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Case Study - Act

Bounty Agro Ventures, Inc. (BAVI) is a leading poultry company in the Philippines that has grown to dominate the chicken rotisserie market. It considers factors like production costs, competition, and demand when setting prices. BAVI has established an extensive distribution network of nearly 2,000 retail outlets nationwide. It initially targeted bulk buyers but has since expanded into restaurants, fast food chains, and grocery stores. BAVI is a major employer that provides livelihoods and helps reduce poverty. It undertakes various corporate social responsibility initiatives in areas like education, disaster relief, and livelihood programs to uplift communities across the Philippines.

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371 views10 pages

Case Study - Act

Bounty Agro Ventures, Inc. (BAVI) is a leading poultry company in the Philippines that has grown to dominate the chicken rotisserie market. It considers factors like production costs, competition, and demand when setting prices. BAVI has established an extensive distribution network of nearly 2,000 retail outlets nationwide. It initially targeted bulk buyers but has since expanded into restaurants, fast food chains, and grocery stores. BAVI is a major employer that provides livelihoods and helps reduce poverty. It undertakes various corporate social responsibility initiatives in areas like education, disaster relief, and livelihood programs to uplift communities across the Philippines.

Uploaded by

Johnloyd daracan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Republic of the Philippines

NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY

Cabanatuan City

"Cultivating Growth: A Case Study of Agro-Based Industry

in the Philippines"

Submitted by:

John Loyd R. Daracan

BSBA 2-H

Submitted to:

Ms. Rowena B. Abat

Instructor
INTRODUCTION

The Philippines is known for its terrain and tropical conditions. It is endowed with fertile

lands and rich natural resources and is considered one of the homes of the finest agricultural

products in Asia. It is historically proven, way back when the Spanish colonizers saw the

prosperous land of the east. This case study delves into the wide landscape of agro-business

industries in the Philippines. It aims to broaden the insights into how several indicators affect the

flow of one’s industry. Furthermore, this case study will shed light on the vast amount of factors

that will help to provide a better understanding of how the agricultural-based industries in the

Philippines are growing faster and larger.

To provide a specific scope and understanding, this case study will focus on one of the

leading corporations in the poultry sector of agro-industry, the BOUNTY AGRO VENTURES,

INCORPORATED. This is a poultry company based in Pasig, Metro Manila, Philippines. It is a

consumer staple products company in the food sub-industry. It is a privately owned company and

a family business of Tennyson Chen before it became incorporated in the year 1997. BAVI was

known as the Philippines’ largest rotisserie chicken company that expanded its services all around

the country with almost 2,000 stores nationwide. This company focused on the supply chain of

dressed chicken from hotels and restaurants to institutional food companies and supermarkets.

BAVI is the main company of the Bounty Fresh Group of Companies. It manages several well-

known retail chains: Chooks-to-go, Uling Roasters, Reyal Litson Manok, Adobo Connection and

HeiHei. BAVI’s purpose is to inspire national pride, hope, and compassion.

This case study provides a comprehensive overview of the impact of agro-based business

on the nation's economic development, rural livelihoods, and environmental sustainability.


OBJECTIVES

The main objective of this case study is to provide insights into how agro-based businesses

in the Philippines manage the several indicators of sustainable agriculture. This study aims to

analyze the strategies and practices employed by these businesses to ensure the long-term viability

of their operations while minimizing negative environmental impacts. Additionally, it will explore

the challenges faced by agro-based businesses in implementing sustainable agriculture practices

and identify potential opportunities for improvement. By examining these factors, this case study

will contribute to the existing knowledge on sustainable agriculture in the Philippines and provide

valuable recommendations for policymakers and industry stakeholders.

Key Objectives: Indicators

(a) Identify the factors that the company used to formulate pricing on its products;

(b) provide insights on the company’s distribution and market share;

(c) identify the company’s strategies in choosing their target customers;

(d) highlights the company’s contribution to the employment generation;

(e) identify the company’s corporate responsibility as well as its execution;

(f) highlights the impact of the company on the society.


A. PRICING

Bounty Agro Ventures, Inc. (BAVI) is a privately owned company in the Philippines that

produces poultry products. Some factors that BAVI has had to consider when pricing their

products include;

(1) The cost of raising and feeding the poultry;

(2) the competition in the market, and;

(3) the demand for poultry products.

BAVI also takes into account the fluctuating prices of feed and other inputs, as well as the

costs of processing and packaging. Furthermore, they consider the purchasing power and

affordability of their target market to ensure that their products remain competitive and accessible

to consumers.

The strategic pricing of Bounty Agro Venture, INC. may vary depending on the several

factors that affect its expenses as well as the allocated capital while producing the product. This

includes the production cost – the costs that are associated with the raising and processing of

poultry, such as feed, labor, utilities, and overhead costs. Competitive pricing – BAVI may analyze

the pricing strategies of its competitors in the poultry industry to ensure that their pricing is

competitive while still allowing for profitability. Furthermore, they also consider the market

demand of the product as well as the distribution cost in the process of getting the products to the

market – this includes transportation and storage – this may add impact to the pricing decisions.

