒𝑛𝑡 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐶𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑜𝑟𝑠 (1 + 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒)
Table 4.2
For Projected Years
YEAR COMPUTATION
NUMBER OF
COMPETITORS
2022 7 × 1.02 7.14
2023 7.14 × 1.02 7.28
2024 7.28 × 1.02 7.43
2025 7.43 × 1.02 7.58
2026 7.48 × 1.02 7.73

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2. Total number of days that the competitor serves the target market.
Table 4.3
Total number of days that the competitor serves the target market
COMPETITORS NUMBER OF DAYS OPEN IN A WEEK
Jhodel's Store 7
BOTAX Store 6
Gamao's Store 7
Lavezares Trading 6
Tervic Commercial 7
Poy and Yano Store 7
Lim's Store 7
TOTAL 47
𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝒏𝒐. 𝒐𝒇 𝒅𝒂𝒚 𝒐𝒑𝒆𝒏 𝒊𝒏 𝒂 𝒘𝒆𝒆𝒌 =
𝑻𝒐𝒕𝒂𝒍 𝒏𝒐. 𝒐𝒇 𝒅𝒂𝒚𝒔 𝒐𝒑𝒆𝒏
𝑻𝒐𝒕𝒂𝒍 𝒏𝒐. 𝒐𝒇 𝒄𝒐𝒎𝒑𝒆𝒕𝒖𝒊𝒕𝒐𝒓𝒔
𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝒏𝒐. 𝒐𝒇 𝒅𝒂𝒚 𝒐𝒑𝒆𝒏 𝒊𝒏 𝒂 𝒘𝒆𝒆𝒌 =
𝟒𝟕
𝟕
= 𝟔. 𝟕𝟏 𝒐𝒓 𝟕
𝑵𝒐. 𝒐𝒇 𝒅𝒂𝒚 𝒐𝒑𝒆𝒏 = 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝒐𝒇 𝒅𝒂𝒚𝒔 𝒐𝒑𝒆𝒏 𝒊𝒏 𝒂 𝒚𝒆𝒂𝒓 × 𝑵𝒐. 𝒐𝒇 𝒘𝒆𝒆𝒌 𝒊𝒏 𝒂 𝒚𝒆𝒂𝒓
𝑵𝒐. 𝒐𝒇 𝒅𝒂𝒚 𝒐𝒑𝒆𝒏 = 𝟕 𝒅𝒂𝒚𝒔 × 𝟓𝟐 𝒘𝒆𝒆𝒌𝒔
𝑵𝒐. 𝒐𝒇 𝒅𝒂𝒚 𝒐𝒑𝒆𝒏 = 𝟑𝟔𝟒 𝒅𝒂𝒚𝒔

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V
SURVEY ANALYSIS
l. SOCIO-DEMOGRAPHIC PROFILE
Table 5.1
DISTRIBUTION OF QUESTIONNAIRE TO THE RESPONDENTS
ACCORDING TO AGE
AGE No. of Respondents Percentage
15-20 18 18%
21-30 23 23%
31-40 19 19%
41-50 25 25%
51-60 11 11%
61-70 2 2%
71 and above 2 2%
TOTAL 100 100%
Out of one hundred (100) respondents, eighteen percent (18%) of them is on
age fifteen to twenty years old (15-20), twenty-three percent (23%) is on twenty-one
to thirty (21-30) years old, nineteen percent (19%) are thirty-one to forty (31-40) years
old, the forty-one to fifty (41-50) years old are twenty-five percent (25%), eleven
percent (11%) are fifty-one to sixty (51-60) years old and the two percent (2%) of the
respondents population are sixty-one to seventy (61-70) years old and seventy-one
(71) years old above.
18%
23%
19%
25%
11%
2% 2%
ACCORDING TO AGE
15-20 21-30 31-40 41-50 51-60 61-70 71 & above

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This means that the percentage level of respondents are consumers ranging
from the age forty-one to fifty (41-50) and active in the buying process.
Table 5.2
ACCORDING TO CIVIL STATUS
CIVIL STATUS No. of Respondents Percentage
Single 6 6%
Married 52 52%
Live-in partners 39 39%
Widowed 3 3%
TOTAL 100 100%
From the data gathered in our analysis with the basis of civil status, the result
clearly shows that out of one hundred percent (100%), six percent (6%) of them are
Single, thirty-nine percent (39%) are Lived-in partners, while a huge part of the
percentage goes to the Married with the average of fifty-two (52%) percent. To
complete the list, the three percent (3%) of the respondents goes to the
Widows/Widowers.
Therefore, the married couple with fifty-two percent (52%) are the most active
in these criteria and the most potential buyers of rice in Lavezares.
6%
52%
39%
3%
DISTRIUTION OF QUESTIONNAIRE TO THE
RESPONDENTS ACCORDING TO CIVIL STATUS
Single Married Live-in Partners Widowed

