Republic of the Philippines Isabela State University Echague, Isabela COLLEGE OF BUSINESS ACCOUNTANCY AND PUBLIC ADMINISTRATION Marketing Management Marketing potential of Muscovado in selected Municipality of Isabela In Partial Fulfillment of the requirements for the Course MKTG PROF 411 - Marketing Research __________________________________ By; Abauag, Jake A. Bitangcor, Teresita G. Buado, Joseph L. Estaban, Adrian E. Eustaquio, Jenelyn G. Mabanag, Jizelle T. Madriaga, Jesica T. Moldinado, Diana C. Millari, Marimar T. Sermonia, Clarise M. Tappa, Ivy Kristel S. 1st Semester S.Y 2021-2022 CHAPTER 1 INTRODUCTION AND PROBLEM STATEMENT 1.1 INTRODUCTION Is muscovado sugar healthy? Sweet, delicious and hard to resist sugars come in all sorts of forms and flavors. There is white sugar, muscovado sugar, cane sugar, demerara sugar, coconut sugar, turbinado sugar and more. Which sugar is the best choice? At times the popular media touts one sugar as being healthier than the others, such as muscovado sugar. Is muscovado sugar healthy? Let’s measure out these sugars and weight out their benefits. Muscovado sugar, also known as Barbados sugar, is a partially refined cane sugar. Muscovado sugar has a dark brown color and a strong molasses flavor making it a popular bakers’ choice for gingerbread cookies. Muscovado sugar is stickier and slightly coarser than other partially refined brown sugars such as turbinado and dermerara sugar. Of note, these partially refined brown sugars are not the same as the so-called brown sugar commonly found in supermarkets. Supermarket brown sugar is actually highly refined white sugar that’s had molasses added to it to make it appear brown. Some researchers argue that since many people consume white sugar in large amounts, replacing it with a natural brown sugar like muscovado could improve the nutrient content of their diet (3, 10Trusted Source). Today, with the growing awareness of the importance of healthy food, alternative and traditional food-ingredients are given considerable regard in matters of both cooking and health. The scientific and culinary importance of sugar and sugar substitutes has been given priority in recent years because of diabetes, its different complications, and the cultural, traditional, and medical fact that "sugar, or sugar-enriched food is a very important element of a person’s sustenance and dietary nourishment. However, of the different kinds of sugars and sweeteners scientifically tested for proper nutrition, the muscovado is considered by most doctors and scientists to be the healthiest because it contains vitamins and minerals that are usually not available in most of the processed and refined sugar substitutes. While the world is scrambling for its sugar supply, SANTIAGO CITY in southern Isabela is intensifying its muscovado sugar production. The reported high demand of sugar in both domestic and international markets does not alarm us because we have the healthy answer right in our backyards,” said Lolo Juan Paredes, the sugarcane farmer in Bannawag Norte of this city, who first introduced the industry in his village. Despite his age, Lolo Juan Paredes of the sugarcane-growing village of Bannawag Norte, Santiago City, still manages to extract sugarcane sap using a traditional metal cane crusher to process muscovado sugar right in his backyard. 1.2 STATEMENT OF THE PROBLEM This study aims to find out the Marketing potential of Muscovado in selected Municipality of Isabela. Specifically, it answers the following questions: 1. What are the demographic profile of the respondents in terms of; a. Age b. Sex c. Educational attainment d. Source of income e. Employment 2. What is the level of acceptance of the muscovado sugar in terms of: a. Taste b. Texture c. Appearance; and d. Aroma 3. What is the marketability of muscovado in terms of the 4P's a. Product b. Price c. Promotion d. Place of accessibility 4. What is the health advantage of muscovado over other processed or refined sugar? 5. What is the level of public awareness of the muscovado sugar? 1.3 OBJECTIVES This study sought to determine the marketing potential of Muscovado in selected Municipality of Isabela. Specifically, it aims: To determine the profile of the respondents in terms of; age, sex, educational attainment, source of income, and employment. To determine the level of acceptance of the muscovado sugar in terms of : a. taste; b. texture; c. appearance; and d. aroma To determine the marketability of muscovado in terms of the 4P’s a. Product b. Price c. Promotion d. Place of accessibility To determine the health advantage of muscovado over other sugar. To determine the competitive advantage of Muscovado sugar over other processed or refined sugar substitutes. 