TABLE OF CONTENTS

I. CHAPTER 1: Introduction 8
A. Background of the Enterprise 8
B. Business Goals 10
C. List of Products and/or Services Offered 11
D. Executive Summary 14

II. CHAPTER 2: Market Research 17

A. Market Research Objectives 17
B. Research Design and Data Collection 17
C. Data Results 18
D. Interpretation of Data 29

III. CHAPTER 3: Strategic Plan 36

A. Strategic Plan Objective 36
B. Industry Analysis 36
C. SWOT/TOWS Analysis 39
D. Competitive Analysis 42
E. Competitive Strategies 43

IV. CHAPTER 4: Marketing Plan 44

A. Marketing Mix 44
B. Advertising Research 51
C. Target Market 53
D. Advertising Objectives 53
E. Advertising Budget 54
F. Creative Executions 54

V. CHAPTER 5: Human Resource Plan 59

A. Recruiting 59
B. Retooling 60
C. Resonating, Retaining and Reviewing 62

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VI. CHAPTER 6: Operational Plan 65
A. Methods 65
B. Manpower 75
C. Machines 80

VII. CHAPTER 7: Socio-Economic Plan 83

A. Social and Economic Impact 83
B. Proposed Engagements 84

VIII. CHAPTER 8: Financial Plan 86

A. Income Statement 86
B. Vertical and Horizontal Analysis 94
C. Profitability and Liquidity Indexes 95

IX. CHAPTER 9: Summary, Conclusions and Recommendations 100

A. Summary 100
B. Conclusions 104
C. Recommendations 106

X. References 109

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 LIST OF TABLES

Table 1.1 Issues for Development 8

Table 1.2 Key Performance Area 10

Table 1.3 Milk tea with Pearls 11

Table 1.4 Milk tea Cheesecake 12

Table 1.5 Fruit tea with Fruit Jelly 13

Table 1.6 Add-Ons 13

Table 2.1 Respondent’s Age 19

Table 2.2 Respondent’s Gender 19

Table 2.3 Data Interpretations 27

Table 2.4 Ratings of the Qualities of Mabo-Tea by the Respondents 28

who have tried Mabo-Tea

Table 3.1 SWOT/TOWS 39

Table 3.2 Competitive Profile Matrix 42

Table 4.1 Additional Info for Pricing 45

Table 4.2 Milk tea Pricing (16oz) 45

Table 4.3 Milk tea Pricing (22oz) 46

Table 4.4 Milk tea Cheesecake Pricing 46

Table 4.5 Fruit tea Pricing 47

Table 4.6 Foods Pricing 47

Table 4.7 Promotions Schedule 49

Table 4.8 Advertising Budget 54

Table 5.1 Recruiting Program Flow 60

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Table 5.2 Retooling Program Flow 61

Table 5.3 Resonating, Retaining and Reviewing Program Flow 63

Table 6.1 Enterprise Delivery System 65

Table 8.1 Income Statement of 2021 86

Table 8.2 Income Statement of 2022 86

Table 8.3 Income Statement of 2023 87

Table 8.4 Implementation of Promotions Activities 88

Table 8.5 Gross Profit for 2021-2023 88

Table 8.6 Cost of Goods Sold for 2021-2023 88

Table 8.7 Net Sales for 2021-2023 89

Table 8.8 Project 4 Projected Population per Barangay 90

Table 8.9 Production Budget for 2021-2023 91

Table 8.10 Summary of 2021 Income Statement 91

Table8.11 Summary of 2022 Income Statement 92

Table 8.12 Summary of 2023 Income Statement 93

Table 8.13 Vertical and Horizontal Analysis 94

Table 8.14 Return on Investment for 2021-2023 95

Table 8.15 Payback Period for 2021-2023 95

Table 8.16 Breakeven Units for 2021-2023 96

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 LIST OF FIGURES

Figure 2.1 Frequency of Buying Milk Tea 20

Figure 2.2 Preferred Price Range of Milk Tea Purchases 20

Figure 2.3 Milk Tea Flavors 21

Figure 2.4 Milk Tea Brands 21

Figure 2.5 Factors that Urge the Purchase of Milk Tea 22

Figure 2.6 Factors that make Consumer Repeat the Purchase of 22

Milk Tea

Figure 2.7 Preference to Eat Food While Drinking Milk Tea 23

Figure 2.8 Preferred Food While Drinking Milk Tea 23

Figure 2.9 Preferred Mode of Payment 24

Figure 2.10 Respondents who have tried Mabo-Tea beverages 25

Figure 2.11 Awareness of why they tried Mabo-Tea 25

Figure 2.12 Willingness to try Mabo-Tea Beverages 26

Figure 2.13 Factors that Affect Why Respondents are unwilling to try 26

Mabo-Tea beverages

Figure 2.14 How have they heard Mabo-Tea without having to try it 27

Figure 2.15 Consumers who would recommend Mabo-Tea 29

Figure 4.1 Current Distribution Channel Framework 48

Figure 4.2 Proposed Multi-Channel Distribution Framework 48

Figure 6.1 Distribution Channel Map 74

Figure 6.2 Mabo-Tea’s Floor Plan 81

Figure 6.3 Overview of Mabo-Tea’s shop 82

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 LIST OF APPENDICES

I. Creative Executions 54
A. Posters to be posted 54
B. “Flavor of the Month Sneak Peek 55
C. Loyalty Card 55
D. Publication Materials 56
E. Commercial 58

II. Flowchart of Operation and Selling 70

III. Additional Attachments 97

A. Electricity Bill 97
B. Water Expense 98
C. Rent Expense 99

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 CHAPTER I
INTRODUCTION

A. Background of the Enterprise

i. History
Mabo-Tea was established by a BS-Psychology graduate named Jake Marvin Lim
on December 15, 2019. The founder was inspired to build this business because he
tasted milk tea from Marikina that was very affordable and delicious. Whereas, it
motivated him to do the same business. With Mabo-Tea, he was able to serve milk tea
in different varieties that are very affordable and delicious.

Before opening up the business, Jake Marvin Lim worked in several companies,
such as BPI, Tellus, and Accenture. The founder is not a stranger when it comes to
business, he used to do buy-and-sell of gadgets, and his family used to have a hardware
store.

The founder of Mabo-Tea is not necessarily a fan of milk teas in general, but he
has a passion for cooking. Therefore, in a way, making milk tea for people is his avenue
in expressing his passion. For four months before the opening of Mabo-Tea in December
of 2019, he worked on formulating his own blend of milk tea. Now, Mabo-Tea could be
found at 335 P. Tuazon Blvd. Project 4, Quezon City.

ii. Issues for Development

Table 1.1 Issues For Development

Category Issues Description

Mabo-Tea's social media Mabo-Tea’s marketing in its start-up days

reach is only limited to has not been as effective as it should. The
Facebook. online presence of the business is not as
Marketing strong, so people are not able to know about
No established online
the business along with its goods and
presence.

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 Published and services. Speaking of promotions being
implemented promotional known around the residence may be crucial
materials are not unified. and still Mabo-tea is just a halfway through
recognition.

Not noticeable enough Location is one among those issues faced

during daylight yet by Mabo-Tea. It is located by the side of a
Noticeable at night highway-like road, hence it is challenging for
people to stop-by. The sidewalk nearby
No foot traffic( target
Location where it is located is too narrow, where
market)
people would have a hard time getting there
with risk. Lastly, it is quite challenging to find
the location of the store, so the business
should find a way where the consumers could
easily see it.

Mabo-Tea's establishment has room for a

Furnishing of the lot of development from design to furniture.
establishment does not The place should have warm and attractive
project the owner's vision wall paint since dull colors are not appealing
Interiors
of a 'cozy vibe'. As well as in food businesses, and furniture that would
the wall is too dull and meet the owner's vision of having a 'cozy vibe’
plain. such as rustic chairs and couches, wooden
The restroom does not tables, etc. In addition, the number of tables
have an indicator or sign. and chairs are not enough to cater for many
The restroom is clean customers. There should also be directions to
enough and pipes are all the restroom and the comfort room's door
over the place. should have a sign for customers to be aware
of it. Lastly, the owner should utilize and
Numbers of tables and guarantee proper ventilation to control and
chairs are insufficient. balance the temperature inside the shop, most
especially when he is cooking. Improving this
No proper ventilation
particular issue would result in the customers
inside the shop.
to come back regularly, feel homely, patronize

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 their products, and have a good impression of
the brand.

B. Business Goals
i. Vision
Mabo-Tea aims to branch out in Metro Manila within six months of operation and
become a well-known and preferred milk tea nationwide within four to five years.

ii. Mission
Mabo-Tea’s mission is to:
 To deliver good quality, delicious, and affordable milk tea to its customers.
 To introduce an original take to already familiar flavors.
 To expand further and provide working opportunities for other people

iii. Objectives
The following are the business objectives of Mabo-Tea:
1. To satisfy customers with affordable products by providing better quality and
unique taste of milk tea. Mabo-Tea aims to increase its customer satisfaction by
providing a wide range of flavors to offer.
2. To provide quality training to the people for the improvement and expansion of
the milk tea industry in Metro Manila. Mabo-Tea desires to build a strong market
presence within Metro Manila by establishing its brand awareness.
3. To increase its sales and return on investments by providing quality products and
services for the customers.

iv. Performance Targets

Table 1.2 Key Performance Area

Key Result Areas Performance Indicators

2020 2021 2022

(Now) (One year later) (Two years
later)

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 1a. Number of offered Milk Tea/ 9 Classic 10 Classic 11 Classic
Fruit Tea/ Milk Tea Cheesecake Flavors Flavors Flavors
flavors 9 Cheesecake 10 Cheesecake 11 Cheesecake
Flavors Flavors Flavors
5 Fruit Tea 6 Fruit Tea 7 Fruit Tea
1b. Percentage of positive
flavors flavors flavors
compliments and feedbacks of
customers

1c. Percentage of repeat 50% 60% 75%

customers

45% 55% 70%

2a. Good business Image 45% Positive 55% Positive 70% Positive
Feedback Feedback Feedback

2b. Number of Branches within

Metro Manila 1 2 3

3a. Percentage in Return of

Investments per year 3.5% 5% 12%

3b. Percentage of Sales

23% 29% 40%
Improvement per year

C. List of Products and/or Services Offered

i. Milk Tea with pearls

Table 1.3 Milk tea with Pearls

16 oz 22 oz

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 Pearl Milk Tea P69 P79

Dark Choco Milk Tea P69 P79

Wintermelon Milk Tea P69 P79

Coffee Milk Tea P69 P79

Taro Milk Tea P75 P85

Oreo Milk Tea P75 P85

Okinawa Milk Tea P79 P89

Matcha Milk Tea P79 P89

Red Velvet Oreo Milk P79 P89

Tea

Emperor Milk Tea P79 P89

ii. Milk Tea Cheesecake

Table 1.4 Milk tea Cheesecake

22 oz

Mabo-Tea P99

Dark Choco Cheesecake P99

Wintermelon P99
Cheesecake

Oreo Cheesecake P105

Taro Cheesecake P105

Dark Choco Oreo P105

Cheesecake

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 Emperor Cheesecake P109

Matcha Cheesecake P109

Red Velvet Oreo P109

Cheesecake

Matcha Oreo P115

Cheesecake

iii. Fruit Tea with fruit jelly

Table 1.5 Fruit tea with fruit jelly

22 oz

Green Apple Fruit Tea P79

Passion Fruit Tea P79

Lychee Fruit Tea P79

Watermelon Fruit Tea P79

Wintermelon Fruit Tea P79

iv. Add-Ons
Table 1.6 Add-Ons

Pearl P10

Nata De Coco P15

Oreo P15

Pudding P15

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 Coffee Jelly P20

Cheese Foam P20

Cheesecake P25

v. Services
a. Free Wi-Fi
b. Free Netflix

Mabo-Tea offers a variety of tea infused drinks, from milk tea to fruit tea, and its
best-seller, the cheesecake series. The founder originally curates all Mabo-Tea’s milk tea
recipes. Mabo-Tea has its own unique blend of flavor. It does not only offer a wide variety
of milk tea flavors, Mabo-Tea also offers free internet access and free Netflix for which
the customers could use while they stay in the location.

The prices of the milk tea vary from P69.00 - P89.00, while the Cheesecake Series’
price varies from P99.00 - P115.00, and lastly, the Fruit Teas' are all at P79.00. Add-ons;
sinkers and/or toppings, could also be requested by the customers such as pearls, nata
de coco, Oreo, pudding, coffee jelly, cheese foam, and cheesecake, for an additional fee
ranging from P10.00 to P25.00

D. Executive Summary
Mabo-Tea is a newly founded milk teashop that is located in Project 4, Quezon
City. It was established in late 2019 and since then, it has continually captured the liking
of people that surround its area. The business was established because the owner
observed how most milk tea shops offered their products at a high price, even when they
provided similarly, if not the same flavors and variants, thus he wanted to break the
mindset of buyers that they needed to spend a lot for milk tea with good quality. The
owner priced the beverages relatively lower, especially with the delectable Cheesecake
Series, with a P30-50 difference compared to other brands. Though situated by the side
of a road getting little to no attention, once customers have tried their products,

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particularly the milk tea, the satisfied customers have come back repeatedly, having some
as regular buyers.

The business offers a variety of milk tea flavors, from the classic ones to Mabo-
Tea’s creations. It not only offers milk tea, but also some snacks like hotdogs, nachos, and
chips that its customers enjoy. With the food and drinks that the business offers,
customers could also enjoy themselves with the free internet and free Netflix services
that Mabo-Tea offers if they decide to dine in the establishment.

Mabo-Tea targets primarily teenagers, ages 13-19, and working and non-working
adults, ages 20-35, from any gender living around Project 4, Quezon City. It markets
itself not only to the avid milk tea drinkers but also to those who look for high-quality
milk tea at an affordable price. It intends to entice its customers to develop loyalty for the
business.

The business entered a very saturated market where standout businesses already
exist. According to the market research conducted for the business, the greatest
competitors of Mabo-Tea are Coco, Macao Imperial, and Chatime. Out of these three,
Macao Imperial is their greatest competitor location wise. Despite being a start-up
business, Mabo-Tea can differentiate itself amongst other popular milk tea businesses.
Mabo-Tea set its prices lower than other popular milk teas to entice more customers in
purchasing high-quality milk tea at an affordable price. Its shop also offers free Wi-Fi
connection and free Netflix services for its customers to use, which not all milk teashops
offer. With the execution of the marketing strategy, the business could expect more
customers to come into its doors.

