San Beda University

Final Paper in Advanced Business Communication (ADVCOMM)

Service Proposal: Merkado Express

Professor Edgar Timbungco, MBA, APR, CPME

Submitted by:

Marcelo, Keisha Nicole

Namujhe, Alessandra Nicole

Salvador, Emilene

Tayag, Lawrence

4BMC – BSBA Marketing Management

December 2, 2023
A. Context

According to Huang et al. (2015), public wet markets have been known as sources of various food

products in Asia. Wet markets have been named as such because of the heavy use of water in order to

keep produce fresh as well as using it to eliminate waste within the area (Yan, 2013). Wet markets are

known locally in the Philippines as palengke and have become the primary place of trading in the country

since the Spanish colonization (Carmen et al., 2020). Wet markets contribute to the development of the

economy as well as giving small entrepreneurs the platform to start their own business. In relation to this,

one of the biggest factors as to why customers would prefer purchasing commodities in the wet market is

because it offers products that are relatively fresher and more affordable compared to other places of

commerce. (Zhong et al., 2020). Customers have a positive perception about local produce, considering

them to be of higher quality compared to the imported ones sold in supermarkets (Chambers et al., 2007).

Moreover, customers also believe that local produce is more authentic and has higher quality (Boyle,

2003). However, despite these positive perceptions towards local produce, some customers still had their

reasons as to why they would rather purchase from other places of commerce instead of wet markets. One

of the biggest factors that discouraged customers from purchasing produce from wet markets involved

their lifestyle. Customers were primarily concerned about their time, convenience, transportation

availability, parking space availability, and security. Although customers consider shopping local produce

in wet markets to be a notable and even enjoyable experience, they state that it is not practical for them to

do so on a routine basis because of their lack of time, opportunity, and the unavailability of parking spaces

(Pascual et al., 2019).

B. Problem/Opportunity

One of the challenges faced by the food delivery industry, as highlighted in The Restaurant Time, is the

instability of market prices. Beyond managing customer bases, food delivery businesses grapple with the

unpredictability of food costs influenced by various factors. Coping with fluctuating market prices

becomes a formidable task, as businesses find it challenging to effectively monitor and adjust pricing
strategies, further compounded by the need to navigate offensive or defensive pricing models to stay

competitive amidst inflation and revenue deficits among their partners. This dynamic environment places

additional strain on profit margins, impacting overall profitability for food delivery services.

An opportunity in our business is that there is currently no exact similar service in Manila, which is

typically offered only by fast-food or well-known establishments capable of providing delivery. We aim to

fill a gap in the market by reaching local markets in their respective areas and possibly make them as our

partners. Our primary target demographic are restaurants and SMES and our secondary target are regular

palengke customers who find it challenging to go to local wet and dry markets, are budget-conscious, and

seek convenience.

C. Target Stakeholders

Stakeholders - Involving project stakeholders can provide several advantages to the project. They may

participate in decision-making and influence organizational activities in ways that benefit the project

management team.

Marketing - encompasses a wide range of actions aimed at increasing public awareness of the products

and services and persuading consumers to purchase the products and acquire the service.

Advertising - includes customer research, product design, and other considerations.

Managers - Managers may give leadership to their teams by giving a sense of purpose and direction in

which workers can put their faith. They assist employees in achieving their objectives as well as

managing a company's everyday output and operations. They also plan the next stages in project

management and future recruits.

CEO/Owner - CEOs set the course of an organization. They create a plan, explain their vision, and

encourage their organization to be enthused about change and progress.