1.4 To determine the level of public awareness of the muscovado sugar SIGNIFICANCE OF THE STUDY This study will give a basic understanding of the Muscovado industry to the consumer. Vital results of this investigation could be highly beneficial specifically to the following: Producers. The report can be an effective tool for the producer to gain a competitive edge over their competitors. It will help them ensure lasting success in the global Muscovado Sugar market. Future Researchers: This research will be useful reference for the researchers who would plan to make related study precisely on the Marketing Potential of Muscovado in selected Municipality of Isabela. 1.5 SCOPE AND DELIMITATION This study focuses on the marketing potential of muscovado. The data will be collected to the residence of Santiago, Alicia, Echague, and Cauayan City, Isabela. The study would be done through the utilization of online questionnaire to the seller and consumer as a survey and reference. 1.6 DEFINITION OF TERMS MUSCOVADO- is a type of partially refined to unrefined sugar with a strong molasses content and flavor, and dark brown in color. DEMERARA- is a historical region in the GUINAS on the NORTH COAST of SOUTH AMERICA which is now part of the country of GUYANA. TURBINADO- is a type of particularly refined brown cane sugar similar to demerara but with larger crystal’s. BARBADOS- is fine-gran and soft textured similar to brown sugar providing a distinctively strong flavor when added to foods. MOLOSSES- thick, dark brown syrup obtained from row sugar during the refining process, q version of which is used in baking. COCONUT- is a palm sugar produced from the sap of the flower bud stem of the coconut palm. Other types of palm sugar are made from the kithul palm, palmyra palm, date palm, sugar date palm, sogo palm, sugar palm. GINGER BREAD- refers to a broad category of baked goods, typically flavored with ginger, cloves, nutmeg and cinnamon and sweetened with honey sugar or molasses COARSER- the larger size of the crystals (about the size of pretzel salt) makes the sugar stronger and more resistant to heat. CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES 2.1 Muscovado Sugar Mascovado/ Pancho sugar is a type sugar that has been introduced to Filipinos during the colonial period, thus has a traced back from portuguese acucar mascavar and Spanish azùcar mascovado meaning the lowest quality or lowest value of sugar. The term " Panocha " sometimes called " Panotcha or " Panutsa" is adapted by philippine government as a class of muscovado sugar. Muscovado is a non con-centrifugal sugar that is brown color, has courser, Sticker and moist texture dan most brown sugar and is used to be known as "poor people's" sure or the "poor man's sugar" (ITDI-DOST, Industrial Technology Development of Science and Technology, 2007). It is unrefined sugar with High molasses content. According to (PNS/ BFS 145: 20_, Philippine National Standard - Bureau of Agriculture and Fisheries Standards) Muscovado Sugar is a Product of boiling cane Syrup and Air Drying to create dark and moist sugar. 2.2 Muscovado Sugar Production and Marketing in selected areas of the Philippines: a value chain analysis According to Manilay and Quilloy 2009, entitled Muscovado Sugar Production and Marketing in selected areas of the Philippines; a value chain analysis that the marketing and production of muscovado sugar is considered an entry point for increasing farm income. In addition, the demand of the product is growing worldwide as the number of health food consumers’ increases. This building market niche presents an opportunity to the Philippines muscovado sugar farmers due to high demands. 2.3 Muscovado Sugar consumer market in the Philippines: implications of policy and market development According to Pabuayon, 2013 entitled Muscovado Sugar consumer market in the Philippines: implications for policy and market development that based on UAI market surveys conducted among class ABC urban household, usage rate of muscovado sugar was low or only 23% of the respondent. This was due to low level of awareness about this sugar and existing brands and discontinued use among those who tried it. Other possible reasons of having a low rating is about the muscovado sugar's coarse texture and expensive account. 2.4 Ethnic Fermented Foods of the Philippines with Reference to Lactic Acid Bacteria and Yeast. According to Eligado, Colegio, Lim, Gervacio, Perez, Balolong, Banday, and Mendoza entitled Ethnic Fermented Foods of the Philippines with Reference to Lactic Acid Bacteria and Yeast that the Philippines with its large ethnic diversity has regional varieties of fermented foods, generally produced in households or small-scale industry. The major documented Philippine fermented foods are basically made from rice, seafood, sugarcanes, coconut, nipa palm, and selected fruits and vegetables. There is dramatic increase in these fermented foods especially the muscovado sugar. The recent trends in enhanced consumer preference for functional foods crate added economic opportunity for fermented foods. 