Analysis of Marketing Strategies of Food Parks in Los Baños, Laguna

Date

5-2018

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Maria Noriza Q. Herrera

Committee Member

Melodee Marciana E. De Castro, Rachelle A. Mariano, Loida E. Mojica, Normito R. Zapata, Jr.

Abstract

In other Asian countries, food park refers to a place where agriculture and horticultural activities are done. However, due to the presence of food courts in a park, it was called food park wherein different food stalls are located. In Japan, the first food park was called food theme park since food being sold have specific themes (Mishima, 2017). In Malaysia, meanwhile, hawker stations are also called food parks. The Philippines had adopted Japan and Malaysia’s food park definition where food stalls with variety of food choices are offered (Jose, 2017). Currently, there are four (4) food parks in Los Baños, Laguna, namely, LB Square, ES Plaza, Fat Yard and U-Turn Avenue, with the first three being considered for this study since U-turn has just started operating in early 2018.

The study generally analyzed the marketing strategies of the food parks in Los Baños, Laguna. The specific objectives of the study were to: (1) describe the socio-demographic characteristics of the food park and stall owners in selected food parks; (2) discuss the business performance of food parks with emphasis on the marketing practices; (3) identify the problems encountered by the food park and stall owners in selected food parks; and (4) formulate recommendations to address the problems.

The food park owners of ES Plaza and Fat Yard, as well as 20 food stall owners in LB Square, ES Plaza and Fat Yard were interviewed. Primary data were gathered from the interview with the food stall owners and actual observation of the food parks. Meanwhile, secondary data were gathered from the Local Government Unit of Los Baños for the list of food stall owners. Library and internet researches were also utilized.

For the socio-demographic characteristics, results showed that owners in LB Square had equal number of female and male owners, while for ES Plaza, and Fat Yard, it had more female and male entrepreneurs, respectively. In terms of age, owners in LB Square were older (45-54) compared to both ES Plaza and Fat Yard as young entrepreneurs (25-34) were more prominent. For their educational attainment, majority from all the food stalls in the food parks were college graduates.

Since food park is a service related business, the 7P’s were used for the marketing mix. These included: product, price, place, promotion, process, physical evidence and people. Local and international cuisines are offered by the three food parks for dine-in and with some food stalls offering delivery. Mark-up is the common pricing strategy with an average of PHP 50-80 per meal. Food stall owners have competitive edge for the place since they are able to maximize space in the food park. Promotion is done through Facebook. For the process, on-time delivery and good quality food are ensured to satisfy customers. Signages, logos, brands and the food parks are the physical evidences. For the people, target customers are the University students who comprise the majority of the existing customers. Meanwhile, the workers are front liners in the business providing quality service.

Marketing problems identified in the study were: 1) fluctuating number of customers; 2) high intensity of rivalry in the area due to undifferentiated food being offered by other food stall owners and also availability of substitutes; and 3) too common and simple promotional strategies as majority used social media accounts as their advertising platform.

For the results, SWOT analysis and business model canvas were utilized to integrate and present the existing business models for the food parks. The strengths included the following: all three food parks were located in strategic location and food offering are healthier compared to nearby fast food chains. The weaknesses, some food products are priced expensively. The opportunities are: increasing preference of international cuisines especially to millennials and a one-stop shop for different food choices utilizing only limited space. Lastly, for the threats, mid semester and Christmas vacation forces food parks to close and recent implementations of K-12 curriculum results to low number of customer.

After identifying the problems of the food stall owners in the selected food parks, the recommendations were: 1) market penetration strategy through partnership and sponsoring of events; and 2) product development strategy through offering their current products into smaller serving size in order to be sold at a cheaper price.

Language

English

LC Subject

Food courts--Management, Marketing--Quality control

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2017 M17 A53

Notes

Viewing access to electronic resources is restricted solely to UP Gmail accounts. Any access and share requests from external organizations and personal email accounts will be promptly declined.

Document Type

Thesis

Link to Full Text

Share

COinS