Exploratory Market Study for Soy-Based Protein Bar in Santa Cruz, Laguna

Date

5-2020

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Committee Member

Cherry Lou R. Nuñez, Agnes T. Banzon, Jewel Joanna S. Cabardo

Abstract

The increasing health trend in the country contributes to the growth of the nutraceutical product market, specifically protein supplements. These supplements include protein powders, amino-acid tablets, and protein bars that are using milk proteins such as whey and casein which boasts all nine essential amino acids that the body needs in muscle building and recovery. However, these protein supplements are expensive and is avoided by individuals cautious about its possible side effects. These mentioned problems are considered as the product’s pain points where in an improvement can be made. Another problem is that there is a struggle to capture the market as despite the growth in the middle income group in the Philippines, health enthusiasts are still price sensitive when it comes to these products and would choose to settle for less instead of spending too much for protein supplements.

The study wants to address the current pain-points of conventional protein supplements by offering a cheaper and healthier alternative. The researcher sees the potential of soybeans, a legume famous for its vegetable protein that has been long used in the Philippines to make food products such as taho and tofu to address these above mentioned problems. Soybeans, being more affordable, healthier, and lactose free, led the researcher to incorporate the legume in a protein product. For consumption convenience, the product is decided to be a protein bar.

Market acceptability of soy-based protein bar will be determined in the municipality of Santa Cruz, Laguna. If the market would find the product acceptable, it can contribute to the economy of Santa Cruz, Laguna by contributing to various economic activities such as consumption, investment and entrepreneurship, production, labor, and research and development. However, if the market finds the product unacceptable, product development strategies will be implemented to bridge the gap between the desired product and the actual product to meet the consumers’ needs and wants.

The study was conducted in the Municipality of Santa Cruz in the Province of Laguna; thus, its results are only applicable in the study area. Only a total of fifty 50 respondents were chosen due to the corona virus pandemic which forced all the gyms in the municipality of Santa Cruz to close.

Since gym goers are more familiar with protein supplements and they can provide the information necessary for the completion of the study, they became the focus of the study as respondents and market. Due to cost and time constraints, the product did not undergo a proper nutritional analysis testing. Thus, the presented macronutrients of the product are only an estimation of the macronutrients of individual ingredients. The researcher did not witness firsthand the reaction of the respondents after tasting the product as the gym owners are the ones tasked to manage the distribution of self-administered questionnaires. For the packaging, only the design of the projected packaging was shown to the respondents since an actual packaging was not made before the product test.

Sta. Cruz, Laguna was chosen to be the area of the study because a soy-curd processing plant was within the vicinity. The said processing plant provides the main ingredient of the product which is soybeans. In addition, the municipality has several gyms that caters to both user and non-user of protein supplements that will be the source of respondents for the study. Also, Santa Cruz is considered as an urban community and DOST-PCAARRD are launching projects that will help potential micro-entrepreneurs and consumers in urban areas in relation to soybean products as mentioned in their soybean research and development project.

In-Depth Interviews (IDI), Store Check, Usage, Image and Attitude (UIA) survey, Product test, Label Test, and Price Sensitivity Analysis were all conduced in Santa Cruz, Laguna. IDI was conducted to gather information regarding protein supplements, protein bars, soy products, and insights about soy-based protein bars. Moreover, the answers from IDI were used to outline the other surveys used in the study. Online store checks were done in Shopee and Lazada to familiarize with the existing protein bars in the market where different brands, prices, packaging, and nutrition content were noted. Using purposive and convenience sampling, 50 respondents were selected based on the following criteria: (1) they are gym goers (2) they have consumed or planning to consume products with ample amounts of protein (3) they are capable of evaluating necessary information of what the researcher asks for (4) willing and available for participation and completion of the study. UIA survey was done to determine the respondents’ awareness, consumption, and buying behavior with relation to protein supplements. Product test was done to determine the acceptability of the product with regards to its actual attribute ratings. In addition, the respondents’ willingness to buy the product was also tackled in this section. Label test was done to assess the current packaging design and labels. Lastly, the Van Westendorp price sensitivity meter was used to determine the acceptable range of price for the product. Data gathered from the store check was identified and enumerated. Results showed that protein bars in the market varies in flavor and nutrition content. The material used in the packaging of protein bars are foil packs. The price range of the products is between Php 70.00 to Php 185.00.

