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Introduction
This paper is a research proposal for the vegetable/seed cooking oil product
category under the oils and fats industry in the Philippines. Frying and stir frying is an
integral part of Filipino cuisine the style of cooking and foods associated with it have
evolved over several centuries from its Austronesian origins to a mixed cuisine with
many Hispanic, Chinese, American, and other Asian influences adapted to indigenous
ingredients and the local palate. This proposed research is intended to know consumers’
awareness, the category and brand usage habits and practices, purchase habits and
practices for the category and brands, attitude toward the category and the brands, and
category and brand images. So that players could serve the market well and result to have
a healthy industry.
Fats and oils are essential elements in any healthful diet. Fats supply some
important nutrients. They also make foods feel and taste rich and satisfying. Fats are
found in some foods, notably meats, poultry, fish, cheeses, eggs, and nuts and vegetables.
Each appears to have a different effect on the body. Monounsaturated fats have a
tendency to lower the levels of certain types of cholesterol in the blood and raise others.
The net result of this is that diets that rely upon monounsaturated fats, rather than
saturated fats, are likely to encourage low levels of serum cholesterol. Nuts and olives, as
well as oils made from those foods, contain primarily monounsaturated oils.
Polyunsaturated fats usually come from vegetables, seeds, or nuts such as corn, safflower,
sunflower, soybean, cotton seed, and sesame seeds oils. Saturated fats are found typically
in animal foods including butter, marbling in meats, lard, chicken skin, bacon, sausages
and eggs. The so called "tropical oils" are also saturated fats like coconut and palm oils.
Saturated fats have been linked to increase levels of cholesterol and an increased risk of
Vegetable oil is the name usually given to any oil product derived from a plant of
any description, either be fruit or vegetables. It has the ability to increase good
cholesterol that our body needs. With the call for people to eat more unsaturated fats,
consumers shifted toward vegetable oils, which are a natural, convenient source of such
fats. The so called "tropical oils" are also saturated fats like coconut and palm oils.
Saturated fats have been linked to increase levels of cholesterol and an increased risk of
developing cardio-vascular diseases. Certain saturated fatty acids are also needed for
The study seeks to determine the Usage, Attitude and Image towards vegetable
and seed cooking oil product category based on consumer’s preference. The researchers
will conduct a Usage, Attitude and Image study of the vegetable and seed cooking oil
The study may serve as reference material for future studies in the area of the
vegetable and seed oil under the oil and fats category in the Philippines.
General Objective:
Specific Objectives:
1. To describe and profile the target market segment of the product category.
2. To find out market and competitive opportunities that brands’ can eventually take
advantage off.
4. To find out the brands’ most effective product benefit positioning in the market
The study is limited to the vegetable and seed cooking oil under the oil and fats
industry that are available in National Capital Region, Philippines. The study will include
local and imported brands, and the variety of cooking oils in the market like coconut oil,
palm oil, olive oil, canola oil, corn oil, sunflower oil, safflower oil, peanut oil, grape seed
oil, sesame oil, and some others. The survey questionnaire will be composed of open-
closed questions and survey will be conducted within the cities of National Capital
Region, Philippines.
II. Literature Review:
Vegetable oils are used all the time. Vegetable oil is the name usually given to any
oil product derived from a plant of any description, be it fruit, vegetable or anything else.
the University of Minnesota, A. Saari Csallany (1992), said that vegetable-based cooking
oils that are heated or reheated for hours would have a high amounts of a toxin with
known connections to heart disease and neurological disorders. Saturated fats cause heart
strengthen the immune system, and prevent cancer, heart disease, diabetes, obesity,
arthritis, and all types of inflammation. Some polyunsaturated fatty acids are so important
to health that they are called essential fatty acids, or EFAs, which literally, everyone can’t
According to Ray Peat, Ph.D., a physiologist who has studied hormones and dietary fats
since 1968, the polyunsaturated fatty acids or PUFAs in vegetable seed oils are the bane
of human health which actually cause cancer, diabetes, obesity, aging, thrombosis,
and varnishes. The main problem is that polyunsaturated oils contain long-chain fatty
acids, which are extremely fragile and unstable. He said that unsaturated oils in some
cooked foods become rancid in just a few hours even when refrigerated, and responsible
for the stale taste of leftover foods. Eating slightly stale food with polyunsaturated oils
isn’t more harmful than eating the same oils when fresh, since the oils will oxidize at a
much higher rate once they are in the body. As soon as a polyunsaturated vegetable oil
enters the body, it is exposed to temperatures high enough to cause its toxic
Cattle ranchers (1940) discovered the difference between saturated and unsaturated fats
when they fed their livestock inexpensive coconut oil (a saturated fat) in order to fatten
them for market. But the cattle didn’t gain weight. Instead, coconut oil made them lean,
active, and hungry. Next, ranchers tested a thyroid-suppressing drug. As expected, the
livestock gained weight on less food, but because the drug was strongly carcinogenic, it
was discontinued. By the late 1940s, ranchers discovered that soybeans and corn caused
the same anti-thyroid effect as the thyroid-suppressing drug, allowing animals to gain
more weight on less food. Since then, corn and soy have been the staples of feedlot cattle.
