Market potential study of locally produced Pangasius fillet in San Pablo City

Date

4-2013

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nanette A. Aquino

Abstract

The Pangasius industry has a huge potential in the country. The demand for its value-added products continues to increase in various parts of the world. This market potential study was conducted to determine the acceptability for locally-produced Pangasius fillet in Laguna, specifically in San Pablo City. The study would help identify potential markets for Pangasius fillet produced by BayCove International, Inc. (BII) located in Victoria, Laguna. Furthermore, this study intends to: (1) present the profile and describe the buying behavior of the food establishments in San Pablo (2) determine the respondents? familiarity with Pangasius fillet (3) describe the market in terms of volume, value, and qualitative requirements (4) determine and estimate the market size of Pangasius fillet in San Pablo (5) discuss the current and potential marketing opportunities, issues and problems in meeting the demand of the buyers and (6) formulate strategies in order to address the opportunities and problems. The geographical scope of the study was San Pablo, Laguna. It was chosen as the study area to improve Pangasius fillets? positioning through the preliminary introduction of Pangasius, in San Pablo City as well as to help inform fellow kababayans about Pangasius. BII also believes that the product has a high market potential in the said city if proper marketing strategies are identified and employed. Store checks and interviews were done on the three major supermarkets in San Pablo City. Thirty (30) food establishments, all located within San Pablo, were included in the study. The respondents were the owner, manager, chef, or proprietress of the food establishments. An initial interview of the respondentswas done to determine their volume and frequency of purchasing fish, familiarity with Pangasius fillets, qualitative requirements regarding fish, and their price expectations. Then, 14 of the respondents were purposively subjected to product placement test for further gathering of data and evaluation of Pangasius fillet attributes. The number of respondents who participated in the product placement test was based on the 30 respondents? answer to as to whether they would like to cook a locally produced Pangasius fillet using their own recipe. Those who were willing and had given sufficient information regarding their business profile were chosen to participate. For the product placement test, a second, self-administered questionnaire was used. The study made use of frequency counts and percentage distribution in analyzing the data. Price expectation analysis, attribute importance rating and ranking, as well as satisfier-dissatisfier analysis were used to further analyze the data gathered from the interviews and surveys. Non-parametric statistical tests were used to analyze the results of the business market survey since no strict assumptions were used in the conduct of the study. Also, the data gathered were nominal and ordinal measurements only. The Spearman Rho Testwas used to determine significant relationships between frequency of buying and some business profile variables (age of business and average monthly income). Wilcoxon Signed Rank Test was used to determine significant differences among product attribute mean ratings and Fisher?s Exact Test was utilized to determine significant relationships between overall product rating and form/type of business. Through the store checks, it was found that only the fillet form of Pangasius is available in the supermarkets. Based on interviews done, it is the supermarkets? managers who decide on which fish brands to offer in the supermarket. The manager along with a team of quality inspectors, evaluate the processed fish? attributes. They place great importance on the product?s color, odor, packaging, shelf life and price. If was also observed that food establishment owners, caterers and those coming from high income households are the usual buyers of Pangasius fillets in these supermarkets. Also, some people buy Pangasius fillets for special occasions such as Christmas parties, weddings, birthdays, and fiestas. The results of the study showed that majority of the respondents were familiar with Pangasius fillets. From the results of Product Attribute Rating and Price Expectation Analysis, it was seen that the product is acceptable to the respondents. Using the Spearman Rho test, it was found that there is a significant relationship between average monthly income and frequency of buying. It was discovered that food establishments with relatively high average monthly income buy less frequently (1-2 times a week), but in large volumes. On the other hand, most of the food establishments with relatively low average monthly income buy more frequently (3-4 times a week/more than 4 times a week) in small volumes. Based on the mean rankings, the most important attribute of the product for the food establishments was odor while other attributes like water content, texture and color were not that important for the respondents in the purchase decision. Based on the price expectation analysis, the respondents expected the product to be priced within the price range of Php150-300. This wide price range was attributed from the results given by the respondents. Some were willing to pay Php300 for a locally produced Pangasius fillet given that it is of superior quality. The estimated market demand was also computed by multiplying the average purchase of fish buyers per week to the number of respondents in the product placement test. The total weekly purchase of the 14 regular buyers was 111 kilograms per week with an average weekly purchase per food establishment of 7.93 kilograms. Based on the computations, the estimated initial market potential was 444 kilograms per month. Based on the research results, there is a good market potential for locally produced Pangasius fillet in San Pablo City. It is recommended that a cold storage facility in San Pablo be provided by the owner in order to facilitate distribution of locally-produced Pangasius fillets more efficiently and effectively. Quantity discounts can also be given to the food establishments because of large volumes they usually utilize in their operations. Also, the respondents commented that product development was needed. It was recommended that more specific parts of the Pangasius fish should be available depending on the demand of the food establishments. It is also suggested that the product be available in the wet markets and supermarkets since a large percentage of the respondents buy from these places.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

Thesis

Document Type

Thesis

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