Financially, Mabo-Tea is in a gradual increase in its sales. The business expects

that its sales and profit would increase immensely as the years go by. By the year 2021,
it is expected that the business would already expand to a new location. Therefore, from
2021 to 2022, the business expects a 38.9% increase in net profit. In 2022 to 2023, the
net profit would increase by 31.95%. With this forecast, the business could conclude
that it is stable when it comes to financial matters.

Being a start-up business, it is only being run by its owner. This is not seen as a
hindrance when it comes to running the business while it is still a micro/small enterprise,

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and as the owner is fully committed to operating the business. As for the future of Mabo-
Tea, it aspires to expand to different locations. With this, the business would give
working opportunities to people to run the business with proper training and
compensation.

The business envisions success in the coming years not only for itself but also in
the form of growth with its partners. It commits itself in providing high-quality products
at an affordable price for all to taste the goodness in every cup.

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 CHAPTER II
MARKET RESEARCH
A. Market Research Objective
The objective of this market research is to identify whether the current operations
and marketing approaches are effective to the garnered consumers of Mabo-Tea, or
otherwise which aspects are needed to be subjected to change or improvement.
i. Customer Demographics
 This is to determine whether the target market and the actual market of Mabo-
Tea correspond to each other because otherwise, the prepared plan for the
targeted market might not be able to fulfill the needs of the acquired market.
 To further keep up with the demands and trends that the current market Mabo-
Tea caters to, to be able to somewhat predict what to do next to capture their
attention.

ii. Customer Preferences

 The business would be able to cater to more of the consumers' demands, including
trends and bandwagons, if customer preferences are identified through careful
and accurate market research.
 As aforementioned, keeping up with what the captivated market wants would be
beneficial not only to the business but also to the consumer. Given this mutually
beneficial perspective, the business generates profit and the consumers get their
wants and needs.

iii. Customer Usage Attitudes

 The recognition of the rate of usage attitudes of the consumers' would aid in
supply predicaments of Mabo-Tea since this would help the business distinguish
which drinks and flavors sell more than the others and therefore need more stocks
per day and/or week. This information would also be purposeful in being able to
avoid "out-of-stock" situations that may result in fewer customers and lower
customer retention.

B. Research Design and Data Collection

The study used a quantitative design that aims to figure out the relationship
between independent and dependent variables. The study was approached in a

17
descriptive way. As explained by Bhat (2018), “Descriptive research is a quantitative
research method that attempts to collect quantifiable information to be used for
statistical analysis of the population sample. It is a popular market research tool that
allows the collection of data and describes the nature of the demographic segment.” The
said explanation of Bhat applies to the study in which the collected quantifiable data was
given statistical treatment and analysis needed for a given population sample. This
research design explains the nature of the market segment.

According to Devault (2018), “Market researchers use descriptive market research

to answer a specific question.” The market research used a survey in the paper-and-pen
method to gather the data that is needed for the research. The survey was given to the
owner of Mabo-Tea to distribute and give it to the customers. However, in a little time
allotted for the data gathering the number of customers who went to Mabo-Tea on those
days was not sufficient to the target number of 50 respondents. The owner immediately
hands out the questionnaire to the people who are residing or going on near his shop.
The survey questions consist of close-ended questions that pay attention to the
preferences of the consumers and the factors that affect them on choosing a milk teashop
and the reason why they came back to it. The data collected was used to analyze the
quantifiable data, which will determine how the factors affect the preferences of the
consumers.

C. Data Results
52 Respondents were asked regarding the following:

C.1 Personal Data

From the questionnaire, two questions from the section cover age and gender.
This section would indicate the respondents' age and gender.

c.1.1 Respondents’ Age

The respondents were asked how old they were by the time of data
collection. Age ranges were used in this section of the questionnaire. The table
below illustrates the respondents’ age.

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 Table 2.1 Respondents’ Age

Age Frequency Percentage

Ages 13 - 19 20 38.46

Ages 20 - 25 12 23.08

Ages 26 - 30 11 21.15

Ages 31 - 35 4 7.69

Did not indicate the age 4 7.69

Ages 51 and above 1 1.92

TOTAL 52 100.0

c.1.2 Respondents’ Gender

The respondents were also asked about their gender. Table 2.1 shows the
respondents' gender.

Table 2.2 Respondents’ Gender

Gender Frequency Percentage

Female 31 59.6

Male 17 32.7

Did not indicate 4 7.7

TOTAL 52 100.0

C.2 Milk Tea Buying Behavior

This section from the questionnaire consisted of nine questions regarding their
buying behavior of milk tea.

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c.2.1 Frequency of Buying Milk Tea
The respondents were also asked about how often they buy milk tea in a
month. Figure 2.1 illustrates how often the respondents buy milk tea in a month.

Figure 2.1 Frequency of Buying Milk Tea

c.2.2 Preferred Price Range of Milk Tea Purchases

The respondents were asked to determine their price range in buying milk
teas. Figure 2.2 shows the respondents usual spending on their milk tea
beverage.

Figure 2.2 Preferred Price Range of Milk Tea Purchases

C.2.3 Milk Tea Flavors

The respondents were asked what specific flavor or kind of milk tea they
purchase the most. The respondents were allowed to choose as many as they find
appropriate. Figure 2.3 illustrates the milk tea flavors they purchase the most.

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 Figure 2.3 Milk Tea Flavors

c.2.4 Milk Tea Brands

The respondents were asked which brands of milk tea they preferred the
most. They were allowed to choose as many as applicable. Figure 2.4 illustrates
the milk tea brands the respondents prefer the most.

Figure 2.4 Milk Tea Brands

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c.2.5 Factors that Urge the Purchase of Milk Tea
Respondents were asked what factors affect them in purchasing milk tea.
They were allowed to choose as many as applicable. Figure 2.5 illustrates the
factors that urge respondents to buy milk tea.

Figure 2.5 Factors that Urge the Purchase of Milk Tea

c.2.6 Factors that Urge the Purchase of Milk Tea

Respondents were asked what factors they consider the most for
returning to a specific milk tea brand. Figure 2.6 illustrates the factors that make
consumers repeat the purchase of milk tea from a specific brand.

Figure 2.6 Factors that Make Consumer Repeat the Purchase of Milk Tea

c.2.7 Preference of Consumers to Eat while Drinking Milk Tea

The respondents were asked if they usually drink milk tea while eating.
Figure 2.7 shows the respondents’ preference.

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 Figure 2.7 Preference to Eat Food While Drinking Milk Tea

c.2.8 Preferred food while drinking milk tea

As a follow-up to the previous question, the respondents were asked which
foods they like to be paired with milk tea. They were allowed to choose as many
as applicable. Only the respondents who answered “yes” to the previous question
were allowed to answer this portion of the questionnaire. Figure 2.8 illustrates the
foods that the respondents like to be paired with milk tea.

Figure 2.8 Preferred food while drinking milk tea

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 c.2.9 Preferred Mode of Payment
The respondents were asked what mode of payment they prefer when
purchasing milk tea. They were allowed to choose as many as applicable. Figure
2.9 illustrates the respondents’ preferred mode of payment.

Figure 2.9 Preferred mode of payment

C.3 Mabo-Tea
This section of the questionnaire covers a total of 15 questions that ask
about the respondents’ knowledge and experiences on Mabo-Tea.

c.3.1 Respondents who have tried Mabo-Tea beverages

The respondents were asked whether or not they have tried the drinks
offered by Mabo-Tea. Figure 2.10 illustrates the number of respondents that have
and have not tried Mabo-Tea beverages.

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 Figure 2.10 Respondents who have tried Mabo-Tea beverages

c.3.2 Awareness
Respondents were asked how they have learned about Mabo-Tea if they
have already tried their beverages. Figure 2.11 illustrates the data results.

Figure 2.11 Awareness Having Tried Mabo-Tea

c.3.3 Willingness to try Mabo-Tea Beverages

The respondents who have not tried Mabo-Tea were asked if they were
willing to try Mabo-Tea’s products. Figure 2.12 illustrates the number of
respondents who are eager or not to try Mabo-Tea beverages.

25
 Figure 2.12 Willingness to try Mabo-Tea Beverages

c.3.4 Factors that affect why respondents are unwilling to try Mabo-Tea
beverages
The respondents who were unwilling to try Mabo-tea’s products were
asked to determine the factors that are affecting their decision. They were allowed
to choose all that are applicable. Figure 2.13 illustrates the factors affecting the
respondents’ choice in terms of not trying Mabo-Tea Beverages.

Figure 2.13 Factors that affect why respondents are unwilling to try Mabo-Tea
beverages

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c.3.5 Awareness Having not Tried Mabo-Tea
The respondents that have not tried Mabo-Tea were asked if they were
aware of such a brand. If they know what Mabo-Tea is, they were asked how
they have come to know the brand. Figure 2.14 illustrates the data results.

Figure 2.14 How have they heard Mabo-Tea even without having to try it

c.3.6 Ratings of the Qualities of Mabo-Tea by the Respondents who have

tried Mabo-Tea
The respondents were asked how much they agree on certain statements
regarding Mabo-Tea’s overall way of operation. Table 2.3 indicates how the
results will be interpreted, and table 2.4 illustrates the data results.

Table 2.3 Data Interpretations

Verbal Interpretation Class Range

Strongly Agree 3.26-4.00

Agree 2.51-3.25

Disagree 1.76-2.50

Strongly Disagree 1.01-1.75

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 Table 2.4 Ratings of the Qualities of Mabo-Tea by the Respondents who have tried
Mabo-Tea
Strongly Strongly
Agree Agree Disagree disagree
(3.26 - (2.51 - (1.76 - (1.01 - Number of Weighted
4.00) 3.25) 2.50) 1.75) Respondents Mean
I am satisfied
with the
customer
service. 37 2 0 0 39 3.95
I get my order
within a quick
amount of time. 30 9 0 0 39 3.77
I find the place
very clean. 32 7 0 0 39 3.82
I find the
interior design
of the shop
pleasing. 21 16 2 0 39 3.49
I find the milk
tea at its best
quality. 27 12 0 0 39 3.69
I find the
product
variations
enough. 27 11 1 0 39 3.67
I find the place
near and
convenient. 24 9 5 1 39 3.44

28
I find the store
comfortable
and relaxing. 29 9 1 0 39 3.72
I find the brand
easy to
recognize. 25 11 3 0 39 3.56
Overall rating 3.68

C.3.7 Recommendation
The respondents who have tried Mabo-Tea products were asked if they
would recommend the said brand to other people like their families or
friends. Figure 2.15 illustrates the data results.

Figure 2.15 Consumers who would recommend Mabo-Tea

D. Interpretation of Data
This section of market research indicates the interpretation derived from the
given personal data, demographics, psychographics, preferences, 'push-factors',
behavioral and habitual patterns of the respondents. Each interpretation is solely a
reflection of the results from the data gathering.

29
D.1 Personal Data

d.1.1. Respondents’ Age

Out of the 52 respondents who answered the survey, the majority are of
ages 13-19 years old having a total number of 20 respondents. 12 of the
remaining respondents are within the age range of 20 - 25 years old, and 11 of
the respondents are within the age range of 26- 30 years old. A total of 4
respondents are within the age range of 31-35. Mabo-Tea also had one customer
that is 51 years of age, and the remaining 4 respondents did not indicate their age.
Most current and potential customers of Mabo-Tea are in their teenage years, or
in their twenties.

d.1.2 Respondents’ Gender

Out of 52 respondents, 31 (59.60%) respondents are female, 17 (32.70%)
respondents are male, and the remaining 4 (7.70%) respondents did not indicate
their gender. Mabo-Tea’s current and potential customers would mainly consist of
females due to their active purchase of milk tea.

D. 2 Milk Tea Buying Behavior

d.2.1 Frequency of Buying Milk Tea

Out of the 52 respondents, majority of the respondents purchase milk tea
twice a month, compromising 28.8% of the total respondents. 17.3% of the
respondents answered four times a month followed by more than five times a
month, thrice a month and once a month in which all of them got 15.5% of the
respondents while 4 of the respondents answered five times a month. This means
that most of the respondents treat milk tea as a luxury good, only consuming it
once every week and a half or so.

d.2.2 Price Range of Milk Tea Purchases

From the 52 respondents, most spend their money on an average price

ranging from P101 - P120. That means this can be the standard price for a milk
tea beverage, where consumers usually are willing to spend their money on.

30
d.2.3 Milk Tea Flavors
From the 52 respondents, the Cheesecake series is the top flavor that was
voted and favored by the respondents while Red Velvet and Taro, on the other
hand, got the least amount of votes amounting to 5 and 7 respectively. The
flavors voted by the respondents could be an opportunity for Mabo-Tea to offer in
its menu.

d.2.4 Preference for Milk Tea Brands

Out of 52 respondents, Coco, Macao Imperial and Chatime are the top three
brands voted most by the respondents respectively as their 'most preferred' milk
tea brands to purchase for which could be considered as Mabo-Tea’s main
competitors.

