Case Study- Market Competency of Calapan Public Market PDF

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A Case Study on the Market Competency of the Calapan Public Market against the Top Three Malls of Calapan City

A Case Study Presented to the Faculty School of Accountancy Divine Word College of Calapan

In partial Fulfillment Of the Requirements of the Course Managerial Economics

By Aaron Jann Lopez Christine Jeanneth Esteban

July 2019

Overview

The research paper presented tackles about the market competency of the Calapan Public market against the three existing malls of Calapan, namely the Citimart Hypermarket Calapan, Citimall, and Xentro Mall Calapan. The

researchers

conducted

a

study

July

13,

2019,

Saturday with five different kinds of vendors that operate in the marketplace. The

research

paper

contains

a

Strength,

Weakness,

Opportunities and Threats (SWOT) analysis that determine the competency of the public market.

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Executive Summary

The

Calapan

Public market is

to

be observed

as

an

unclean marketplace compared to the malls in Calapan. Street vendors, unclean environment and damaged pipes are some of their disadvantages from the malls. But despite that, the public market still has the ability to compete with the malls and survive. The research paper is a SWOT analysis case study that determines

the

market

competency

of

the

Calapan

market against the three existing malls in Calapan.

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public

Introduction

Many

people

competitive

see

terms.

large

For

businesses

small

exclusively

enterprises

that

in

compete

directly with larger companies, this characterization is an accurate one (Inc. This Morning, 2018). A business see huge companies as a threat to them especially those businesses that have it all- the air-conditioned building, huge variety of consumable goods, branded products of known companies, clean environment, and many more. How a small business see that is a threat, especially small businesses that exist in an

unclean, hot,

Often,

loud,

the agglomeration

and of

somewhat customers

smelly in

environment.

public

markets

always divert the attention of their shopping behavior when unlike things occur that does not happen in malls. Based on ThriveHive 2 years ago, there are seven ways for small businesses to compete with huge businesses. First is the great customer service, second is easy innovations, third

is

improvement

of

efficiency,

fourth

is

customer

connection, fifth is good reputation, sixth is tapping into niche

markets,

or

being

able

to

reach

out

to

specific

markets, and seventh is attracting the best employees. With these seven, a small company is able to compete efficiently with larger businesses. Moreover, according to the StartUp Magazine, some edges that a small firm has is their flexibility or their ability to quickly change. Second, a small firm builds personal

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connection to their customer. Last is their being of a lean or small organization, making it easier for them to operate.

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Analysis

For

a

successful

researchers

aimed

opportunities interview

and

to

have

and threats

questions.

effective

Upon

a

(SWOT)

interview,

strength, analysis

interviewing

the

weakness,

by

deriving

6

five

kinds

of

vendors- a vegetable vendor, a meat shop vendor, an eatery vendor,

a

neighborhood

sundry

store

and

a

clothes

shop

vendor, the researchers derived various answers. The

Calapan

Public

Market

considers

Citimart

Hypermarket Calapan, Xentro Mall Calapan, and Citimall as their competitors because people often go there to shop. And among the three, majority of the six stated that Citimart Hypermarket was their toughest competitor. It is due to the facts

that Citimart

Hypermarket

is

operating

near

them.

Moreover, they stated that Citimart’s edge against them is their cleaner environment and their diverse product offers. However, the edge of Xentro Mall Calapan against them are their

air-conditioned

building,

cleaner

environment,

spacious areas, the free Wi-Fi, various kinds of stores, and diverse products sold. None directly stated that Citimall is their competitor, but one of the interviewee stated that all of them are tough competitors. However, even if those malls have edges against the Calapan Public Market vendors, the vendors also have edges against them. Majority of the interviewee said that their edge against those malls is that their prices of goods to be sold are cheaper than the goods sold in the malls. Moreover,

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the

public

market

vendors

assured

that

their

meat

and

vegetables are fresher than that of the malls. In addition with that, they also said that they can offer discount at the point when people are actually demanding a discount. According to one of them, their main advantage against the malls is that they offer products that the malls do not offer.

