Saturday, September 22, 2007

(RPG-004) “MARKETING OF LIVELIHOOD PRODUCTS”

“RATED PG” Tuesday, 25 September 2007
By Ike Señeres

(RPG-004) “MARKETING OF LIVELIHOOD PRODUCTS”

How could the government assist in the marketing of products coming from livelihood projects? The initiative of Sen. Dick Gordon to ship fruits from Mindanao using military aircraft is praiseworthy, but we need permanent solutions for this problem that could survive the test of time.
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Since Gordon has taken the first step of arranging buyers for these goods to be purchased by supermarkets in Metro Manila, the government should step in to make this a regular program, making sure however that the government should only help in the trading process, and not to do the trading directly.
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Way back in the mid-70s, I was Group Product Manager of Bliss Marketing Corporation, a private company that was funded by the government for the purpose of marketing products coming from livelihood projects. Although we succeeded in the early stages, we eventually failed as the government made the decision to directly engage in direct trading, rather than just assist producers in finding markets for their products.
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In a free market economy, products could be sold by producers and delivered to any destination for as long as the selling prices are right, and for as long as the transportation expenses could be absorbed by the selling prices. Shipping the fruits from Mindanao using military aircraft is a good idea for humanitarian reasons, but in reality the selling price is not sustainable, because there is no shipping cost.
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As the costs of airline tickets are going down due to the effects of healthy price competition, it may be a good time for shipping lines to bring down their own sea freight costs, as they are starting to be affected by the transfer of sea travel customers to the airlines.
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It should take more than one energetic Senator to solve the problem of marketing products from Mindanao and from all livelihood sites. The government is giant machinery that should get its act together in solving the problem, so that it could do more than what one man has done.
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For more information about public governance, email iseneres@yahoo.com

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