Business Sustainability and Marketing Strategies among Sari-Sari Stores

A Research Proposal Presented to the

Faculty of Bachelor of Science in Entrepreneurship

Carlos Hilado Memorial State University

In Partial Fulfillment

of the Requirements for the Degree

Bachelor of Science in Entrepreneurship

By

Celestial, Jennlyn M.

Crisostomo, Bea V.

Deguenio, Abegail D.

Dela Peña, Jay Aivan S.

Delejero, Joshua C.

Deligero, Arnel O.

Elera, Hardvey V.

Embiado, Ryjie L.

Guotana, Lemuel D.

Gutang, John Gabriel N.

Harisco, Aivan B.

Iwag, Richel Rose E.

February 2024
 Chapter 1

I. INTRODUCTION

According to Gleeson (2019), marketing practices play a crucial role in establishing and nurturing

connections between a business and its target markets, particularly in the context of competing in highly

dynamic and competitive markets. This principle holds true across various business domains. Marketing

transcends being merely a component of business success; it embodies the essence of the business itself.

Regardless of their scale or financial resources, all enterprises rely heavily on effective marketing

strategies. The term "marketing" encompasses a wide array of activities related to promoting and selling a

business's products or services. In the context of micro-businesses, such as sari-sari stores, which are

prevalent in Philippine urban and rural areas, they serve as vital hubs offering daily necessities, food, and

beverages.

Additionally, this widespread presence also signals intense competition within communities, with

many stores buying for a share of the limited market. The emergence of 24/7 convenience stores further

intensifies this competition. While such dynamics foster a healthy business environment, they also pose

challenges to the longevity of individual sari-sari stores. This trend is evident in Dapitan City, where sari-

sari stores cluster together, often selling similar products. This situation presents both advantages and

disadvantages for the community: fostering healthy competition while potentially hindering the long-term

sustainability of individual businesses. Recognizing the pivotal role of marketing in business survival,

researchers aimed to explore the marketing practices of sari-sari store owners in Dapitan City, laying the

groundwork for an extension program designed to enhance marketing strategies and increase the

likelihood of business longevity in 2020 (Arroyo, 2020; Alusen, 2018).

In the Philippines, there is a thriving neighbourhood full of sari-sari businesses, which are stands that

are usually carved out of the owners' places and sell a variety of goods in pieces or smaller packages.
These stores are common in neighbourhoods and are often used despite their small size because of their

proximity to residences and convenience when compared to grocery stores. Despite their low initial costs,

these businesses contribute significantly to household income. Everyone demands a significant and

consistent rate of growth because small and microbusinesses are essential to the economic growth of our

country. The overall state of the economy in our country is dependent upon the prosperity of these

companies; thus, we can't discount their significance. Due to their small production capacity and

vulnerability to even small negative changes in the macroenvironment, microbusinesses have restricted

their ability to manage risk (Cheng, et al., 2019). It is easy to upset the capital chain or even declare

bankruptcy when money is tight (Liu & Tan, 2020).

Sari-sari stores hold a prominent position in Filipino society and economy, serving as vital centers

for daily essentials and community engagement. Stemming from the Tagalog term "sari-sari," meaning

"variety," these small local shops offer a wide selection of goods, catering to the immediate needs of

nearby residents. However, with origins tracing back to pre-colonial eras, sari-sari stores have evolved

alongside Philippine society, adjusting to shifting economic dynamics and consumer preferences.

According to research by Reyes & Tiongson (2015), these stores have become foundational elements of

the Filipino retail landscape, particularly in areas where access to larger supermarkets is limited, such as

rural and urban communities.

Operating on a micro-retail framework, sari-sari stores typically occupy compact spaces within

residential neighborhoods, ensuring easy accessibility for customers. They provide a diverse range of

products, including essential food items, snacks, beverages, toiletries, and household necessities, often

displayed on simple shelves or in cabinets. The affordability and convenience of sari-sari stores make

them indispensable to many Filipinos, especially those reliant on them for daily supplies. As highlighted

by Santos & Capuno (2017), these stores play a crucial role in addressing accessibility gaps, offering

goods and services to communities where formal retail infrastructure may be lacking.
 Additionally, sari-sari stores serve as social hubs where neighbors gather not only to make purchases

but also to exchange news, gossip, and foster camaraderie. This social dimension adds to their cultural

significance and enduring popularity within Filipino neighborhoods. In recent years, scholars and

policymakers have increasingly recognized the socioeconomic importance of sari-sari stores. Research by

Reyes & Tiongson (2015) underscores their role in fostering entrepreneurship and livelihood

opportunities, particularly for women who often manage these small businesses. Despite facing

challenges such as competition from larger retailers, supply chain limitations, and regulatory hurdles,

sari-sari stores exhibit resilience and adaptability, remaining integral to the social fabric of Filipino

society.

Hanaysha and Hilman (2015) state that businesses have faced significant obstacles lately regarding

their sustainability practices; as a result, innovation is the primary means of addressing these issues.

Previous studies have emphasized the importance of various forms of innovation in promoting the

competitiveness and sustainability of businesses. According to Fernández et al. (2018), businesses that

focus on activities and use innovative processes, as well as goods that guarantee increased energy

efficiency and minimal use of resources, are more valued in their surroundings. Also, they discovered that

businesses that emphasize innovation to reduce environmental effects frequently innovate in order to

boost energy-related effectiveness. While innovation capacities have long been recognized as important

factors that influence company performance and success, very few empirical studies have examined their

connections to business sustainability, especially in the context of SMEs.

