UNVEILING THE BATTLE AMONG MANDAUEHANON PUNGKO- PUNGKO VENDORS:

MARKETING STRATEGIES, EXPERIENCES, AND CHALLENGES

Abstract

This research study aims to explore the marketing strategies, experiences, and
challenges faced by vendors in the Pungko-Pungko market in order to differentiate their
products and gain a competitive edge. The study utilizes a phenomenological approach to
delve into the unique business model of the Pungko-Pungko market, where vendors act as
resellers of the food they serve. Unlike traditional vendors who own the food they sell,
Pungko-Pungko vendors solely function as intermediaries, remitting the money and earning
profits without possessing ownership of the product. Despite this limitation, these vendors
exhibit exceptional skills in balancing promotions with profitability, adapting to adverse
weather conditions, ensuring proper cooking and freshness, meeting customer demands, and
maintaining consistency in their offerings. Through in-depth interviews and observations,
this study sheds light on the effectiveness of the Pungko-Pungko market's business model. By
focusing on serving customers and generating profits through the food they sell, vendors in
this market are able to thrive and compete with other food vendors. The findings of this
study contribute to the understanding of the marketing strategies employed by vendors in
unique business models and provide insights into how they navigate challenges and
differentiate their products. The implications of this research extend beyond the Pungko-
Pungko market, offering valuable insights for vendors in similar business models and those
seeking to gain a competitive edge in the food industry. By understanding the experiences
and strategies of these vendors, businesses can adapt and implement effective marketing
techniques to enhance customer acquisition and retention.

Key Words: Pungko- Pungko, Vendors, Challenges, Mandauehanon, Marketing strategies,

Customer satisfaction, Customer, Competitive edge, Deafferentation
INTRODUCTION

As Richard Branson famously said, direct competition is the ultimate test of a

business. It forces you to be on your toes, to innovate constantly, and to offer the best
possible product or service to your customers. It encourages innovation, differentiation, and
the delivery of superior products and services to meet customer needs. The "Pungko-
Pungko" street food experience in the Philippines exemplifies this entrepreneurial spirit.
These small and medium-sized enterprises (SMEs) thrive by offering additional value,
establishing a strong brand identity, and implementing effective marketing strategies.

In Mandaue City, near the University of the Visayas, Pungko-Pungko vendors compete for the
same customers. They differentiate their products by offering free items and creating a
welcoming environment, despite the noise and untidiness. These strategies attract
customers, demonstrating the importance of understanding market needs and preferences.

This study explores the marketing strategies, experiences, and challenges of these vendors,
aiming to differentiate their products and gain a competitive edge. The findings could
potentially lead to proposed enhancement to boost sales for Mandaue City vendors.

Specifically, the respondents seek to answer the following problems:

