TECHNOLGY AND LIVELIHOOD EDUCATION 6

Third Quarter
HOME ECONOMICS
Week 8
 LESSON 8
MARKETING PRESERVED
AND PROCESSED FOOD
 Filipinos love to eat. This is why the food business is one of the
most lucrative or producing a great deal of profit businesses in the country.
Producing and selling preserved or processed food can provide additional
income for the family. Like any product or service, however, a good marketing
strategy and program can help create awareness of the product or service and in
turn, boost sales.

In this lesson, the factors that affects the salability and

marketability of a product will be taken up. It will also discuss the ways by
which your product can be packaged so that it not only protects the product, but
also helps increase its marketability. The first thing that attracts the customer to
a product while he or she is shopping is the packaging. Depending on the type
of product, the packaging is usually plastic packs or glass jars usually showing
the product so customers can actually see what they are purchasing. This lesson
will also present the use of technology in advertising a product.
 Let’s Learn

This module would introduce you to knowledge and ability in marketing preserved or processed
food. Anyone who would like to venture in this business should learn how to work together, be honest in
dealing with any business transactions, should be hardworking, creative, and have the courage to persevere
even in challenges that the business would go through.

After going through this module, you are expected to:

1. Market preserved/processed food in varied ways.
2. Package product for sale artistically, prepares creative package and uses
materials sources locally and labels packaged product.
3. Compute costs, sales and gains.
4. Use technology in advertising products 5. Keep record of production and
sales.
 Let’s Try

Directions: True or False. Write PACKAGING if the statement is true. Write MARKETING if
the statement is false. Write your answer on your notebook.

____________ 1. You can use any packaging material you want.

____________ 2. Adding mark up price is not necessary.
____________ 3. Place or location is very important in conducting a business.
____________ 4. The role of traders is to act as the link to the producer and distributor.
____________ 5. You do not need capital if you want to sell some preserved food for
livelihood.
____________ 6. Part of packaging is marketing the product.
____________ 7. Preserved/processed fruits can be packed with ordinary plastic bags.
____________ 8. Packaging is as important as the product itself.
____________ 9. Attractiveness of packaging motivates customers to buy. ____________
____________10. Marketing is promoting and selling product to customers.
 Let’s Recall

A. Identify what type of survey is being described. Arrange the jumbled words to come up with the
correct answer.

LDAE NOITENGARE 1. This type of survey is done to connect your product with
potential buyers.

TERMOUSC FSASITNIOCAT 2. By conducting this survey, you will be able to shape your
marketing campaign, product offerings, and
service to best meet your customer’s
basic need.

KMRATE HCSEEARR 3. This survey is conducted to get a sense of your customer’s

preferred shopping locations and
methods.

DRNBA SSREEAAWN 4. This survey method is done to know about how well your
customer know the brand of your
product.

EEELPMYO AIAIONSTSFCT 5. This type of survey method helps you streamline your office
practices to improve morale, productivity and of course
B. Directions: Identify which survey method is referred to in each number. Fill
in the boxes with the correct answer. Choose your answer in the box.

2. This method is conducted to older users

as they are more likely to have a landline
device.

3. The questions of this survey involved more

personal topics or opinions.

4. This survey method is hassle-free way as your

customers provide data and
opinion from the
comfort of their home.

5. This survey is administered through email that

is directed or sent to a specific customer.
 Let’s Explore

A. According to Stewart in his book, “Packaging as an Effective Tool”

the “pack” is the silent salesman.

What do you think is the meaning of the statement?

Give examples. Write your answer on your notebook.
B. Directions: Examine the products below. Compare which
packaging is suitable and which needs improvements.

A B

5
 Let’s Elaborate

Marketing Preserved/Processed Food

Marketing- is promoting and selling a product to potential customers. Marketing is one

important aspect of business because the success of a business involved in
production is acceptance of the product by the customers. A product that
sells is a product that customers like or want.

We market our products to be able to get prospective buyers. Here are some tips for you to serve as your
guide in this livelihood.

1. Place- Make sure that you are accessible to your market. You will not be able to sell anything if your
buyers cannot reach you. If your place is not easily accessible or difficult to find, offer free delivery for
bulk orders or charge a minimal delivery fee for smaller orders. You might also want to join local trade
fairs to offer them to prospective buyers or visitors.
2. Quality Product- No amount of marketing will succeed if a product is of
poor quality. Before launching your product, conduct a product
tasting among friends, family members, and
neighbors. Take note of their comments and suggestions to
improve quality. Try them out until you come up with the best
quality product.

3. Efficient Worker/Helper- Once orders begin to come in, and you start
getting swamped by customers, you will need to hire and train
someone to help in production, marketing and delivery.
You may lose customers if you are unable to deliver or your
product quality suffers because you are unable to keep up
with the volume orders.
4. Capital- In order to operate even a small business, there should be capital
or money to buy the tools, equipment, and ingredients. Registration of
business and getting the necessary permits from city government, Bureau of
Internal Revenue, and others would also require payments. Even the place
of business or storage facility should be maintained and kept clean and
orderly. These would also require additional expense on your part.

