PROFITABILITY OF SOFT DRINKS DEALERSHIP IN CAVITE
MARICRIS A. MARTINEZ
1/A thesis proposal submitted to the Faculty of the Department of Management, College of Economics, Management and Development Studies, Cavite State University, Indang, Cavite, in partial fulfillment of the requirements for graduation with the degree of Bachelor of Science in Business Management, major in Business Economics. Prepared under the supervision of Dr. Nelia C.Cresino.
Soft drinks can trace their history back to the mineral water found in natural springs. Bathing in natural springs has long been considered a healthy thing to do and mineral water is said to have curative powers. Scientists soon discovered that gas carbonium or carbon dioxide is behind the bubbles in natural mineral water. Soft drinks by its term are beverages that are not alcoholic drinks. Carbonated soft drinks are also referred to as soda (About.com, 2011). What is special about soft drinks is that it is very easy to find and that all people could avail it. It is really good in satisfying thirst of an individual. It gives a refreshing feeling especially on a very hot weather. According to the research conducted by the Gale Group Farmington Hills Michigan (2008), the soft drink industry began in the mid-1880s. During the early years, soft drinks were sold only in stores that could provide fountain service. Increasing distribution was tied to building additional syrup manufacturing plants. The first marketed soft drinks appeared in the 17th century as a mixture of water and lemon juice sweetened with honey. In 1676 the Compagnie de Limonadiers was formed in Paris and granted a monopoly for the sale of its products. Vendors carried tanks on their backs from which they dispensed cups of lemonade. Sari-sari stores remains the largest distribution channel in 2011, small neighborhood retail outlets called sari-sari stores accounted for the largest proportion of sales in soft drinks. Located in neighborhoods, these outlets make products easily accessible to lower- and middle-income consumers, especially in provincial areas where modern channels such as convenience stores and supermarkets are located in retail centers that are far from residential areas. It should also be noted that Filipino consumers typically do not buy in bulk and store soft drinks products at home. Thus, sari-sari stores become a convenient channel for buying soft drinks in the favored smaller and returnable glass packaging (euromonitor, 2011).
For dealership one will need a lot of collateral. The amount is based on the area of distribution. Soft drink dealership is profitable, but one should have to watch out for a lot of things where one can lose money like breakage, theft, etc. The dealer should be 200% hands-on because of the cash and lots of credit that will be handled. Based on the visitation on the sales office of Coca-cola, Pepsi-cola as well as Royal Crown in Cavite there are 52 soft drinks dealers in the province. Soft drink dealerships as well as other businesses contribute to the improvement in the economic condition of people in a certain area or field and the community in general. Thus, the profitability of its operation is worth studying.
Statement of the Problem
Specifically, the study seeks to answer the following questions: 1. What are the socio economic characteristics of soft drink dealers in Cavite? 2. What is the income of soft drinks dealers in Cavite?
3. What is the profitability of soft drinks dealership business? 4. What are the problems encountered in soft drinks dealership?
The framework of the study which is composed of the socio-economic characteristics as the input, the dealership as the process and the net income as the output is shown in Figure 1.
The socio-economic characteristics of the soft drink dealers such as age, gender and...
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