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Table 5.3
ACCORDING TO OCCUPATION
OCCUPATION No. of Respondents Percentage
Farmer 40 40%
Fisher 29 29%
Driver 17 17%
Teacher 1 1%
Business woman 1 1%
Online seller 2 2%
Housewife 10 10%
TOTAL 100 100%
Within the one hundred percent (100) respondents, forty percent (40%) of them
are Farmers, twenty-nine percent (29%) are Fishermen, seventeen percent (17%) of
them were Drivers, the one percent (1%) is for Teachers and Business woman, the
two percent (2%) are for Online sellers, and lastly, the ten percent (10%) of the
respondents goes for the Housewives.
This result illustrates that the percentage level of the consumers in terms of
occupation are Farmers.
Farmer
40%
Fisher
29%
Driver
17%
Teacher
1%
Business woman
1%
Online Seller
2%
Housewife
10%
ACCORDING TO OCCUPATION
Farmer Fisher Driver Teacher Business woman Online Seller Housewife

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Table 5.4
ACCORDING TO SEX
SEX No. of Respondents Percentage
Male 28 28%
Female 72 72%
TOTAL 100 100%
Out of one hundred (100) respondents, twenty-eight percent (28%) of them are
Male and the rest are composed of Female respondents with a total of seventy-two
percent (72%).
28%
72%
ACCORDING TO SEX
Male Female

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Table 5.5
ACCORDING TO AVERAGE FAMILY INCOME
AVERAGE FAMILY INCOME No. of Respondents Percentage
Php. 1,000-1,500.00 37 37%
Php. 1,500-2,000.00 19 19%
Php. 2,000-2,500.00 11 11%
Php. 2,500-3,000.00 6 6%
Php. 3,000-3,500.00 23 23%
Php. 3,500.00 and above 4 4%
TOTAL 100 100%
Among the one hundred (100) respondents, thirty-seven percent (37%) of them
spend Php 1,000–1,500.00 for rice, nineteen percent (19%) of them spends from Php
1,500.00–2,000.00, eleven percent (11%) of them spends Php 2,000.00– 2,500.00,
six percent (6%) of the respondents spends 2,500–3,000.00, twenty-three percent
(23%) of the respondents are willing to spend Php 3,000–3,500.00 for rice, and only
four percent (4%) are willing to spend Php 3,500.00 and above.
The result of this survey will help the retailers to determine the weekly sales of
the rice in their location.
37%
19%
11%
6%
23%
4%
ACCORDING TO THE AVERAGE FAMILY INCOME
Php 1, 000-1,500.00 Php 1,500-2,000.00 Php 2,000-2,500
Php 2,500-3,000.00 Php 3,000-3,500.00 Php 3,500 & above

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Table 5.6
ACCORDING TO EDUCATIONAL ATTAINMENT
EDUCATIONAL
ATTAINMENT
No. of Respondents Percentage
Elementary level 49 49%
Highschool level 32 32%
College level 19 19%
TOTAL 100 100%
The graph and table above show that out of one hundred (100) respondents,
forty-nine percent (49%) of them graduates on elementary, thirty-two percent (32%)
of the respondents answered that they are high school graduates while the remaining
nineteen percent (19%) respondents said that they are college graduates.
This implies that respondents who are actively participating the buying process
are from the elementary level of the Municipality.
49%
32%
19%
ACCORDING TO EDUCATIONAL ATTAINMENT
Elementary Level High School Level College Level

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ll.
A. QUALITY RICE PRODUCTS OF LAVEZARES MARKET
Table 5.7
How often do you eat rice in a day Analysis
Once 0 0
Twice 7 7%
Thrice 59 59%
Four times and above 34 34%
TOTAL 100 100%
The table and graph above shows that majority of the respondents, which is
fifty-nine percent (53%), eat rice three times a day, seven percent (7%) of them eat
twice a day, thirty-four percent (34%) of them said they eat rice four times and above
in a day and none of them said that they eat once a day.
The result of the survey shows that many of the respondents eat rice three
times a day. This means that there is a big opportunity for a rice retail business to be
established because of its high demand and market position.
0%
7%
59%
34%
HOW OFTEN DO YOU EAT RICE IN A DAY ANALYSIS
Once Twice Thrice Four Times & Above

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Table 5.8
What kind of rice do you buy Analysis
Minolino/Milled Rice 51 51%
Organic Rice 23 23%
Denorado 6 6%
Special denorado 2 2%
Senandomeng 11 11%
Premium Senandomeng 1 1%
Milagrosa 2 2%
Sampaguita 2 2%
Maharlika 0 0
Ifugao 0 0
Jasmine 0 0
NFA 0 0
C4 0 0
Angelika 0 0
Super Angelika 0 0
Wagwag 0 0
Malagkit 0 0
Brown Rice 2 2%
Black Rice 0 0
TOTAL 100 100%