2.5 Muscovado sugar market in the Philippines: implications for policy and market development Based on UAI market surveys conducted among class ABC urban households, usage rate of muscovado sugar was low or only 23% of the respondents. This was due to low level of awareness about this sugar and existing brands and discontinued use among those who tried it. Majority of those who were aware of and used muscovado had favorable perceptions about it. Favorable comments were related to its applications (ingredients for delicacies), health benefits (healthy and nutritious), and wholesome quality (natural/chemical-free). Others had negative comments that included its' coarse texture' 'dubious quality', and being 'expensive'. Users were motivated by factors related to the following :(1) health and environment (2) altruism (desire to improve the socio-economic condition of farmers producing it), and (3) life-style (using it fits my lifestyle). Satisfaction rating for the MS brands currently used was generally high, with factors such as availability, taste, being certified and aroma as top-ranking. Non-trial of MS was due to current habits and beliefs ('not used to MS'), price ('expensive'), distaste for the product, its nonversatility, dislike for its color, and unavailability. The findings imply that a bigger market share for MS could be possible if awareness level could be raised and constraints to continuing use could be addressed. The industry must adopt a unified and collective action agenda to pursue specific measures and obtain the needed policy support from the government. The recommended measures relate to the muscovado sugar industry as a whole, the individual market players and the public/government sector. (ISSAAS PHILIPPINES, 2009) 2.6 Why Muscovado is a Must these days? MANILA, Philippines - Muscovado or raw sugar is an indelible part of the daily routine of Maricel Almojuela-Tolentino, a program officer of the Asian NGO Coalition. Tolentino puts about a teaspoon of muscovado in her coffee or tea and a little bit more to flavor her champorado. She swears that it provides that extra zing to her spaghetti sauce and can be relished alone with rice. Muscovado is also just 80 percent sucrose, unlike white sugar which is almost pure sucrose, that can wreak havoc on the body’s metabolism, according to Dr. Omar Arabia, who owns the Blissful Belly vegetarian restaurant on Xavierville Avenue. Arabia also notes that white sugar can deplete the body of many minerals it needs to remain healthy and productive. “So many studies have also shown that refined white sugar can accelerate tumor growth. Oncologists seem to agree on this,” said Arabia, who has been practicing natural medicine for the past 35 years. 2.7 Muscovado-- The Sugar for Health Today, with the growing awareness of the importance of healthy food, alternative and traditional food-ingredients are given considerable regard in matters of both cooking and health. The scientific and culinary importance of sugar and sugar substitutes has been given priority in recent years because of diabetes, its different complications, and the cultural, traditional, and medical fact that "sugar, or sugar-enriched food is a very important element of a person’s sustenance and dietary nourishment. However, different kinds of sugars and sweeteners scientifically tested for proper nutrition, the muscovado is considered by most doctors and scientists to be the healthiest because it contains vitamins and minerals that are usually not available in most of the processed and refined sugar substitutes. Because of modern medicine, there has been renewed interest in muscovado sugar which was considered traditionally as a "secondary priority" sweetener in cuisine, and our country’s viewpoint that it is just the poor man’s sugar. In earlier times, processed and refined sugars were the most expensive. This changed with contemporary medicine; the humble muscovado—alongside commercial sugar-substitute brands—is now considered one of the high-priced sweeteners in the market. In some European countries it is considered rare and very expensive. 2.8 Market Analysis and Insights: Global and United States Muscovado Sugar Market In 2020, the global Muscovado Sugar market size was at a considerable rate during the forecast period, between 2021 and 2027. In 2021, the market was growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon. In terms of quality and price, the global market is highly concentrated, with just a few players competing. These companies are focused on expanding their market footprint through strategies such as acquisitions, new product launches, and operational diversification. 