Recognizing Mabo-Tea's competitors within and outside the

establishment's area will help the business in knowing what are the similarities
and differences including its advantages and disadvantages from the given
brands, which can contribute to the shop’s plans for development. It can also help
in communicating with Mabo-Tea’s target consumers such as identifying what
qualities they like about Mabo-Tea and their other preferred milk tea brands.

d.2.5 Factors that Urge to Purchase Milk Tea

Out of 52 respondents, cheap, affordable (60%), bought by family or
friends (42.31%), and promo discount (40.38%) are the factors that urge the
consumers to purchase a milk tea. The factor that was least considered in
purchasing milk tea is endorsed by a celebrity that only got 3.85% of the total
vote.
Knowing the factors that urge consumers to purchase milk tea can be used
as a strength and an opportunity for Mabo-Tea to attract more consumers in
purchasing Mabo-Tea milk tea.

d.2.6 Factors that Make Customers Repeat Purchase

Product quality is the most considered factor, with 82.68% of respondents
voted, which makes consumers repeat the purchase of Milk Tea. It is followed by
Price of the Product, Accessibility, and Cleanliness with 67.31%, 51.92% and

31
 50% votes from the respondents, respectively. The least considered factor is
Image of the Brand with only 21.15% of the total vote. Knowing these can give
recognition to those factors that need improvements to be an additional factor for
customer retention.

d.2.7 Preference of Consumers to Eat while Drinking Milk Tea

73.1% of respondents prefer to eat food while drinking milk tea. The
remaining 26.9% of the respondents want to enjoy milk tea alone. This means that
it would be a smart move for Mabo-Tea to add food as an option on their menu.

d.2.8 Preferred food while Drinking Milk Tea

48.08% of the total respondents prefer to eat fries while drinking milk tea
followed by nachos and sandwiches or burgers, chips, donuts, and rice meals,
respectively. The least preferred food to eat while drinking milk tea are cookies
that only 15.38% of the total respondents prefer to pair it with milk tea. Knowing
these foods can serve as an opportunity for Mabo-Tea to offer in their menu to
increase.

d.2.9 Preferred Mode of Payment

All of the respondents prefer to pay over the counter in which 28.85% of
them also prefer to pay through delivery and only 9.62% prefer to pay through e-
wallet. This data can serve as strength to the business owner to add a new mode
of payment for the convenience of his consumer.

D.3 Mabo-Tea
d.3.1 Respondents who have tried Mabo-Tea Milk Tea
75% of the respondents have already tried Mabo-Tea beverages while the
remaining 25% have not yet tried Mabo-Tea beverages. This data is important in
order to know the potential consumers of the said shop.

d.3.2 Awareness
42.31% of the respondents who have tried Mabo-Tea beverages became
aware of the shop through word of mouth followed by social media with 21.15%.
Fliers and passing by the shop with 5.77% are the least reason why consumers

32
found out about Mabo-Tea. This data could be used to strengthen Mabo-Tea's
way of promoting its brand.

d.3.3 Willingness to try Mabo-Tea

76.9% of the total respondents are willing to try Mabo-Tea beverages
while 23.1% are not. This data can be used as an opportunity for Mabo-Tea to
know the size of its potential consumers.

d.3.4 Factors that affect why respondents are unwilling to try Mabo-Tea
beverages
Lack of advertisements and accessibility to the location of the shop are the
reasons on why consumers have not yet tried Mabo-Tea beverages. These
reasons are the weaknesses of Mabo-Tea that can be converted into strengths
and opportunities by the owner by giving solutions to the mentioned factors.

d.3.5 Awareness Having not Tried Mabo-Tea

Word of mouth is the reason why most of the respondents became aware
of Mabo-Tea. Social media and passing by the shop are also the reasons why
respondents found out about Mabo-Tea. This data could be used as an
opportunity by Mabo-Tea in promoting its brand.

d.3.6 Ratings of the Qualities of Mabo-Tea by the Respondents who have tried
Mabo-Tea
The respondents STRONGLY AGREE in terms of customer service that
they are satisfied with Mabo-Tea's service and they get their orders within a small
amount of time. The respondents also STRONGLY AGREE that in terms of location
the place of Mabo-Tea is near and convenient to them. The respondents also
STRONGLY AGREE that in terms of interior design the place has a relaxing
ambience in which they find design of the store pleasing and sanitary. The
respondents also STRONGLY AGREE that Mabo-Tea beverages is in its best
quality and they find that the variations offered is enough. The respondents also
STRONGLY AGREE that Mabo-Tea’s brand is recognizable. Overall, the
respondents are satisfied with what Mabo-Tea offers. This data implies that

33
 Mabo-Tea should keep doing the things that satisfies the customers more. It can
also be used to know what way Mabo-Tea can improve its service and customer
satisfaction.

d.3.7 Recommendation
All of the respondents who have tried Mabo-Tea beverages would recommend it
to the others. This implies that their products are recommendable to other consumers.

d.3.8 Summary of data interpretation

Most of the customers of Mabo-Tea are teenagers and working adults, the
majority of which are female. They treat milk tea as a luxury good, only availing it from
time to time. Moreover, the average amount they spend on milk tea is P101-120.
Cheesecake series, Wintermelon, and Matcha are the top three flavors that the
respondents prefer.
Furthermore, is it inferred that the main competitors of Mabo-Tea in order of
importance are Coco Milk Tea, Macao Imperial Tea, and GongCha. In addition, the
respondents get the urge to buy milk tea from one of the three main reasons:
Affordability, Promotional Discounts, and Recommendations from family and friends.
Most of the respondents agree that Product Quality is the most crucial factor that
determines repeat purchases. Along with it, respondents agree that over the counter
payment is the most preferred method of payment. The majority of the respondents
prefer to eat food to complement milk tea. Snacks such as fries, nachos, and sandwiches
are generally preferred over rice meals.
From the respondents, most of them have tried Mabo-Tea’s products. Those who
have tried it found the brand mostly through either social media or word of mouth, a few
respondents found it through sheer coincidence passing by the store, and through Mabo-
Tea’s flyers.
Above all, most of the respondents agree that they are satisfied with Mabo-Tea’s
customer service, wherein they collect their order/s within a short period of time, they
find the place very clean, the interior design is pleasing, the milk tea is at its best quality,
the product variations are plentiful, the location is accessible to them, the store is very
comfortable and relaxing, and the brand is easily recognizable.

34
 In conclusion, Mabo-Tea serves their customers with great satisfaction and all of
the respondents would recommend it.

35
 CHAPTER III
STRATEGIC PLAN
A. Strategic Plan Objective
1. Create and launch two new varieties of offered Milk Tea, two new varieties of
offered Fruit Tea and two new varieties of offered Milk Tea Cheesecakes Flavors
by January 2022.
2. Improve customer satisfaction by 25% by March 2022.
3. Increase of customers’ retention by 25% by July 2022.
4. Increase in new customers by 5% by August 2022.
5. Increase in numbers of customers coming back by 25% for the next 3 years.
6. Increase of 0.7% in market share by December 2022.
7. Establish 3 branches within Metro Manila by August 2022.
8. Increase average customer product purchased per month holding to 1.5 products
per customer by January 2021.
9. Launch a delivery system by the end of December 2020.
10. Raise the percentage in Return of Investments by 8.5% in April 2022.
11. Increase the percentage of sales improvement by 17% in August 2022.
12. Maximize profit by lowering the cost of production by 10% in the start of January
2021.
13. Increase the customer conversion by 20% in June 2021.

B. Industry Analysis
i. Porter’s Five Forces Model of Competition
1. Threat of New Entrants
Threats of new entrants to the milk tea industry are considered medium to
high because anyone has the capacity to set up and operate a milk teashop with
complete legal documents. However, some existing milk teashops have the
advantage because of their brand popularity and their established marketing
strategies. However, many milk teashops who were established in recent years
had been successful in maintaining and improving their position in the industry.

2. Threat of Substitutes
In the rising industry of Milk Tea, satisfying cravings and thirst are the
general need & want of the consumers. However, milk tea is not the only industry

36
 that can provide the solution to that need. Many alternatives such as coffee and
smoothies can easily be the substitute for milk tea depending on the location,
budget or the urgency of a consumer. As mentioned, the threat of substitutes for
milk tea can be considered at most high to medium.

3. Bargaining Power of Buyers

Bargaining power of buyers in the milk tea industry is estimated to be high.
Consumers, nowadays, are able to pick different milk teashops with different price
ranges that can satisfy their cravings, as well as their budget. Brand loyalty also is
not that high because consumers love to explore different shops and cafes to taste
every single milk tea that the world could offer. However, the milk tea industry is
slowly creating a way to improve brand loyalty and that is with the help of
discounts, loyalty cards and promos.

4. Bargaining Power of Suppliers

In the food and beverage industry, especially milk tea, the bargaining power
of suppliers may not be as high due to the saturated market. Since there are
several milk tea brands and businesses, many would see this as an opportunity to
become suppliers, having that said; suppliers will not be able to hold much power
because their client may just move to the next supplier with minimal struggle if
prices rise unfavorably.

5. Rivalry Amongst Existing Competitors

As aforementioned, the milk tea industry is packed to the point that in the
metro, consumers cannot go anywhere without seeing at least two milk tea
brands in one area. Even outside the metro, milk teashops can be seen a couple of
blocks after the other despite the beverage being seen as a luxury item. This
physical evidence of how popular milk tea is right now paves a way for numerous
establishments and therefore competitors for MaboTea, even more so because
Mabo-Tea is relatively new and the industry was already saturated before its
existence. This has become a large competitive field for different brands to try and
outdo each other by creating new flavor combinations, promotions, advertising
and marketing quirks, and other gimmicks. Mabo-Tea will need to be very
updated, active, and captivating to stay relevant and profitable.

37
ii. PESTLE
Politics
Political factors such as tax policies and certain infrastructure
requirements set by the government must also be observed by the Mabo-Tea
shop in order to gain credibility to the customers and avoid any records as well.
There can also be changes in tax policies and regulation, which they should be
aware of to avoid possible problems in the future.

Economic
Economic factors affect Mabo-Tea in a way that the pricing of the
beverages depends on the economy of the country. Certain prices of raw materials
are affected when demands and supplies change in a certain and unpredictable
time. Since there are a lot of milk tea shops that are emerging from different parts
of the country, raw materials such as the basic ingredients of milk tea could
potentially have a higher price since there is a higher demand. For as long as
Mabo-Tea has a supplier that provides ingredients as a fixed amount, Mabo-Tea
would not be affected by the change of prices.

Social
Social factors may include culture and tradition in certain places.
Nowadays, milk tea is a trend. Many businesses do their own take with their own
blend of milk tea. People have a higher demand for milk tea, which is a good
opportunity for Mabo-Tea. Aside from Milk tea being a trend nowadays, it is also
becoming one of the things people will buy throughout their everyday life, which
is a good indicator as well that the business is sustainable and can last for more
years.

Technological
For the technological factor, we live in an age where technology and social
media prevails and makes the transfer of information faster and easier. Modern
technology can be a means where it could make or break a certain business since
people are a lot more vocal in the internet space. Promotions are also more
entertaining and interactive nowadays. Technology also paved the way for start-
up businesses such as Mabo-Tea, to easily give awareness to their target

38
 audience. Technological factors such as the introduction of innovative ideas and
products every year is also a great opportunity for the Mabo-Tea shop to improve
their service and satisfy their customer needs and wants in the most effective way.

Legal
In Quezon City, where Mabo-Tea is located, there is a law where plastics
are no longer allowed to be used by business establishments. Businesses are
encouraged to use reusable materials as alternatives to plastics. This was made
by Mayor Joy Belmonte when she signed Ordinance No. SP-2876 on Oct. 15,
2019, which bans the distribution and utilization of single-use plastics in the city.
A penalty from 1000-3000 pesos will be given for the violators and so this
ordinance must be strictly followed by the Mabo-Tea shop to avoid any loss and
issues.

Environment
The Earth is now in its dying stage where actions of people that damaged
the planet could be irreversible. Many people take action to help save the planet
by lessening the use of plastics and other one-use materials. Since milk tea is
served in plastic cups, Mabo-Tea needs to find ways where it is not harmful to the
environment.

C. SWOT/TOWS Analysis
Table 3.1 SWOT/TOWS

Opportunities Threats
 High demand of  Unstable propositioning
Milk Tea to increase  Environmental Threats
SWOT/TOWS
its sales
ANALYSIS
 Technological
advancements on
customer
satisfaction
 Job Unemployment

39
Strengths Strengths-Opportunities Strengths-Threats
Maxi-Maxi Strategy Maxi-Mini Strategy
 Unique variety  Since milk, tea  Having an original and
of flavors nowadays is affordable product is one
 High product included in People’s of the advantages of
quality high demand, Mabo-Tea yet there are
 High rate of having a set of many milk teashops out
customer unique flavors to there who also offer the
service extend the product same. With that, Mabo-
variations while Tea should diversify its
maintaining the product more to position
product’s quality itself from the consumers’
could be beneficial minds. Brand positioning
for the company, is important to know its
which can increase advantages and
the business’ sales. disadvantages to the
 Mabo-Tea has a existing competitors.
high rate in terms of  The store is registered on
its customer service different departments
which can be used monitoring legal practices
to upgrade its inside and outside the
services by coming store that may help to
up with abide by all the laws
technological implemented in the said
advancements that area, also considering the
can help satisfy customer's protection and
more customers. welfare.

Weaknesses Weakness-Opportunities Weakness-Threats

 No available Mini-Max Strategy Mini-Mini Strategy
employees for  The proprietor  Mabo-Tea must give
Manpower himself is the only attention to marketing its
 Plastic usage one who manages brand to increase brand
and non- the business and awareness and have a

40
 biodegradable has not employed strong online presence in
plastic any staff yet, which order to keep up with their
packaging means a low-level competitors.
 Low presence in Manpower  Mabo-tea's recent
in the Market whereas it can be a packaging using plastic
chance to open the bags for take-out of the
store for a job beverage may be
application and help subjected for the city-wide
lessen the ban of plastics around
unemployment Quezon city and may
crisis. eventually contribute to
 Market Presence is the issues of plastic waste
beneath Mabo-tea's
edge yet they can
still have the option
to use more
platforms on social
media to build up
what is lacking.
 It utilizes reusable
plastic cups for the
product’s
packaging yet it is
not 100%
biodegradable so it
can still contribute
in damaging the
planet, but the
owner can still find
a way to change its
packaging
according to the
existing laws and

41
 avoid harming the
environment.

D. Competitive Analysis
i. Competitive Profile Matrix

Table 3.2 Competitive Profile Matrix

Critical Success Factors Weight MABO - TEA MACAO GONG CHA

IMPERIAL TEA

Rating Score Rating Score Rating Score

Strong Online Presence 0. 1 1 0.1 4 0.4 3 0.3

Successful Promotion 0.1 2 0.2 3 0.3 4 0.4

Range of 0.15 4 0.6 2 0.3 4 0.6

Products/Flavors

Customer Retention 0.17 4 0.68 3 0.51 4 0.68

Packaging 0.11 3 0.33 3 0.33 2 0.22

Public Relation 0.13 2 0.26 3 0.39 3 0.39

Inclusions (such as Free 0.13 3 0.39 2 0.26 3 0.39

Wi-Fi, Netflix, etc.)