However, maintaining premium quality products and strong brand images can support higher

pricing, as consumers may be willing to pay a premium for the perceived value of the product.
B. DISTRIBUTION AND MARKET SHARE

Bounty Agro Ventures Inc. has established itself as a dominant player in the poultry industry

in the Philippines. With its wide range of poultry products, including chicken, duck, and processed

meats, BAVI has successfully penetrated both the retail and food services sectors. The company's

strong distribution network ensures that its products are readily available to consumers across the

country, further solidifying its market share.

BAVI has almost 2,000 retail outlets across the country. Their aggressive market expansion

and distribution strategy have helped it to dominate the chicken rotisserie business. They were the

first company in the local market to vacuum pack their chicken products. This innovative approach

not only prolonged the shelf life of their products but also ensured their freshness. BAVI's vacuum

packing technique set a new industry standard, attracting more customers and driving up their

sales. As a result, they quickly outpaced their competitors and solidified their position as the top

player in the chicken rotisserie market.

BAVI's distribution strategies include Promotion, Delivery, Collection, Sales, and Activity

reports. These distribution strategies play a crucial role in ensuring that BAVI's products reach its

target customers effectively and efficiently. Through various promotional activities such as

advertising, public relations, and sales promotions, BAVI aims to communicate the value and

benefits of its products to customers. Delivery is another important component of BAVI's

distribution strategy, as it involves the transportation of products from the company's warehouses

or production facilities to the customers' desired locations.


C. TARGET CUSTOMERS

Bounty Agro Ventures, Inc. (BAVI) initially targeted bulk buyers of chicken. They expanded

their business in line with the demand of these buyers. They strategically ventured into different

segments of the market including supplying chicken to restaurants, fast food chains, and grocery

stores. These changes and diversification allow BAVI to adapt and open a wide opportunity to

grow into their business. Furthermore, BAVI also used store location as a strategy to secure its

market, they use geographical conditions to gain an advantage in supplying markets and expanding

their customer reach.

D. EMPLOYMENT GENERATED

Bounty Agro Ventures, Inc. (BAVI) provides employment and livelihood to Filipinos. By

providing employment opportunities, BAVI not only helps diminish poverty but also empowers

individuals to become self-sufficient and contribute to the growth of the nation's economy.

According to Indeed.com, the average monthly salary at Bounty Agro Ventures ranges from Php

9,740 for a utility worker to Php 24,076 for a contract manager. The average daily wage ranges

from Php 390 for a crew member to Php 570 for a cashier. It highlights the BAVI’s fair

compensation among the employees. Furthermore, they also provide continuous learning and

growth that will have a retroactive effect on the growth and development of the company.
E. CORPORATE SOCIAL RESPONSIBILITY

Some of the social responsibilities of Bounty Agro Venture, Inc. are reducing carbon

footprints, improving labor policies, and participating in fair trade. In addition, they also provide

a wide-ranging focus on making a sustainable impact in:

(1) Sports;

(2) Education;

(3) Disaster relief;

(4) Livelihood and Employment;

(5) Inclusion.

Through its various programs and initiatives, BAVI aims to uplift the lives of individuals and

communities across the Philippines. With a strong commitment to corporate social responsibility,

the company has become a beacon of hope for many Filipinos who are in need of support and

opportunities. Moreover, their financial assistance programs for education, shelter, and basic needs

have made a significant impact on the lives of countless individuals, enabling them to access better

education. In addition, They also provide financial assistance for education, shelter, and basic

needs.

This act of generosity is a reflection of the company’s commitment to support the youth and

to make a difference in the lives of the people they serve. It is not just about providing high-quality

products but about being a brand that truly cares about the well-being and future of the Filipinos.
F. IMPACT TO THE SOCIETY

Companies have the power to make a significant impact on societies in a variety of ways. From

providing high-quality products and creation of job opportunities to the promotion of good welfare

and providing livelihood to the society are some the aspects that the Companies must consider to

bring impact not just to the lives of the people but also for the betterment of their future.

Bounty Agro Venture, Inc. proves that they are not only providing good quality and delicious

products but also offering a sincere and empathetic approach to their surroundings. From making

high-quality products that satisfy consumers to providing job opportunities that promote self-

sustained livelihood for society. This company brought a huge impact not just in the business

sector and market shares, but also in the lives of the people, extending their help to provide a

sustainable and more prosperous environment to our society.


REFERENCES

Wikipedia (October 2023). Bounty Agro Ventures.

https://en.wikipedia.org/wiki/Bounty_Agro_Ventures#:~:text=Bounty%20Agro%20Vent

ures%2C%20Inc.,%2C%20Adobo%20Connection%2C%20and%20HeiHei.

Bounty Agro Ventures (December 2020). BAVI Supports the Department of Agriculture’s

Subsidy Program for Farmers.

https://bavi.com.ph/2020/12/16/bavi-supports-department-of-agricultures-subsidy-

program-for-farmers/

Bounty Agro Ventures (January 2022). Chooks-to-Go Listed Among World’s Most Popular

Fast Food Chains.

https://bavi.com.ph/2022/01/06/chooks-to-go-listed-among-worlds-most-popular-fast-

food-chains/#:~:text=ABOUT%20BAVI-

,Bounty%20Agro%20Ventures%2C%20Inc.,2%2C000%20stores%20across%20the%20c

ountry.