The socio-demographic profile of the respondents such as sex, age, highest educational attainment, and monthly income or allowance was discussed using descriptive analysis. Results showed that more respondents are male contributing to 70% of the total respondents while the remaining 30% are female. Moreover, majority of the respondents are on their early twenties which is supported by the modal age of 23 years old. The highest educational attainment of most respondents is college graduate contributing to 44% of the total respondents.

UIA survey results were analyzed using frequency counts, percentage distribution, and cross tabulation. Results revealed that only 42% of the respondents are using protein supplements. Eighty-six percent of the respondents identified themselves as health conscious and using cross tabulation, no strong relationship was derived from health consciousness and usage of supplements. It is also revealed that 86% of the respondents are familiar with protein supplements. However, cross tabulation showed the same result where in no strong relationship was found after associating familiarity with protein supplements and usage of supplement.

Majority of the respondents are buying supplements once a week and their most common place of purchase was protein supplement stores. Internet websites and social media advertisements are the respondents’ most common sources of information when it comes to buying supplements. The most cited reason for buying supplements is to for the products’ additional nutrient content.

The respondents consume protein supplements during workout by mixing it with water. This implies that most of them uses protein powders as supplement. It is also mentioned that former consumers of protein supplement stopped using such products because of itsi expensive cost. In addition, those respondents who are not yet using supplements shared the same reason (cost) why they are not consuming protein supplements.

Most of the respondents were also found to be aware about protein bars and most of them have tasted the product once or a few times. Majority of the respondents will still buy protein bars even if they are using other supplements to have a variety of protein source. Using Wilcoxon Signed Rank test, it is revealed that a protein bar’s nutrition content, price, and taste are the most important attributes for the respondents.

The product test revealed that the soy-based protein bar was generally acceptable by using its actual attribute rating as basis. Seventy-eight percent of the respondents are willing to buy the product which suggests that there is a market for the product. Significant relationship between familiarity with protein supplement and likelihood to buy the product was also found using Mann Whitney Test.

Label test showed that all of the packaging’s attribute are acceptable for the respondents. They are also satisfied in the initial product name used for the product’s packaging. Van Westendorp price sensitivity analysis result showed that the acceptable price range for the product is between Php 50.00 and Php 90.00 and the optimum price for the product is Php 67.50.

The desired attribute rating of the respondents and actual attribute rating of the product were also compared to determine whether a gap exist between them. Using Wilcoxon Signed Rank Test, gaps between nutrition content, taste, and smell were found. Appearance of the product on the other hand managed to level with the expectation of the respondents. After analyzing the results of the study, recommendations in developing the product are proposed. In terms of taste, the consistency in mixing, molding, and ingredients are possible solutions to address problems regarding the product’s erratic level of sweetness. Smell and appearance concerns can be addressed by putting the chocolate chips on top of the bar instead of mixing it with other ingredients. This will make the chocolatey smell concentrated on the top of the bar, thus enhancing the smell of the product. Moreover, chocolate chips on top of the bar makes the product more appetizing and once the chocolate chips chilled, it will help in solidifying the bar’s structure which will lessen its crumbling. The nutrition content of the product will be kept. While its brand name will be changed from Glycine Max to Soy Fit, since the latter is easier to pronounce and remember. Instead xii of using the optimum price from the Van Westendorp price sensitivity analysis, it is decided to lower the price between the Optimum Price Point (OPP) and the Point of Marginal Cheapness (PMC) which is Php 67.50 and Php 50.00 respectively. The old packaging design will be scrapped and a new design will be made. Striking colors will be implemented as well as better fonts. The product’s picture will not be included in the packaging to give focus to more information about the product.

The target market for the product will be the gym goers who are already familiar with the protein supplements. The respondents preferred to purchase protein supplements in supplement stores, online stores, and gyms. Therefore, the product should be available in the places mentioned. The researcher recommends to cater online orders and distribute the product to local gyms in Santa Cruz. The distribution goes hand in hand with the promotion since the researcher wants to promote the product online using social media sites and spread information about the product via word of mouth by catering and promoting it in the local gyms in Santa Cruz. The product will be positioned as an affordable supplement alternative packed with protein, fiber, and other nutritional benefits from soybeans and its auxiliary ingredients.

Language

English

LC Subject

Soy Protein

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2020 M17 T63

Document Type

Thesis

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