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Based on the information gathered from the survey, the fifty-one percent (51%)
of the respondents, which is also considered as the highest, buys Minolino or Milled
rice. Twenty-three percent (23%) of them buy Organic rice, six percent (6%) of them
buy Denorado, two percent (2%) of them said that they buy Special Denorado, eleven
percent (11%) of them said that they buy Senandomeng, one percent (1%) of them
buy Premium Senandomeng, and two percent of the respondents said that they buy
Sampaguita, Milagrosa and Brown Rice. The rest of the rice products are not choosen
by the respondents since it is too expensive and they are not totally available in the
market.
The result of the survey implies that the firm should focus on the top selling rice
like Minolino/Milled Rice, Organic Rice, Denorado, and Senandomeng. The firm must
increase the supplies of top seller and reduces those less known.
51%
23%
6%
2%
11%
1% 2%
2% 2%
WHAT KIND OF RICE DO YOU BUY ANALYSIS
Minolino/Milled Rice Organic Rice Denorado
Special Denorado Senandomeng Premium Senandomeng
Milagrosa Sampaguita Brown Rice

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Table 5.9
How many kilo/s of rice do you buy in a week Analysis
1-5 kilos 37 37%
6-10 kilos 23 23%
11-15 kilos 12 12%
16-20 kilos 21 21%
21-25 kilos 4 4%
25 kilos and above 3 3%
TOTAL 100 100%
Based on the table and graph above, out of one hundred (100) respondents,
thirty-seven percent (37%) of them said that they usually buy rice from one to five
(15)kilograms, twenty-three percent (23%) of them said that they buy rice from six to
ten (6-10) kilograms, twelve percent (12%) of them said that they buy rice from eleven
to fifteen (11-15) kilograms, twenty-one percent (21%) of them said that they buy rice
from sixteen to twenty (16-20) kilograms, four percent (4%) of them said that they buy
rice from twenty-one to twenty-five (21-25) kilograms and three percent(3%) of them
said that they buy rice from twenty-five (25) kilograms and above.
37%
23%
12%
21%
4% 3%
HOW MANY KILO/S OF RICE DO YOU BUY IN A WEEK ANALYSIS
1-5 kilos 6-10 kilos 11-15 kilos 16-20 kilos 21-25 kilos 25 kilos & above

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The results of the survey mean that majority of the respondents said that they
buy rice ranging from one to five (1-5) kilograms every week. This means that the rice
retailers businesses have more supplies to cover the demand of the customers.
Table 5.10
How much per kilo of rice do you buy Analysis
Php. 30.00 and below 13 13%
Php. 31-35.00 28 28%
Php. 36-40.00 21 21%
Php. 41-45.00 22 22%
Php. 46-50.00 9 9%
Php. 51-55.00 4 4%
Php. 56.00 and above 3 3%
TOTAL 100 100%
Out of one hundred (100) respondents, thirteen percent (13%) of them spend
Php. 30.00 and below for rice, twenty-eight percent (28%) of them spend from Php.
13%
28%
21%
22%
9%
4% 3%
HOW MUCH PER KILO OF RICE DO YOU BUY ANALYSIS
Php 30.00 & below Php 31-35.00 Php 36-40.00 Php 41-45.00
Php 46-50.00 Php 51-55.00 Php 56.00 & above

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31-35.00 for rice, twenty-one percent (21%) of them spend from Php. 36-40.00 for
rice, twenty-two percent (22%) of them spend from Php. 41-45.00 for rice, nine
percent (9%) of them spend from Php. 46-50.00 for rice, four percent (4%) of them
spend Php. 51-55.00 and three (3%) percent (11%) of them spend from Php. 56.00
and above for rice.
The result of the survey will help the business to determine its sales and the
income they generate from the rice retailers.
Table 5.11
What are the characteristics of rice do you usually buy Analysis
Smell 31 31%
Swelling 3 3%
Color 23 23%
Grain Type 6 6%
Texture 22 22%
Appearance 15 15%
TOTAL 100 100%
The tables and graph above, shows that thirty-one percent (31%) of the
respondent consider the smell in buying rice, three percent (3%) consider the swelling,
twenty-three percent (23%) consider the color, six percent (6%) consider the grain
31%
3%
23%
6%
22%
15%
WHAT ARE THE CHARACTERISTICS OF RICE DO YOU USUALLY
BUY ANALYSIS
Smell Swelling Color Grain Type Texture Appearance