Lastly,

one

of

the

interviewees

stated

that

the

mall’s being of a wholesaler is one of their edges. The vendor said that people who buy their goods are budgeted customers and not all customers are able to purchase huge amounts of product. In essence, they can sell product as retails, making customers buy products according to their budget and ability to consume. The public market and the three malls have different kind of customers. The public market often refer to their customers as “suki” or those customers who frequently but their goods. Moreover, they also have the terms “on B” or on budget customers who buy goods depending on their budget. They also have customers who live in the province, who are not rich. Lastly, minorities are one of their main customers who

purchase

goods

depending

on

their

budget.

Those

minorities are often boarders, or those who are not living yet being sustained by their parents. Vendors see their weakness against the malls and have ideas of how to improve their market competency against the malls as a whole. The vendors said that an environment that they are operating could help them. They insisted an idea that the street vendors that operate near them should be

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banned. They said that street vendors drift away customers. Second, they want their pipelines to be fixed because when rainy season comes, the first floor and even the second floor of the public market are often being flooded. Lastly they want the government to help them have more ways to boost their sales up; ideas like the raffle entries promos that the public market offers every September.

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SWOT Analysis Chart

The following is the Strength, Weakness, Opportunities and Threats Analysis Chart of the Calapan Public Market against

the

three

existing

malls

of

Calapan:

Citimart

Hypermarket Calapan, Citimall, and Xentro Mall Calapan.

Strength

Weakness

 Cheaper products

 Dirty area

 Discountable prices

 Inefficient pipelines

 Fresher products

 Incomplete products

 Being retailer  Unique products  Customer

service

and

relations

Opportunities  Cleaner environment

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Threats  The

three

existing

 Better services

of Calapan.

 More promotions

 Street Vendors

malls

Recommendations

Upon analysis of the public market’s competency against the three existing malls of Calapan, the researchers derived the following: 1.

The public market needs a renovation and practice a healthier and cleaner environment so that people would be attracted to buy and the goods are to be totally perceived as fresh.

2. The government could be a huge help in improving the public market by fixing the damaged parts of the public market. 3.

The government should also give the street vendors their own area in the market so that people will not drift away from purchasing in the public market.

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Conclusion

The public markets are not just places of commerce, but a great feeder to the economy of a place. According to an article from Project for Public Places in February 28, 2010, public markets renews downtowns and neighborhoods, brings together diverse people, creates active public space, links urban

and

rural

economies,

promotes

public

health,

and

provides economic opportunity. It is observable that the public market in Calapan does not observe that article, but with

greater

finances

and

support

from

other

people,

especially the government, the public market can provide better goods and services, and might even have a chance of equal competition with the malls. Upon observation and interview, the public market only faces the disadvantage of their environment for environment is the first thing that the consumers base on buying the goods or not. According to an article from Inquirer.net, “Clean lifers, picky shoppers, activist consumers on the rise” in 2018 there are emerging forces shaping consumer behavior. Two of the most observe are the sleuth shoppers who are the investigative type that looks not just in buying a product, but the entire history of the product and the marketplace. Second is the Clean Lifer who demand clean products, clean environment, and products that do not harm the environment. The public market has a very sharp edge when it come to the

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trading

itself.

They

provide

better

services

and

communications than that of the cashiers in the mall. The public

market

vendors

can

offer

discount

at

when

their

customers want. On the other hand, malls only offer discount unless the owner of the branch said so. They also have an edge when it comes to the price of the products sold because they sell products in cheaper prices than that of the malls. Rest assured is the freshness of the products in the public market because their products came from known and trusted sources delivered directly to them. 4.

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Appendices

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Appendix A Interview Question

1.) Do you consider Citimart, Citimall, and Robinsons Mall Calapan as your competitor? 2.) Which of the three given malls do you consider as a tough competitor? 3.) What do you think is your edge among the mall you have chosen? 4.) What do you think are their advantages against you? 5.) Who is your target market? 6.) Do you think there could be improvements in the total development of the whole Calapan Public Market?

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Appendix B Documentation

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