Analysis of the 7Ps of Marketing Mix Strategies for Pili Nut Products and their Influence on the Sales Performance of Pasalubong Centers in Naga City, Camarines Sur

Date

5-2025

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Ezekiel C. Macatula

Committee Member

Jennica Amielle M. Mora, Rei Chino C. Pua, Jeanette Angeline B. Madamba, Dia Noelle E. Velasco

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For non-UP researchers, requests for access to this material may be directed to the CEM Library at cemlibrary.uplb@up.edu.ph or to the UKDR administrator at uscs-mainlib.uplb@up.edu.ph

Abstract

Pasalubong is a significant part of the Philippines' tourism industry and culture. It is a practice where a person brings back gifts or souvenirs from their latest travels. Pasalubong centers are marketing facilities for locally made products and a place for tourists to complete their travel experience (Mirasol, 2018). Pasalubong products reflect the local history and culture of people. It also gives livelihood for communities, contributing significantly to local employment. Despite its significant contributions, there are limited studies conducted about this industry (Andias, 2022). These businesses also tend to undervalue the importance of marketing (Ylagan et. al, 2021). Most of them do not understand the significance of brand awareness and lack of having a proper marketing plan. They think that it takes a lot of resources to promote their businesses (Vijayan, n.d). According to the Department of Trade and Industry (2023), business owners of micro, small, and medium-sized enterprises like pasalubong centers have limited marketing capabilities.

The City of Naga was listed as the number one tourist destination in the Bicol Region in 2023 (Department of Tourism, 2024). They are known for their pili nut pasalubong products. They are also the pioneer and leading exporter of premium-quality pili nut products (Guarin, 2023). However, business owners of pasalubong centers in Naga City lack proper and adequate knowledge on marketing; they are too focused on earning profit (Olin, 2024). Moreover, according to Duran (2024), it was found that pili product establishments had weak sales, leading to decreased income. Thus, this study was conducted on the influence of marketing practices for pili nut products on the sales performance of pasalubong centers in Naga City, Camarines Sur.

The general objective of the study was to analyze the marketing practices for pili nut products of pasalubong centers. The study specifically aimed to present the business profiles of pasalubong centers and the socio-demographic characteristics of their owners or managers, describe their marketing practices, analyze the influence of their marketing practices on their sales performance — specifically, average monthly revenue, evaluate the opportunities and problems encountered by the businesses, and formulate recommendations to improve their marketing practices. This study can help and guide business owners and managers of pasalubong centers in planning and formulating future strategies for the marketing aspect of their business. This can also provide useful information to entrepreneurs interested in entering the industry and to the local government of Naga to help support the pasalubong businesses in the city.

The study used descriptive and correlational research design to analyze the marketing practices for pili nut products. The primary data were gathered through face-to-face interviews with 22 business owners and managers of pasalubong centers in Naga City using a semi-structured questionnaire. Complete enumeration was employed in the data collection. To present the business profiles and socio-demographic characteristics of their owners or managers, descriptive statistics was utilized. Meanwhile, thematic analysis was employed to describe the marketing practices and evaluate the opportunities and problems from the narratives of the pasalubong business. Then, Partial Least Squares-Structural Equation Modeling (PLS-SEM) was used to analyze the influence of marketing practices on sales performance using their responses from the 5-point Likert scale and their monthly revenues in 2024.

The results of the study showed that a notable proportion of pasalubong center owners and managers are older individuals, with a predominantly female demographic. Most have attained college-level education, including both graduates and undergraduates, but only a few of them have affiliations or organizations. Additionally, their average household size is five members, though the majority reported having no dependents. Their primary source of income is their pasalubong enterprise.

For the business profiles, the earliest pasalubong center was established in 1975, while the most recent opened in 2023. These enterprises are predominantly located in the Bicol Central Station, with an average monthly rent expense of around 7,400 PHP. In addition, their staffing is minimal, as most of them employ only one worker. All of them are single proprietorships. Moreover, these businesses are classified under Micro, Small, and Medium-sized Enterprises based on their asset sizes. The majority of them comply with all the mandatory business registrations, such as Mayor's Permit, BIR, and DTI registration. Furthermore, most of them only offer physical store selling.

Pasalubong centers exhibit varying marketing practices influenced by their enterprise size, experience, and owner characteristics. Small and medium enterprises tend to provide formal employee training, invest in certifications and modern facilities, and prioritize product quality, customer service, and production costs in their pricing strategies, often applying higher markups. In contrast, micro enterprises usually offer informal training, operate home-based production, focus pricing on customers and competitors, and emphasize profit-making over service quality. Long-established centers, regardless of size, focus on branding, product quality, labeling, and packaging, recognizing the importance of quality and service beyond profits. Additionally, older business owners often lack knowledge of online marketing, resulting in minimal online presence, and tend not to plan for future business growth, expecting their children to assume that responsibility. Overall, marketing practices in pasalubong centers are shaped by enterprise capacity, industry experience, and the age and mindset of their owners.

