Analysis of the muscovado sugar consumer market using the usage, attitude and image (UAI) marketing research tool: implications for policy and market development

This paper provides an analysis of the consumer market for Muscovado Sugar (MS) in the Philippines using the Usage, Attitude and Image (UAI) marketing research tool. The findings provide the basis for formulating policy and market development initiatives to enhance the growth of the muscovado sugar industry. Muscovado is unrefined brown sugar made from sugarcane through a natural process. It thus retains many of the essential dietary vitamins and minerals present in the sugar cane plant such as potassium, calcium, magnesium and iron, among other useful compounds. In the country, there is now renewed interest in muscovado due to its potential in addressing poverty among small sugarcane farmers, health and nutrition concerns among the consuming public, and environmental considerations when produced under low external input sustainable agricultural and organic farming conditions. Based on UAI market surveys conducted among class ABC urban households, usage rate of muscovado sugar is low, only 23% of the respondents. This is due to low level of awareness about this sugar and existing brands and discontinued use among those who have tried using it. Estimated average weekly consumption is 436 grams per household comprising less than half of the total household sugar consumption. This translates to 22.67 kg per household and aggregate consumption of 10,030 MT per year considering 442,523 ABC households. Assuming an increase of 5% from lapsed users and aware non-triers within the next 2-3 years, consuming households will increase to 539,000 with annual consumption of 12,212 MT. Majority of those who are aware of and use muscovado have favorable perceptions about it. Favorable comments relate to its applications (ingredients for delicacies), health benefits (health and nutrition), and wholesome quality (natural/chemical free). Others have negative comments that include its 'course texture', 'dubious quality', and being 'expensive'. Users are motivated by factors related to the following: 1) health and environment, 2) altruism (desire to improve socio-economic conditions of farmers producing it), and 3) lifestyle (using it fits my lifestyle). Satisfaction rating of MS brands they are currently using is generally high with factors such as availability, taste, being certified, and aroma as top-ranking. Non-trial of MS is due to current habits and beliefs ('not used to MS'), price ('expensive'), distaste for the product, its non-versatility, dislike for the color, and unavailability. Among aware non-triers, less than 1/4 said they will probably buy it. Lapsed users have similar reasons, namely: limited use of MS, expensive, difficulty of sourcing, dislike for the taste and aroma, and doubt on its cleanliness. When asked about their likelihood of using it in the future, more than half stated they will definitely or probably use it. Optimum price (that is, a price neither too cheap nor too expensive for the majority) is PhP47.50 per kg, although the range of acceptable prices is quite wide at PhP36 to PhP61 per kg. The acceptable price range, however, varies considerably across locations being highest in Luzon and lowest in the Visayas. There is expressed willingness to pay for organic certification of muscovado averaging PhP6 premium per kg. The findings imply that a bigger market share for MS may be possible if awareness level could be raised and constraints to continuing use could be addressed. The company must adopt a unified and collective action agenda to pursue specific measures and obtained the needed policy support from the government.