If polyunsaturated fats are bad for us, why does everyone believe that coconut oil and
other saturated fats are harmful to health and polyunsaturated fats are beneficial? The
answer is a combination of bad science and successful lobbying, which Bruce Fife, C.N.,
N.D., The Coconut Oil Miracle (1986), explains that the American Soy Association
(ASA) sent a “Fat Fighter Kit” to 400,000 American soybean farmers, encouraging them
encroachment of “highly saturated tropical fats like palm and coconut oils” in America’s
food supply, while their wives were encouraged to educate the public about the health
benefits of soy oil. When the attack on coconut oil began, medical and research
professionals who were familiar with it wondered why. They knew coconut oil did not
contribute to heart disease and that it provided many health advantages. Some even
stepped forward to set the record straight. But by this time public sentiment had firmly
sided with the ASA, and people refused to listen, Bruce Fife echoed his sentiments.
Senate hearings on the health implications of tropical oils brought testimony from
research associate Mary G. Enig, Ph.D., and U.S. Surgeon General C. Everett Koop,
M.D., all of whom defended coconut oil. They pointed out that coconut oil has been a
mainstay in the diets of millions of people for thousands of years, and those who still
follow their traditional diet, such as Pacific Islanders, enjoy long, healthy lives with none
of the heart disease, cancer, diabetes, and other illnesses that plague America. The media
paid little attention and instead promoted the anti-saturated-fat hysteria with headlines
(“The Oil from Hell!”) that sold newspapers. In the end, fiction triumphed over fact, and
restaurant chains like McDonald’s, Wendy’s, and Burger King replaced the saturated fats
they had been using with more “healthful” vegetable oils. The switch, according to FDA
Through the 1970s, information about the harmful effects of polyunsaturated fatty acids
was slowly being assimilated and by 1980, it looked as though responsible researchers
important feature, and they would see that there had never been a basis for believing that
research. There is no clear evidence that eating dairy products increases the risk of heart
Coconut oil is 92% saturated. Most of the saturated fat is in the form of medium chain
fashion to other fats and are readily accessible as a source of energy. They are particularly
useful to athletes, bodybuilders and people who work out regularly. These comprise
caproic acid, caprylic acid, capric acid, lauric acid and myristic acid, which enhance the
immune system. Lauric acid, which is also found in mother’s milk, is particularly
effective in combating microbes and pathogens that harm the body. Former president of
the Philippine Heart Association, Conrado Dayritt MD,(2011), says the medium chain
triglycerides in coconut oil are metabolized in the liver and play no role in the
Palm oil is another fat that may have been unfairly demonized by flawed research and
lobbying by the vegetable oil industry. New research is coming to light regarding the
possible health benefits of this tropical oil. According to the research by the University of
Science and Technology of China, (2010), unrefined virgin palm oil has a bright orange
red color and has 15 times more carotenoids than carrots. It is rich in the antioxidants,
vitamins A and E. The Palm Oil Institute of Malaysia, (2000), found that the vitamin E
content of palm oil may inhibit the growth of breast cancer cells.
http://suite101.com/article/good-fats-bad-fatssaturated-fats-coconut-oil-and-palm-oil-
a350742
Definition of Terms:
Oil and Fats are used all over the world for both food application and industrial uses, oils
and fats is the aggregation of olive oil, vegetable and seed oil, cooking fats, butter, and
spreadable oils and fats. The oil and fats industry is a sub-sector of the packaged food
industry. In the Philippines, the industry is in its maturity stage, coconut oil is the most
common vegetable/seed oil in the market with 58% of the total sales. Palm oil ranks
second with a 29% share. Local manufacturing companies dominate in the Philippine
market.
Price is a competitive platform in oils and fats. The frequent usage of vegetable seed/oil
makes customers really conscious about how much they are paying. In the case of
margarine and butter, customers are more keen to buy popular brands thereby
The performance of oils and fats is highly dependent of population growth. Frying and
stir frying remains an integral part of Filipino cuisine. The increasing health conscious
market increases the demand for healthier oil which is a fast growing trend.
