19 Nov Defining “Tiwala” in relationships of sari-sari store owners

Posted at 05:39h in ALL CASE STUDIES, Ethnographic Research, FMCG, Industry, Research Methodology by
Client / Company: FMCG Company
Industry: FMCG
Research Method: Ethnographic Research

Objectives and Methodology

An FMCG Company currently has multiple distribution channels including small sari-sari stores (SSS). However, due to small size and volume, the client is not able to directly interact with them. Curiosity was tasked to identify information about the sari-sari stores that will ground the strategies, content, and implementation the client’s efforts to build a closer relationship with this distribution channel. The primary research technique utilized case studies with the sari-sari store as the unit of analysis. Researchers immersed themselves for a day in each of the sari-sari stores to obtain a wider picture of dynamics and operations. Desk research anchored the lines of questioning for the other techniques.

 

Patas and Tiwala: Managing SSS Relationships

SSS owners navigate and negotiate through webs of relationships which range from reciprocity, competition, cooperation and maintenance of boundaries. Reciprocity is mediated by “Tiwala”. Competition is recognized but dissipated as much as possible by being “Patas” (fairness). Patas is an agreement that also considers what is fair for people beyond the two parties.

 

SSS and Suki customers (reciprocal relationship)

There is a reciprocal relationship between the sari-sari store owner and their highly-prized suki customers. The SSS allows the Suki to purchase on credit and are given privileges and Suki buys frequently, shows loyalty, and pays on time.

 

SSS vs. other SSS (conflict of interest)

There is strong pressure among SSS to sell at the same price or at least not sell lower than the usual selling price. Similarly, exclusivity in terms of brands sold is not practiced in the interest of “patas.”

 

How SSS owners view Ahente of Brands and Distributors

Some SSS may buy from agents if agents come by and particular products are out of stock. Otherwise, SSS prefer to just buy products from Puregold or their suki stores.