5. Management- A good manager is creative, decisive, and excellent

planner. You should know how to relate with your buyers, suppliers,
and helpers.

Know how to keep costs and expenses down without sacrificing quality.
Record keeping and accounting are also important responsibilities of a good
business person.
Different Operators in the Market

1. Traders- act as the link to the producer and distributor.

2. Commission Agents- take the product and sell it for the best price
possible. They cater to an organized wholesale market or by direct
contact with distributors. Commission commonly range from 4 to 10
percent of the selling price.
3. Retailers- buy items that are in demand by customers. Retailers buy
product at the cheapest possible price, most of them will apply a mark-up
and will obtain the usual profit margin regardless of the wholesale price.
Retailing may be in a street stall, by hawkers, public market, fixed shops, or
supermarkets.
 Packaging the Product
Part of marketing is packaging the product.

Packaging is the process of enclosing a product in an acceptable or suitable

container in order to protect what it sells and sell what it protects. Packaging
also includes designing and producing the packaging appropriate for each type
of product. A package that looks clean, neat, attractive, aesthetically designed,
and easy to handle can motivate customers to look into the product and later buy
it. The package serves as the displayed product which is important as the
product itself.

Packaging processed/preserved food uses different materials. Preserved

fruits and vegetables are packed in glass or plastic bottles, in cans, in plastic
transparent bags, or in wax laminated or foil-lined pouches.
 Three kinds of Packages Involved in Packaging:

1. Primary Package- is the individual package that contains the

product. This
contains the label or name of the
product, its net weight, ingredients, manufacturer,
date of production and expiration,
and others.
2. Bigger Package- contains the number of individual packages
usually in dozens or more.
3. Biggest Package- contains a number of secondary packages. This
is the package ready for
shipping or transporting to
markets and distributors of the product.
Advertising the Product
Promoting the product aims to create awareness and interest of potential customers to
the product. This is the first step to make potential customers buy the product. The ultimate
goal of advertising is to increase the sales of the product.

There are number of ways to advertise a product.

1. Advertise in media-newspapers, magazines, leaflets, flyers, brochures, in
radio, and in television.
2. Advertising through word of the mouth. Consumers who have tasted the
product tell their friends, acquaintances, and family of the good quality
of the product. In turns, these friends can tell others of their experience of the
product.
3. Food demonstration
4. product testing
5. giving out samples
6. Discount offers
Cost-effectiveness of Packaging

The use of packaging represents an added cost in marketing

and the price of the marketed product. On the other hand, presentation and
quality of the product may make it more desirable. Moreover, the
marketable life of the product may be extended because of good
packaging. Make sure, however, that packaging does not cost too much
that the added value on the final selling price become no longer palatable
to customer as what you can recall from our previous lesson regarding
technology in marketing finished products.
 Computing for the Cost, Sales and Profit

In determining the profit or income earned from the sales of the

processed/preserved products, deduct the total expenses from the total sales
of the product sold.

Cost - refers to all expenses incurred in producing the product. It consists of

cost of production which includes cost of ingredients, packaging and other
materials used in the production and the cost of operation which includes labor,
rental utilities-water, electricity; taxes transformation and repairs of equipment
and machines. It also included uncollected debts and damaged products.
Sales- refers to sums of money collected from selling the product.

Profit- income earned from selling products.

To determine profit or income, use the formula:

21,000.00 Gross sale

- 11,800.00 Expenses
---------------
9,200.00 Profit/Income

Here is an example of a computation of cost and profit.

A. Ingredients:
12 pieces duck eggs
2 cups rock salt
4-6 cups water

B. Cost of Ingredients:

12 pieces duck eggs (P4.00 each) P48.00

2 cups rock salt 5.00
---------------
Cost of Ingredients 53.00
 Cost of Ingredients 53.00
C. Other Expenses:

Fuel 15.00
Labor 10.00
---------------
Total Cost: 78.00

If you are going to sell the eggs, add mark-up for your income/profit.

Total Cost P 78.00

Mark-up x 30%
---------------
Income or Profit P23.40
To determine the selling price.

Total Cost P78.00

Income/Profit 23.40
---------------
Wholesale Price P101.40

To compute for the retail price.