The study analyzed the different marketing practices of the pasalubong centers in terms of Product, Price, Place, Promotions, People, Physical Evidence, and Process. It determined the influence of these marketing practices on the monthly revenue of the pasalubong businesses. The study revealed that Product, Promotion, and Physical Evidence have a positive influence on their monthly revenue. For every unit increase in the level of these marketing strategies, the monthly revenue is expected to increase by 0.285 (modest), 0.115 (modest), and 0.390 (moderate), respectively. This suggests that by practicing more of their product, promotion, and physical evidence strategies, business owners may boost their monthly revenue. Some of these strategies include providing better quality pili nut products, offering a variety of pili nut products, partnering with businesses to promote their products, implementing promotional activities and sales promotions, allocating sufficient resources to promotional activities, displaying pili nut products more effectively to attract customers, having employees dress and look presentable, and making the appearance of the physical store attractive

On the other hand, the study also found that Price, Place, People, and Process have a negative influence on their monthly revenue. For every unit increase in the level of these marketing strategies, the monthly revenue is expected to decrease by 0.522 (strong), 0.465 (moderate), 0.201 (modest), and 0.128 (modest), respectively. This suggests that by implementing more of their price, place, people, and process strategies, business owners may reduce their monthly revenue. Some of these strategies include offering price discounts and positioning their stores in a convenient and accessible area.

The study highlights that the pasalubong centers may be using ineffective marketing strategies in terms of Price, Place, People, and Process, contributing to the decline of average monthly revenue. Conversely, they appear to employ effective strategies in terms of Product, Promotion, and Physical Evidence which positively impact their average monthly revenue. To address this imbalance, business owners should refine ineffective practices while leveraging their strengths to boost overall revenue.

Furthermore, with the use of thematic analysis, the study identified the different opportunities and problems encountered by the pasalubong centers. Business owners and managers of pasalubong centers received opportunities for production, opportunities for training and seminars, opportunities for food laboratory tests, opportunities for promotion of products, and opportunities for financial support. Based on the results, they are in need of support in terms of loan programs, financial assistance, and promotion of products. As for their opportunity for export, most of the pasalubong centers are in the early or developing stages of export readiness, with only a few truly prepared to enter the export market.

Moreover, the results also revealed the problems experienced by pasalubong centers on workforce instability and customer relations, financial resilience and external risk management, competitive pressures and accessibility barriers, supply chain and quality control risks, product quality and inventory management, and input cost volatility and policy impacts. As for the problems that may arise in the future, they are expecting increased competition as their major problem in the coming years. This paper also discussed other aspects of pasalubong centers, such as the impact of economic activities to the businesses, recording of their business transactions, common customers, competitors, value proposition, needed improvements in marketing, the pasalubong industry in the next 5 years, and tips and future plans of business owners and managers.

From the results and discussion, business owners and managers are encouraged to leverage their product, promotion, and physical evidence strategies to boost their sales performance. Some of the suggested strategies include offering higher quality products, investing in promotions, and enhancing store appearance and staff presentation. Meanwhile, it also recommended that they reassess their price, place, people, and process strategies as these have a negative influence on their monthly revenue, which could indicate that they are have ineffective strategies in these aspects. Employing these marketing strategies entails costs. Nonetheless, these may be able to increase the monthly revenues of pasalubong centers.

To prepare for calamities, they should maintain financial readiness for emergencies by building and maintaining an emergency fund. Additionally, they are recommended to take advantage of training programs from government agencies to support product development and business growth. Since many centers are interested in exporting, exploring export opportunities while strengthening business management and operations is also recommended. There are opportunities for export in countries such as the United States, Canada, Japan, Hong Kong, and Korea due to the rising global demand for pili nut products.

Other recommendations were also given to entrepreneurs who are planning to enter the industry based on the tips and projections of the pasalubong business owners and managers. Focusing on different success factors such as effective product promotion, excellent customer service, high-quality and well-packaged goods, strategic location, store cleanliness, sufficient capital, and traits like perseverance and hardwork may help them succeed in the pasalubong industry. The industry offers growth potential over the next five years due to rising tourism, but entrepreneurs must also be prepared for increasing competition.

Moreover, the local government of Naga City was also given recommendations based on the needs of the pasalubong centers. The pasalubong businesses are in need of financial assistance, so it may be helpful that the local government offer low or no-interest loan programs. Support in product promotion is also needed, highlighting the importance of strengthening efforts to market local goods and boost tourism. Additionally, since many centers are interested in exporting, the government is encouraged to help them explore opportunities to export pili nut products.

Lastly, recommendations for further studies were also provided. The study found that 35% of the variation in monthly revenue can be explained by the 7Ps of the marketing mix, while 65% is influenced by other factors. With the model showing moderate predictive power, future research is recommended to explore additional variables beyond the 7Ps. Since the study only involved 22 pasalubong centers, using a larger sample and more advanced modeling methods is also suggested to enhance the accuracy and generalizability of the results.

Language

English

LC Subject

Nut products, Sales management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2025 M17 C37

Notes

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Document Type

Thesis

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