An Exploratory Market Study on Dragon Fruit (Hylocereus spp.) Wine in Selected Areas in Cebu, Philippines

Date

6-2023

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Fitz D. Jimenez

Committee Member

Maria Noriza Q. Herrera, Remund Jordan D. Labios, Mar B .Cruz

Abstract

Due to its health and economic benefits, dragon fruit production is now experiencing an increase and fast acceptance on its demand and supply sides (Del Carmen et al., 2020). It continuously extends throughout the country, from selected provinces in Luzon, Visayas—Cebu, Bohol, Iloilo, and Negros—to Mindanao. The area, annual production, and yield per hectare of dragon fruit have all increased during the six previous years. From 2017 and 2022, the country's total production area and annual product increased by 37.72% and 54.05%, respectively. Similarly, the yield per hectare of Dragon Fruit have also increased by 36% with minor fluctuations. Fresh dragon fruit is usually available from June to September, with August and September being the peak harvest season. There are several constraints that the commodity is facing, including the prevalence of insect pests and plant diseases, high investment costs, lack of technical knowledge and experience for farmers, and problems with marketing, among others. Due to these constraints, dragon fruit farmers endure oversupply during peak seasons, resulting in commodity wastage. Thus, new technologies and value-adding activities are required.

This study addressed the problem of dragon fruit's postharvest losses by offering a wine fermented from a red dragon fruit. The Philippines might not be well-known as a wine region, but it is still home to a unique variety of wines cultivated from locally- grown crops and fruit. Additionally, the rising demand for alcoholic beverages from young Filipinos is seen. The aim of the study was to determine the market acceptability of Dragon Fruit wine and identify the best marketing mix strategies for introducing the product. This was achieved by identifying the wine attributes that respondents considered essential and desirable, as well as examining their purchasing and consumption patterns. Moreover, the Dragon Fruit wine was evaluated based on these identified attributes to assess its market potential.

The study was conducted in Cebu City, Lapu-Lapu City, and Mandaue City; thus, its results only apply to these areas. It utilized purposive and snowball sampling methods due to the lack of data on the total number of wine drinkers in the study area. A mixed-methods research strategy was also employed, combining various approaches to provide comprehensive insights. It included a Usage, Attitude, and Image (UAI) survey to assess respondents' product knowledge and purchasing behavior. Along with a product test which includes Satisfiers-Dissatisfiers analysis, sensory tests to evaluate the product's attributes, packaging testing, and price testing

This study examined respondents' socio-demographic characteristics and descriptive analysis revealed that women constituted a larger proportion of the respondents, indicating a higher prevalence of wine consumption among women. The majority of respondents were between the ages of 21 and 30, with most being employed or students. The results also showed that wine was primarily consumed on special occasions and social gatherings, typically in small quantities of 1 to 2 glasses. In order to determine the relationship between different variables, a correlation analysis was done. It is found that there is a weak relationship between age and consumption frequency while gender and consumption volume positively correlated. However, both exhibit a low correlation coefficient which implies that the variables do not significantly affect each other. Moreover, purchasing behavior analysis revealed that most respondents purchased wine once a year, during the holiday season, and typically bought 1 to 2 bottles priced between PHP 300.00 and PHP 400.00. Supermarkets were the preferred purchase location, and the internet served as the primary source of wine information. The relationship between their socio-demographic characteristics and purchasing behavior was also analyzed using Pearson Correlation Coefficient. In this study, the age, gender, and monthly income of the respondents are found to have a weak relationship with their purchasing behavior and showed that their relationships are not statistically significant.

In order to determine which fruit wine attributes are seen as important, a satisfier-dissatisfier analysis and importance rating on a Likert scale were utilized. The satisfier-dissatisfier analysis identified flavor as the only dissatisfier attribute, while attributes such as aroma, color, aftertaste, smoothness, packaging, and price were deemed important satisfiers. This implies that the respondents are more likely to purchase a fruit wine with a satisfying aroma, good color, a pleasant aftertaste, smoothness, appealing packaging, and reasonable pricing. However, if the fruit wine does not taste good, the respondents are less likely to purchase the product. These results are consistent with the respondents' assessments of each attribute, wherein flavor and nutritional value were seen as very important attributes. While aroma, color, aftertaste, and smoothness were considered important. On the other hand, the actual product test revealed that the Dragon Fruit wine's attributes were rated as "good" overall. Similarly, the packaging of the wine was well-liked, although improvements in appearance and labeling were suggested. While according to the price test, respondents found the wine inexpensive at PHP 200.00 and costly at PHP 500.00, with a willingness to pay PHP 300.00 to PHP 500.00.

Comparison with respondents' favorite grape wines showed that while satisfaction with the Dragon Fruit wine's flavor and price was high, attributes such as aroma, color, flavor, packaging, and pricing were preferred in their favorite wines. However, the Dragon Fruit wine's smoothness and aftertaste were favored over their favorite brands. In addition, the Mann-Whitney U-test highlighted significant gaps between the desired and actual attributes of color and flavor, indicating areas for improvement.

Since the study found that the Dragon Fruit wine was acceptable in the market, several recommendations were made to develop the product further. These recommendations include enhancing the fruit wine's aroma, flavor, smoothness, and packaging. Techniques such as utilizing enzymes to extract natural fragrance compounds and back-sweetening methods to improve flavor were recommended. Color, packaging, and labeling improvements were also recommended to make the product more appealing. The Dragon Fruit wine target market was younger consumers, particularly young women, who are often inclined to favor fruit wines. In order to understand the features of the product, the researcher used a total product concept which showed the five product levels of the Dragon fruit wine. A combination of expected product attributes must be prioritized, such as smoothness, good aftertaste, aroma, flavor, affordability, and quality. Highlighting the health and nutritional benefits of the product was also suggested, as this may affect consumers' consumption intention. Moreover, the product's price must be set between PHP 350.00 to PHP 400.00.

Distribution strategies should align with promotional efforts. Given the current limitation on mass producing the Dragon Fruit wine, online orders, establishing a stall at the production site, and promoting it as a "pasalubong" (souvenir) item were recommended to be prioritized. Social media promotion, partnerships with local newspapers, and free samples to tourists were suggested to reach different target markets. It is also recommended to create a niche market for Dragon fruit wine and position it at high end grocers' shops in the country once mass production is achieved.

As the study provided insights into the consumption patterns, purchasing preferences, and attribute evaluations of the Dragon Fruit wine, it helped address gaps in color and flavor, enhance the wine's attributes, and consider consumer preferences to compete effectively in the market. Along with this, the acceptability of the Dragon Fruit wine not only addresses the oversupply of the fruit during peak seasons but will also contribute to the country's economy. It opens local fruit and wine production opportunities, attracting potential investors and promoting Filipino product

Language

English

LC Subject

Fruit wines, Marketing research

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2023 M17 M66

Notes

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Document Type

Thesis

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