Source:
http://www.ihs.com/products/chemical/planning/ceh/fats-and-oils-industry.aspx
http://www.portal.euromonitor.com/Portal/Pages/Analysis/AnalysisPage.aspx
Segment
Fig. 1.1
Oils and Fats
Coconut
Vegetable and Seed Oil
Oil
Palm oil
Butter
Canola oil
Margarine
Soya bean
Olive Oil oil
Sunflower
Spreadable Oils and Fats oil
Corn oil
Grape seed
oil
Sesame oil
Category Definitions:
This is the aggregation of olive oil, vegetable and seed oil, cooking fats, butter,
Butter
Butter is edible yellow fat, salted or unsalted, including spreadable and low fat butter.
Typical composition of butter is butterfat or could be termed as milk fat (80%-82%) and
water (16-17%) and the remaining: milk solids/curd and/or salt. Low fat and spreadable
butter are included here, however, note that such products would then contain small
Margarine
Fatty butter substitute consisting of a blend of hydrogenated vegetable oils mixed with
emulsifiers, vitamins, coloring matter, and other ingredients. Includes all types of
margarine and cooking margarine, including low-fat and fat-free variants. Liquid
included here. Note: Solid margarine is paper-wrapped as opposed to spreads, which are
Margarine is typically used to fry food in a pan, alternatively to bake. It also has a higher
Olive oil includes all varieties of olive oil, including virgin, extra virgin, “green” olive oil
Vegetable and seed oils are made by blending of several different refined oils coming
from seeds/fruits other than olives. Product types include vegetable oil, sunflower oil,
Coconut oil is edible oil extracted from the kernel or meat of matured coconut.
Throughout the tropical world it has provided the primary fats in the diet of millions of
people’s generation. It has various applications in food, medicine, and industry. Coconut
oil is very heat-stable which make it suited to methods of cooking at high temperature
like frying. In the late 1950’s, scientists, doctors, and ultimately the general population
became aware the health risk of consuming saturated fats which resulting to cast aside the
coconut oil as unhealthy and became difficult to find in Western countries. But today’s
ongoing research on coconut oil suggest that about half of the fatty acids found in
coconut oil are lauric acid, an acid touted as being an anti-viral, anti-fungal, and anti-
on saturated fat and it is often very close to solid at room temperature unless especially
treated. The high saturated fat present in palm oil make it great cooking oil because it’s
able to withstand with very high heat, and it will not break down or change when heated.
However, this also makes the palm oil less ideal because saturated fat is generally known
Canola oil is extracted from the fruit of rapeseed especially breed to be low in erucic
acid, which reportedly imparts an unfavorable taste to the oil and may cause health
problems. Canola oil is considered by many to be a healthiest of all popular cooking oils,
and frequently credited with reducing the risk of coronary disease in humans based on its
high monounsaturated fat content and its low percentage of saturated fat. However,
canola oil is rich in omega-3 fatty acids which are considered beneficial to human health.
Corn oil is a type of oil extracted from corn germ. This type of oil is extremely suitable
for frying foods, and often used in the production of margarine, soap making, as well on
some inks making, and may even be used in some pharmaceutical process. This oil is
considered good oil for frying because it is resistant to smoking, and is less prone to
Grape seed oil is extracted from the seeds of grapes. It is extracted chemically because
each seeds yield a small amount of oil. Grape seed oil is known for being light in color,
with a hint of nuttiness, a polyunsaturated and beneficial compound such as linoleic acid.
It also has a very high smoking point, so it’s good to use grape seed oil to fry foods.
Grape seed oil also used for cosmetics combined with other oils to make massage oils. It
appears to assist with skin repair, as it has, mildly astringent and antiseptic qualities.
Peanut oil is made of legumes called peanuts and it’s known for its high smoke point
that’s why its desirable oil for deep frying. From a nutritional stand point, many oils
considered superior to peanut oil, but peanut oil remains a popular choice.
Sunflower oil is a type of vegetable oil which is expressed oil-type sunflower seeds. It
could be used for cooking and cosmetics, and it is especially popular people who are
concerned about the health impacts on oils, because it was claimed as healthy form of
vegetable oil. It is clear to pale in color and it can be used in cosmetics which moisturizes
without clogging pores, and the neutral scent makes it ideal for skin care. Many stores
Sesame oil is derived from sesame seeds. It is commonly used as for cooking and in
others as a condiment to add flavor to food. In other parts of the world it is used as
massage oil and in worship. There are two types of sesame oil available in the market
which are the cold press sesame oil and toasted sesame oil. Cold press sesame oil is oil
that is pressed from raw sesame seeds, and toasted sesame oil, on the other hand, was
pressed from toasted sesame seed. Toasting the seeds produces oil that is darker in color
Soybean is utilized in home and commercial food production. Soybean oil is also possible
to substitute for other vegetable oils in various types of baked goods, especially for cakes
and various types of pastries. In addition, it can help maintain a slightly higher degree of
moisture in the baked goods, providing a more pleasing texture. Pure soybean oil can
purchase in the supermarket today. Healthy food stores also carry this product.
