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About half of ABC consumers are aware
of muscovado sugar while 40% are aware of organic rice.
These were among the findings of a
February 2008 consumer study commissioned by the
Philippine Development Assistance Programme Inc. (PDAP).
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Organic rice is rice grown naturally
without the use of any artificial pesticides and
fertilizers, and muscovado sugar is a brown, pure,
whole, unrefined sugar with all the natural nutrients of
sugarcane.
The study conducted by the Resources,
Environment and Economics Center for Studies, Inc. (REECS), a well-known market
research consultancy group in the Philippines, used the Usage,
Attitude and Image (UIA) survey method covering a sample
of 300 males and females of class ABC urban households.
Among aware respondents, perceptions
on muscovado sugar and organic rice are largely positive
owing to their applications or uses, health benefits and
wholesome qualities.
Though awareness is increasing, the
study concluded that brand consciousness is still low.
For muscovado sugar, only 24% can readily remember a
brand while for organic rice only 33% can recall a
brand.
Word-of-mouth is the most influential
factor in trial usage, and organic food consumers are
mainly motivated by health reasons, environmental
concerns, altruism, and lifestyle choice.
The study also highlighted the
potential market reach of muscovado sugar and organic
rice.
"About 40% have tried muscovado sugar
but only 23% are using it at present. This translates to
442,000 class ABC households. In two to three years, the
number of households who will likely use it will be
about 583,700 households or up by approximately 5%," the
study said.
Meanwhile, at 7% current usage,
consumers of organic rice are estimated to be about
135,000 class ABC households, and are projected to
increase to 161,000 households within two to three
years.
Non-users of the products cite mainly
their unavailability in outlets and relatively higher
prices.
The study highlighted effective
marketing as one of the vital components in successfully
catapulting and mainstreaming these organic products
into the local and global markets.
Industry players are advised to focus
on marketing these as exactly what they are: wholesome
foods or wellness products, so as to stand out against
the vast array of processed and chemical- laden food
products in the market.
This "premium branding" strategy
should provide good value for money and have its own
unique selling proposition with an effective logo as
well to elevate the status of organic rice and muscovado
sugar as special products that represent certain
attributes of the consumer base.
Consumers are also willing to pay
higher prices provided that products are certified
organic by a legitimate and credible authority and
endorsed by government agencies like the Department of
Health (DOH) and Philippine Nutrition Council.
The study also suggested to link up
with the academe or health/nutrition experts who can
provide health studies to further establish the validity
of product claims and benefits.
Advertising through television
programs or publications on health and lifestyle is a
sure winner for product promotion, but industry players
can also try events marketing and other distribution
channels like trade fairs and cooking demonstrations to
reach the target market.
Industry players should constantly
improve on their marketing strategies through
benchmarking and enhanced marketing skills by attending
seminars or enrolling in business courses.
Moreover, industry players should
gauge consumer feedback about the products to maintain
satisfaction and quality standards.
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