Identifying product development opportunities for pancit bato enterprises in Bato, Camarines SurMunicipalities

Date

5-2016

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jewel Joanna S. Cabardo

Abstract

Pancit Bato is one of many local pancit or noodles found in the Philippines. As the name implies, it originated in the town of Bato, Province of Camarines Sur. The product has been part of the culture of Batoeños for more than 50 years already. Moreover, it has become the source of income of the townspeople especially those who do not possess the necessary educational qualifications to get gainfully employed. There were eight (8) pancit producers in the municipality at the time of the study. Pancit Bato has been valued and patronized by the town?s people for the very long period of time as evidenced by many enterprises venturing into the production and selling of the products. The factories and outlets can be found at Brgy.San Vicente, San Miguel and Tres Reyes. The development or advancement of technology is very evident nowadays. As a result of development in technology, product and services improvement has been possible. There are numerous products and services now available in the market. This contributes to the changes in consumer behavior towards purchased and usage of certain products. Filipino consumers are veering away from home cooked products and moving towards ready-to-eat meals as one of the results of increasing price of cooking oil and dual family earners becoming a norm. Instant Noodles is such a product which has been popular due to social and economic changes. Instant noodles is mass of dried precooked noodles fused with oil, usually eaten after being soaked in boiling water for 3 to 5 minutes. It has been observed that there is an increasing consumption of ?instant? products such as instant noodles for the last couple of years (2.8 billion packs of bags in 2014) and was predicted to increase in the next years. By 2017, instant noodles in the Philippines will attains sale of around 27.9 billion. This phenomenon somehow affects the local pancit industry in the country as for the fact that they can substitute each other. The substitution can hinder the growth of pancit bato. Moreover, it has observed that the demand for the products remains the same or stable in past few years. This study hopes to identify product development opportunities for pancit bato based on the insights obtained from assessment of butting and consumption behavior for pancit bato as well as instant noodles. To identify potential or opportunities for the improvement of pansit bato, a descriptive research design was used. A total of 364 respondents participated consumer survey which was used to gather information needed in analysis of buying and consumption pattern of instant noodles was also analyzed to determine insights with regards to the reasons why there was observed increase consumption for the product. The findings were used to recommend product development strategies for Pancit bato. Pancit bato enterprise owners were also personally interviewed to obtain information about the current status of the businesses and possible effects of the increased noodle consumption to their respective businesses. Majority of the consumer?s respondents were married and were mothers of their respective households (63.74%). It is then assumed that they have the knowledge and ability to provide appropriate answers to the questions. They were more or less the ones responsible and in charge of preparing of family?s food, hence, it is assumed that they know all the necessary information needed for the analysis in the study. Households were composed of majority of 5 members and household income of PhP.5, 000 per month. The average income of the respondent?s id PhP.9354.97 and average household size of 4.90. A large portion of the sample finished only high school. As for the producers, almost all of them were college graduate and were married. It was also presumed that they knew basic business concept and terms provided accurate and reliable responses. The average age of the producers was approximately 56(55.71). The oldest producers were 68 years old while the youngest was 38 years old. Most of the businesses were classified as cottage scale. The estimated gross monthly income of the enterprise on the average was Php. 34, 500. None of the enterprises was currently exporting their products but they desire to do so if given opportunity and with enough resources. Most pansit bato consumers bought the product twice a week. Household?s volume per purchase and consumption were 1 kg and 0.50 kg respectively. Majority of them bought and consumed the product during mornings or breakfast. Frequently purchased brand of pancit bato was Sesgundo followed by Declaro and Sacueza. The difference with three brands in terms of number of responses obtained was very minimal. Majority of the respondents prefer fresh pancit bato. However, there was significant difference with respect to other producers. In general, most of the respondents were satisfied with the products extrinsic (price, packaging, serving size) and intrinsic (taste, texture). However, there were also some who were dissatisfied with its packaging, texture and serving size. The products packaging was to simple and plain. The serving size was found to be more than enough for individual consumption ninety three percent (93%) of the respondents planned to consume pancit bato in the future. Trends observed in the result of the study with respect to consumers buying and consumption pattern were towards convenience in terms of preparation, availability, affordability, and product presentation. The possible product innovation of developments was also identified. These include possibility of pancit bato to go instant, smaller serving size offered for pancit bato, addition of flavors, improvement of product packaging and adding twist to the products presentation and usage. The possibility of making instant pancit bato would address the consumers? needs of convenience and easy food. Packaging pancit bato in a smaller serving size packages allow the producers to cater single and mass consumption of consumers. Exploring additional flavors that is into the liking of the consumers can increase the purchase and consumption for the product as well. The improvement of packaging materials especially for fresh pancit bato would entice not only individuals or household consumer but also institutional buyers to buy the product. Innovating products means unconventional consumption that would give new experience and feeling to be consumers which would influence then to repurchase the product. Recommendations of the study for pancit bato producers include continuous product innovation through research and development, cooperation between pancit bato enterprise owners, proper screening of their workers and adoption of technology. Continuous product development essential because preference of the consumers changes over time.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2016 M17 L33

Document Type

Thesis

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