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Chapter 2
MARKETING ASPECT
This chapter will discuss the marketing aspects of the business. As defined by

Kohler (2012), who is regarded as the father of marketing, marketing is “a societal process

by which individuals and groups obtain what they need and want through creating, offering

and freely exchanging products and services of value with others.” For him, a marketing

situation can happen where there would usually be two parties with potential interest,

capable of communicating with each other and each possessing of things to each other.

From the definition given above, it could be noted that marketing consists of facilitating

activities in order to reach out to its target customers.

There are a lot of things that are being done in marketing. Marketers or those who

are in the field of marketing are the brains behind getting and advertising their product to

the masses. According to the Bureau of Labor Statistics (n.d.), “they monitor market trends,

create advertising campaigns, develop pricing strategies and targeting strategies based on

demographic data and work with the company to develop more awareness of what they

offer.” These people work either in digital marketing wherein they try to advertise their

product using technological platforms or in traditional marketing wherein they try to

advertise their product using traditional kinds of platforms like newspaper, televisions,

billboards, etc.
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This chapter focuses on the different parts of the marketing part of the business that

includes the mission and vision of the company, the summary of the survey that was

conducted by the researchers, the logo of the company and the product with the trademark

of the product, the marketing strategies that the researchers will use, the marketing

segmentation of the product based on demographics, the market and product/service

positioning, the marketing segmentation and the target market of the product, the direct

and indirect competitors of the business, the competitive advantage of the product, the

channel of distribution or how the product will be distributed to its customers, the demand

and supply analysis of the product, the potential market and the market shares of the

business and lastly, the industry analysis based on Michael Porter’s Five Forces Analysis.

Vision of the Company

Sweet Tooth Cravings Company envisions to be the frontrunner in the Rice Cake

industry that furnishes our company for the trends of the globally competitive market of

the 21st century.

Mission of the Company

Sweet Tooth Cravings Company is dedicated to launch and serve a new version of

the rice cake that is different from the traditional one through the utilization of innovative

processes in order to satisfactorily serve our valued customers.

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Summary of the Survey Questionnaire

This part focuses on the results tabulated by the researchers based on the survey

questionnaire that was answered by the respondents from the different barangays in Santa

Rosa.

1. Gender

Table 1.1 Gender Distribution of Respondents

As presented in Table 1.1, there were a more female respondents than male

respondents who took the survey, with 221 respondents or 55% of the sample size are

females while 179 respondents or 45% of the sample size are males.
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2. Do you eat Puto?

Table 1.2

Table 1.2 shows the number of respondents who eat rice cake. 99.25% or most of

the respondents said that they eat rice cake.

3. How often do you buy Puto?

Table 1.3
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Table 1.3 shows how often the respondents buy rice cake with the majority being

once a month as 142 respondents or 36% of the respondent’s population responded this

and only 24 respondents or 6% of the total respondents answered for everyday.

4. How much do you normally spend for Puto?

Table 1.4

Table 1.4 shows how much do the respondents spend for rice cakes. Of the

respondents, 144 or 34% said that they usually spend less than 30 pesos while 43

respondents or only 11% said that they spend 50 to 80 pesos for a rice cake.
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5. What would be the most important factor/s do you consider in buying Puto?

Table 1.5

Table 1.5 shows the factor/s that the respondents consider in buying rice cake with the

majority considering taste as the most important factor in buying rice cake as 301

respondents responded this and odor as the least important factor that they consider. Other

answers include packaging and quality of ingredients.

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6. Are you in favor of a Puto which has a different variety of flavors?

Table 1.6

Table 1.6 shows the differences whether they would like a variety of flavors for a rice

cake or they only like to purchase and eat traditional rice cake. 81% of the respondent’s

population or 324 respondents said that they want to have a variety of flavors for a rice

cake.

7. Which of the following flavors would suit your taste?

Table 1.7
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Table 1.7 shows the respondent’s preferred flavors with 167 respondents preferring

Yema as the flavor of a rice cake. Red Velvet came in second with 10 respondents

preferring this flavor.