Players:
The Philippine oil and fat industry is lead by local manufacturer San Pablo
Manufacturing, the makers of Minola vegetable/seed oil and margarine which has a share
value of 31% in 2010; followed by other local manufacturers with International Oil
Factory, San Miguel Purefoods, Supervalue, and UFC Philippines occupying the top five
positions and contributing 81% of sales. The foreign brands remain at the backseat. Table
Table 1.1
Brand Company Name 2006 2007 2008 2009 2010
Minola San Pablo Manufacturing Corp. 29.5 28.9 29.9 30.3 30.5
Baguio International Oil Factory 27.8 27.6 27.3 26.9 26.6
Star San Miguel Corp. 7.7 7.4 7.3 7.5 7.5
UFC Nutri-Asia Inc. - 5.5 5.1 5.0 4.9
Magnolia San Miguel Corp. 3.1 3.2 3.2 3.2 3.1
Cook Best Agana Circle Enterprises 2.3 2.6 2.6 2.7 2.7
Spring Malabon Soap & Oil Industrial Co Inc 2.3 2.2 2.4 2.4 2.3
Anchor Fonterra Co-operative Group 2.4 2.2 2.2 2.1 2.1
Bambi AD Gothong Manufacturing Corp. 2.0 1.9 1.8 1.7 1.6
Golden Fry Poms Venture Corp. 1.3 1.4 1.4 1.4 1.5
Dari Creme San Miguel Corp. 1.3 1.3 1.3 1.4 1.4
Elle & Vire Bongrain SA 0.9 0.8 0.8 0.7 0.7
Golden Crown New Zealand Creamery Inc 0.8 0.7 0.7 0.7 0.7
Mazola Sweetyet Development Ltd. - 0.5 0.5 0.6 0.6
Meadow Lea Goodman Fielder Ltd. 0.5 0.5 0.5 0.5 0.5
Baker's Best San Miguel Corp. 0.5 0.5 0.5 0.5 0.5
Buttercup San Miguel Corp. 0.5 0.5 0.4 0.4 0.4
Queensland New Zealand Creamery Inc. 0.5 0.4 0.4 0.4 0.4
Che-Vital New Zealand Creamery Inc. 0.3 0.2 0.2 0.2 0.2
Pietro Coricelli Pietro Coricelli SpA 0.1 0.2 0.2 0.2 0.2
Ybarra Ybarra Group 0.1 0.1 0.1 0.1 0.1
Bertolli SOS Corp Alimentaria SA - - 0.1 0.1 0.1
La Española Aceites del Sur-COOSUR SA (ACESUR) 0.1 0.1 0.1 0.1 0.1
Bertolli Unilever Group 0.1 0.1 - - -
UFC Golden Nutri-Asia Inc 4.7 - - - -
Fiesta
Mazola Unilever Group 0.5 0.5 - - - -
Becel Unilever Group - - - - -
La Española Aceites del Sur SAAceites del Sur SA - - - - -
Meadow Lea Burns, Philp & Co Ltd - - - - -
Miracle Unilever Group - - - - -
Nuttelex Nuttelex Food Prod Pty Ltd - - - - -
SPD Unilever Group - - - - -
Private label Private Label 5.5 5.9 5.9 6.2 6.3
Others Others 5.1 5.2 4.9 4.8 4.9
Total Total 100.0 100.0 100.0 100.0 100.0
The local brands dominated the market which is headed by Minola and followed by other
local brands which are contributing 81% of sales. The local manufacturers make them
attractive to the general market by selling lowest price brands. In effect, international
brands remain in the backset serving those discriminating upscale buyers. Economy
brands are most established in the market while premium brands appeal only to a small
share of middle and higher income consumers. The manufacture makes their products
more affordable to buyers by having small pack sizes which having an estimated accounts
Oil and Fats industry is in maturity stage; manufacturers are creating new products with
no trans-fat and introduced it in the market which helps the market to have a new cycle
industry.