1. How do respondents see the market competition in their business environment?

2. What are the respondents’ market strategies employed in their business?

 3. What are the challenges they encountered in their direct market environment?

4. How do they cope with these challenges?

5. Based on the findings, what recommendations can be proposed?

RELATED LITERATURE AND STUDIES

Several studies have explored different aspects of customer satisfaction, consumer behavior,
and marketing strategies. In a study conducted by Sö derlund et al. (2009), it was discovered that the
physical attractiveness of service workers positively impacts customer satisfaction. Customers tend
to rate more physically attractive service providers as delivering better service quality and overall
satisfaction, particularly among younger customers and for female service providers.
Another study by Jan van Iwaarden et al. (2012) examined the effects of increasing product
variety and shortening product life cycles on quality management systems (QMS). QMS helps firms
strike a balance between product variety and quality by facilitating the sharing of best practices and
promoting continuous improvement. Pungko-Pungko vendors serve as an example of how
businesses adapt to changing market conditions by offering a wider range of options while facing
challenges in maintaining product freshness.
In a study by Vanhonacker et al. (2013) on the innovation of traditional foods, it was found
that modified traditional foods can maintain their perceived traditional character and gain
consumer acceptance. Careful food innovation can attract customers while preserving the
traditional character and authenticity of offerings.
Furthermore, Rudzki et al. (2007) highlighted the strategic marketing approach of offering
freebies. Freebies act as powerful promotional tools, capturing attention, generating interest, and
fostering reciprocity. They can lead to future purchases, recommendations, and brand loyalty, while
also differentiating companies in a competitive market.
Gupta et al. (2018) explored various aspects of young consumers' interactions with street
food, including motivations, preferences, purchasing decisions, and satisfaction levels. The study
also examined how street food vendors adapt their offerings, pricing, packaging, and marketing
techniques to meet the demands of young consumers.
 Bogicevic et al. (2019) investigated the influence of weather conditions on consumer
sentiments and behaviors. The study delved into how weather-related experiences and perceptions
shape consumer opinions, driving them to share their experiences through complaints or
recommendations. It provided insights into the impact of weather on consumer decision-making
processes, satisfaction, and brand perception.
In a study by Zhong et al. (2020) on fast-food restaurants in China, the researchers found that
prompt and friendly service, accurate order fulfillment, and food quality significantly influence
customer satisfaction and loyalty. Consistency in food quality and maintaining high standards are
crucial for customer satisfaction and loyalty.
Lastly, Rubin (2014) studied emporiophobia, the fear of markets, and its connection to
economic behavior. The research aimed to provide insights into the motivations and preferences of
individuals affected by this fear in economic transactions.

METHODOLOGY

Research Design

The researchers employed a phenomenological approach to investigate the experiences

and perspectives of the Pungko-Pungko vendors located in close proximity to the University of the
Visayas in Mandaue City. The primary objective of the interviews was to delve into the marketing
strategies, experiences, and challenges encountered by these vendors. By adopting this
methodological approach, the researchers gained a comprehensive understanding of how the
vendors effectively distinguish their products from those offered by their competitors.

Flow of the Study

The initial phase of the study centers on gathering input pertaining to the marketing
strategies, experiences, and challenges encountered by the Pungko-Pungko vendors. This process
entails obtaining informed consent from the participants, conducting comprehensive interviews,
and subsequently analyzing the collected data. In addition, the research study proposed
enhancement to further augment the capabilities and skills of the vendors.
Research Locale
The study was specifically conducted in Mandaue City, a bustling urban area located in close

proximity to the University of the Visayas. This location was chosen for its notable concentration of

Pungko-Pungko vendors, who operate within a fiercely competitive market. The decision to select this

particular area was driven by its direct relevance to the research topic, as well as its convenient

accessibility for both researchers and potential participants.

Research Participants

The participants of this study consisted of seven street vendors who operated in the

vicinity of the University of the Visayas in Mandaue City. The selection of these participants was

carried out using a purposive sampling technique, which took into consideration their specific

criteria. These criteria included having a minimum of one to two years of experience in the

vending industry and employing diverse marketing strategies to effectively attract customers.

Research Instrument

The researchers employed an open-ended questionnaire in the Cebuano language to

facilitate interviews. The questionnaire was specifically designed to explore various strategies for

attaining a competitive edge, selling experiences, overcoming challenges, implementing coping

mechanisms, and proposing potential enhancement. To ensure the validity and reliability of the

interview guide, a panel of experts thoroughly reviewed and validated its content.

Data Gathering Procedure

Prior to conducting interviews, the researchers diligently obtained informed consent from

the respondents, thereby demonstrating a commitment to ethical research practices. With a focus
on ensuring data validity, reliability, and respect for the rights and privacy of the participants, the

researchers provided clear instructions and guidance throughout the completion of the

questionnaire. In order to accurately capture the data, recording devices were utilized.

Data Analysis

In this study, Thematic Content Analysis was employed as the chosen methodological
approach to analyze and categorize the respondents' answers into distinct themes. These themes
centered around the exploration of strategies for attaining a competitive advantage, effectively
marketing experiences, identifying and overcoming challenges, and proposing potential
enhancements. To enhance the clarity and comprehensibility of the findings, the results were
meticulously organized and presented in tables, facilitating a structured and systematic
presentation of the data. This approach not only allowed for a thorough examination of the
collected information but also facilitated a comprehensive understanding of the key themes
emerging from the respondents' perspectives.