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type, twenty-two percent (22%) consider the texture, and fifteen percent (15%)
consider the appearance in buying rice.
The highest percentage of the results goes to the smell, color and texture. It
means that these are the primary characteristics that customers consider in buying
rice. In order to gain the market stability, the rice retailers should offer high quality
products of rice in the market.
Table 5.12
What color of rice do you usually buy Analysis
White 98 98%
Brown 1 1%
Red 1 1%
Black 0 0%
TOTAL 100 100%
Out of one hundred (100) respondents, ninety-eight percent (98%) usually buy
white rice, and the last two percent (2%) are for red and brown rice with one percent
(1%) respectively.
The result implies that the retailers should have more supply of white rice in
order to meet the needs of customer.
White, 98%, 98%
Brown, 1%, 1%
Red, 1%, 1%
Black, 0%, 0%
WHAT COLOR OF RICE DO YOU USUALLY BUY ANALYSIS

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Table 5.13
What grain of rice do you buy Analysis
Long grain 51 51%
Medium grain 27 27%
Short grain 21 21%
Broken grain 1 1%
TOTAL 100 100%
The table and graph from above shows that fifty-one (51%) of the respondents
usually buy long grain rice, twenty-seven percent (27%) usually buy medium grain,
twenty-one percent (21%) of the respondents buy short grain rice, and one percent
(1%) of the respondents buy broken grain rice.
This result simply means that rice retailers should supply more long grain rice and
medium rice in order to meet the quality of the products that the customer need.
51%
27%
21%
1%
WHAT GRAIN OF RICE DO YOU BUY ANALYSIS
Long grain Meduim grain Short grain Broken grain

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Table 5.14
Do you consider the price of rice when you buy Analysis
Yes 96 96%
No 4 4%
TOTAL 100 100%
Ninety-six percent (96%) of the respondents considered the price in buying rice
while four percent (4%) out of one hundred (100) respondents do not considered the
price in buying. It means that the retailers should offer good quality of rice but
affordable in price in or order to meet the demand of customers and satisfy them.
96%
4%
DO YOU CONSIDER THE PRICE OF RICE WHEN YOU BUY
ANALYSIS
YES NO

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B. SOUND AND COMPETENT SERVICES FOR CUSTOMER SATISFACTION
Table 5.15
Do you buy imported rice Analysis
Yes 41 41%
No 59% 59%
TOTAL 100% 100%
Based on the table and graph indicated above, out of one hundred (100)
respondents, forty-one percent (41%) of them purchases imported rice, and fifty-nine
percent (59%) does not buy imported rice. The result of the survey means that the
business must focus in selling the local rice rather than selling an imported rice.
41%
59%
Do you buy imported rice Analysis
YES NO

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Table 5.16
What factors do you consider before buying rice Analysis
Price 47 47%
Qualification 30 30%
Brand 13 13%
TOTAL 100 100%
Based on the table and graph above, within the one hundred (100)
respondents, forty-seven percent (47%) of them considered the price in buying rice,
thirty percent (30%) considered the quality, and thirteen percent (13%) for the brand
name. This means that many of the consumers considered the price and quality of
rice rather than the brand. This means that the business should offer high quality of
rice in an affordable price.
47%
30%
13%
WHAT FACTORS DO YOU CONSIDER BEFORE BUYING RICE
ANALYSIS
Price Quality Brand

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Table 5.17
Do you want to have a rice retailer in your community Analysis
Yes 96 96%
No 4 4%
TOTAL 100 100%
Based on the table and graph above, out of one hundred (100) respondents,
ninety-six percent (96%) wants to have a rice retailer in their community, and only four
percent (4%) does not want to have a rice retailer in their community. This result
shows that the retail businesses have a big chance to capture the market because it
was nearly one hundred percent (100%) of the respondents wanted to have a rice
retailing business in their community.
96%
4%
DO YOU WANT TO HAVE A RICE RETAILER IN YOUR
COMMUNITY ANALYSIS
YES NO

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Table 5.18
Are you satisfied with the services that the retailers has Analysis
Yes 73 73%
No 27 27%
TOTAL 100 100%
Based on the table and graph from above, out of the one hundred (100)
respondents, seventy-three percent (73%) are satisfied with the services of the
retailers have and twenty-seven (27%) are not satisfied. This implies that the rice
retailing businesses has given a better service, although, they should make a bit of
improvement with regards to the concerns of the consumers.
73%
27%
ARE YOU SATISFIED WITH THE SERVICES THAT THE RETAILERS
HAS ANALYSIS
YES NO

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Table 5.19
Are you willing to buy and patronize rice products from the rice retailers
Analysis
Yes 91 91%
No 9 9%
TOTAL 100 100%
The table and graph above, shows that in a one hundred (100) respondents,
ninety-one percent (91%) are willing to patronize the product, and there are only nine
percent (9%) who are not willing to patronize the product. This explains that putting
up a rice retail store will become successful because majority of the respondents
would like to patronize the product of the business.
91%
9%
ARE YOU WILLING TO BUY AND PATRONIZE RICE PRODUCTS
FROM THE RICE RETAILERS ANALYSIS
YES NO