Ambiance 0.11 2 0.22 4 0.44 2 0.22

TOTAL 1.00 2.78 2.93 3.20

Table 3.2 shows the Competitive Profile Matrix (CPM) of the competitors of Mabo-
Tea milk tea whereas the main competitors include Macao Imperial Tea and Gong Cha.
The CPM Analysis reveals that the enterprise with the highest weighted score is Gong
Cha, having a total of 3.20. Through the data, it can be deduced that Gong Cha can be
considered as the strongest enterprise in the milk tea industry. The enterprise exhibits

42
 strengths in successful promotion, range of flavors/product, customer retention, public
relation and inclusions. Meanwhile, Macao Imperial Tea scored a total of 2.93 which
manifests its strength in having strong online presence, packaging, public relation and
ambience. On the other hand, Mabo-Tea got the lowest weighted score, with a total of
2.78. Despite having the low weighted score, Mabo-Tea still proves that they have
potential in keeping up with the other companies having their own strong Critical
Success Factors such as - Range of Products/Flavors and its Customer Retention. With
the analysis, it can be inferred that Mabo-Tea enterprise should create strategies
according to its strengths and weaknesses to improve its performance to compete hand
on hand with Macao Imperial Tea and Gong Cha.

E. Competitive Strategies
i. Porter’s Generic Strategies
The main generic strategy Mabo-Tea uses is the Cost Leadership strategy,
focusing more on giving the same quality milk tea drinks comparable to big milk tea
companies, such as Macao Imperial Tea, but having a lower price. In addition, since
Mabo-Tea does not specify their products to cater to a certain target market, they do not
use the focus scope.
Mabo-Tea aims to market its own recipe of Cheesecake Milk Tea, which they
claimed is of high quality and can compete with bigger companies having an affordable
price. The said shop strives to produce quality milk tea products that are cheap and can
be afforded by the residents surrounding it including the students studying near the area.
They assure that every cup they bring to the customer is well planned and well budgeted.

43
 CHAPTER IV
MARKETING PLAN

A. Marketing Mix
i. Product
Mabo-tea offers milk tea products that are well formulated and uses fresh
ingredients at all times, from their Boba pearls to their signature cheesecake formula.
Because the owner himself makes all the main components in his milk tea drinks
personally, the beverages are guaranteed to be fresh as well as exceptionally delicious.
The overall quality of the milk tea itself is different from what you would expect when
getting milk tea from other competitors, from the taste to the longevity of the flavor is
recommendable.

Aside from their numerous milk tea drinks, Mabo-tea also offers snacks such as
hotdog sandwiches, chips, and nachos. These food items are checked and prepared by
the owner himself to ensure that they will match the quality of their drinks. In regards to
entertainment, Mabo-Tea offers services such as free Wi-Fi and free streaming services
while in the shop.

Based on the overall presentation of their products, the look of the packaging is
simple and minimalist. They are also utilizing reusable plastic cups for their tea drinks but
it is not guaranteed to be 100% biodegradable. While the take-out containers used for
their snacks are not sustainable, environmentally, in the end. Any form of improvement
when it comes to presentation or packaging is still necessary, like utilizing a better version
of the cup that would be environmentally friendly, that would satisfy consumers’ wants
when it comes to packaging and presentation. They can also bring back the packaging
they used in the past, which is the bottled tea concept, to create product differentiation.
Saying this, their current packaging is still usable since they are still a small-scale
business; though the improvements must be made eventually when they start thinking
about expanding. Even the quality of the beverage has room for more improvements, like
the flavors and formulation in particular.

ii. Price
The pricing goal or objective for Mabo-Tea is to be sales-oriented. The milk tea
industry in the Philippines is already too saturated. Milk teashops are already available
wherever customers go, so it would be a challenge for Mabo-Tea to get momentum. The
goal here is to get sales as high as possible since there are already a lot of current
competitors.

44
 Mabo-Tea decided to sell its products lower than its competitors, not only to be a
cheaper alternative as compared to high-up milk tea brands but to also gain revenue and
capture the market fast through sales. The target market would be able to buy Mabo-
Tea since it offers its products at an affordable price. Students being a part of the target
market of Mabo-Tea, it is only appropriate to set the prices of the products at a price
point that is affordable to them.

The pricing strategy of Mabo-Tea is based on its mark-up plus based on sale,
which varies through the products offered since different input materials are needed to
create the product. The following are the price tables for each of the milk tea products
showing its mark-up and suggested price points.

Table 4.1 Additional Info for Pricing

Total fixed cost per month ₱21,175.00
Average fixed cost per day ₱705.83
Sales per day ₱2,200.00
Average product sold per day ₱27.00
Fixed cost per product ₱26.14
Average income per day ₱812.07

Table 4.2 Milk tea Pricing (16oz)

Milk Tea 16oz
Fixed Variable Mark Up base Mark up base
Variety Cost Cost on sale% on sale Price
Pearl Milk Tea ₱26.14 ₱25.00 30.89% ₱22.86 ₱74.00
Dark Choco Milk Tea ₱26.14 ₱25.00 30.89% ₱22.86 ₱74.00
Coffee Milk Tea ₱26.14 ₱25.00 30.89% ₱22.86 ₱74.00
Wintermelon Milk Tea ₱26.14 ₱25.00 30.89% ₱22.86 ₱74.00
Taro Milk Tea ₱26.14 ₱28.00 32.32% ₱25.86 ₱80.00
Oreo Milk Tea ₱26.14 ₱28.00 32.32% ₱25.86 ₱80.00
Okinawa Milk Tea ₱26.14 ₱30.00 33.16% ₱27.86 ₱84.00
Matcha Milk Tea ₱26.14 ₱30.00 33.16% ₱27.86 ₱84.00
Red Velvet Oreo Milk
Tea ₱26.14 ₱30.00 33.16% ₱27.86 ₱84.00

45
 Table 4.3 Milk tea Pricing (22oz)
Milk Tea 22oz
Fixed Variable Mark Up base Mark up base
Variety Cost Cost on sale% on sale Price
Pearl Milk Tea ₱26.14 ₱32.00 30.78% ₱25.86 ₱84.00
Dark Choco Milk Tea ₱26.14 ₱32.00 30.78% ₱25.86 ₱84.00
Coffee Milk Tea ₱26.14 ₱32.00 30.78% ₱25.86 ₱84.00
Wintermelon Milk Tea ₱26.14 ₱32.00 30.78% ₱25.86 ₱84.00
Taro Milk Tea ₱26.14 ₱35.00 31.30% ₱27.86 ₱89.00
Oreo Milk Tea ₱26.14 ₱35.00 31.30% ₱27.86 ₱89.00
Okinawa Milk Tea ₱26.14 ₱37.00 32.83% ₱30.86 ₱94.00
Matcha Milk Tea ₱26.14 ₱37.00 32.83% ₱30.86 ₱94.00
Red Velvet Oreo Milk
Tea ₱26.14 ₱37.00 32.83% ₱30.86 ₱94.00

Table 4.4 Milk tea Cheesecake Pricing

Milk Tea Cheesecake
Fixed Variable Mark Up base Mark up
Variety Cost Cost on sale% base on sale Price
Mabo-Tea ₱26.14 ₱40.00 36.40% ₱37.86 ₱104.00
Dark Choco
Cheesecake ₱26.14 ₱40.00 36.40% ₱37.86 ₱104.00
Wintermelon
Cheesecake ₱26.14 ₱40.00 36.40% ₱37.86 ₱104.00
Oreo Cheesecake ₱26.14 ₱42.00 38.05% ₱41.86 ₱110.00
Taro Cheesecake ₱26.14 ₱42.00 38.05% ₱41.86 ₱110.00
Dark Choco Oreo
Cheesecake ₱26.14 ₱42.00 38.05% ₱41.86 ₱110.00
Matcha Cheesecake ₱26.14 ₱44.00 38.47% ₱43.86 ₱114.00
Red Velvet
Cheesecake ₱26.14 ₱44.00 38.47% ₱43.86 ₱114.00
Matcha Oreo
Cheesecake ₱26.14 ₱46.00 39.88% ₱47.86 ₱120.00

46
 Table 4.5 Fruit tea pricing
Fruit tea with fruit jelly
Fixed Variable Mark Up base Mark up
Variety Cost Cost on sale% base on sale Price
Green Apple Fruit Tea ₱26.14 ₱31.00 27.67% ₱21.86 ₱79.00
Passion Fruit Tea ₱26.14 ₱31.00 27.67% ₱21.86 ₱79.00
Lychee Fruit Tea ₱26.14 ₱31.00 27.67% ₱21.86 ₱79.00
Watermelon Fruit Tea ₱26.14 ₱31.00 27.67% ₱21.86 ₱79.00
Wintermelon Fruit Tea ₱26.14 ₱31.00 27.67% ₱21.86 ₱79.00

Table 4.6 Foods pricing

Foods

Variety Fixed Cost Variable Cost Mark Up base on sale% Price

Fries ₱26.14 ₱14.00 27.01% ₱14.86 ₱55.00
Sandwich ₱26.14 ₱18.00 19.74% ₱10.86 ₱55.00
Nachos ₱26.14 ₱15.00 17.72% ₱8.86 ₱50.00

Because of the high fixed cost of Mabo-Tea, averaging P812.07 of fixed cost per
day that would lead to a P26.14 fixed cost per product, an additional P5 will be added to
the total price of all the beverages to have an increase in profit. With this, it is expected
for Mabo-Tea to generate profit ranging from 19.72% up to 39.88% based on the total
sale. Mark up allocated on the cheesecake series was the highest for it has the highest
demand among many other flavors.

Customers usually prefer to eat with milk tea. They prefer it the most to pair with
fries followed by nachos then sandwich. Mark up on fries was set up for the customer
will still buy it in line with the finding of it having high demand.

As a result of the increase in profit, there will be a more allocation of budget to the
betterment of not just the product but the shop also to provide improved customer
service. Mabo- Tea will allot a budget in advertising that can make it easier to have a sale
of P2,200.00 or almost equivalent to 27 products sold per day.

Given the fact that there will be additional costs for advertisement, it is only
practical to increase the price points of each milk tea product to avoid the shortfall of the
business.

47
iii. Place
Mabo-Tea currently has one brick and mortar shop that is located at 335, P.
Tuazon Boulevard, Project 4, Quezon City, and Metro Manila. Currently, it uses a direct
distribution channel in which the producer directly sells the product to the consumers
without using any intermediaries. It will use indirect distribution where the shop will
utilize social media as a distribution channel where customers can inquire and order
online.

Figure 4.1 Current Distribution Channel Framework

Figure 4.1 shows the current distribution channel framework of Mabo-Tea.

Currently, Mabo-Tea uses the direct distribution channel in which the product goes
straight from the producer to the consumer without any intermediaries used in
distribution. This distribution channel is applicable for the said shop since it just started
operating last January 8, which is approximately two months ago.

Figure 4.2 Proposed Multi-Channel Distribution Framework

Figure 4.2 shows the proposed distribution channel framework for Mabo-Tea. As
shown in the figure, Mabo-Tea will use a multichannel distribution, utilizing social media
as an order system where customers can pre-order products through Mabo-Tea’s
Facebook page and will just have to wait at whatever place they are. Once the order has
been prepared, the consumers will just have to pick it up and pay at the shop. The
proposed distribution channel will only be an addition of the order system to the existing

48
distribution channel. Therefore, customers can order in Mabo-Tea directly or with the use
of social media.

iv. Promotion
Promoting a product is necessary, most especially for start-up businesses like
Mabo-Tea. For the promotion outlook of the products offered by Mabo-Tea, the main
goal is to increase its brand awareness and build customer satisfaction by persuading
the customers to purchase the product using several promotional strategies.

Currently, the promotional methods of the owner include the "Flavor of the Month"
scheme, posting of photos on Facebook, Facebook boosts; which are boosters for posts
to reach more people, and lastly, the business held a "Buy 1 Take 1" promo at the start
of their operations that lasted for a month. A proposed plan to the owner includes
attachment of fliers on electric posts and lampposts within the area for increased
awareness. In terms of widening their grasp digitally, Mabo-Tea is to take on social media
platforms besides Facebook, such as Twitter and Instagram. They are advised to hire a
layout artist for the published materials and a social media handler once things start to
take off in the next five years.

Promotional Schedule
Since Mabo-Tea is a start-up business, it is still in the process of reaching its target
customers and building brand awareness. In this promotional plan schedule, most of the
plans are focused on increasing the recognition for the brand not only to build Mabo-
Tea’s reputation but also to acquire new customers and retain old customers, which can
help increase the company’s sales.

Table 4.7 Promotions Schedule

Promotional Plan Plan Details Timetable

Creation of promotional Reaching and building brand December

accounts on social media awareness to their target market by 2019
platforms such as promoting the product using the online
Facebook marketing strategy.

Posting of different To let the potential customers know January 2020

publication materials with that the product exists and know
the product’s features and further details about it.
information on social media
account

49
Implementation and Each month, there will be a limited February 2020
introduction of the “Flavor edition milk tea variant deemed as the
of the Month” "Flavor of the Month". This gimmick
shall be promoted on the shop's social
media platforms and posting starts
every last day of each month to
introduce each flavor.

Using the “Boost Post” on Posts featuring the products of the February 2020
Facebook brand will be advertised through
Facebook’s boost post. The allotted
budget for this is 250 pesos for a week
and it will continue for 6 months
starting February 2020. This is to reach
more audiences in other geographical
areas who can also be potential
customers of the shop. This can be
made possible with the effective
creative editing of the materials that
will be posted on their Facebook page
such as pictures, videos, etc.

Creation of Publication Making of the Publication Materials to March -

Materials be posted on the shop’s social media May 2020
and ensuring that every material is
creative enough to attract the attention
of potential customers.

Posting of better layout and The published materials of the store June 2020
arranged promotional online shall be reformatted to a more (continuous)
materials and fresh and modern approach. This is to
advertisements with the entice the target market to purchase
product’s features and from the shop.
information on social media
accounts.

