A strategy analysis of the pickled cucumber business line of RAM Food Products, Inc

Date

1998

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Melgar, Carolyn V.

Abstract

RAM Food Products, Inc. is a farm engaged in the processing of fruits and vegetables into canned and bottled food products. One of the products produced by the company is pickled cucumber. The pickles use the brand names RAM and Sevilla in different product forms. The pickle industry is now gaining market strength. RAM Food Products, Inc. is one of the leading products of pickles in the market. Other key players are California Manufacturing Company, Kraft Foods and Del Monte. The study used the Usage, Attitude and Image (UAI) analysis to determine the consumer usage patterns, brand preference and perceptions for pickles. One hundred households and institutional buyers which consist of 10 hotels, 10 fastfoods, and 5 restaurants participated in the survey. The hypotheses that the above respondents are current users of pickled cucumbers are proven correct. Based on the results, there is a high demand for pickles. This is because the households use it for home consumption as an ingredient in dishes, salads, sandwiches, and appetizers. The institutional buyers, on the other hand, also serve pickles and expect their consumption to increase due to the increasing number of people dining out nowadays. The RAM brand is popular among the household and institutional buyers but it is not yet the leader in the market. The leading brand for the households is Lady's Choice while for the institutional buyers. it is still Lady's Choice and Kraft. The survey also revealed that the most important product attribute the consumers look for in pickles is the exact combination of sweet and sour taste. The RAM brand is rated highly for its exact combination of sweet and sour taste. However, it is rated poorly for its sogginess due to too much syrup. The households are willing to purchase the 270-270gm from 30-40 pesos/bottle. The institutional buyers, on the other hand, are willing to purchase the 4kg size from 220-235 pesos /jar. The company was analyzed based on its current position in the market, its marketing and production strategies. The results of the Usage, Attitude and Image study will help RAM Food Product, Inc. improved its pickled cucumber, satisfy its loyal consumers, and attract other consumers. The company was also provided with the strength and weaknesses of the pickles product of its competitors. This way, the company will know how and where to position its product. RAM's overall sales curve showed an increasing trend at a decreasing rate. The company is continuously profiting but it is decreasing every year due to market situations and stiff competition among the key players. Recommendations were made to increase the company's sales and help the company formulate strategies to generate the market leaders and improve or change the company's marketing and production strategies. For the marketing mix strategies, the company is recommended to maintain the sweet and sour taste the syrup of RAM brand pickles to make it more crispy. The Sevilla brand should be removed in the market since none of the respondents is aware and buys the product. The cost of producing Sevilla pickles can be used to finance the quality improvement of the RAM brand. RAM should also increase and match the price of Lady's Choice pickles because based on the market research, price is now an indicator of a product's quality. The higher the price, the higher the quality. There should be more concentration on the distribution of RAM pickles in all key supermarkets, groceries, and wet markets in Metro Manila for the product to be always available. The company must continue print advertising, add posters and billboards, and maintain its merchandisers in key supermarkets to help promote the product effectively. Production strategies such as ensuring continuous of raw materials to avoid problems related to product availability must done by RAM. The company must set-up cooperatives to decrease its problems with the contract growers. RAM must also continue availing the technical assistance offered by UP Los Banos and increase the conduct of seminars for the contract growers regarding the latest techniques and developments in planting cucumbers.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

LG 993 1998 M17 B36

Document Type

Thesis

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