IV.

Market Analysis

 INDUSTRY ANALYSIS

The mobile food industry is still small in the Philippines and usually evident only in rural
areas within the country. Consumers prefer to buy their vegetables and fruits either at
supermarkets or dry markets especially in urban areas. Yet due to the pandemic, the normal
tradition of buying vegetables changed. Some consumers limit themselves in purchasing
vegetables goods in supermarkets and dry markets because of the hassle and taking a lot of time
since there is a standard rules and guidelines need to abide in entering a store, specifically
limiting the number of people inside, and social distancing.

Seeing this opportunity, the demand for rolling store is effective in corresponding to
consumers’ current situation. In order for the business to prosper and cycle of the profit will
gradual continue, there are factors need to be taken into account.

 Selected Markets

- Due to high quality in terms of its freshness, vegetables and fruits must be sold in retails to
retrieve highest price in order for the vegetables to sold out and not put into waste. It is
significant to consider how long the duration of freshness of the vegetables and fruits last
because its affects the quality of goods that you are selling to the consumers.

 Location Selection

- Consider the demographic location and know the estimated total numbers of consumers that
are present and possible purchasers to sell, and consume the vegetables accordingly.

 Number of kilos of each vegetables and fruits

-It is significant to know the estimated number of kilos of each vegetable that can
accommodate your possible consumers in your target location selection to avoid wasting
your vegetables, incremental purchase of goods, and follow the target number of purchase
fresh vegetables that are indicated in the financial budget.

 Vegetables and fruits retail prices

-The range of prices attract consumers to buy high quality vegetables and fruits (e.g. 3 pieces
of onion for Php 10.00)

There is a reason why consumers are looking for pleasures as of today, pleasures such as
purchasing the food they eat with no hassle and still have the credibility and high quality is
evidently seen. More than anything, convenience is the key as consumers nowadays started to
demand what is an easy way to purchase foods as to adapt the new normal way of living.
  MARKET SEGMENTATION

Upper Class
Middle Class
Lower Class

The consumers’ segmentation is based upon the economic status of individual consumers
and their income every month such as the upper class, middle class, lower class live at the
chosen target locations. Market segments also include the consideration of the ages of consumers
may be women or men between 20’s between and not later than 60’s who will likely to purchase
the vegetables. Also, you may determine the market segmentation by including these criterias:

 Based on prices of products and their quality

- Consumers will most likely indulge in buying cheaper prices with high quality of freshness
in vegetables.

 Based on variations of vegetables and fruits

- Consumers choose the most common vegetables and fruits that are using and eating every
day. (e.g. onions, ginger, etc.)

Within each broad market type, there are number of segments that may have different
needs for particular types of vegetables and fruits. We should be carefully consider which
types of people are likely to purchase in a vegetable rolling store so that we can anticipate
which are and which are not the vegetables that high in demands. Since Bacolod City is an
urban city, the urban domestic market may be different segments based on income levels, on
gender or age, or on eating habits such as vegetarianism.

 The average income of the consumers (e.g. income of upper class, middle class, and
lower class)
 Age and Gender of consumers
  The target location areas where the vegetable rolling store will sell
 Eating habits

In identifying these particular segments, the entrepreneurs can possible tailor the
product quality characteristics to those consumers say they prefer. The entrepreneurs need to
anticipate that the growth of the market will gradually increase or decrease in numbers for future
years since potential customers may include the people who move in or out in the target location
areas of the entrepreneurs and the people who are just passing by the target location areas.
Furthermore, since vegetables are one of the essential needs of every individual in terms of food
and health, the market will demand of these goods. Thus, the vegetable rolling store idea is
appropriate in today’s situation. The entrepreneurs will see for the next few years that the gradual
enlarge numbers involved mean the market size is also getting larger. Hence, entrepreneurs must
have a good service and giving the consumers high quality of vegetables to ensure them that the
entrepreneurs have credibility, giving them satisfaction in purchasing the vegetables.

 COMPETITION

In order for the business to last, entrepreneurs should be competent enough and entertain
all the possibilities when going against the competitors in the same field of industry. It is
understood that we will be competing with mall supermarkets and grocery stores. Other direct
marketers such as roadside markets, farmer markets, and curb markets are the primary
competitors since they also know how to interact with consumers. To begin with, we can base
the potential competitors on geographical factors, quality and range of prices of vegetables they
sell, and the approach they do towards the consumers.

We can divide the potential competitors into two groups based on geographical factors
namely the grocery stores near the chosen target location and supermarkets surrounding and
within the city’s premises. In today’s market condition, the majority of consumers would not
want to travel in order to buy foods. Because of the high pricing, consumers somehow
discourage to purchase vegetables at the supermarkets and grocery stores as well as the hassle in
travelling. On the other hand, some primary competitors increase the marked up price from its
original price to have a more profit to gain. With this idea in mind, the rolling store has taken up
its advantage when it comes to low pricing with high quality of vegetables and the all around
selling within the target location. The consumers will indulge in buying in rolling store just not
about having low prices of fresh vegetables and fruits but also they can buy in bundles (e.g. 3
pieces of onions for 10 pesos) which is also consider beneficial for the part of the entrepreneurs
because the vegetables will be complete sold out or put into waste.