Creation of creative posters September -

and flyers October 2020

50
 Attach posters and/or flyers Posters/Flyers with attractive and January 2021
with the shop’s location engaging designs will be posted in the
and products offered on nearby locations most preferably in
tricycles within the area. public places such as schools, parks,
malls, and other possible areas. This
will be done with consent from the
establishment where the posters will
be placed. This is encouraged in order
to spread more awareness to the
people around the area who can also
be potential customers of the shop. It
will be done quarterly.

Loyalty cards Loyalty cards shall be released and February -

available to anyone who wishes to avail March 2021
of them. The loyalty cards would be
makeshift cards that will be filled up
with stamps to per order of milk tea
and when the target number of stamps
is accomplished, the holder may avail
of a free milk tea beverage. This will be
implemented continuously.

Implementation of the This promo would take place every August 2021
Happy Hour promo Friday of the week between 5-7 PM
wherein there would be a discount on
certain milk tea beverages.

B. Advertising Research
i. Current Situation of Brand’s Marketing

Mabo-Tea’s current brand marketing is not as strong as it should be. In summary,

Mabo-Tea offers a variety of milk tea flavors that are originally formulated by its owner.
Not only does it offer milk tea beverages, but also snacks and services such as free Wi-
Fi and streaming services that customers could use if they wish to. It is situated in the
street of P. Tuazon and is in the center of establishments like schools and hospitals. It
uses the mark-up plus based on sale pricing strategy, and price points are around P69 -
P120.

51
 Mabo-Tea utilizes Facebook for its online advertisements. The business posts
several posters almost every day in order to catch the attention of customers. A “flavor
of the month” tactic is being used by the company where that certain flavor is only
exclusive for that specific month. With Facebook, Mabo-Tea also uses its advertisement
boost so that people that live around Quezon City could see their advertisements. Mabo-
Tea has also done buy 1 take 1 for its promotion in its early months, but it was not as
successful as hoped for.

ii. Customer Insights

Taken from the results of the market research, as seen in Chapter 2, the following
are the customer insights that can be utilized in doing the marketing plan for Mabo-Tea.
 Customers of Mabo-Tea like their milk tea to be affordable, which is the
opposite of what they actually purchase. They generally prefer to purchase
milk tea that is of the price range of P101 - P120. This could mean that Mabo-
Tea could increase their pricing without having a big risk of losing customer
retention because the purchasing power of their customers is high while
keeping it within the affordability price.
 Customers of Mabo-Tea generally prefer milk tea that is infused with
cheesecake. Given that Mabo-Tea’s main product is the cheesecake series, the
business can really further promote their cheesecake series to potential
customers.
 Promotional discounts are also one of the major factors that Mabo-Tea’s
customers purchase milk tea. Given that one of the target markets are
students, it would be effective to set promotional discounts so that students
could afford the products that fit their allowances. Customers still try to find
affordability while not compromising the product’s quality.
 Generally, people prefer to eat while drinking milk tea. Therefore, having food
as a partner for the milk tea could help Mabo-Tea gain more customers as it
not only targets people who are thirsty, but also those who are craving for
food.
 Lastly, product quality is the one that customers consider most, followed by
the price of the product. Mabo-Tea could really push the idea that its products
are not only set at an affordable price but also of very good quality.

iii. Current Brand Positioning

As for being the newfound milk teashop in the block, Mabo-Tea truly has
the 'bang for the buck' impression from customers. Given their relatively
affordable pricing, the shop does not sacrifice the quality of their craft. Mabo-Tea

52
 positions itself as a milk tea for the people whereas it not only serves good quality
milk tea but good services as well.

iv. New Brand Positioning

A new brand positioning is not needed for Mabo-Tea. Since Mabo-Tea just
started its operation changes are not needed and will not be made anytime soon.

C. Target Market
i. Market Segmentation Research
Mabo-Tea predominantly targets teenagers, ages 13-19, and working and non-
working adults, ages 20-35, of any gender who lives around Project 4, Quezon City. It
also markets itself not just to the avid drinkers of milk tea but also to those who are
looking for good quality milk tea at an affordable price. It aims to reach the product to
those who are well-active on social media, especially Facebook. Given the different kinds
of handcrafted milk teas with its aesthetic appearance and quality ingredients to produce
quality taste milk teas, it intends to entice the consumers to develop a loyalty for the
business. In addition to this, Mabo-Tea also targets consumers who seek perfect milk tea
that would suit their preferences and decisions.

ii. Brand Personality

Mabo-Tea mainly markets its chill and relaxing atmosphere. The brand conveys
itself as a friendly and easy-going personality through its owner. He tries to make every
conversation with him as pleasant and entertaining as possible. The owner also uses
decorations to further enhance the atmosphere’s effect.

iii. Personification
Mabo-Tea’s main target markets are teenagers and adults, which makes it friend-
centric and family-centric where a circle of friends or families can enjoy their products
and the place itself whenever they are free to relax and have some fun.

D. Advertising Objectives
As an emerging milk tea business, advertising objectives are set for Mabo-Tea
that aims to:
 To capture the attention of the target market by building awareness in their minds
about the brand and the product’s qualities with the use of different social media
platforms.
 To acquire more customers by making the customers rethink their purchases and
decide on switching to a much more affordable and quality-focus brand, by

53
 presenting the difference and value of the offered products to that of the
competitors through advertising the product’s features.
 To position the brand to the minds of consumers by introducing the brand’s main
objectives, vision, and mission through social media, promotion, and
endorsements.
 To increase the sales and profits of the company in the event that the advertising
strategy leads to success.

E. Advertising Budget
Table 4.8 Advertising Budget
MEDIA COST OF BREAKDOWN

Digital Duration Cost per Unit Details Total

Facebook Advertisements 1 year 566 Quarterly ₱ 6,792.00

Per month

On-site/Events

Fliers/Posters - ₱20.00 25 pcs. - ₱ 500.00

Loyalty cards - ₱ 5.00 100 pcs. - ₱ 500.00

TOTAL ₱ 7,792.00

F. Creative Executions

To be posted around the area

54
“Flavor of the Month” -- sneak peek

Loyalty Card

55
To be posted in Social Medias

56
57
Commercial (still in progress)

58
 CHAPTER V
HUMAN RESOURCE PLAN

Currently, Mabo-Tea is single-handedly operated by the owner and making it his

full-time job. The shop, for now, is still small for it to accommodate new employees but
the owner plans to expand it in the coming years. Looking ahead of time and expecting
Mabo-Tea to expand through more branches; may it be cafe-type or kiosk, additional
employees will be essential and as part of the roles of Human Resource, events and
programs may take place to check the welfare of the employees and for the advancement
and betterment of the company.

With that, a list of programs is suggested for the future employees of Mabo-Tea
in order to attain the goals and objectives of the business, in accordance with the Rs of
Human Resource that Mabo-Tea needs.

A. Recruiting
When the need for manpower arises due to expansion, Recruiting its own
employees is essential to manage the business and run it smoothly. Before the interview
and skill test proper, the submission of the resumes will be done online. Job postings will
be announced through Mabo-Tea’s social media accounts as well as the website of Job
Street Philippines for a faster way in gathering potential applicants.

Program Title: Mabo-Tea time! - Be one with us towards Mabuting service

Venue: Mabo-Tea, 355 P. Tuazon, Project 4, Cubao, Quezon City

Objectives
 To provide working opportunities and decrease the increasing
unemployment rate of people around the area.
 To select and employ the right people that will work together in order to
produce good outputs and serve the customers with satisfaction.

Role of the employer: Accountable in leading the recruiting program.

59
 Table 5.1 Recruiting Program Flow

TIME ACTIVITY PERSONS RESPONSIBLE

7:30 - 8:00 a.m. Checking of Appointments Business Owner

8:00 a.m.- 10:30 a.m. Interview Business Owner

10:30 am - 11:00 am Break

11:00 a.m. - 12:00 n.n Skill Test Exam/Skills Evaluation Business Owner

12:00 - 12:30 pm Employment Verification Business Owner

Job Positions for recruitment:

 Barista-Service Crew
YEAR 2021
o 1 Full Time worker
o 2 Part Time workers

YEAR 2023
o 1 Full Time Worker

B. Retooling
Retooling is a way to maximize the potential of the employees. With this, a whole
day intensive program is to be developed to fully know the capabilities of the employees.
This would also be an opportunity for the owner to teach the ways on how to operate
the business, such as Mabo-Tea.

Program Title: Behind the Tea

Venue: Mabo-Tea, 355 P. Tuazon, Project 4, Cubao, Quezon City

Objectives:
 To teach the newly employed workers of Mabo-Tea on how to operate the
business.

60
  Teach the employees on how to create Mabo-Tea milk tea recipes.

Role of the employer: Lead the training and oversee the trainees throughout the training
program

Table 5.2 Retooling Program Flow

TIME ACTIVITY PERSONS RESPONSIBLE

8:00 AM Call Time Business Owner and

Employees

8:00 AM - 8:05 AM Opening Prayer Business Owner

8:05 AM - 8:20 AM Introduction of the Owner and Business Owner

short business background

8:20 AM- 8:25 AM Overview orientation of the Business Owner

training activities for the whole
day

8:25 AM- 8:35 AM A short break before the training

start

8:35 AM - 9:00 AM A quick talk about the cleaning, Business Owner

security, and maintenance of the
store

9:00 AM - 10:00 AM Discussion about the store's Business Owner

management in terms of service
and money operations

10:00 AM- 11:30 AM Introducing the current Inventory Business Owner

system of Mabo-Tea and
discussing the procedure on
using the said system.

11:30 AM- 12:30 PM Lunchbreak

61
 12:30 PM - 1:10 PM Demonstration of the procedures Business Owner
on the cooking of the milk tea
and fruit tea base.

1:10 PM - 1:30 PM Hands-on training on cooking Business Owner

the Boba pearls and explaining
some things to note after the
procedure.

1:30 PM - 2:00 PM Step by step procedure of Business Owner

making the signature
cheesecake formula of Mabo-tea

2:00 PM - 3:00 PM Creating and discussing some of Business Owner

the best-sellers of the store and
taste testing

3:00 PM - 3:15 PM Short break

3:15 PM - 4:15 PM An overall practice of all the Business Owner

things that they learned to see
their speed of service (including
getting and making of
customers’ orders)

4:15 PM -4:45 PM Cleaning Time Employees

4:45 PM - 4:55 PM Closing Remarks Business Owner

4:55 PM - 5:00 PM Closing Prayer Business Owner

End of Training

C. Resonating, Retaining and Reviewing

Resonating is for building systematic monitoring of the climate inside the Mabo-
tea recognizing the practices and values among employees. It is also a way of ensuring

62
that the business would be classified as a good one. On the other hand, retaining pertains
to the ability of the organization to keep its employees, while also being able to develop
their skills further. This is important for Mabo-Tea to retain its employed workers so that
time and money would not be wasted in recruiting another employee for the business.
Moreover, Reviewing is evaluating the performance of each employee to ensure that they
contribute in achieving the goals/objectives of the company while doing their work.

Considering that Mabo-Tea has plans branching out, a program is developed in

order to retain and resonate its employees as well as review their performances.

Program Title: Make Your Own Goodness in a Cup!

Venue: Mabo-Tea Shop, 355 P. Tuazon, Project 4, Cubao, Quezon City

Objectives
 To recognize employees and distinguish them according to their
performance.
 To maintain a friendly environment for all the employees.
 To develop their basic skill and discover deeper potential and enthusiasm
within them.
 Encourage creativity amongst the employees by giving them the freedom
to create their own recipe.

Role of the employer: Enhance the skills of the employees and see potential on them.

Table 5.3 Resonating, Retaining and Reviewing Program flow

TIME ACTIVITY PERSONS RESPONSIBLE

1:00 PM - 1:30 PM Call time Business Owner and

Employees

1:30 PM - 1:35 PM Opening prayer Business Owner

1:35 PM - 1:55 PM Introduction Speech and a Business Owner

rundown of activities

63
1:55 PM - 2:30 PM Evaluation of the Employees’ Business Owner (host)
Performances. Employees (players)

2:30 PM - 2:40 PM Presenting the Mechanics of the Business Owner

Contest

2:40 PM - 3:40 PM Competition Proper: Make Your Employees

Own recipe/flavor of Milk Tea

3:40 PM - 4:00 PM Taste Testing and Evaluating of Marketing and Strategy

the drinks Team from UST and the
Business Owner

4:00 PM - 4:15 PM Tallying of results and Business Owner

Announcement of the winning
recipe with a chance to be
Mabo-Tea's flavor of the month

4:15 PM - 4:30 PM Picture Taking of Employees Business Owner, Marketing

with the owners and their own and Strategy Team from
created recipe UST and Employees

4:30 PM - 5:30 PM Milk tea Party Time Business Owner, Marketing

and Strategy Team from
UST and Employees

5:30 PM - 6:00 PM Cleaning time Employees

6:00 PM - 6:10 PM Closing Remarks Business Owner

6:10 PM - 6:15 PM Closing Prayer Business Owner

End of Program

64
 CHAPTER VI
OPERATIONAL PLAN
A. Methods
i. Manufacturing/ Sourcing of Goods or Service or Delivery Process (QDP)

 Enterprise Delivery System

Table 6.1 Enterprise Delivery System
INPUTS THROUGHPUTS OUTPUTS OUTCOMES

These are the resources This refers to The following are Through assessment
mobilized by Mabo-tea the recent the products that with the owner of
for the operations. process for Mabo-Tea the shop, these are
Included here are 6’Ms of operations and provides; the following
Operation selling in the customer
Mabo-tea 1. Milk Tea expectations based
1. Money shop. A beverage on the traits and
The start-up capital originated from overall quality of the
of Mabo-tea came from (Refer to the the country of products and their
the Owner’s personal Attached page Taiwan. customer service.
money that He saved up for Flow of The fusion of
entirely for the business. Operation and two ordinary 1. Customers’
The owner currently Selling) beverages well Expectations:
letting the money flow in known to the
a cycle, do not have any world; The Milk  Products that
intentions yet to and the Tea will serve the
possibly for investments incorporated with authenticity of
from other potential sinkers like Boba the beverage
partners as well as pearls, black jelly, from where it
applying to any loan and yellow all began.
from banks or any pudding. Mabo-  The given
financial institutions. tea’s take is products
having an original embody some
2. Men recipe different unique traits
from other that set them

