Seventeen of the processing firms never had transactions; however, almost all of them are willing to enter the modern retail market. Instead, to further position its products in the modern retail market, each small and micro strawberry processing firm must be able to adopt efficient and effective schemes and strategies in accordance with the requirements of the modern retail market. How will small and micro businesses meet the demands of modern retail markets.
The study identified the prevailing requirements of modern retail markets in the wholesale of processed products. The fruit processing industry is rapidly becoming an important factor in the country's economic development. It appears that the inclusion of small and micro strawberry processing enterprises in modern retail markets will be influenced by their characteristics, skills and willingness of the strawberry processors themselves.
Further, the demands of the modern retail market will be a gateway for these small and micro enterprises to penetrate. Furthermore, small and micro strawberry processing industries will be characterized according to the profile of the processors (gender, marital status, number of years in operation, location of the processing firm and legality of operation); production (manufactured products, production volume, production months, source of raw materials and quality control system) and marketing and promotion (sale method, payment method, marketing point and promotional activities). Firms' capabilities will be viewed in terms of their degree of compliance with the demands of the modern retail market.
Information about the requirements of the modern retail market was obtained from the middleman and the owner manager of the processing firms that have a contract with the retail market.
CIVIL STATUS
NUMBER OF YEARS IN OPERATION
Strawberries are cultivated in cold part of the municipality, specifically in the Swamp area, which is dubbed as the strawberry fields of the country, not only because of strawberry farming, but also the presence of strawberry processing firms and souvenir areas. Considering the topography and the absence of pollution, this is probably the reason why the majority (47.62%) of the enterprises are located in Longlong, Puguis. On the other hand, eight (38.10%) of the enterprises are located in Morasgebied and 14.25% of the total respondents are respectively located in Km.
It is also notable that there is no major difference in type of business operations between those companies that have contracts with the modern retail market and those that do not. Most (73.19%) of the respondents operate as a sideline activity, mainly being strawberry growers. Of the companies that have not yet penetrated the modern market, strawberry preserves are produced by nine companies engaged in strawberry wine production, while only one (5.88%) produces strawberry soap and another (5.88%) is a strawberry candy processor is.
On the other hand, all (100%) of the respondents who experienced wholesaling to the modern retail market are both strawberry wines and strawberry preserves. Due to the seasonality of the main raw material, strawberries, the processors produce strawberry products during the months of December to May, when there is abundant production of strawberries. Of the companies that penetrated the modern market, two (9.52%) produce in the peak season, but the other two (9.52%) companies produce continuously throughout the year.
On the other hand, thirteen (61.90%) of the rest of the respondents produce every six months of the year especially during the peak season, while four (19.05%) produce both on lean and peak season. Furthermore, even though strawberries are produced in seasons, other full-time strawberry processing firms can still stand by a continuous supply of direct suppliers that enable them to produce even out of season. In the case of strawberry preserves, the firms produce an average of 1,403 bottles, of which the product range is 7,700 bottles of the highest volume of 8,000 and 300 bottles as the lowest value.
This means that the variation in production volume between the companies is significant. While on average 1000 pieces in 100 gram strawberry soap bars are produced in lean months and more than 2000 pieces of it in peak seasons as shown in Table 4. Majority (41.18%) of the processors who do not engage in the modern retail market source fresh strawberries from farmers in the swamp area, which makes no difference from the processors who have dealt with the modern retail market as projected in Table 5.
FRESH
PACKAGING MATERIALS
There are also ready-to-use bottles available in the market where five (23.81%) of the companies order. All processing companies implement quality control systems in their production to ensure the basic health of customers. Nine (42.85%) of the manufacturing companies are supervised by the Department of Trade and Industries (DTI).
In addition, companies that send their products to the modern retail market are paid by check. Modern retail markets are penetrated by four (19.04%) strawberry processing companies, especially in grocery stores in Manila and SM City, Baguio. These strategic markets are perceived by processors as tourist destinations where they bring a range of their products and display them to attract buyers who are usually domestic and foreign tourists.
However, eleven (52.38%) promote their products through trade fairs on certain occasions, especially during the annual strawberry and flower festivals. Problems and needs of strawberry processing companies on the way to integration into the modern retail market. As shown in the study by Ag-agwa et al., 1999, strawberry processing companies are confronted with problems that hinder their business operations.
According to the ranking, packaging and labeling is identified, according to all (100%) of the respondents as the primary need of enterprises that requires improvement to successfully penetrate the modern retail market. Moreover, table 11 shows the figures that all (100%) firms have stated that they need improved materials and facilities to improve their production. Distribution of respondents according to the needs and problems of production, marketing, human resources and finance towards inclusion in the modern retail market.
MARKETING Packaging And
FINANCE
HUMAN RESOURCE
Almost all (76.19%) respondents who have not yet penetrated the modern retail market are ready to cooperate with them. Also, a wider market offer and free promotion of the product are the reasons of the respondents why they would like to deal with the modern retail market. Distribution of respondents according to reasons for readiness to face the modern retail market.
Fifteen of the respondents have expressed their willingness out of seventeen respondents who have not yet penetrated the modern retail market. Distribution of respondents according to perceived level of compliance with the demands of the modern retail market (N=15). In terms of quality, the majority (60%) believe they produce quality products, leading them to rate >90% as meeting the demands of the modern retail market.
However, four (26.67%) claimed that they could meet the delivery arrangement of the modern market more than 90%. Perceived ability to meet the requirements of the modern retail market (according to the researcher's point of view). The small and micro processing enterprises must therefore meet the above requirements of the modern retail market in order to penetrate them successfully.
Registration with these agencies proves that they exist legally as a business entity as a requirement of the modern retail market. It claims that packaging and labeling of the products should be improved in line with the requirements of the modern retail market for further promotion and for consumer awareness of the product. Distribution of strawberry processing according to their compliance with the requirements of the modern retail market as observed by the researcher.
Distribution of respondents by number of years of contact with the modern retail market. These processing plants can penetrate the modern retail market due to the quality of their products and one (25%) having a BFAD registration. Distribution of respondents according to the benefits derived from wholesale to the modern retail market.
Customers experience the quality of the products because they have penetrated the modern retail market. Distribution of strawberry processors according to problems encountered from wholesale to the modern retail market.
Characteristics of the enterprise
If you already market your products with grocers and supermarkets (based on the result of question above): What made you market your products in the grocers/supermarkets. How could you bring and convince the owners to sell your products at their grocery/supermarkets. Are there any problems you have experienced in marketing your products to the modern retail market.
Based on your experience, what are the advantages and disadvantages of marketing to the modern retail markets. What do you think you still need to improve on your products to penetrate the modern retail market. When you first got the deal with this market outlet, what did they require of you.