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Table 5.20
Do you want your rice to be delivered at home right away Analysis
Yes 88 88%
No 12 12%
TOTAL 100 100%
From the table and graph above, eighty-eight percent (88%) of the respondents
wants to deliver their rice, and there are twelve percent (12%) respondents who do
not want their rice to be delivered. The result means that the business should offer a
free delivery service in order to attract more consumers and to meet their needs.
88%
12%
DO YOU WANT YOUR RICE TO BE DELIVERED AT HOME RIGHT
AWAY ANALYSIS
YES NO

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C. COMPETITIVENESS AND PRODUCTIVITY
Table 5.21
How often do you buy rice in week Analysis
Once 37 37%
Twice 43 43%
Thrice 14 14%
Four times and above 6 6%
TOTAL 100 100%
Out of 100 respondents, forty-three percent (43%) of the total population
bought rice twice a week, while thirty-seven percent (37%) bought rice once a week,
and fourteen percent (14%) for thrice a week, and lastly six percent (6%) of the total
population bought rice four times and above in a week as to how often they bought
rice.
37%
43%
14%
6%
HOW OFTEN DO YOU DO YOU BUY RICE IN A WEEK ANALYSIS
Once Twice Thrice Four times & above

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Table 5.22
How much do you spend in rice per week Analysis
Php. 200.00 and below 21 21%
Php. 201-400.00 34 34%
Php. 401-600.00 19 19%
Php. 601-800.00 14 14%
Php. 801-1,000.00 9 9%
Php. 1,000 and above 3 3%
TOTAL 100 100%
Another survey question is answered regarding to how much do they spend in
buying rice per week. Twenty-one percent, (21%) of the total population answered
Php. 200.00 and below, while thirty-four percent (34%) answered Php. 201- 400.00,
and nineteen percent (19%) for Php. 401-600.00, and fourteen percent (14%) for Php.
601-800.00, also the Php.801- 1,000.00 garnered 9% percent, and lastly, three
percent (3%) of the total population answered Php.1,000.00 and above, with a total
number of one hundred percent (100%).
21%
34%
19%
14%
9% 3%
HOW MUCH DO YOU SPEND IN RICE PER WEEK ANALYSIS
1st Qtr Php 201-400.00 Php 401-600.00 Php 601-800.00 Php 801-1,000.00 Php 1,000 & above

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Table 5.23
Where do you buy rice Analysis
Supermarket 2 2%
Rice Retailers 62 62%
Sari-sari Store 21 21%
Public Market 15 15%
TOTAL 100 100%
The question is also answered as to where they bought rice. Two percent (2%)
answered in supermarket, and sixty-two percent (62%) answered in retail store, while
twenty-one percent (21%) answered in Sari-sari store and fifteen percent (15%) in the
public market. With a total of one hundred percent (100%).
2%
62%
21%
15%
WHERE DO YOU BUY RICE ANALYSIS
Supermarket Rice Retailers Sari-sari Store Public Market

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Table 5.24
What type of rice do you usually buy Analysis
Organic rice 12% 12%
Well-milled rice 72% 72%
Premium rice 14% 14%
Fancy rice 2% 2%
TOTAL 100 100%
In addition, we are also able to learn the preferred rice of our potential
customers. As shown in the table and graph, twelve percent (12%) of the respondents
preferred organic rice, while seventy-two percent (72%) of the population likes well-
milled rice, and fourteen percent (14%) preferred premium rice, and lastly, two percent
(2%) for fancy rice.
12%
72%
14%
2%
WHAT TYPE OF RICE DO YOU USUALLY BUY ANALYSIS
Organic Rice Well-milled Rice Premuim Rice Fancy Rice