8. Which of the following toppings would you like to normally have on your Puto?

Table 1.9
Table 1.9 shows the respondent’s preferred toppings for their rice cake with 155

respondents saying that they want chocolate fudge as a topping for their rice cake. 90

respondents said that they do not want any toppings in their rice cake.
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9. If this product were available today, how likely would you be to purchase it

instead of competing products currently available from other business?

Table 1.9

Table 1.9 shows how likely the respondents would purchase the product if its is

available in the market with 182 respondents saying that they are likely to buy the product

and only 8 respondents said that they will not buy the product if it is available in the market.
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10. Where do you prefer to buy/ order our product?

Table 1.10

Table 1.10 shows the respondent’s preference on how they will buy or order the

product. 50.% or majority of the respondents said that they want to buy or order the

product through direct selling.

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Company Logo

The company’s logo for Sweet Tooth Cravings Co. is simple and primarily consists

of two colors, green and pink. The researchers came up with the name “Sweet Tooth

Cravings” because they want to bring fresh, sweet and tasty rice cakes to the masses and

into their teeth. Green implies youthfulness and it also symbolizes stability, endurance,

growth and freshness. The company strives to maintain its stability in the rice cake industry

through continuous innovation. It can also be said that the company will continue to grow

and bring fresh and creative ideas for the customers. Pink symbolizes harmony,

compassion and caring. The company cares for its valued customers so they are dedicated

to serve their customers by offering high quality products and services.

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Trademark of the Product

Our product, Put-O Cupcake, was an original concept that was made by the

researchers. The researchers assured that this name has not yet been formulated by other

companies in order to avoid copyright infringement which is in accordance to the Republic

Act No. 8293 or also known as the Intellectual Property Code of the Philippines. The

product’s name is unique and appealing which shows the creativity of the researchers.

Product/ Service Logo

The logo for the Put-O Cupcake consists of different colors and objects that has

different symbolisms. The colors that the researchers have used primarily consists of pink,

blue and white. Pink symbolizes harmony and approachability and the hexagonal shape

that surrounds the Puto cupcake also symbolizes harmony. Sweet Tooth Cravings wants to

build a harmonious relationship with its customers and wants to establish itself through

customer loyalty, an affordable price and high quality of products. The blue color
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symbolizes trust and loyalty. Through the unwavering trust and loyalty of the customers,

the company can establish itself in the rice cake industry. The color white symbolizes a

successful beginning. The company hopes to have a successful beginning in order to

maintain its credibility in the industry. The overall design of the logo is more modernized,

animated and eye-catching especially to kids because of its cute and bubbly features.

Marketing Strategies

The researchers have formulated marketing strategies in order to market the product

to its target customers. These are:

1.) Use of Social Media- social media can increase brand awareness and can help

reach out to the customers using social media platforms like Facebook, Twitter

and Instagram

2.) Word of Mouth or In-Store Marketing- the most important tactic that would be

used. This is also the cheapest and the most effective of the marketing strategies

mentioned as this will increase customer loyalty, exposure and distribution as

well.

3.) Tarpaulins and Flyers- these are also important for customer awareness. The

researchers are not only using materials that help in promoting the business,

they are also grabbing the chance of letting of them know the business in a

creative way. Advertising flyers are easy to bring which is an advantage for the

business and its target customers. See Appendix

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4.) Free Taste- Giving someone a free sample of an item can generate not just

interest in the product, but greater interest in the shop in general. This can

encourage a potential client to spend money on products other than just the

sampled item.

5.) Punch Cards- this is also an important marketing strategy that lets customers

earn free merchandise or discounts after a certain number of purchases. This is

important in helping the company identify regular customers and reward them

for their actual and projected value to the enterprise. See Appendix

6.) Bundle Buying- this strategy allows the business to increase the profits and

capture more of the customers’ consumer surplus by selling a set of products

for a lower price.

