An exploratory market study for Ube leche flan combination in Los Baños, Laguna

Date

2010

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Agnes T. Banzon

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Abstract

Romalyn’s is a business enterprise in San Pablo City whose main product is Ube Halaya. In summer of 2009 the enterprise developed a new product as a potential addition to their product line. This new product is “Ube Leche Flan Combination”, with Leche Flan minus the syrup on top of Ube Halaya. The product was initially sold to friends of the manufacturers and to students of Agribusiness Management in UPLB, where the owners’ daughter is taking her degree. The product gained a lot of conflicting comments and suggestions therefore the developer of the product who is the researcher herself decided to conduct this market study. The study was conducted to determine the acceptability of Ube Leche Flan Combination on the Los Baños market. Specifically, the study aimed to (1) determine the level of awareness of the Los Baños consumers regarding Ube Halaya, Leche Flan and Leche Flan Combination, (2) determine the consumption and buying behavior of Los Baňos consumers regarding Ube Halaya and Leche Flan, (3) determine the product attributes that are of value to the customers, (4) evaluate the product in terms of identified attributes, (5) suggest product development strategies to address the gaps (if needed) and (6) recommend strategies to facilitate product introduction if the product is found acceptable. Data were obtained from both primary and secondary sources. The primary data were gathered through Focus Group Discussion (FGD), Market and Consumer Survey and Product Testing. The study had 154 respondents – 24 for the FGD, 10 for the questionnaire pre-test and 120 respondents for the Market and Consumer Survey and Product Testing. The respondents were divided into four age groups – 9-12 years old (Elementary), 13-16 (High School), 17-20 (College) and 21-60 years old (working professionals). To determine if there were significant differences in the mean ratings for the product attributes assessment of Ube Leche Flan Combination across age segments, Kruskal Wallis test of H was used. To determine if there were significant correlation between the age groups and their ratings in the attributes of Ube Leche Flan Combination, Chi-Square Test of Independence was used. To determine if there were significant differences in the mean rankings between consecutive ranks regarding the product attribute importance, Mann Whitney Test of U was used. Product name generation was also conducted. Ten senior Agribusiness students who are familiar with the product and have a background in marketing were asked to suggest a product name. Frequency count was used to determine the preferred product name of the respondents. Price Sensitivity Analysis was conducted to determine the price limit and preferred price of the respondents. Results of the study showed that the entire product attributes of Ube Leche Flan Combination were liked by the respondents for none of the attributes had a mean rating of 5. The possible mean rating for the product is from 1 to 7 (1 being the highest and 7 the lowest) and the lowest mean rating given for a product attribute is 1.9 for Shape and Aroma. But when Kruskal Wallis Test of H was conducted its result showed that there were significant differences in the mean ratings for the product attributes Taste, Smell

and Color for 1%, 5% and 10% of alpha levels respectively. It seems like the respondents were divided into two, the younger respondents (elementary to high school) and the older respondents. The younger respondents already prefer the current sweetness of the product but for the older respondents it needs to be tones down a little. Chi-Square Test of Independence showed that only Color has a significant correlation on the age group of the respondents. For the perceived importance of the product attributes, mean ranking results showed that Taste is the most important product attribute followed by Texture, Smell, Color, Packaging and Shape. The results of the Mann Whitney Test showed that at the highest level of confidence (alpha=1%) none of the mean rankings are significantly different from each other and at alpha=5% and 10% Taste vs Texture, Color vs Packaging and Packaging vs Shape are already significant. These results mean that at alpha = 1% the rankings are not significantly different from each other. Then at alpha = 5% and 10% the rankings are Taste, Texture, Smell, Color, Packaging and Shape with Texture, Smell and Color tied at 2nd rank . The preferred product name of the respondents was Ube Flan Delight as chosen by 33 out of 120 respondents. As for the category preference respondents stated that they position the product as a dessert (82 times cited) followed by as “pasalubong” (30 times cited). The results of price sensitivity showed that the price respondents are willing to buy the 100 grams product is at Php 15 to Php 20. When asked on what price they think the product should be offered 46 respondents stated that it should be at Php 20 closely followed by Php 15 as stated by 35 respondents. The study concluded that the product Ube Flan Delight is acceptable among the respondents. This is because 96% of the respondents are willing to buy the product and the mean ratings for the product attributes are high, for the lowest mean rating given is 1.9 for Smell and Shape. The general acceptability of the product got a mean rating of 1.7 which means Ube Flan Delight is greatly acceptable by the respondents. Before the product is fully launched in the market some product modifications must be done to the following attributes – Taste, Packaging, and Texture. Sweetness of the product would be lessened, packaging would be improved and Texture would be made smoother. The 100 gram product would be offered in catering services and other customers who would buy in bulk. This is due to the fact that a reasonable per unit profit is achieved when the production is at 150 pieces. The possible price offering for bulk orders of 100 gram Ube Flan Delight is from Php 18 to 20. For individual buyers, 300 grams and 650 grams Ube Flan Delight would be marketed at Php 55 and 120 respectively. The product would be distributed at canteens, restaurants and catering services in Los Baños, Laguna. Stalls in strategic areas in Los Baños would also be built to be able to reach more consumers.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2010 M17 D56

Document Type

Thesis

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