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VI
INTERNAL ENVIRONMENT OF RICE RETAILERS IN LAVEZARES
One of the most important in the company is marketing analysis of the planning,
execution, and control of programs designed to create, establish, and maintain
beneficial exchanges with target buyers in order to achieve organizational goals
(Sumarni, 2008).
a. Product Strategy
Rice generally have the following characteristics: clean rice, no rocks, fluffier
rice, fragrant, change color slowly when stored in the magic jar, not stale faster when
heated until 3-4 days, savory taste, and contains antioxidants.
Certification of quality and test results of nutrition also possessed advantages
because there are not so many businesses that have organic rice. That advantage of
Lavezares retailers strategy to make acceptable rice market, also readily accepted
intermediaries, retailers or supermarket. Market segmentation is a factor to be
considered for product strategy in marketing rice. There are three types of rice; for
Diabetes (red pack), rice for Family (blue pack), and rice for Mother and Child (yellow
pack). The existence of three types of rice is an advantage possessed to seize market
opportunities that have not been touched. This is because Diabetes rice, sugar
contains only 0.29%, which is safe to consume for people with diabetes.
Each product will have stages based on the passage of time. Although time is
difficult to estimate, but each product will have stages, such as stages of introduction,
growth, maturity and decline. The determination is based on the consideration of the
situation if sales volume continues to increase, the marketing area that has been
reached, and the market segment dominated.
According Hardyastuti (2004), a strategy at this stage of growth is a competitive
strategy that seeks rice retailers development in accordance with organizational goals.
b. Price Strategy
Pricing strategy is one of the marketing strategies that can affect the
assessment of consumers into buying a product. The Lavezares rice retailers,
consumer prices or end user price is determined by the method of cost-plus pricing,
namely determining the selling price of goods is equal to the cost per unit plus the
amount of the expected profit. Our rice retailer determines the process of finding the
price with the cost of shipment and the level of purchasing power. The pricing
strategies that will be undertaken to attract the consumers is by giving a special price
for the purchase of the package. Furthermore, each purchase of the package the
consumers will a get special price in the form of a 10% discount. Another advantage
for purchasing the package is free shipping for one area. In addition, it provides
discounts for resellers of 15% with a minimum purchase of 50 packs.

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c. Distribution strategy
The processes of distributing rice are along with two units below the distributor
and single agent. Distributor in charge of distributing rice is located in each barangay.
Meanwhile, the single agent in charge of selling and marketing rice to consumers is
either directly or through intermediaries.
The retailers who want to sell rice are required to pay Php. 15,000.00 as a
deposit to initial purchase and have signed a contract of cooperation. With the fee, the
retailer will have 200 packs of rice, marketing tools (1 ream of brochures, business
cards 1 box and 1-piece banners), sales training (training), and a gain of 25% of the
purchase price of the final consumer (end user). Lavezares Local Government Unit
(LGU) makes it easy for the retailer who has cash payment due. The method of
payment for the retailer pays 50% (half) of the purchase price and the other half paid
at certain time.
d. Promotion Strategy
Promotional activities, for the moment, handed the single agent for promotion
in their respective areas. Obstacles faced with this promotion strategies rice is only
known at the regional level who are single agent or distributor areas that have been
there alone.

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VII
EXTERNAL ENVIRONMENT OF RICE RETAILERS IN LAVEZARES
a. Macro External Environment
Some components are included in the macro external environment among others:
Macroeconomics: Moving towards economic growth accompanied by raising
incomes positive part of the community, is expected to boost purchasing power
to buy quality rice as a daily consumption. Rice as quality food commodities is
expected to be an alternative to meet those needs.
Technology: Advances in technology, especially information technology, is
expected to be positive for developing media and networking markets.
Natural Conditions: Changes in global environmental conditions have impact
on the change of seasons, should be a concern for parties or corporate
business activities depend on nature (agriculture), to determine the exact time
of planting, pests and natural disasters are needed to be taken to ensure
continuity of production. It should be anticipated with further intensify the
cultivation process.
Demographic: The area of Lavezares are densely populated settlements.
Lavezares has 28,770 with 6,083 households (PSA 2015) at 0.89 annual
growth rate. The average household size is 5. It is the eight most populous
municipalities in Northern Samar. The trend of population in the Municipality of
Lavezares is increasing. It is expected that in the next five to ten years, there
will be a continuous growth in their population. With the constant efforts of the
Local government and the Municipal Health Office (MHO) to control this growth,
they are eager to slow it down. Due to the needs for economic stability, people
continued to migrate in the neighboring barangays.
Government: Government launched a program to support the development of
organic farming in "Go Organic 2010" with the program's mission such as: "To
improve the quality of life and the natural environment of Lavezaresnon, by
encouraging the development of organic agriculture".

37 | P a g e
b. Micro External Environment
Customer (Consumer): Rice retailers’ consumers today are lower middle
class and are limited in some areas only. That is because there are still many
people who do not know the advantages of rice retailers and rice prices are
more expensive than regular rice.
Competitors: The gowing number rice retailers increased competition in the
capture of the organic rice market. Currently, in the area of Lavezares, there
are at ten (10) competitors of rice retailers.
Distribution Channels: Lavezares rice retailers is not only limited to the
grocery store alone but outlets and sari-sari stores that specialize in providing
rice retailers that began to emerge. This condition can be used by rice retailers
to distribute its products to consumers.
Community: Rice demand will continue to increase until increasing population.
This condition needs continuation to rise, from time to time, both quantity and
quality.