Wholesale Price P101.40 /(Divided by) 12 pieces = P 8.45 Retail
Price
Recording Production and Sales

Keeping a record book in business is important. The record book keeps

writing or in print all cost, sales, and profit of the business at regular interval
monthly, quarterly, semi-annually, or annually. The record book enables you to
keep track of money that goes out (expenses) and money that comes in (sales).
It tells you if the business is losing or gaining. The business is losing if the
money that goes out (expenses) is higher than the money that comes in (sales).
The business is gaining if sales are higher than the expenses. If expenses and
sales are almost the same, then a discussion has to be made if the business is to
continue or close.
 Let’s Dig In
Directions: Write CORONA on the blank before the number if the statement is correct. Write
VIRUS if it is not.
____________1. Marketing is introducing and offering your product to your
prospective buyers.
____________ 2. Success of the business depends only on the quality of the
products.
____________ 3. Sell good that meets the needs and wants of your customer.
____________ 4. You can start a business even without capital.
____________ 5. See to it that your business site is accessible.
____________ 6. Join local trade fairs to increase sales.
____________ 7. Poor quality products are cheap but assure maximum customer’s
satisfaction.
____________ 8. Neglect comments and suggestions, your opinion is what matters
the most.
____________ 9. Know how to relate with your customers, suppliers and helpers.
____________ 10. Getting the necessary permits from city government is important
in putting up a business.
 Let’s Remember

1. No amount of marketing will be successful if the product or service is of

poor quality.
2. Find ways to keep costs and expenses down without sacrificing quality.
3. Accessibility is important because you will not be able to sell anything if
your customers cannot reach you.
4. Make your packaging attractive and functional but make sure it does not cost
too much.
5. Keep record of all cost, sales and profits of the business regularly.
6. Be eco-friendly. Utilize recyclable or reusable packaging as much as
possible.
7. Product information must be indicated in the packaging.
 Let’s Apply

Submit three pictures of packaging samples of any preserved/processed foods.

Assess and rate the packaging using the rubrics provided.

SCORE
Criteria 5 Very 3 Good 2 1
Good Fair Poor
Innovativeness
Usefulness
Attractiveness
Information
Total
 Let’s Evaluate

A. Directions: Multiple Choice. Choose the letter of the correct answer.

1. Mang Ben is known for his delicious salted eggs. Aside from the daily orders, he also
has several resellers. He cannot make all the process of making salted egg by himself. What does
he need?

a. Capital c. Efficient worker/helper

b. Quality Product d. Place

2. Aling Gracia’s customers always complaint about her peanut butter. If not about the
bigger peanut particles, it would be that her peanut butter is too dry and not creamy. What is the
concern of Aling Gracia’s customers?

a. Capital c. Efficient worker/helper

b. Quality Product d. Place
3. Sollyn’s mini-grocery is always being packed with customers from the time it opens until
the time it closes. While in a distance, Sally’s variety store could hardly have a customer.
Which of the statements best describe the situation?
a. Sollyn’s mini-grocery is located in a place accessible to the customers.
b. Sally’s variety store is just normally not attractive.
c. Sollyn and Sally are both good managers.
d. Sollyn just have a lot of friends, that’s why many would come to buy to
her mini-grocery.

4. Lina once worked in a Dried Mango factory in Cebu. Having been in that work for several
years, she became an expert in making such product. She wanted to put up a dried mango business
on her own. What does she need basically to be able to start the business?
a. Management c. Capital
b. Quality Product d. Efficient worker/helper

5. Eric works in Bright Star department store as a packer. Sometimes, they run out of stocks
and supplies due to the owner’s absence. What does the store need?
a. Capital c. Place
b. Management d. Efficient
worker/helper
 Let’s Evaluate

B. Computation: Compute for the profit, wholesale price and retail price of the following products.
Show your solution. Write your answer on 1 whole sheet of paper.
.
10 cans Mayang’s Sardines
Cost: P120.00
Mark-up: 20%

Profit: :__________
Wholesale Price: ________
Retail Price: ___________
2. 3 LargeTetra Pak Mooh Milk
Cost:
P280.00
Mark-up:
15%
Profit:
_______________

Wholesale Price: _________

Retail
Price: _________
3. 5 Jars Panyang’s Salted Fish Gourmet
Cost: P425.00
Mark-up: 30%
Profit: _____________
Wholesale Price: _____

Retail Price : ________

4. 5 Jars Sollyn’s Peanut Butter
Cost: P500.00
Mark-up: 25%
Profit: ____________
Wholesale Price: ____
Retail Price: ________
5. 2 dozen Juicy Juice
Cost: 550
Mark-up: 30%
Profit: ______________
Wholesale Price: _____

Retail Price: _________

 Let’s EXTEND

Design the packaging for your product. Observe the following guidelines.

1. Make several studies or designs to choose from.

2. Make sure that the cost of the packaging does not exceed 15 to 20 percent of the cost of
the product itself.
3. Make the packaging attractive to showcase your product but make sure that it does not
become too expensive.
4. Label the packaging with the name of the product. If it is a food item, put the ingredients
used to produce it on the label.
5. Assess the characteristics and quality of your packaging using the rubrics below.

Criteria Score

Innovativeness (30%)

Usefulness (30%)

Attractiveness (20%)

Elegance (20%)
 End of Lesson 8
End of Third Quarter Lessons.
You made it…

Congratulations!