Results and Discussion

In a competitive market like the Pungko-Pungko market, vendors understand the need to
differentiate themselves from their peers. However, one vendor stands out by recognizing that
building good customer relations, practicing self-discipline, and delivering consistent products are
more important than direct competition (Polishchuk, 2021). This vendor believes that success in
the market depends on strong customer relationships rather than simply outdoing other vendors.
While the physical attractiveness of vendors can influence customers' buying decisions, this
vendor emphasizes the need to strike a balance between appearance and other aspects of the
business, such as food quality and customer service (Sö derlund, 2009). They understand that
being presentable is an advantage, but they also recognize the importance of considering other
key factors in running a successful business. To set themselves apart, vendors in the Pungko-
Pungko market introduce unique variations to traditional dishes. By offering items like dim sum,
siomai, and Java rice, vendors create a competitive edge and cater to customers seeking new
culinary experiences. While freebies and discounts can attract customers, vendors must balance
these promotions with profitability. Some vendors offer discounts or extra servings, which may
lead to short-term losses but can foster customer loyalty in the long run. However, vendors need
to ensure that these strategies don't devalue their products or attract only discount-driven
customers. Adverse weather conditions can disrupt the outdoor dining experience of Pungko-
Pungko. Vendors acknowledge that sales slowdown during heavy rains, but they accommodate
customers as much as possible, even if it means sharing a small space. Some vendors have taken
measures like cementing their place to prevent flooding. Despite the challenges, vendors remain
committed to serving their customers, highlighting the importance of resilience and adaptability
in their business. Ensuring the proper cooking of hanging rice is crucial as it significantly impacts
the overall dining experience. Vendors understand that undercooked or hard rice can lead to
customer dissatisfaction and even refund requests. To mitigate this, vendors take steps to resolve
the issue, replacing subpar products and maintaining quality control. Preserving the freshness of
Pungko-Pungko items is a challenge due to their limited shelf life and lack of proper storage
facilities. Vendors resort to strategies like recycling leftover food or storing them in refrigerators
to address this issue. They also emphasize the importance of maintaining hygiene to prevent
foodborne illnesses. Meeting customer demands is key to enhancing customer satisfaction and
loyalty. Vendors cater to specific customer preferences, such as adding certain ingredients to their
orders, and maintain a consistent supply of popular items. This approach reflects their
commitment to customer satisfaction and the importance of adapting to customer demands.
Consistency in delivering high-quality products is vital for building trust and reputation. Vendors
strive to meet customer expectations in terms of taste, freshness, and overall quality. They pay
attention to details like proper seasoning and food temperature, recognizing that these factors
significantly influence customer satisfaction. Overall, the success of vendors in the Pungko-Pungko
market lies in their ability to build strong customer relationships, offer unique variations to
traditional dishes, balance promotions with profitability, adapt to adverse weather conditions,
ensure proper cooking and freshness, and meet customer demands with consistency. By
prioritizing these factors, vendors can differentiate themselves and thrive in a competitive market.

Conclusion and Recommendation

Pungko-Pungko market operates under a business model where vendors act
as resellers of the food they serve. They do not own the food but solely function as
 vendors, remitting the money and earning profits. The excess money they earn
serves as their earnings. Despite not having ownership, these vendors demonstrate
exceptional skills in balancing promotions with profitability, adapting to adverse
weather conditions, ensuring proper cooking and freshness, meeting customer
demands, and maintaining consistency in their offerings. This study highlights that
the Pungko-Pungko market's unique business model allows vendors to focus on
serving customers while generating profits through the food they sell.
The recommendation for future researchers studying the Pungko-Pungko market is to
conduct further investigation into the ownership structure of each vendor and delve into the
financial aspects of the business model. This would enable a deeper understanding of the market
dynamics and shed light on the relationship between vendors and food suppliers. Additionally,
exploring the legal and regulatory framework surrounding the market would provide valuable
insights for potential improvements. By focusing on these areas, future research can contribute to
a comprehensive understanding of the Pungko-Pungko market and identify opportunities for
enhancement.
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