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VIII
SWOT ANALYSIS
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a tool
that can give you an idea of the strengths and weaknesses that are owned, and
opportunities and threats towards the rice retailers’ businesses in Lavezares that
becomes the object of research.
a. Rice Retailers Strengths and Weaknesses of Lavezares Rice Retailers
The overview of the strengths and weaknesses of Lavezares Rice Retailers are
in the following table.
Table 8.1
Profile of Strengths and Weaknesses Table of Rice Retailers in Lavezares
No.
Marketing
Strategy
Strength Weakness
1.
Product
Strategy
• Product
Specialization
• Distribution Strategy
• High Cost Production
• Supplier Dependable
• Prone to Natural disaster
2.
Price
Strategy
• Equal sharing profit
with the Retailer
• Sales increment
• Discount is
available
• The price
relatively
expensive
• Lower price
from competitor
3.
Distribution
Strategy
• Easy payment
system for retailer
• Optional service
directly to consumer
• Result certified
• (single agent)
4.
Promotion
Strategy
• Using internet as
media
• Delivery service is
available
• Promotion has been
done locally
Analysis of strengths and weaknesses was conducted on a component in the
company's internal factors including marketing management, financial management,
human resource management, and production management.

39 | P a g e
b. Analysis of Opportunities and Threats
External conditions may be opportunities and threats for the company as shown
in the following table.
Table 8.2
Opportunities and Threats of Rice Retailers in Lavezares
No.
External
Factors
Opportunities Threats
1. Economy
• Increased income for
communities
• Buyer and seller data will
be increased
• Stagnant
market
• Economy
crisis
2. Technology
• Development of
Information Technology
3. Demography
• Lavezares as a residential
land
• Healthy and back to nature
lifestyle
• Communities are
not familiar with
organic product
4. Nature
• Condition of productive
land
• Good quality of air and
water supply
• Disaster Pests and
diseases attack on
crops
5. Government
• There is support from
Central Government and
the Regional Program
• Government organization
is widely open as
distribution channel
6. Competitor
• Cheap competitor
price
• The existence of
initiative products

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c. Result Analysis
The SWOT analysis of the Lavezares rice retailers can be seen from the picture
of the strengths and weaknesses and the opportunities and threats, which have been
described previously. Analytical results obtained from the calculation of the value of
marketing elements of each component using the scale, share, weights, ratings, and
scores. Regarding the calculation of the value of rice retailers in Lavezares, SWOT
analysis can be seen in the following table.
Table 8.3
SWOT Analysis Table Calculation
SWOT
Environment Analysis
Component
Scale Share Weight Rating Score
A. (Internal Factor)
(S)
Product Strategy 4 20 0.10 4 0.40
Certification 4 20 0.10 3 0.30
Distribution Strategy 4 20 0.10 4 0.40
Discount Availability 4 20 0.10 3 0.30
Optional Service 4 20 0.10 3 0.30
Total 20 100 0.50 1.70
(W)
Expensive 4 40 0.20 3 0.60
Single land source
production
3 30 0.15 3 0.45
Package (size) 3 3 0.15 3 0.45
Total 10 100 0.50 9 1.50
B. (External Factors)
(O)
Increased income for
communities
5 27.8 0.14 4 0.56
Development of
Information Technology
4 22.2 0.11 3 0.33
Government organization
is widely open as
distribution channel
5 27.8 0.14 4 0.56
Government support 4 22.2 0.11 3 0.33
Total 18 100 0.50 1.78
(T)
Undeveloped market 3 23.1 0.12 3 0.35
Lower price from
competitor
4 30.8 0.15 3 0.46
Nature Disturbance 3 23.1 0.12 3 0.35
Initiative product 3 23.1 0.12 3 0.35
Total 13 100 0.50 12 1.50

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Based on the table above, the calculation of a SWOT analysis is done by using
the calculation of scale, share, weights, ratings, and scores. Scales obtained from the
assessment using the criteria of importance to not important (with numbers 1–5),
obtained from the comparison between the share value of the scale ·with the scale
total is multiplied by 100, the weight gained from the share divided by 2 and multiplied
by 100%, the rating obtained from assessment influence the level of components, with
criteria ranging from powerful to have no effect (with numbers 1-4), while the scores
obtained from the weight multiplied by the rating.
The results of SWOT analysis, shows that the magnitudes of the component
strength rice retailers at 1.70 and Weaknesses component of 1.50. As for the
calculation of unknown components of 1.78 and Opportunities threats components of
1.50. From these values it can be seen the value of the difference between strength-
weakness (SW) of 0.20, and the difference in value between opportunities–threats
(01) of 0.28.