7.) Establishing a Website- this is an important facet of the marketing strategy

wherein the company establishes a website for the customers for them to know

about the product and its features.

8.) Using Online Reviews- this is also an important marketing strategy for the

business to continuously improve the product and its services. Feedbacks from

customers are important for the success of the business.

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Market Segmentation

To be able to have an effective marketing strategy, the large group was divided

into determined traits like age, race, gender, marital status, occupation, education, and

income. The researchers have first used demographic segmentation wherein the large group

is divided into age groups. The distinction of age was classified into:

1.) 15 - 19 years old- these includes teenagers whom are fond of eating variety of

foods like sweet delicacies and are open to trying new foods.

2.) 20 - 35 years old- these include persons that are able to buy such products and

are seeking for the traditional culture that they have encountered through the

local delicacies

3.) 15 and below- these are kids who are naïve when it comes to Filipino delicacies

but are still craving for sweet treats.

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4.) 36 - 50 years old- this includes middle-aged persons that are familiar to local

delicacies but are not that familiar with new and modernized delicacies because

they want to try Filipino delicacies that they have tasted before using traditional

processes.

5.) 50 and above- these include the elders who wants to try and explore improved

and innovated versions of delicacies that they have tasted before.

The researchers have also divided the large group based on their location. The

researchers have also used geographic segmentation. The distinction of location was

classified into:

1.) Tagapo- these are people who live around the vicinity of Tagapo. They are the

target market of the researchers based on location because of its convenience to

the business.

2.) Market Area- these are people who live around the vicinity of the Market Area

of Santa Rosa. There are a lot of small and medium businesses situated in this

barangay so the probability of earning a profit is high.

3.) Macabling- these are people who live around the vicinity of Macabling. This

barangay is also one of the researchers’ target market due to its convenience.

4.) Ibaba- these are people who live around the vicinity of Ibaba. There are also a

lot of businesses who sell snacks so the company can use this opportunity to

reach out in this barangay.

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5.) Malusak- these are people who live around the vicinity of Malusak. There are

also a lot of affordable eateries situated in this barangay.

Market and Product/ Service Positioning

Rice cakes or Puto have been an integral aspect of delivering people with tasty

treats, but with a true sense of Filipino culture. In line with this, as a new and innovative

product, the Put-o Cupcake positions itself as a new variety of sweet Filipino snacks

introduced with modern features that consumers can get in an affordable price available

for young adults, teenagers, kids and other enthusiasts. This innovative and tasty product

combined with the essence of our national culture will surely give the Filipino’s taste buds

a good ride.

Target Market

The two main target markets of this study include the residents who are highly

interested in purchasing the Put-O Cupcake. They are from the Socioeconomic classes C

and D who are currently living in the 18 barangays in Santa Rosa City of Laguna because

they have a relative purchasing power that can help make the business more profitable and

successful. The target market of Sweet Tooth Cravings based on demographics are in the

age of 20 to 35 years old in the category of adults because they want to remember the

traditional and staple delicacy that can satisfy their needs and another target market are also

from ages 15 to 19 years old in the category of teens because of their sheer curiosity of our
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innovative and new product, they want to try this product while satisfying their cravings.

This encompasses all genders as well. The researchers aim to build a customer satisfaction

and build a strong connection to the customers. It is also expected from the researchers to

provide prime services in order to successfully comply to the demands of the customers.

Direct/Indirect Competitors

This part states the possible competitors of the researchers once the product is

available or introduced to the market.

Direct Competitors

The following businesses are considered as direct competitors of the researchers’

product as they sell the same based product, which is puto, with their own different concept.

Puto Pao King

Puto Pao King is a business branch that made a unique concept of puto. Puto and

siopao are rolled into one, where the contents of a siopao is put as a filling inside the puto.

Puto Pao King also came up on putting variety flavors on it. Currently, they already have

the flavors, Original Asado, Blueberry Cream Cheese, Creamy Custard, Tuna Melt, Cheesy

Queso, and Cream Cheese.