In understanding the full concept and idea of Merkado Express, it is not a delivery platform of products

but rather a business that is both a product and service platform that acts as a middleman from local

wet/dry markets to consumers. Its aims and objectives is to open an opportunity and equal market to

locals/market sellers, SMEs, and direct from the farm in the tech market. Knowing that there are a lot of

competitors related to this line of business, this is the closest competitor that would be an on demand

service to buy products in different groceries. There may be grocery websites/applications, but those only

contain grocery items. There are limited businesses that offer and deliver fresh from the market for meats,

seafood, vegetables, fruits, etc. However, the brand does not focus on catering to consumers who shop

from groceries on a daily basis but rather people who buy from the local wet/dry market. This includes

restaurants, business-to-business (B2B), business-to-consumer (B2C), regular palengke customers, and

even an opportunity to help local SMEs too. In terms of packaging, it will only use recycled or reusable

materials to reduce waste upon delivery. For orders, there will be an option for the number of kilos and

will be given the opportunity to request the cut of the meat. Meats are inspected by the local market

quality checkers which makes products being delivered always fresh and ready to use. The products are

also being checked by the city government before distribution.

Merkado Express will be more than just a platform where customers can order fresh produce to their

convenience. It will also be a platform where customers will be given flexible options to further

customize their orders based on their needs as well as give them the option to explore products grown and

made locally. Some of the features that will be integrated in the Merkado Express mobile application are:

● Fresh Platters

There will be a section in the app dedicated to fresh (raw) platters in which categories such as

meat, vegetables, and seafood platters will be made available. There will be standard platters,

however, customers are also given the option to further customize the platters according to their

needs. They can choose the size of the platter and the quantity of the specific food items as well

as choose the platter based on how many servings they want or how many people will be sharing
 the platter. Any customer can avail the platters, although this can also be a great option for people

with special diets such as keto, vegan, and pescatarian.

● Fruits in Season

There will be a section in the app featuring fruits that are in season, those that are harvested

during their peak. This will serve as a means to increase the awareness of customers as to which

fruits are best consumed at the different times of the year and encourage them to try the fruits in

their peak condition. There will also be a calendar and fruit chart to further inform the customers

about which fruits will be in season in different months, which is something they can look

forward to and anticipate in their online palengke experience.

E. Success Factors

Activity Details Metrics

Partnerships with local farmers This is to give opportunity to To look for at least 5 to 10
and wet market vendors locals/market sellers and SMES, partnerships “suki” for bulk
direct from the farm and give orders for any local wet market
them an equal opportunity in the in a specific location/city that
tech market. With this will match for every location of
partnership, it gives them the customers that ordered for fast
chance to increase sales and give delivery in their area.
customers a more convenient
way to shop.

Development of a mobile This is to increase customer With the help of marketing and
application for faster orders and engagement and convenience advertising, to increase at least
transactions. when it comes to ordering their 250 new application downloads
goods online. It helps both the and new customer accounts.
business and customers for a
seamless transaction.

Development of own business Create a website for Kaon Ta This can be measured through
website Express. This is to increase clicks and views of the website
customer engagement and by customers.
seamless transactions including
pictures of products and service
it provides along with all
important information about the
business. There will also be a
 step-by-step guide for customers
to learn and see all what is
available.

Promotion through Social Media To increase brand awareness and Gain 500 new followers, 250
Platforms (Facebook, Instagram, online visibility about the likes and shares, in Facebook
and Tiktok) service it offers by posting and Tiktok and 400 new
marketing materials on how followers, 200 likes and shares
orders can be placed and clear for Instagram.
instructions given to customers.
This also includes daily
promotions, advertisements, and
service video highlights.

Hiring of motorcycle riders for As part of the business,

Carmen, et al. (2020). The public wet market system of Iloilo City, Philippines. Journal of Public Affairs

and Development. 7, 103–131.

https://ovcre.uplb.edu.ph/journals-uplb/index.php/JPAD/article/view/808/727

Nikunj, K. (2020). Challenges Faced by Food Delivery Services and How to Address Them.

https://www.posist.com/restaurant-times/restro-gyaan/food-delivery-challenges.html

Pascual, et al. (2020). Understanding consumer buying behaviours towards public markets and grocery

stores in Tacloban City, Philippines. International Journal of Engineering Technologies

and Management Research, 6(3), 40–47. https://doi.org/10.29121/ijetmr.v6.i3.2019.364