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IX
MARKET ANALYSIS RESULTS
Sales Forecast
One thing is certain when it comes to rice retail stores, if your store is well
stocked with well processed and well bagged rice from different rice production brands
and centrally positioned, you will always attract customers sales and that will sure
translate to increase in revenue generation for the business.
The rice retailers in Lavezares are well positioned to take on the available
market. They are quite optimistic that they will meet the set target of generating enough
income and profits from the first six month of operations and grow the business and
the clientele base.
We have been able to critically examine the rice retail stores industry of
Lavezares and we have analyzed the chances in the industry and we have been able
to come up with the following sales forecast. The sales projections are based on
information gathered on the field and some assumptions that are peculiar to the rice
retailers. Below is the sales projection for the rice retailers in Lavezares and it is based
on the location of our business and other factors as it relates to rice retail stores start–
ups in the Municipality.
First Fiscal Year: Php.120,000.00
Second Fiscal Year: Php.450,000.00
Third Fiscal Year: Php.750,000.00
This projection is done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown and there won’t be any
major competitor retailing same shoe brands and customer care services as we do
within same location. Please note that the above projection might be lower and at the
same time it might be higher.
Publicity and Advertising Strategy
Despite the fact that rice retailers is well located, we will still go ahead to
intensify publicity for the business. We are going to explore all available means to
promote rice retailers store.
The publicity and advertising strategy are not solely for winning customers over but
to effectively communicate with the brand. Here are the platforms we intend leveraging
on to promote and advertise Lavezares rice retail stores:
Place adverts on community-based newspapers, radio stations and TV stations.
Encourage the use of word of mouth publicity from the loyal customers.
Leverage on the internet and social media platforms like; YouTube, Instagram,
Facebook, Twitter, and other platforms to promote our business.
Ensure that we position the banners in strategic positions all around Lavezares.
Distribute fliers in target areas in and around the neighborhood.
Advertise our rice store business in our official website and employ strategies that
will help us.

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X
SUMMARY OF FINDINGS AND CONCLUSIONS
FINDINGS
Based on the observations the researcher had, there are more than ten
establishments engaged in rice retailing and most of them are categorized under micro
and small business enterprises. The said establishments include those owners of sari–
sari stores, mini–groceries and consumer cooperatives. Although proposed business
is quite relative with some of the existing enterprises, marketing procedures and
strategies carry a big difference. The proposed retailing follows a single product
distributorship and it is rice retailing only. The management plans to implement
administrative office composed of qualified merchandisers or working team compared
to expected competitors that they do not effectively follow strategic management
because of the following factors as noted in the survey:
a. Owners do not have complete marketing education relative to what profession
they are engaging in.
b. Workers or retailers are undergraduates and some even are illiterates.
c. Capital funding of some establishments is merely in a lack to cater everybody’s
need of rice grains.
d. Marketing procedures are less implemented.
CONCLUSION
Based on these findings, the researchers consider that this study needs to assess
the market structure, customer's satisfaction, productivity and competitiveness of rice
retailers in the municipality of Lavezares, province of Northern Samar.
Rice is a common food and one of the most significant crops on the planet. In
most Filipino dinners, it is also considered a fixed food serving. The Rice Retail Stores
industry, like others in the retailing industry, relies on robust consumer spending to
keep demand for its products high. The economy has begun to recover from
recessionary reductions in the recent half-decade, with both the Consumer Confidence
Index and disposable income growing. In the first place, rice has been in high demand
among customers, prompting suppliers and merchants to step in to help with
distribution and profit margins. The Rice Retail Stores industry is a significant part of
the Philippine economy, generating billions of dollars annually from a slew of rice retail
stores strewn around the country. Rice wholesaling and retailing is unquestionably a
contributing component in the long-term viability of target consumers who ensure that
they are fully supplied with the fundamental dietary requirement.
The rice retail shop business has existed since humans began exchanging things,
but one thing is certain: the rice retail shop sector is still evolving. The development of
technology and, as a result, home delivery alternatives, as well as online grocery and
rice retail stores, have all contributed to the industry's restructuring. When it comes to
rice retail outlets, one thing is certain: if your store is well-stocked with well-processed
and well-bagged rice from various rice production companies and is strategically

44 | P a g e
located, you will always draw clients, resulting in increased sales and revenue
generation. Owners of sari–sari stores, mini–groceries, and consumer cooperatives
are among the businesses mentioned. Although the proposed firm is relatively similar
to some of the existing businesses, the marketing procedures and methods differ
significantly. The proposed retailing is based on a single product distributorship and
solely sells rice.
REFERENCES
https://www.statista.com/outlook/cmo/food/bread-cereal-products/rice/philippines
https://ageconsearch.umn.edu/record/307976/files/AJAD%2017_2_2%20Philippine
%20Rice%20Value%20Chain.pdf
https://Philippines%20Milled%20Rice%20Production%20Annual%20Growth%20Rat
e.html
https://ricepedia.org/philippines

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