Vegetables and fruits may vary in costs pricing which depends on how the supermarkets,
grocery stores, and at dry markets mark their prices. Since the entrepreneurs will start their small
business, it is difficult to compete with large corporations and have gone out in business. To stay
competitive, entrepreneurs must keep unit costs lost. Thus, they can get the goods in a wholesale
fresh marketing or retail from a supplier. Also, it is important to secure a negotiation to the
supplier and provide a contract for document of agreement to avoid any liability suits.
Furthermore, compared to supermarkets, grocery stores, and dry markets, the entrepreneurs have
the opportunity to assess the level of unfulfilled demand among the consumers within the area.
Thus, corresponding to the consumers’ satisfaction since it is advisable to estimate the amount
that consumers within that market buy at present.

Large corporations, specifically located in major production of vegetables areas, can

pursue wholesale marketing in retailers and can be a supplier. Thus, the products can be
delivered to supermarket and grocery stores, or maybe in dry markets which consumers usually
buy their vegetables with low price. The key factor for the entrepreneurs is that they will be the
one who will sell by roaming around their chosen target location which is their advantage.
Moreover, small-scale business like this will need to take a direct-to-consumer approach. It is
significant to evaluate and anticipate the market demand to avoid incremental purchase of
vegetables to the supplier. In the process, you will gain insight into how they might be better
served and how will it be beneficial for the business.

The entrepreneurs must be aware that the entry and exit from market can occur quickly.
Marketers have expressed concerns about the increased number of competitors and the
possibility of profit loss in existing operations. The entrepreneurs must be flexible to respond to
the consumers’ demand. Remember that customer relationships are extremely important. Price
and quality are synonymous in vegetable and fruit production. However, it is not easy to know
what is meant by having high quality goods and unfortunately, the criteria for judging vary from
year to year. Therefore, the entrepreneurs must choose their vegetables wisely from the supplier
by having criteria namely judging produce quality, flavor, ripeness, odor, cleanliness, and the
presence of insects and foreign material.
SWOT Analysis

 Advantage in selling vegetables  Unexperienced employees

through rolling store  Suppliers’ problem with the production
 Low cost pricing  Cause of lose sales
 High quality of freshness  Target profit failed to meet
 Assets, people  Losing of potential consumers
 Financial budget  Diverse employees
 Value of vegetables and fruits  Less choices of vegetables and fruits
 Employees’ knowledge, initiative,
credentials, skills, and education
 Flexible in terms in location and to
consumers’ demands
 More intimate relation with consumers
 Good service
 Employees’ morale character

 Improvements  Fierce competition against

 New customer segments supermarket and grocery stores
 Social and Industry Trends  Primary competitors know how to deal
 Innovation with consumers
 Increase in employees  Enviromental uncertainty
 Expansion of selling locations  Circumstances faced
 Good shape economy  Increase in competitors within or
 New ideas outside the area
 Employees are motivated and take  Unlimited changes of market demand
initiative  Decrease in employees
 Advantages against competitors’  Competitors new ideas
weakness  Degrading of Economy
 Increase in suppliers

The strengths of the business make the business stands out itself and the advantages are
the business’ best features against from other competitors. The rolling store gives the business a
competitive advantage in the marketplace when it responds to consumers’ demand in terms of
hassle and taking a lot of time going to the supermarkets, groceries stores, and dry markets. Also,
it gives the consumers a satisfaction when they purchased the vegetables and fruits that are
evidently fresh. Furthermore, the manpower of the business which is the employees who have
the skills, knowledge, initiative, and flexibility to adapt in a dynamic environment are one of the
factors that can contribute to the business prosperity and the momentum of each individual
success. In giving the employees a voice in the business, it may unlock opportunities, anticipate
obstacles and the common weaknesses of the business through their ideas, and solve the
circumstances that are faced by the business. Thus, their good character and service can help the
business to attract more consumers and expect new segments.

The status of economy may give opportunities to the business such as good rates of
profits. Likewise, the social trends can contribute to the way for the business to promote their
products that can increase their sales and can tap the innovative efforts of the employees.
However, weaknesses may still seen along the business’ process. Yet through efforts, good
decision making, having well-planned plans, and proper handling and monitoring the employees’
service, the business can exploit opportunities to make profit and be competent against the
presence of competitors.

Business’ weaknesses can be a hindrance if and only if the organization does not dwell to
do anything to resolve the obstacles and problems faced. They are the things that the business
should look into improving going forward. In order for the obstacles to put into end, the
organization must develop a plan to resolve and control the issues in internal environment.
Furthermore, once the organization’ internal environment is in chaos and crumpled, it will more
likely to be exposed to threats brought by the external environment. The external threats that the
business faces are could potentially affect and inhibit its ability to make a profit for grow an
expansion. Overseeing this obstacle, the business must thoroughly analyze all the threats its
faces, see how they worsen by the business’ own weaknesses. Through this, the organization can
develop and plan variety of strategies that a business can take to overcome threats to its
marketing efforts.

The very first step to overcome a threat is to understand what a threat is and what causes
them. Marketing threats can be in various shapes and sizes. Since the top management has more
on conceptual skills, they are the ones responsible for making complex decisions that
corresponds to the threat. Common organizations’ structure nowadays is practicing the organic
structure which is flexible and less formalized to anticipate the change facing by the business.
Moreover, the employees tend to be professionals in anticipating the changes in the dynamic
environment as they are well-trained in facing diverse problems. They are low in centralization
so that they can respond quickly to the threats.