In these highly competitive markets of today, businesses must constantly examine and evaluate both

their internal and external environment to understand the demands of their target markets and then be able

to effectively use the resources at hand in an effort to meet new challenges and gain long-term

competitive advantages (Kamboj & Rahman, 2017). Businesses of all sizes have come to understand that

consumers primarily assess them on the basis of their social and environmental performance; as a result,

their ability to meet customer expectations is critical to the sustainability of their enterprises (Hussain, et
al., 2018). According to some research on business sustainability (Ng & Rezaee, 2015; Yusoff et al.,

2019), companies that use sustainable business practices in their operations typically have higher brand

values and lower equity capital costs. According to Dyllick & Muff (2016), sustainable practices also

ensure societal well-being, reduce environmental emissions, and help businesses meet their financial

goals. Additionally, they claimed that lower risks and operating expenses for sustainable businesses result

in higher talent's desire to work with them, an established brand, better distinct advantages, and a

reputable business.

The researchers select the subject of "Business Sustainability and Marketing Strategies Among Sari-

sari Stores" due to our awareness of the essential function sari-sari stores fulfill in community economies,

especially in the Philippines where they are widespread. It is imperative to grasp how these small

enterprises can integrate sustainable methods alongside efficient marketing approaches to ensure their

enduring prosperity and contribute to economic and environmental sustainability at the local level.

Moreover, delving into this topic offers significant insights for scholars and professionals engaged in

sustainable business practices, particularly concerning micro-enterprises.

References:

Bancoro, J. C. M., Villagonzalo Jr, B. S., & Villanueva, I. T. (2023). Financial Attitude of Sari-Sari Store
Owners in Barangay Batinguel Dumaguete City towards Microfinancing. East Asian Journal of
Multidisciplinary Research, 2(4), 1749-1758.

Hanaysha, J. R., Al-Shaikh, M. E., Joghee, S., & Alzoubi, H. M. (2022). Impact of innovation capabilities
on business sustainability in small and medium enterprises. FIIB Business Review, 11(1),
67-78.

Pagara, E. E. (2022). Marketing Practices Among Sari-Sari Stores in Dapitan City: Basis for
Proposed Extension Program. International Journal of Multidisciplinary: Applied Business and
Education Research, 3(7), 1302-1308.

Reyes, C. G., & Tiongson, C. R. (2015). The role of sari-sari stores in entrepreneurship and community
development. Philippine Institute for Development Studies.

Santos, F. E., & Capuno, J. J. (2017). Community store or sari-sari store? Local business in the
Philippines. Local Economy, 32(4), 376-396.
Statement of the Problem

This study will be conducted to determine the level of Business Sustainability and Marketing Strategies

among Sari-sari Stores.

Specifically, this study aims to answer the following questions:

1. What is the demographic profile of the respondents?

a. Length of operation?

b. Daily income?

c. Capital?

2. What is the level of business sustainability among Sari- sari stores when taken as a whole and

grouped according to length of operation, daily income, and capital?

3. What is the level of marketing strategies among sari-Sari stores when taken as a whole and

grouped according to length of operation, daily income, and capital?

4. Is there a significant difference in the level of business sustainability among Sari- sari stores

when grouped according to length of operation, daily income, and capital?

5. Is there a significant difference in the level of marketing strategies among Sari-sari stores when

grouped according to length of operation, daily income, and capital?

6. Is there a significant relationship between the level of business sustainability and marketing

strategies among Sari-sari stores?

Hypothesis

1. There is no significant difference in the level of business sustainability and the extent of owner's

marketing strategies of sari-sari stores when grouped according to age, sex, and capital.

2. There is no significant relationship between the level of business sustainability and the extent of

market strategies of the owners of a sari-sari stores.

3. There is no significant relationship between the level of business sustainability and the extent of

market strategies of sari-sari stores.

Theoretical Framework

The marketing mix is a vital building block that which advertising techniques, plans, and Business

operations are developed. It's essential to the because it takes into account the most crucial elements

influencing the success of companies of all sizes. Understanding how competitive the market is and

making sure you can profit from substantial trends, providing purchasers with the relevant goods at the

appropriate cost, location, and timing are every bit as important (Anjani, Irham & Waluyati, 2018).

According to Zulhit, et al. (2018), when evaluating the marketing strategies employed by sari-sari store

owners, the researcher examines the notion of customer loyalty. Customer loyalty, deeply ingrained in

the customer, denotes a steadfast intention to repurchase or revisit a favored product or service,

leading to repeated purchases of the same brand or brand assortment. It signifies a strong dedication to

consistently repurchase or engage with a product or service in the future, irrespective of external factors

such as the prevailing market conditions or competing marketing endeavors.

Moreover, the marketing mix encompasses the various market activities conducted for specific goods or

services within a defined period and market context. Marketing strategy, on the other hand, involves

formulating a marketing mix tailored to help a business achieve its objectives within its target market. As

consumer behaviors evolve, the marketing mix has expanded beyond the traditional 4Ps to include

7Ps( Ottenbacher, and Fauser (2017). It is widely recognized as a fundamental aspect of the marketing

process, playing a crucial role in delivering value and satisfaction to customers. Specifically, the

marketing mix serves as a pivotal driver in meeting customer needs and fostering enduring, profitable

relationships with them. The conventional theoretical framework governing marketing management

activities revolves around the concept of the marketing mix (Festa et al 2016).