65
 The business owner brands, creative apart from all
is the current barista and and new flavors, the usual and
server of Mabo-Tea. and the best- well-known
However, it will require 4 selling brands out
employees in accordance cheesecake there.
with having 1 more series.  Originality
branch outside the Packaged in and
current area where the recyclable cups innovativenes
first shop is located. that differ in sizes, s of taste is
served with evident
straws.  A new take to
3. Machines-
the trend that
These are the tools
2. Fruit Tea will give
used for the production
The idea others new
of the product. The tools
originated from experience.
needed for the
Taiwan, a  The given
production of Milk Tea
refreshing option price is
are Gas Stove, Pressure
for the summer equivalent to
Cooker, Digital Weighing
season. It is a the value and
Scale, Chiller, Sealing
combination of quality of the
Machine, Milk Tea shaker,
any fruit extract product
Black tea barrel, mixing
(strawberries,  The best
bowl and strainer.
blueberries, performance
lychee, etc.) and and fast
4. Materials
any kind of tea as delivery to the
 These are the needed
well. Packaged in consumers
materials for creating
recyclable cups  A comfortable
the milk tea series:
that differ in sizes, and relaxing
o Back tea,
served with place for
o Milk,
straws. consumers.
o Creamer,
o Pearls or any
3. Cheesecake
other sinkers
Milk Tea

66
 o powdered As mentioned
flavor earlier, one of
o Fructose, their unique
o Water prepositions is the
o Ice, taste of their
o Cup, lid, and cheesecake
straws formula; it is
mixed with the
 These are the milk tea base in
needed materials any flavor.
for creating the Considered
cheesecake milk as a current trend
tea series: for Milk Tea for its
o Black tea, good harmony
o Cheesecak when together.
e Packaged in
o Milk, recyclable cups
o Creamer, that differ in sizes,
o Pearls or served with
any other straws.
sinkers
o powdered 4. Snacks
flavor Mabo-tea
o Fructose, offers 2 different
o Water flavors of Nachos
o Ice, (cheese and,
o Cup, lid, sweet and
and straws spicy) full of
cheese sauce on
 These are the top, and Hotdog
needed materials in Bun with a
for creating the dressing of
fruit tea series:

67
 o Jasmine ketchup and
tea, mayonnaise.
o Pearls or
any other
sinkers
o Fruit syrup
o Fructose,
o Water
o Ice,
o Cup, lid,
and straws

 These are the needed

materials for creating
the nachos:
o Nachos
o Cheese
o Cheese sauce

5. Methods
(Refer to the
Attached paper for Flow
of Operation and Selling)

6. Management

Jake Marvin Lim-

He is a sole proprietor,
the owner of Mabo-
Tea Shop. With the
expansion of the store,
He will be the one

68
facilitating until the
number for branches
reached higher than
currently expected.

4 Employees-
Under the owner’s
supervision, they
will be the ones
performing the
duties to prepare
and serve the
customers their
beverages and
snacks they
ordered.

69
Flowchart of Operation and Selling

70
71
72
73
  Distribution Method
Mabo-tea is using a systemic process of distributing their product to its consumers
within the reach to the area of the city where it is currently situated. The management is
using Brick and Mortar distribution of goods, meeting their customers face to face at the
store, serving the beverages and snacks under a short period of time. Also utilizing the
Delivery system where the owner spares time to deliver the drink personally, however,
most of the time people who are near the vicinity are the ones to ask for delivery.

In addition, there is an initial plan of giving tricycle drivers the opportunity to gain
more income by making them a delivery channel around the vicinity of a 1.5 km radius. It
can also work when the shop expands its reach to other cities in Metro Manila or all
around the country. Meanwhile, delivery systems like Grab food, Food panda, and Lala
food may be the last option of the owner on reaching their customers, for now, this is
because of the idea that the competition on this particular milk tea industry is tight; there
can also be a delay in the circulation of cash of the business. It can be an option once the
business takes off into another level and has been known to the most people, and settling
for utilizing tricycle for the delivery system embodies the mission of the business to give
more job opportunities to those who needed it the most.

Figure 6.1 Distribution Channel Map

Figure 6.1 shows the selected distribution method of the owner to his consumer
(Producer to Consumer). Since it is a milk teashop, it offers food and beverages directly
to its customers. To put it simply, all the products of Mabo-tea are distributed in a single
way manner.

74
c. Payment Method

Currently, Mabo-Tea is using a direct form of

payment processing wherein the customer pays directly to
the shop owner after they receive their order. This is a very
common and effective way of managing the counter for a
business owned by a sole proprietor because they can
avoid any mistakes in bookkeeping by verifying the
amount being transacted directly.

The kind of Point Of Sale software they are using is the Loyverse POS software
because it allows their customers to view their products directly using their phones or
tablets and request either printed or electronic receipts after a transaction has been
completed. The software is also helpful in managing inventory, visualizing sales analytics,

and managing customer relationships.

However, with the increasing interest in paperless payment methods, Mabo-Tea

is encouraged to implement a way for customers to pay via digital currency. When they
eventually expand and branch out to different locations, collaborating up with e-wallets
such as GCash, PayMaya, PayPal, etc. is a viable way to increase the ways in which
customers can pay for their products while lessening the need for petty cash for change.

B. Manpower
i. Job Description

Job Title: Barista-Service Crew

Duties and Responsibilities:
 Proficiently makes milk tea products provided by the store while maintaining its
quality and consistency.
 Cooking and preparing snacks such as hotdog sandwiches and nachos.
 Take and process orders in a friendly and respectful manner.
 Maintain a clean workspace by washing utensils, cleaning counters, throwing the
trash, mopping the floor, and the like.
 Restocking items and informing the owner of any operational inconsistencies.

75
  Provide informative solutions to customer questions about the products.
 Accept the payment and process the receipt while keeping a record of sales and
stocks.

ii. Employee Qualification

 High school Diploma or Equivalent ( National Certificate II -Cookery or food and
Beverage)
 Transcript of Records
 NBI Clearance
 NSO/PSA Birth Certificate / valid id
 Work Experience in the food industry specifically food and beverage preparation
 Work experience in a fast-paced work environment and deliver orders on time
 Willingness to train and expand knowledge about the industry
 Exceptional listening and communication skills, as well as problem-solving skills
 Ability to stand or walk for a long period of time especially during peak hour
 Ability to work well under pressure with a positive attitude
 Ability to accurately handle money and operate with honesty
 Availability to work (weekdays, weekends, early shifts, overtime, holidays)
 A polite and engaging personality
 Commitment to serving customers with full satisfactory
 Willingness to comply with all food safety procedures

iii. Selection of Job Applications

Hiring the right candidate who meets the qualifications to work under the
business is crucial because it will reflect on the overall performance of the business. A
thorough evaluation and a process are followed to choose the most suitable candidate
for the position.

The following is the suggested process for Mabo-Tea's selection of job applicants:
1. From the candidates that applied and submitted their curriculum vitae during the
online application posted in Mabo-Tea’s social media accounts and on the
JobStreet Philippines, screening of applicants will be done.

76
 2. After screening the applicants, a list of potential candidates who had enough
experiences based on their resume will be made before the interview and skills
test proper.
3. Skill tests will be done whereas applicants will display their own capabilities to
see if they have the required skills that the business looks for.
4. An assessment of each applicant who took the skill test will be followed and then
a list of candidates will be narrowed down to see who will be included in the final
interview.
5. For the final interview, questions will be based on the qualifications applicable to
the needed position, including experiences and knowledge about the business.
6. Employee Verification will be done to ensure that the applicants are legal and will
not cause harm to the company.
7. Finally, the final selection for the best applicants will be made which is based on
their skills, competency, and knowledge through the Interview and Skill Test.

iv. Job Offer

Employees that would be hired to do the job assigned will be given an adequate
amount of direct/indirect salary (monetary) and compensation (non-monetary) in order
to satisfy their needs. The selected employees will receive the following compensation:

For full-time workers

1. Semi-monthly salary - this amounts to minimum wage with an additional
20% from the base salary, this will serve as monetary compensation for
full-time employees.
2. Overtime pay - this amounts to the regular hourly wage plus 25% as
compensation for working more than the normal working hours.
3. Rest day pay - this amounts to the regular daily wage with the addition of
30% as compensation for working during the employee’s rest day.
4. Holiday pay - this amount depends on what kind of holiday the employee
will work as compensation for working on a holiday. If it is a regular holiday
then the employee will receive double pay or an amount totaling to 200%
of his/her daily wage. If it is a special holiday, the employee is entitled to
receive their daily wage times 130%.

77
5. Personal and sick leave - this is a compensation given to employees to
address themselves without the fear of losing their pay for the said day. An
employee is given 3 days of sick leave per month.
6. Vacation leave - this is a non-monetary compensation given to employees
to give them time to rest or go somewhere. An employee is given 3 days of
vacation leave per month without losing their pay. This is applicable as long
as the employee will inform the employer beforehand.
7. Maternal/Paternal leave - this is a non-monetary compensation given to
employees who are pregnant, have just given birth or have a wife that has
given birth. Maternal leave will have a total of 105 days leave with full pay;
the employee will also have the choice to extend it with another 30 days
without pay. For Paternal leave, an employee will be given a total of 7 days
to take care of his wife and will be fully paid. This compensation will be
given for the first 4 child deliveries only.
8. Security of tenure - this is given for compliance in the Article 3 of Labor
code and Section 18 Article II of the Philippine constitution. In this, the
employees are assured that they will not be terminated without a valid
reason.
9. Partial Tuition reimbursement - this is an indirect compensation that will
be given to the employee or to a beneficiary of the employee. This amounts
to a total of 5,000 PHP per semester.
10. Monthly contributions in SSS and EC - this is an indirect compensation
that will be paid to the Social Security System for the benefit of the
employee when they retire.
11. Monthly Philhealth contributions - this is an indirect compensation that
will be paid to the Philippine Health Insurance Corporation for the benefit
of the employee and its beneficiaries that will be used in case of a health
emergency.
12. Monthly Pag-IBIG contributions - this is an indirect compensation that will
be paid to Pag-IBIG for the employee to be a member of it in order to have
an available cash loan for them to use in an emergency.
13. Disability insurance - this is an indirect compensation given to employees
that they can use in case they acquired an injury or have an accident during
their work.

78
 For part-time workers
1. Daily minimum wage - this amounts to minimum wage times the number
of hours they work, this will serve as monetary compensation for full-time
employees.
2. Overtime pay - this amounts to the regular hourly wage plus 25% as
compensation for working more than the normal working hours.
3. Personal and sick leave - this is a compensation given to employees to
address themselves without the fear of losing their pay for the said day. An
employee is given 3 days of sick leave per month.
4. Rest day - this amounts to the regular daily wage with the addition of 30%
as compensation for working during the employee’s rest day.
5. Holiday Pay - this amount depends on what kind of holiday the employee
will work as compensation for working on a holiday. If it is a regular holiday
then the employee will receive double pay or an amount totaling to 200%
of his/her daily wage. If it is a special holiday, the employee is entitled to
receive their daily wage times 130%.
6. Security of tenure - this is given for compliance in the Article 3 of Labor
code and Section 18 Article II of the Philippine constitution. In this, the
employees are assured that they will not be terminated without a valid
reason.
v. Employee Development
Helping an employee to enhance his skills at work will be a great asset for the
company that is why it is significant for the company to keep track and record their
employee’s performance as well as the different strengths and weaknesses that should
be improved. According to Leonard (2019), management by objective plans assesses if
the employees meet the goals of the company and it goes deeper about the employee’s
strength and weaknesses wherein they mix both positive and negative to teach the
employees that not everything is bad, even if the goals are not met. In this way, the
business will create an optimistic and lively working atmosphere.

The following are the proposed plans of Mabo-Tea’s Employee Development:

 Create Individual Development Plans - providing employees a roadmap and
helping them for their individual career goals that will have a likelihood of a return
of investment in reaching the business’ goals.

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  Provide Performance Metrics - set specific quantitative metrics for the employees
to achieve realistically. It will also give the employees a sense of accomplishment
that they would want to continue.
 Offer Professional Training - helping the employees by training them properly
that will result in their success in knowing and doing their roles properly.
 Offer Cross-Training and Opportunities outside a Job Function - employees will
learn to appreciate the hardship of other employees in performing their role in the
business by giving them cross training and letting them gain new knowledge and
new experiences. With this, employees can also help one another in performing
their assigned work.
 Give Constructive Feedback - feedbacks, as well as recommendations for further
improvements, should be delivered regularly and should be tied to the
Performance Metrics to further motivate the employee to accomplish his job.
 Emphasize Soft Skills - strengthening the core relationship skills like the ability
to collaborate and communicate with one another will lead to a smooth flow of
work inside the shop.
 Invest in Personal Development
1. Emotional Balance - being supportive by listening and helping the
employees to build a tough emotional space.
2. Intellectual Growth - educating them not just about the skills needed for
work but can also help them in some of their personal life (if the employees
give consent about it) that will help the employee in meeting their personal
goals.
3. Physical Health - encouraging employees to practice self-care and care for
them as well

C. Machines
i. Equipment and other Physical Facilities
Equipment
The following are the current equipment that Mabo-Tea uses in its operations:
 Shaking cups  Digital Weighing Scale
 Measuring cups and spoons  Syrup Pump
 Container for milk tea powder  Cups and Lids
flavors

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  Chiller  Straws
 Strainer  Boba Pearl Container
 Electric Stove  Nachos Container
 Electric Mixer  Cheesecake Container
 Cooking Pot  Metal utensils (spoons, etc.)
 Frying Pan  Icebox
 Black Tea barrel

Physical Facility
Mabo-Tea, currently, only has one branch, which serves as its main distribution
channel. Shown below is the layout or floor plan of the current location:

Figure 6.2 Mabo-Tea’s Floor Plan

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 Figure 6.3 Overview of Mabo-Tea’s shop

Telecommunication and Information Technology

 Smartphone - Such devices would be utilized for digital communication, online
advertisement, and social media handling.
 Television - Used in-house within the establishment to highlight the ‘Flavor of the
Month’ along with providing the free Netflix accommodation of the store.
 Social Media Network (Facebook) - Utilized to display advertisements and
promotions to the targeted market, answering queries, and delivering
announcements such as operating hours and new flavor updates.
 Wi-Fi - An in-house accommodation for the customers to make use of during their
stay, this feature contributes to the effort of retaining customers and familiarizing
them with what the shop has to offer.