Bossjob (2010). Bounty Agro Ventures, Inc.

https://bossjob.ph/en-US/company/bounty-agro-ventures-inc-9208

Bounty Agro Ventures (2023). Who are we?.

https://bavi.com.ph/about/#:~:text=WE%20ARE%20BAVI&text=With%20almost%202

%2C000%20retail%20outlets,%2C%20Adobo%20Connection%2C%20and%20HeiHei.
Arceo-Dumlao T. (June 2011). The Big Success that has Gone Unnoticed.

https://business.inquirer.net/3930/a-big-success-that-has-gone-

unnoticed#:~:text=When%20it%20comes%20to%20producing%20quality%20poultry,as

%20one%20of%20the%20best%20in%20its

Bounty Agro Ventures (August 2016). Q&A with Bounty Agro President Ronald Mascarinas

on Turning Crisis into Opportunity by Josiah Go.

https://bavi.com.ph/2016/08/19/qa-with-bounty-agro-president-ronald-mascarinas-on-

turning-crisis-into-opportunity-by-josiah-

go/#:~:text=Poor%20farm%2Dto%2Dmarket%20infrastructure,Agro%20had%20to%20c

ontend%20with

Bounty Agro Ventures (May 2017). Speed and quality of execution.

https://bavi.com.ph/2017/05/30/speed-and-quality-of-

execution/#:~:text=There%20is%20no%20doubt%2C%20Bounty,normal%20grind%20o

f%20the%20industry.

Common questions

Powered by AI

BAVI's distribution strategy, which includes a robust network of almost 2,000 retail outlets, aggressive market expansion, and innovative packaging like vacuum packing, ensures that its products are widely available and fresh. These strategies solidify BAVI's market share by enhancing the effectiveness and efficiency of reaching target customers . Promotional activities, transportation logistics, and setting industry standards further allow BAVI to dominate within the poultry market .

BAVI contributes to employment generation by providing jobs ranging from utility work to management roles. The company offers competitive compensation, with average monthly salaries varying from Php 9,740 for utility workers to Php 24,076 for contract managers. Additionally, BAVI provides continuous learning and growth opportunities for its employees, which can lead to better career prospects and positively impact the company's development .

BAVI's corporate philosophy, which emphasizes inspiring national pride, hope, and compassion, impacts its business operations by guiding its corporate social responsibility initiatives and innovation strategies. This philosophy drives the company to ensure high product quality and engage in socially beneficial initiatives, such as education support and disaster relief, thereby enhancing its reputation and fostering community trust and engagement .

BAVI has undertaken several corporate social responsibility initiatives, including reducing carbon footprints, improving labor policies, and participating in fair trade. The company also focuses on sports, education, disaster relief, livelihood and employment, and inclusion initiatives. Additionally, they provide financial assistance for education, shelter, and basic needs, showcasing their commitment to uplifting communities and supporting youth development in the Philippines .

BAVI’s pricing strategies, which involve cost consideration, market demand, and competitor analysis, combined with its innovative distribution strategies, such as vacuum packing and extensive retail coverage, significantly enhance its competitiveness. These integrated strategies allow BAVI to offer fresh, high-quality products at competitive prices while efficiently reaching a broad customer base, thus reinforcing its market leadership in the poultry industry .

BAVI faces challenges in implementing sustainable agricultural practices such as managing increased production costs associated with sustainable practices, ensuring compliance with evolving environmental regulations, and overcoming market demand fluctuations for sustainably produced products . Additionally, the company must balance maintaining profitability while minimizing negative environmental impacts, which often requires strategic investment in technology and process innovation .

Understanding the target customer base is crucial for BAVI’s business strategy because it allows the company to tailor its products and marketing efforts to meet customer needs, thereby increasing sales and customer satisfaction. BAVI addresses this by initially targeting bulk buyers such as restaurants and fast food chains and then strategically expanding to include different market segments like grocery stores. They also consider geographical conditions to position stores effectively .

BAVI promotes societal welfare by providing high-quality products, creating job opportunities, and fostering self-sufficient livelihoods through its business operations. It also engages in various CSR initiatives, such as supporting sports and education, disaster relief, and advocating for fair labor practices, thereby contributing positively to community development and stability in the Philippines .

BAVI's innovation in vacuum packing significantly influenced its market position by prolonging the shelf life and ensuring the freshness of its chicken products, establishing a new industry standard. This innovative approach attracted more customers, drove up sales, and helped BAVI quickly outpace its competitors, solidifying its position as the top player in the chicken rotisserie market .

Bounty Agro Ventures, Inc. (BAVI) considers several factors when setting the prices of its poultry products. These factors include the cost of raising and feeding the poultry, market competition, and demand for poultry products . BAVI also accounts for fluctuating prices of feed and other inputs, as well as costs of processing and packaging. The company ensures that the products are competitively priced while remaining accessible and affordable to their target market by considering the purchasing power of consumers .

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