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Puto Binan of Aling Nene’s Pasalubong

Binan is a city in the province of Laguna. One of Binan’s best makers of puto is

Aling Nene’s Pasalubong owned by Constancia Reyes. She started from a small eatery,

where she earned just enough to send her children to school. Aling Nene’s Pasalubong

became official in 1987. Puto Binan comes in an unusual big size, like that of a pizza pie,

and has a sweet, cheesy taste. Its usual color is brown. Aside from the famous Puto Binan,

they also sell other kakanin products. Now, it is run by Rowena Reyes-Decena.

Puto Goldilocks

Goldilocks is a bakeshop or bakery based in the Philippines, which distributes

Philippine cakes and pastries. It started in 1996 when the two Filipino-Chinese sisters,

Milagros Leelin Yee and Clarita Leelin Go, and their sister-in-law Doris Wilson Leelin

opened a small bakeshop along Pasong Tamo Street in Makati. The bakeshop became

famous and successful until now. As it continues to grow, they also came up with different

ideas or products to sell and eventually, puto, with variety of colors or flavors, became one

of them.

Indirect Competitors

The following businesses are considered as indirect competitors since they are on

the same food category of the origin/source of the researcher’s product, which is kakanin.
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Bibingkinitan

Bibingkinitan, which is owned by Richard Hanz, was introduced to the market in

the year 2006 after the first business of Mr. Hanz called Tea Square. Bibingkinitan offers

mini-sized bibingkas with different flavors like macapuno, pastillas, ube, and peanut butter.

Bibingka is native type of rice cake made from milled glutinous rice, coconut milk,

margarine, and sugar. The brand also serves a cup of strongly brewed kapeng barako along

the mini-bibingkas and it is called as BibiKape.

Neneng’s Kakanin and Native Goods

Neneng’s Kakanin and Native Goods is notable for its variety of kakanins.

Originally located at Calamba, Laguna, it had branches at Solenad 3 Nuvali for a year until

its contract expired and now it is located at Sto Domingo. This business is known for its

“Espesyal Puto Bumbong” and “Maja Mais” with Latik and Cheese at top.

Don Benito’s Pichi Pichi

Don Benito’s started back in 2008 and their main product was the cassava cake.

Eventually, pichi-pichi came and the two of them became the main product of Don

Benito’s. Pichi-pichi is a cassava-based traditional snack that can be rolled in grated cheese

or coconut. This Don Benito’s version comes as angular blobs with firm, salty cheese

bearing starchy aftertaste and mild sweet. This pichi-pichi is the firmest of the lot, with a

gelatinous but stiff and dense consistency that makes it chewy.

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Competitive Advantage of the Product

The competitive edge of Put-O Cupcake from its competitors stems from first, its

distinct branding. The researchers have made sure that the name of the business will catch

the attention of consumers. Secondly, its affordable price. Put-O Cupcake offers a

reasonable price to consumers that can match with its competitors around its vicinity.

Third, Put-O Cupcake offers new and innovative flavors that can satisfy the cravings of its

consumers which can put Put-O Cupcake as a marketable product in the rice cake industry.

Lastly, its unique and distinctive set of ingredients that can help Put-O Cupcake as a

respectable and an innovative product in Santa Rosa and in the province of Laguna.

Channel of Distribution

Mixing Steaming Producer

Direct Selling

Consumer
Figure 2.2 Channel of
Distribution
The channel of distribution of the company involves the direct producer to

consumer flow wherein the producer will distribute the product that he/she will sell through

direct selling to the consumers who are the receivers of the goods that the producers sell
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Potential Market

The potential market of Sweet Tooth Cravings Co. includes teenagers aged 15 to

19 years old who want to satisfy their cravings while trying variety of flavors of rice cake.

Adults aged 20 to 40 years old are also part of the potential market of the company who

want to reminisce the traditional culture of our country through the local delicacies of each

region. Elders aged 50 and above are also part of our potential market who seek to try an

innovated version of the traditional rice cake. Kids aged 15 and below are also part of the

potential market who do not entirely appreciate traditional delicacies, but still crave for

sweet treats.

