General Environment, Marketing Management Practices, and Level of Profitability of the Baye-baye Industry of Santa Barbara, Iloilo, Central Philippines

Abstract

As a popular native Ilonggo delicacy, baye-baye production is considered as one of the oldest and most flourishing industries from the historic town of Sta. Barbara, Iloilo. Made of pounded rice mixed with scraped coconut and sugar, Sta. Barbara’s baye-baye is considered as the best tasting in the region. However, the baye-baye entrepreneurs need assistance towards more gainful and sustainable livelihood operations, but so far, no studies have been conducted that draw a fit between enterprise requirements and enterprise development efforts. This paper presents the results of a study on the general environment, marketing practices, and profitability of the baye-baye enterprises using Jensen’s model for value stream mapping. The study addresses the need for an empirical basis for livelihood development promotions for the industry. Primary data from interviews with twelve baye-baye entrepreneurs reveal the use of modern production technology, customers consisting mostly of local tourists and balikbayans who purchase the delicacy mainly as pasalubong, and stores and vendors along the town’s national highway serving as major outlets for baye-baye. Marketing problems include inflation, lack of capital, and inadequate supply of raw materials, among others. Entrepreneurs report an average monthly sale of more than PhP 40,000.00 and a gross profit margin of PhP 29,200.00. Problems on unsold inventory, the absence of financial records, and lack of marketing and promotions challenge profitability. For a more lucrative and sustainable industry, the study recommends provision of business development support such as financial assistance, technical trainings on product development, promotions, and market linkaging delivered within a governance framework.