2.9 Sugarcane Production and Management Technology for Muscovado Sugar in the Province of Antique, Western Visayas, Philippines Long-term sustainability of industries such as an agri-food production system is essential in the light of pressures to satisfy diverse customer needs, comply with government regulations, and to maintain core competency as in response to stiffer market competition. This has led to the identification of best management practices for highly critical and important commodities as the case of muscovado sugar. The industry is at par when it comes to best management practices along the areas of planting practices, planting material selection, closing in timing, harvesting practices, trash management, shuttle shaving, and variety programming. The industry in the province lags behind along the areas of soil preparation and fertilizer application. 2.10. Laua-an Progressive Muscovado Sugar Industry Traditional practices in sugarcane farming brought a competitive advantage in favor of the Laua-an sugarcane farmers to produce a much demanded muscovado sugar in the market. Muscovado sugar as a one-town-one-product (OTOP) of the municipality of Laua-an, Antique is usually produced without much farm inputs. According to Mr. Alfonsito Sorilla, Laua-an municipal agricultural officer, sugarcane farmers follow conventional farming technologies and not the new production technologies because of limited capitalization, small land holdings and the absence of irrigation system. CONCEPTUAL FRAMEWORK INDEPENDENT VARIABLE DEPENDENT VARIABLE Demographic profile of the respondents Age Sex Educational attainment Source of income Employment Marketing potential of Muscovado HYPOTHESIS •There is a significant relationship between respondents’ profile and the marketing potential of muscovado in selected municipality of Isabela. CHAPTER III METHODOLOGY This chapter presents the methodology of research particularly the research designs, respondents, research locales, procedures and instruments for the data collection, research instrument, and the statistical tools to be utilized by researchers needed in accomplishing this study. 3.1 RESEARCH DESIGN The research design of a study outlines the basic approach that researchers use to answer research question. The researcher chose a survey research design because it is served to answer the questions and the purposes of the study. The researcher focused their research study on the individual consumer producer in throughout the towns of Isabela. The distractive method was used. This method helps the researcher to describe the characteristics of the population that is being studied and to identify the marketing potential of muscovado in selected municipality of Isabela. 3.2 RESEARCH PARTICIPANTS/RESPONDENTS The respondents of this study are consisting of forty (40) individual consumer or producer from Santiago, Alicia, Echague, and Cauayan, Isabela. Purposive sampling is taken into account. The chosen respondents will take part in the survey questionnaires. Purposive sampling will be utilized to choose respondents from various towns throughout Isabela. The respondents for the study will be chosen using a purposive sampling method. Purposive sampling assures that each person has an equal probability of receiving a response, which could be more than the risk depending on the evaluation and explanation. 3.3 Data Gathering Instrument The instrument used was researcher-made questionnaire checklist to gather the needed data for the respondent’s profile. These chosen instruments will be used in the collection of data and to test the validity and reliability of the research study being conducted. The questionnaire was validated by the professor of the subject then the questionnaire checklist are distributed. The draft of the questionnaire was drawn out based on the researchers’ readings, previous study, and professional literature that is relevant to the study. In the preparation of the instrument, the requirements in the designing of good data collection instrument were considered. 3.4 Data Gathering Procedure The purpose of this research, in survey were used. In surveys are questions that is about the muscovado sugar, whose aims is to identify the marketing potential of Muscovado. Making a request letter will be the first step preceding getting into the details testing. The researcher retrieves the request letter once it has been approved. In the administrations, the Dean, and also research advisers and other faculty members, were chosen. To avoid being distracted by school lessons, the researcher used the time available for vacant to administer the questionnaire. Respondents were given considerable time to respond to the inquiry. The researcher now collects the data in order to tally the scores and apply the statistical treatment that will be employed with the study. Likert for Numerical Scale SCALE RANGE QUANTITATIVE INTERPRETATION QUALITATIVE INTERPRETATION 5 4.50 – 5.00 Very Acceptable Strongly agree 