Growth for the last five years:
Table 1.2
2006-07 2007-08 2008-09 2009-10 2010-11
Oils and Fats 9.4 9.9 6.9 5.9 6.7
Butter 6.0 6.5 4.0 4.5 5.0
Cooking Fats - - - - -
Margarine 7.5 8.0 9.0 6.0 5.5
Olive Oil 13.9 16.4 2.0 9.0 7.0
Spreadable Oils and Fats 13.1 11.6 8.5 5.5 6.0
Vegetable and Seed Oil 10.0 10.5 7.0 6.0 7.0
The table shows the growth or the different categories under oils and fats on a year on
year basis in percentage. The table shows that there was a decrease in growth in the
different categories; one factor is because consumers are more health conscious and
therefore consumers shift for a healthier alternative like olive oil which consumers
perceive that olive oil is an excellent natural digestive remedy and a healthy product.
Source:
http://www.portal.euromonitor.com/Portal/Pages/Analysis/AnalysisPage.aspx
III. Methodology
Research Design:
This research employs a descriptive research design. This has been chosen to
cooking oil. Research methods that will be used will be quantitative. Quantitative method
would involve meaningful arithmetic thus the data that will be acquired are numerical in
nature. The researchers will use tools like the use of survey questionnaires for the data
Research Instrument:
instrument to achieve the objectives of the study. The proposed questionnaire will be
answered using the three levels of measurements (nominal, ordinal, and interval) that will
measure the usage, attitude and image of the vegetable/seed cooking oil product category.
For this study, aided and unaided questions will be designed in order to call for
the responses, which will narrow down the field of inquiry, since they chooses among
fixed responses. The questionnaire is consisted of forty two (42) questions which will be
distributed among the randomly chosen respondents that will freely answer the questions
The respondents of the said research will be the residents of National Capital
Region. It is impossible or not feasible to study the entire population therefore the
researchers would settle for a sample. For the purpose of this study, researchers will apply
random sampling method where cities within the National Capital Region will be
The stratified sampling method is being selected because National Capital Region
representative to the entire population since the population is too large that is impossible
to include every individual. And by the help of this sampling the researchers can obtain
basic data and trends regarding to this research without the complications of using a
randomized sample and it is fast inexpensive, easy and the subjects are readily available.
Research Respondents
The research respondents will be Class AB, C, and D households that use cooking
oil. The researchers will have a sample size of 100 respondents from the population and
imply a 95% confidence level and will tolerate a 10% margin of error.
In order for the survey to be valid, respondents must be chosen randomly from a
list of the randomly selected cities within the National Capital Region in the survey
population. The respondents will be given equal chances of being selected for the survey.
Research tool for data handling and analysis
After data has been obtained, data tabulation will be conducted using a software
References:
http://news.healingwell.com/index.php?p=news1&id=525569
http://www.portal.euromonitor.com/Portal/Pages/Analysis/AnalysisPage.aspx
http://www.portal.euromonitor.com/Portal/Pages/Analysis/AnalysisPage.aspx
http://www.ihs.com/products/chemical/planning/ceh/fats-and-oils-industry.aspx
http://www.portal.euromonitor.com/Portal/Pages/Analysis/AnalysisPage.aspx
http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx
http://www.diffen.com/difference/Olive_Oil_vs_Vegetable_Oil
Attributes of Cooking oil:
http://www.vaughns-1-pagers.com/food/vegetable-oils.htm
Flavor
Taste
Smoke point levels
High in polyunsaturated fats
Low smoke point
High smoke point
Color
Refined/Un-refined
Size
Price
Health benefits
We find the benefits that are important to consumers they include ; healthy, high quality,
saving money, convenience, tastes good, and a good cause. The pink boxes at the top of
the HVM show consumers values. Consumers value good health, living longer, happiness,
financial responsibility, living comfortable, satisfaction, accomplishment, and social
responsibility in a cooking oil product.
https://www.ifama.org/events/.../383_Symposium%20Paper.pdf
http://www.yummy.ph/features/food-stories/details/oil-that-you-need
http://chartsbin.com/view/1962
http://chartsbin.com/view/1963
http://hypertextbook.com/facts/2000/IngaDorfman.shtml
http://www.pccnaturalmarkets.com/guides/tips_cooking_oils.html
http://cooking.bcneuman.com/ingredients/oils/
http://www.recipetips.com/kitchen-tips/t--1195/oils-and-fats-tips-and-techniques.asp
http://www.scribd.com/doc/17219649/Project-Report-Ashwani
http://missvickie.com/howto/spices/oils.html
Sample paper:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1894093
http://www.foodmarket.spb.ru/eng/archive.php?year=2012&article=548§ion=8
http://www.docstoc.com/docs/15650629/marketing-plan-for-vegetable-oil
http://www.ualberta.ca/~ecompton/40marketing.html
Health Key Purchase Decision Driver for Cooking
Oils