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 CHAPTER VII
SOCIO-ECONOMIC PLAN
A. Social and Economic Impact

i. Social
Environmental Impact
Mabo-Tea currently utilizes reusable cups in serving its products, particularly its
main offering; milk tea. The shop also uses paper plates in serving snacks such as nachos
as a side to the customer’s beverage.

Service
Mabo-Tea promotes convenience in serving its customers. The proprietor himself
is the barista of the establishment, and since it is situated along P. Tuazon Boulevard, it
is inaccessible and/or unknown to some consumers outside the location. With that, the
owner knows who the frequent customers are and their regular orders in which he also
initiated deliveries around the area when he had time to accompany more potential
customers. Aside from their main services, Mabo-Tea also provides entertainment such
as free Wi-Fi and free streaming services to the customers who want to dine-in, making
them more likely to spend time in the establishment and possibly return due to good
accommodations and services.

ii. Economic
Tea production/Supply Chain
Mabo-Tea uses tea imported from China and Taiwan that sources from a local
supplier which boosts the production of tea through this kind of import transaction since
milk tea is still a trend in the country. Furthermore, Mabo-Tea also considered sourcing
ingredients from different suppliers for milk tea flavors, pearls, and other sinkers, which
gives them the chance to increase their input of goods from other countries mentioned
above so that more milk tea businesses like Mabo-Tea will be engaged in buying supplies
from them.

Employment
Mabo-Tea’s establishment is able to provide work opportunities for people who
are looking for simple jobs that do not require a high level of educational attainment to
give them a living. Though the business does not require numerous employees, it can still

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contribute to the economy in a way that is one of the small businesses in the country that
can provide opportunities to lower the unemployment rate.

Competition
As milk tea became popular in the Philippines, there has been strong competition
among milk teashops within the highly saturated market. Mabo-Tea, being a small
business needs to standout amongst its competitors. Having several businesses strive to
become different and creative in innovating new creations, has resulted in a very active
and healthy marketplace.

B. Proposed Engagements
Environmental Impact
Mabo-Tea can further utilize environmental-friendly cups and straws in serving its
product through thorough sourcing. For example, paper cups, and straws that are
currently used, in some cities in the Metro. It may also consider using tissues made with
recycled material as well as paper cup holders as packaging for the beverages rather
than utilizing plastic bags for take-out transactions. Lastly, it is recommended that Mabo-
Tea implements a Bring-Your-Own-Cup Policy to reduce the consumption of single-use
plastics, consequently, this policy would allow the customer to receive a discount in the
event that they provide their own cup or container.

Local Job Opportunities

Mabo-Tea will be able to generate job opportunities for four people per
establishment, two of whom are part-time and two full-time workers, preferably residing
near the business enterprise. Once the business expands with more branches outside
the city where it is currently located, the same scheme of hiring employees can also be
implemented to help the country lower its unemployment rate.

The business may offer rewards and incentives aside from the fair compensation
to further motivate their employees to do their best in their jobs. Mabo-Tea must continue
eyeing the program of providing job opportunities for tricycle drivers as part of their
official delivery system, wherein the tricycle drivers will receive 10% of the profit from
the delivered product.

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 Partnerships
Partnerships yield a good economic impact primarily to the milk tea industry.
Successful collaborations with other entities and/or organizations may boost the sales
and productivity of the operations of Mabo-Tea. With these partnerships, Mabo-Tea can
expect a fast-paced development and expansion phase that may easily produce more
job opportunities from the brand. Additionally, the business could collaborate with
companies/suppliers that provide more environmentally safe and biodegradable
materials that the business can use instead of reusable plastic cups. With the successful
transition of Mabo-Tea from reusable to biodegradable cups, both businesses can help
promote each other’s products and services while imposing an environmental impact on
each consumer purchase.

Taxes
Mabo-Tea will be required to obtain a mayor's permit to operate and for the
government to appropriate its tax payments. The business is under Barangay Micro
Business Enterprise (BMBE), which makes it credible from the income tax exemption for
the next 2 years of its business operation, but the business still needs to pay the local tax
and barangay tax that will be issued at the same time as getting the mayor’s permit.

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 CHAPTER VIII
FINANCIAL PLAN
A. Income Statement
Table 8.1 Income Statement of 2021

Table 8.2 Income Statement of 2022

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 Table 8.3 Income Statement of 2023

Presented above are the Income Statements for the year 2021- 2023. All that are
presented here are based on the forecasted net sales; cost of goods sold, and gross profit
using the projected market share approach. Moreover, the Business Developers tried to
measure the target market based on an assumed population count around the area of
the business from a reliable source, which will be discussed further in the Sales Budget.
Derived from the computed forecasts of net sales it has been distributed all throughout
the 12-month period based on the educated assumption on what months will the sale
increase and decreases considering internal and external factors and advertisements of
the shop. However, the business only started their operations this year that is why all the
expenses are based on the 3-month operating expenses of Mabo-tea from January until
March of the year 2020, which was given to us by the owner himself. Lastly, The total
taxes for 2021 until 2023 are 3%, 5%, and 8% respectively, the first year is based on the
local tax, second has the inclusion of income tax and as the income goes higher for the
3rd year it resulted in an increase in the tax percentage as well.

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Additional Information:

Table 8.4 Implementation of Promotions Activities

Table 8.5 Gross Profit for 2021-2023

Table 8.6 Cost of Goods Sold for 2021-2023

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i. Sales Budget

Table 8.7 Net Sales for 2021-2023

The total target market is computed from all the 13 Barangays that is included in
Project 4 that is based on the Population Projections by Region, Province, Cities, and
Municipalities, 2018-2022 around the area where the current store is situated and where
the owner will establish 2 more branches of Mabot-tea. In 2023, there is a significant
increase of 18, 519 in the target population since it is expected that the 3rd branch would
be situated in a different location outside Project 4. From the analysis of the recent count
of milk tea establishments around the vicinity, the projected market shares for 2021 -
2023 are as follows 2%, 2.25%, and 2.50%. Furthermore, this resulted in Expected Sales
in Units of 1,031, 1,172, and 1,756 for 2021-2023 respectively. The selling price of Php.
110.00 is the average of two best-selling beverages from the store namely Matcha Oreo
Cheesecake (Php. 115.00) and Oreo Cheesecake (Php. 105.00). Lastly, using the
computed selling price, the forecasted Net Sales per month is around 100,000 -150,000
that resulted in over a million forecasted net sales annually.

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 Table 8.8 Project 4 Projected Population per Barangay

ii. Production Budget

The total expected sales in units for 2021. 2022, 2023 are 12372, 14064, and
15792 respectively. It is apparent that Mabo-tea’s expected sales in units increase in
value every year 12,372 (2021), 14,064 (2022), and 21,072 (2023). As for the desired
ending balance, Mabo-Tea wants to maintain at least 500 units. With these, total need
units are 14,872 (2021), 17,064 (2022), and 24,822 (2023). Total need units are then
subtracted to the beginning inventory and so resulting in a required production
of 12,872 (2021), 14,564 (2022), and 21,822 (2023). From all the data, it can be
concluded that the business aims to increase its sales as time passes by, which is also a
good indicator that it is capable of improving as a successful business.

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 Table 8.9 Production Budget for 2021-2023

iii. Summary of Income Statement

Table 8.10 Summary of 2021 Income Statement

For the year 2021, it is expected that Mabo-Tea would have a total net sales of
P1,360,656.00. There will be a significant increase in the month of March after the
implementation of Loyalty Cards. Given that posters will be advertised by the beginning
of every quarter, this would help increase the sales. With the increase in sales, there will
also be an increase in the Cost of Goods Sales, which would also affect the variable cost
from the operating expense. By the year 2021, it is expected that the business has
already branched out and hired two part-timers and one regular employee, that is why
the operating cost is more expensive compared to its beginning years. The taxes paid

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quarterly are 3% that is based on the local tax. The net profit for the year 2020 is
P321,772.59. The summary of the income statement for the year 2021 was made by the
Business Developers of Mabo-Tea who are Senior High School students from the
University of Santo Tomas.

Table 8.11 Summary of 2022 Income Statement

For the year 2022, the expected net sales of Mabo-Tea would be a total of
₱1,547,102.70. The posters will be continuously posted quarterly as well as the
advertisement is done on social media such as Facebook. This kind of advertisement will
help the sales to increase that would lead to an increase in the Cost in Goods Sales. The
taxes paid are still quarterly, which is 5% that is based on the local tax and the additional
tax, which is called income tax. The net profit for the year 2022 is P434,677.65. The
summary of the income statement for the year 2022 was made by the Business
Developers of Mabo-Tea who are Senior High School students from the University of
Santo Tomas.

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 Table 8.12 Summary of 2023 Income Statement

For the year 2023, it is expected that Mabo-Tea will have a total Net sales
of P2,317,920.00. The posters will be continuously posted quarterly as well as the
advertisement is done on social media such as Facebook. This kind of advertisement will
help the sales to increase that would lead to an increase in the Cost in Goods Sales. By
the year 2023, it is expected that the business has already branched out again and hired
two part-timers and one regular employee, The taxes paid are still quarterly which is 8%
that is based on the local tax plus the additional income tax which was added last year.
The net profit for the year 2023 is P590,505.62. The summary of the income statement
for the year 2023 was made by the Business Developers of Mabo-Tea who are Senior
High School students from the University of Santo Tomas.

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B. Vertical and Horizontal Analysis

Table 8.13 Vertical and Horizontal Analysis

i. Vertical Analysis
The annual net sales of Mabo-Tea is expected to increase from 2021 to 2023. The
Cost of Goods Sold and Gross Profit does not have a significant difference in the three
years forecasted. Even if the Gross Profit increases, the Cost of Goods Sold also increases
but still has the same proportions. The operating expense has a major effect on the
forecast as it significantly changes through the years. The operating profit still increases
every year, as so thus the operating expenses. Even though the operating expense
increases, its proportion to the net sales decreases and then increases again because of
the gradual increase in net sales. The net profit increases every year despite the increase
in every expense because the net sales also significantly increase.

ii. Horizontal Analysis

It is expected that the annual net sales of Mabo-Tea would increase as the years
go by and as the business expands to other locations. From 2021-2022, the net sales
would increase by 13.68%, and by 2022 to 2023, there would be an increase of 49.83%
in net sales. With the increase in net sales, expenses would also increase. Expenses
increased greater in 2012-2022 as compared to 2022-2023 because the net sales did
not increase as much compared to the former. Net profit would also increase in the years
2021-2022 by 38.97%, and in 2022-2023, it would increase by 31.95%. With the

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expansion of the business and the fulfillment of the marketing strategy, it is expected
that the sales and profit of the business would increase by the listed years.

C. Profitability and Liquidity Indexes

i. Return on Investment
Table 8.14 Return on Investment for 2021- 2023

The Return on Investment (ROI) measures the performance in which evaluates the
efficiency of the investment. This tries to precisely measure the amount returned on the
initial investment. The initial amount of investment for the year 2021 is 140,000.00 Php
due to the expected expansion of the business in a different location and the buying of
equipment needed and maintenance of the past equipment. The initial investment for the
year 2022 is 30,000.00 Php and 170,000.00 Php for the year 2023.

The calculated ratio for the return on investment is 243.00%, 1448.72%, and
347.36%, respectively. The implication for this is that the amount of investment for three
consecutive years yields more than the year before because of all the successful
indicators especially the increase in sales because of advertisements in the business.

ii. Payback Period

Table 8.15 Payback Period for 2021- 2023

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 The payback period talks about how long the business could recover from the cost
of an investment or how long it would take the business to reach the breakeven point.
The ₱200,000.00 total investment made in 2021 that has a return of ₱340,206.00 at the
end of the year will have a 0.59 years (7.08 months) payback period. For the year 2022,
the ₱300,000.00 investment has a return of ₱434,614.95 at the end of the year and will
have a 0.69 years (8.28 months) payback period. Lastly, the ₱550,000 investment made
in 2023 that has a return of ₱590,505.62 will have a 0.93 years (11.16 months) payback
period.

The number of days for Mabo-Tea to reach its breakeven point will be in a span
of 0.59 years for 2021, 0.48 years for 2022, and 0.37 years for 2023.

iii. Breakeven Units

Table 8.16 Breakeven units for 2021- 2023

The table above shows the required number of units to be produced in order to
have a break-even from all the variable cost (production cost and electric bill) and fixed
cost (Facebook advertisement, internet, rent, water bill, and salaries expense) that
business recognized from the year 2021 - 2023. The break-even speaks about the level
the business must achieve in order to recover their initial investment. Furthermore, the
number of units to achieve for 2021 and 2022 are the same due to they both share the
same number for fixed cost and variable cost compared to 2023, which showed higher
Fixed Cost for the year due to new branch expansion. The implication for this is that the
higher the fixed cost that the business incurs, the higher the break-even point.

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D. Additional Attachments

Electricity Bill

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Water expense

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Rent

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 CHAPTER IX
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

A. Summary

Mabo-Tea is a milk tea business founded by Mr. Jake Marvin Lim, which envisions
to branch out in Metro Manila and nearby provinces and to be a well-known and
preferred milk tea nationwide. The mission of the business is to provide quality, delicious,
original, and affordable milk tea, as well as provide working opportunities for other
people. It targets to increase the following indicators: (1) numbers of milk tea/ fruit tea/
milk tea cheesecake flavors, (2) percentage of positive compliments and feedbacks of
customers, (3) percentage of repeat customers, (4) the positivity of the business’ image,
(5) number of branches in Metro Manila, (6) the percentage in return of investment per
year, (7) and percentage of improvements per year in the succeeding years. As the
business offers a variety of milk tea flavors, it also offers snacks to its
consumers. Additionally, the business offers free Wi-Fi and free Netflix to its
customers. After some observation, it is noticeable that the store’s location, the store’s
interior, and the business’ advertisements are still open for improvements.

