Case Study

How Calapan Public Market Vendors are able to

survive the competition with 6 big malls across
Calapan City?

Calapan Public
Market
I.Introdution

a. History and Background

A new and state of the art two-storey public market was operating

for almost two months after being introduced and inaugurated

by President Noynoy Aquinotogether with local and provincial

officials on December 15, 2011 in Calapan City, Oriental

Mindoro. The new market was built for almost two years after it

was eaten by fire on 2008.

Contradicting to the ordinary public market design, its wet

market like meat, fish and vegetable stalls can be found on its

second floor while those of dry products such as RTW and

household items can be found on the first. The 188 million mall-

like public market was colored orange, followed after the color

of Calapan City Mayor Doy Leachon. According to reports, the

money used for the construction of this new market was loaned

at BDO bank.
b. Analysis

Public markets in developing countries like in the Philippines

constitute an integral part of the local economy as well as

exhibit ethnic and cultural image of the society, which continues

to function also in growing cities. The shopping malls have

intercepted the traditional marketplace culture and are

instrumental in shifting the consumer behavior in urban areas.

This study discusses how consumers' decision-making mannners

shift from local farmer’s market to high-end shopping malls with

built in grocery department with it. This study addresses how

local public market like the Calapan City’s Public Market still

functions amidst coexistence of shopping malls. The results show

that there are various economic and marketplace ambience related

factors that affect the consumer decision towards shopping that

affects the growth and profitability of local vendors. The

article concludes with specific suggestions for increasing and

sustaining the consumer attractiveness of local public market

compare to the level of shopping malls, and advancing strategic

retailing strategies to establish the co-existence of

contemporary and conventional market systems.

The emergence of high-end mall in the urban area where local

public market originally operates have significantly alter the

consumer’s purchase behavior and pattern. A lot of local consumer

greatly consider purchasing at the shopping malls rather than

their near public markets. Still,we have provided factors that

tells why local public markets never go out of fashion. The

factors are as follows:

 Price- It affects everything.

If you set it too high, few people will buy it. If you set it too

low, you artificially give it no value, hence it's looked at as

disposable. You could also lose money selling them. Not good

either.

A product should have a value that is reasonable in proportion to

other similar products, can be purchased without breaking your

wallet, and provides good value for the price. Price could great

greatly be use as a demand forecast for the sellers. The lower

they make the price the higher the market share they will attract

 Quality- Quality products help to maintain customer

satisfaction and loyalty and reduce the risk and cost of

replacing faulty goods. Companies can build a reputation for

quality by gaining accreditation with a recognized quality

standard.Meet customer expectations.Regardless of what

industry you’re involved in, your customers aren’t going to

choose you solely based on price, but often on quality. In

fact, studies have shown that customers will pay more for a

product or service that they think is made well or exceeds

the standard. Your customers expect you to deliver quality

products.Quality is critical to satisfied customers,if you

fail to meet customers' expectation, they will quickly look

for alternatives. Quality is critical to satisfying your

customers and retaining their loyalty so they continue to

buy from you in the future. Quality products make an

important contribution to long-term revenue and

profitability. They also enable you to charge and maintain

higher prices.

 Culture- consumers still purchase goods at their local

public market because it resembles their culture. From a

young age, if a child was brought along by his mother as

an accompaniment it will still linger in the mind of the

child that is now grown up that is the market culture he

is fond and grew up to. Also a lot of public markets

still sells the so called “ old fashion” goods , but not

too old for consumer’s taste pattern or preference.

  Suki- every local consumer have their so called “SUKI”

where in it is a establish relationship of the consumer

to his\her local seller. It notes loyalty and exchange

for that he\ she always have a guaranteed discount. No

question ask.

Despite increasing globalization in the developing countries

particularly in the Philippines, it has affected the

socioeconomic and cultural paradigms in urban areas and

consumer behavior is significantly influenced by the street

markets which demonstrate ethnic trade practices. Vending in

street markets is considered as parallel leisure place

particularly where people tend to move to suburban locations

in order to experience the difference from the routine

shopping. The street markets in urban settings may be

considered as ‘socially responsible distribution centers’ with

the initiatives that provide consumers with market access for

goods and services that they can benefit from by either buying

or selling, thus neutralizing the disadvantages they suffer.

Local Public Vendors had managed to sustain their businesses

and cope up with the phasing of market and consumer.

II. Recommendations and Implementations:

It is undeniably obvious that there is an exponential

shift of consumers as the Calapan City Public Market now

competes with 6 big shopping malls surrounding it, yet it has

manage to keep up their game and evaded to vanish like a

bubble.

But, there is a lot we can possibly do to restore the

unparallel competitiveness of Calapan Public Market

References
https://pdfs.semanticscholar.org/4320/d418ae239e3661bd4b5f90157169ca0cf355.pdf

http://wallyibong.blogspot.com/2011/01/calapan-city-oriental-mindoro-new.html

https://smallbusiness.chron.com/quality-important-business-57470.html