Industry Analysis

The rice cake industry dates back in Southeast Asia and are prepared using rice

grains such as bran, germ and endosperm. According to Holmes (2019), rice cakes in many

variations are known in some countries. They are perhaps best known in Japan and the

countries of the Pacific Rim where rice production is an economic staple and the grain is

the basis for many meals and foods. Soft forms of rice cakes have been popular in Japan

for hundreds of years. The rice cake called mochi was a sweet confection eaten by the

nobility during the Nara Period from 710-794 A.D. when the Chinese greatly influenced

Japanese culture. The popularity of rice cakes blossomed during the Kamakura Shogunate
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from 1192-1333. The variety of cakes included botamochi, yakimochi, and chimaki. During

the Edo Period (when Tokyo became the capital of Japan during the Tokugawa Shogunate

from 1601-1868), rice cakes became even more popular as treats for festivals and as local

specialties.

Historical data shows that rice cakes have grown for the past few years. Last year,

statistical data shows that the growth rate of rice cakes was estimated to be at 7.52% and a

key factor for the continued growth of this industry is the increasing demand for a healthier

snack variety among consumers. The indulgence in rice cakes is high among consumers

globally, as these snacks are produced using natural ingredients and hence consumers do

not have to worry about artificial flavors or gluten content. The growing consumption of

snacks between meals will drive the growth of the global rice cakes at a compound annual

growth rate (CAGR) of close to 9%. (Technavio, 2018). Also, according to Technavio

(2018), the increasing number of new products launches by regional and international

players will support the growth of the global rice cakes market. Thus, the new product

launches are identified as one of the key emerging trends in the global rice cakes market.

Some of the global and local key players in the rice cake market includes Quaker

Oats Company, Mars Incorporated, Element Snacks, Inc., Lundberg, Tastemorr Snacks,

RACIO, s.r.o. and Sanorice, Aling Nene in Binan and Bibingkinitan.

Porter’s 5 Forces helps to define the characteristics of the competition in the rice

cake industry by looking at its four aspects namely: threats of new entry, threats of product
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substitution, buyer’s power and supplier’s power. This is the diagram of Porter’s Five

Forces of the Put-O Cupcake in the rice cake industry

Threat of
New Entry

Medium

Buyers
Supplier Power
Powers
Competitive
Rivalry

Low Medium

Medium

Medium

Threats of
Substitution

Threat of New Entry

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Starting a rice cake business is a profitable business in the food industry that any

person can start-up. Whether a person may be a mother, a student or an unemployed person

can start-up this kind of business with minimal capitalization so the threat of new entry is

medium.

Threat of Substitution

Rice cakes has the tendency to be replaced with kakanins like bibingka, puto

bumbong, biko and sapin-sapin which also has the same characteristics with rice cakes

because of its similar texture with this food. These foods can compete with rice cakes as

an alternative to satisfy the customer’s cravings so the threat of substitution is medium.

Buyers Power

The buyer’s power when it comes to rice cake is medium because there are a lot of

Filipinos who crave for local delicacies so they tend to buy this kind of food or other

alternatives to it. Losing one customer will greatly affect the revenue because competitors

will try to seize that opportunity and utilize different marketing strategies in order to attract

its customers

Suppliers Power

The power of supplier is low because there are a lot of alternative suppliers that the

company can get besides the primary suppliers. The demand for rice cakes is rapidly

increasing and the number of resources and raw materials for rice cakes will be available
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for a long time. The company can select the best supplier that offers high quality of raw

materials at an affordable price and does and does not depend on them.

Competitive Rivalry

From those four factors, it can be identified that the competitive rivalry for Put-O

Cupcake at this time is medium. According to a 2013 statistical report, with 26.3% of all

businesses in the country constitute for breads, cakes and kakanins, the competition in the

market is stiff and continuous innovation and innovative marketing strategies are needed

in order to maintain its relative status in the market.

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