4 3.50 – 4.49 Acceptable Agree 3 2.50 – 3.49 Neither Acceptable Neutral 2 1.50 – 2.49 Less Acceptable Disagree 1 1.00 – 1.49 Not Acceptable Strongly disagree 3.5 Statistical Treatment of Data Responses to the questionnaire regarding the marketing potential of muscovado in selected Municipality of Isabela were compiled, sorted, organized and tabulated. They were subject to statistical treatment in order to answer the questions proposed in the study. The statistical tools employed were the frequency, percentage, weighted, mean and standard deviation. On the weighted mean distribution, interpretation of the assessment results was based on the given scale. PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA Demographic Profile of the Respondents Table 1. Frequency Distribution of the Demographic Profile of the Respondents in Isabela. Demographic Variables Frequency Percentage n=40 (%) ______________________________________________________________________________ Age (years) Below 20 y/o 7 17.5% 21-25 16 40% 26-30 15 37.5% 31-35 2 5% Male 18 45% Female 22 55% Allowance 19 47.5% Wage 6 15% None 15 37.5% Educational Junior High 9 22.5% Attainment Senior High 7 17.5% Vocational 1 2.5% College 22 55% Sex Source of Income Table 1 present the frequency distribution of the demographic profile of the respondents in terms of their age, sex, source of income, educational and attainment. Age, As shown in Table 1, majority of the respondents are young consumers belonging to the age group ranges from 21 to 25 years old with 16 or 40 percent. Followed by the 26 to 30 years old ranges with 15 or 37 percent, while 31- 35 age range with 2 or 5 percent. Sex, Base on the result, females outnumbered the males by one. There are 22 or 55 percent females while 18 or 45 percent are males. Source of Income, majority of the respondent’s source of income comes from their allowance with 19 or 47.5 percent. Followed by with 15 or 37.5 percent of the respondents has no source of income. While wage has 6 or 15 percent. Education Attainment. Lastly almost three-fourths (55 percent), that is 22 out of the 40 consumers have earned a college degree. While the others have Junior High (22.5percent), have Senior High (17.5percent), and a Vocational (2.5). It is clear that the respondents are educated with decent occupation earning them a good sum of money. ______________________________________________________________________________ Table 2. Level of acceptance of the Muscovado in Isabela Variables M Qualitative Description Taste 4.05 Acceptable Texture 3.82 Acceptable Appearance 3.92 Acceptable Aroma 3.72 Acceptable 3.87 Acceptable Overall Mean ______________________________________________________________________________ Table 2 present the level of consumer’s acceptance towards the Mascovado Sugar products based on product appearance, taste, texture, appearance and aroma presented by the computed means and standard deviation with the corresponding qualitative description. Based on the result presented in the table, the factors taken in general had an overall acceptable on the factors that influence the preference of the respondents to Mascovado Sugar with equivalent to the overall mean 3.87. This is an indication that the marketing potential of Mascovado are generally acceptable. Among the four factors, taste got the highest mean of 4.05 with a qualitative description of high influence. Followed by Appearance with computed mean of 3.92 and Acceptable as corresponding qualitative description, Texture with computed mean of 3.82 and lastly Aroma with the mean of 3.72 and a qualitative description of acceptable. ______________________________________________________________________________ Table 3. Marketability of the Muscovado in Isabela. ______________________________________________________________________________ Variables M Qualitative Description ______________________________________________________________________________ Product 4.05 Acceptable Price 3.65 Acceptable Promotion 3.7 Acceptable Place 3.87 Acceptable 3.81 Acceptable Overall Mean ______________________________________________________________________________ Table 3 Factors influence in the marketability of Mascovado Sugar. Table 3 present the factors that influence the marketability of Mascovado Sugar based on product, price, promotion and place represented by the computed means with the corresponding qualitative description. Based on result represented in the table, the factors taken in general had on overall acceptable on the factors that influence the marketability of Mascovado Sugar with equivalent to the overall mean 3.81. This is an indication that the marketing potential ______________________________________________________________________________ Table 4. Health Advantage of Muscovado over other sugar ______________________________________________________________________________ Variables M Qualitative Description ______________________________________________________________________________ Contains health benefits 4.02 Acceptable Good for the body 3.67 Acceptable Contributes nutrition Overall Mean 3.77 Acceptable 3.82 Acceptable Table 4 Health Advantages of Muscovado over other sugar Table 4 presents the data that identifies the respondent’s awareness of the health advantages of consuming mascovado sugar over other types of sugar such as health benefits that are good for the body and some nutritional contributions that helps the body. Based on the data above, the respondents are aware of the health benefits present in the muscovado sugar, this shows that the consumers are aware of its health benefits but chose not to buy this types sugar due to the availability of the refined sugar. Table 5. Level of Public Awareness of Muscovado sugar. ______________________________________________________________________________ Variables M Very Acceptable _____________________________________________________________________________________ Overall awareness of the 3.93 Acceptable Consumers for Muscovado Table 5 Level of Public Awareness of Muscovado sugar Table 5 presents the data that identifies the respondent’s awareness of the existence of the muscovado sugar in the market, over all the respondents are well aware of the existence of the muscovado sugar in the market with 3.93 mean which measures acceptable in the likert scale. Conclusion: Measuring the marketability of the muscovado sugar becomes practically important in creating conclusions on how will the muscovado sugar go along with its counterparts in the market and in identifying the challenges and strategies to be used on how to promote muscovado sugar in the market. The researchers found out that most of the respondents of the research wants to use the muscovado sugar as a sweetener product. This means that these respondents want to consume muscovado sugar even with the availability of its counterpart products like white and refined sugar. Moreover, the acceptance of the product’s price, promotion and place of origin is well manifested in the data gathered by the researchers. Finally, the awareness of its existence and health benefits are also well accepted by the respondents which means they are willing to buy nutritious muscovado sugar rather than its machine processed and refined sugar. By recognizing the challenges, and strategies in promoting muscovado sugar in the market we can promote and sell muscovado sugar just like its sweetener counterparts. Overall the marketability of the muscovado sugar according to the data presented above is feasible but there are few challenges that makes the muscovado sugar obsolete as a sweetener product. These challenges include poor marketing, poor promotion among the consumers, poor production, poor distribution, and as well as the mass production of its counterpart and cheaper product which is the refined sugar which is much more accessible for the sari-sari stores and households. These problems makes the muscovado sugar obsolete but present in the market just like other sweetener products…. Recommendations: Promotion of the muscovado sugar are supposed to be interesting, contextual, attractive, and wide so that the consumers are willing to use them for everyday purposes. In this regard, the researchers made the following recommendations for developing the marketability of muscovado sugar based on the respondent’s marketability data. Massive Support for the promotion of muscovado sugar Promotion must come first in the recommended steps so that the existence of product can be known to the consumers and retailers alike. Promotional support could help the manufacturers to promote their products in market so that it can reach the households for consumption. Enhancement of the marketing strategies in selling muscovado sugar Enhanced marketing strategies could help the muscovado sugar manufacturers to sell muscovado sugar in the competitive market. The manufacturers can enhance the packaging, amount, quality, nutritional value and flavor to compete with its counterpart in the market. Seeking government partnership for the mass production of the muscovado sugar. Government partnerships could help the manufacturers to equip machineries in order to mass produce muscovado sugar. With the mass production and availability of mass-produced muscovado sugar, the price could be as competitive with its counterparts hence the consumers can settle to a more healthy and nutritional sugar. Sariling Atin Concept Express your sense of nationalism by means of using products made in the Philippines, supporting Filipino made products could support local businesses and local governments alike. This could help the local manufacturers to thrive in the market and as well as in promoting products in the country.