For Mabo-Tea to effectively garner attention and maintain their current customers,
the Business Developers conducted Market Research to figure out the characteristics
and preferences of Mabo-Tea’s Target Market. They found out that the majority of their
customers are teenagers and working adults, most of whom are female. They treat milk
tea as a luxury, preferring a price not exceeding 120 pesos. The Business Developers
found out that the Cheesecake series, Wintermelon, and Matcha are the customer
favorites in Mabo-Tea’s menu. Furthermore, they concluded that Coco Milk Tea, Macao
Imperial Tea, and GongCha are the main competitors of Mabo-Tea in their area and that
the things limiting Mabo-Tea from gaining more customers are its lack of advertising and
its lack of accessibility in other locations. After all, most of the participants of the survey
found that the business is favorable in terms of its customer service, atmosphere, and
product quality.

As for Mabo-Tea’s Strategic Plan, the Business Developers, with the help of the
business owner, have identified various goals to be accomplished within the span of
three years. Such goals include increasing product variety, market share, and customers,

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improving customer satisfaction, lowering the cost of production, and setting up three
new branches in Metro Manila. Of course, there will be obstacles to these goals such as
the difficulty in maintaining customer loyalty because of the saturated market due to the
ease of setting up a milk tea store and the curiosity of the customers for different flavors
of milk tea. However, this also means that suppliers will have less power in negotiating
because of their increasing number. It must also change their material for packaging due
to it conflicting with the laws set in its location. Another obstacle it will face is its low
market presence. The strategies they may apply are as follows: monitoring legal
practices, employing staff to help the business owner in managing the business, building
a social media presence for advertising, and switching to more sustainable packaging.

After conducting a competitive profile matrix, the Business Developers found that,
though Mabo-Tea scored the lowest in the competitive analysis, it has the potential for
improvement because of its strengths such as its customer service, product quality, and
product variety. In addition, for its competitive strategy, Mabo-Tea uses the Cost-
Leadership Strategy because they wish to maintain the image of affordability while also
producing products that can compete with the more mainstream brands.

The team of Mabo-Tea recognizes many opportunities to improve the shop’s

products, thus creating a Marketing Plan in consideration to their target market, which
are teenagers, ages 13-19, and both non-working and working adults, ages 20-35, of
both genders that reside in Project 4, Quezon City. With the current trend of milk tea, it
offers a wide variety of milk tea products, especially their own made cheesecake formula,
paired with various snacks in their current brick and mortar shop at 335, P. Tuazon
Boulevard, Project 4, Quezon City. Currently, Mabo-Tea uses mark-up based on sales as
its pricing strategy but given the fact that the shop will have an additional expense to
advertisements, the team proposed to increase the price points of the products.
Furthermore, Mabo-Tea utilizes the “Producer-Consumer” as its Distribution Channel,
which the shops directly sell to the consumers. However, it is proposed to add social
media as an intermediary to their distribution channel.

Additionally, the Marketing Plan for Mabo-Tea utilizes the customer insights that
are gained through the conducted market research and its goals are as follows: (1) To
capture the attention of the target market, (2) to acquire more customers, (3) to position
the brand to the minds of consumers, and (4) to increase the sales and profits of the

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company. These goals are to be achieved by the use of different promotional plans. With
the current marketing strategy of Mabo-Tea which are the utilization of Facebook app by
posting different publication materials that state the details of its product, and having a
limited-edition milk tea every month that is labeled as “Flavor of the month”, and while it
plans to use the “Facebook Boost”, the marketing team proposed to initiate the use of
posters and flyers and attach them in public places near the area and to tricycle within
the area, implement the use of Loyalty cards, and have a Happy Hour every Friday of the
week from 5 pm to 7 pm.

As proposed by the Business Developers, Mabo-tea is subject to expansion store

branches wherein the business owner would be required to recruit more employees to
manage the business as it reaches more consumers. Prior to that, the Business
Developers proposed 3 specific programs following the R’s of Human Resource that the
shop needs. With these programs, it also gave the role of the Human Resource in
conducting the program. First, Mabo-Tea time! - Be one with us towards Mabuting
service, this project pertains to Recruiting which aims to increase job opportunities and
employ the right people. The next project is titled, Behind the Tea, which reflects the
relevance of Retooling in Human Resource. The objective of the project is to teach the
newly recruited workers the basic operations of Mabo-Tea that would be delivered by
demonstration and detailed instructions. The third and last program is the Make Your
Own Goodness in a Cup! , which is a fun and exciting event to develop the skills of the
employees by letting them create their own milk tea recipe. Also, this program aims to
dig deeper into their potential and make a friendly culture within the organization.

Furthermore, as the business recognizes the importance of its employees, it must

be simultaneous to the reorganizing of operations to better serve the customers. With
the Operation Plan, the business developers successfully incorporated the relevance of
an efficient system by using Methods, Manpower, and Machines of Operations. For the
Methods, the Business Developers highlighted the Enterprise Delivery System wherein
the basic process of Mabotea’s operation, from the input (capital, materials management
etc.), the actual process, the products offered, and lastly, the outcome in which prioritizes
the expectation of customers. It also determines the actual distribution channel under the
distribution method, which is a Producer to Consumer Map that implies a direct
distribution of products. The team also emphasizes the payment method of the shop as
well as their current Point of Sale, which is the Loyverse Application. Then, in line with

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the expansion and expected recruitment of employees, the Manpower section shows the
Job Description, Employees Qualification, Selection of Job Applications, Job Offer, and
Employee development that is suggested for a better employment system that the shop
may follow. On the other hand, the Equipment (machines and materials) and Physical
Facilities, as well as the Telecommunication and Information Technology, are enumerated
to see what are the important things that the shop needs at the moment and as it
expands further.

Mabo-Tea’s utilization of reusable cups and paper plates for its product, and the
convenience of serving the customers by providing free services (free Wi-Fi, and free
Netflix) to those who want to dine in as well as the owner’s initiation to deliver the
products to its frequent customers serve as the business’ Social-environmental Impact
and service. For the Economic Impact, the tea production/supply chain of the business is
from the local suppliers that outsource the business’ tea, milk tea flavors, pearls, and
other sinkers that are imported from China and Taiwan that influences other milk tea
businesses to engage in buying supplies from them. Mabo-Tea also provides a living for
those who are looking for jobs that do not require a high level of educational attainment
that contributes to lowering the unemployment rate. The business competes among the
strong competitors that is why it needs to stand out. The following are the Business
Developers’ proposals for the benefit of Mabo-Tea’s socio-economic engagement. The
first is for the business to further utilize the environmentally-friendly cups and straws by
thorough sourcing and the implementation of Bring-Your-Own-Cup Policy to have an
environmental impact. The business developers also proposed to give job opportunities
prioritizing the locals residing near the business and near the planned branches in the
future. On the other hand, a successful collaboration with other entities as well as the
companies that provide more environmentally and biodegradable materials will yield a
good economic impact. Lastly, the business developers proposed for the business to be
under the Barangay Micro Business Enterprise (BMBE) that makes Mabo-Tea credible to
the tax exemption for the next 2 years.

Furthermore, the developers proposed a Financial Plan as per Mabo-Tea’s current

financial state based on the first 3 months of the year 2020. With that, the developers
forecasted three annual Income statements. The data used for computations are based
on the assumed estimated population count around the vicinity of the store. Additionally,
the increase of the target population and all the factors throughout the years is due to

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the 2 expected branch expansion of Mabo-Tea, which is in 2021 and 2023. As with the
projected market share of the shop, it came from the analysis of the number of milk tea
establishments around the area. This plan aims to increase Mabo-Tea’s sales as the years
go by.

For the Sales Budget, it is expected that the Sales in Units will increase during
2021-2022 but will have a greater increase in 2023. Furthermore, it is expected that the
annual Net Sales will be over a million garnering around 100,000.00 Php to 150,000.00
Php a month. For the Production budget, the gradual increase of expected sales in units
there would also be an increase in production, which also considers the number of units
Mabo-Tea aims to maintain every year. Moreover, the summary of the Income
Statements states that over the years, the tax will increase due to the local tax and the
income tax. In terms of the Vertical Analysis, the forecasted analysis shows the
breakdown of income and expense from the gross profit to identify the net profit
throughout 2021-2023. On the other hand, the Horizontal Analysis shows the
percentage of increase of Gross profit up until the net profit of the business as it expands.
As for the Profitability and Liquidity Indexes, the developers forecasted three indexes.
First, the return on investment identifies the ratio for the return on investment based on
the initial investment and net profit. Second, the payback period that states how many
months or year it will take before earning, is based on the total investment made and the
forecasted annual net income. Lastly, the Break-even units that determine the total
number of units required to produce to reach the break-even point is based on the selling
price, fixed cost, and variable cost.

All in all, this represents the whole grasp of Mabo-Tea's current situation and how
the Business Developers incorporate their learnings to help the Mabo-tea to achieve its
goals and mission for the brand and continue serving goodness in every cup.

B. Conclusion

Most of the customers of the Mabo-Tea are teenagers and working adults with
the age range of 13 to 19 and 20 to 25 years old. The majority of them are also female
consumers.

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 As for the customers’ preferences, it is found that they usually prefer to purchase
milk tea with a price range of 101-120 pesos. Most of the customers also purchase milk
tea twice a month. Aside from these, they also consider milk tea as a luxury product. In
terms of payment methods, milk tea consumers mostly prefer to pay it over the counter
compared with over delivery or E-wallet. Given the success of the milk tea businesses in
the country, the respondents’ most preferred milk tea brands are “Coco”,” Macao
Imperial” and “Chat Time”. The given brands are significant in conducting market
research since they are most likely competitors of the Mabo-Tea shop.

Moving on to the Mabo-Tea shop itself, customer’s awareness varies in different

ways such as from word of mouth, through social media, and passed by the shop
itself. The most influential method wherein the Mabo-Tea shop is first recognized by
their customers is through word of mouth, which then expounds that interaction from a
group of people whether they are relatives or friends, is the current effective way for the
shop to reach its potential customers. This is also concluded since the shop is near to
establishments like schools, public markets, and housing areas. In addition to this, the
utilization of social media is also seen to be effective in reaching out their potential
customers and so given the reality that this generation is highly dependent on technology
to the point that it is already a major part of everyone’s lives, Mabo-Tea shop should then
assure that they could promote and spread awareness about their products on the
internet so that having customers from different geographic areas to go to their shop will
be seemingly possible.

As for the offered products, the customer's most preferred series of Mabo-tea
shop’s milk tea is Cheesecake Series to be followed by Brown Sugar Series and lastly,
the Original Series. While the most preferred flavors are the Wintermelon with a huge
gap from the next preferred flavor, Matcha, and Cookies and Cream. This milk tea could
also be paired with food for most customers who preferred to drink milk tea with
something to eat. The most preferred food to be paired is fries, nachos, sandwiches, and
chips. This food is the most preferred to be paired with milk tea and can be considered
to be added as a snack on the menu to have better sales in the future.

It is also found that consumers repeat the purchase of milk tea in consideration of
the following factors: product quality, price of the product, accountability, and cleanliness
respectively.

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 As for the factors affecting why respondents are unwilling to try Mabo-tea
beverages, the most noticeable reason is the business’ lack of advertisement thus
indicating that it needs more strategies and exposure to their potential customers. Aside
from this, accessibility in terms of proximity is also highly influential, being the second
factor considered by the respondents. It can be concluded from this that Mabo-Tea needs
to expand its place or at least plan for franchisement once financially stable in the future.
Lastly, the fact that none of the respondents claimed popularity as a significant factor on
why they won’t choose to try Mabo-Tea’s beverages, is a good indicator that the
business has a great potential to be one of those recognize milk tea brands in the country
and so they must see this area as their strength and doors for more opportunities.

Going in-depth about the certain qualities of the Mabo-Tea shop, as rated by the
respondents, customer service has the most positive feedback. As for the average, most
of the respondents claimed that service time, cleanliness of the area, quality of the milk
teas, and product variations are good enough but still expected to be improved. On the
contrary, concerns about interior design, ambiance, and advertisement strategies seem
to be lacking enhancements and so improving this can highly improve customer
satisfaction. Lastly, as for the greatest concern, proximity is the barrier that gives
hindrance to a more successful business. In addition, knowing that the products are good
enough and capable of competition, expanding the business will be a powerful factor to
make the business even better.

Despite these concerns, it is still found that 100% of the respondents are eager to
recommend Mabo-Tea shop’s products to other people, which means that their
customers are satisfied. However, the raised concerns given by the respondents must
not be neglected and still need to be addressed with the following recommendations
mentioned below.

C. Recommendations

Given that Mabo-Tea is a start-up company, it is open for improvements and

developments. Mabo-Tea already has present plans to achieve its objective, despite
that, the team stated different recommendations to have a stronger market presence
and be more efficient in reaching the goals of the business.

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 First, under the strategic plan, the team proposed to comply with the tax policies
implemented by the local and national government. This is to avoid records like tax
evasion that would ruin the business’ reputation. Also, it is suggested to create strategies
for Mabo-Tea to cope up with its competitors such as Gong Cha and Macao Imperial Tea,
which focuses on several factors, mainly on promotions, public relations, and strong
online presence.

Second, different marketing plans are propounded to promote the products

offered by Mabo-Tea and satisfy their customers. Under the product itself, the business
could bring back the past packaging of milk tea, which is the use of bottled containers,
to have product differentiation. According to the market research, product quality is the
factor that the people are most concerned about, therefore Mabo-Tea must ensure to
maintain its products’ good quality. In terms of the pricing strategy, an increase in the
prices of each milk tea offered is suggested because there will be an additional cost for
the promotions/advertisements. With that, the owner must keep in mind that raising the
price of his products should still be aligned with the affordability price of the target
customers, which is P101-P120. Additionally, the team suggested utilizing Multi-
Channel Distribution wherein social media like Facebook can be worked on as an order
system to reach more customers. For promotions, several promotional strategies are
proposed to position Mabo-Tea to the minds of the target customers and to also increase
the sales of the business. Proposed plans include attachment of fliers on electric posts
and lampposts within the area, and handling social media platforms besides Facebook,
such as Twitter and Instagram. Moreover, the implementation of the Loyalty Card and
Happy Hour promo is recommended to increase customer retention as well as their brand
loyalty to Mabo-Tea.

Third, in anticipation of hiring employees, a list of programs are suggested that

would be beneficial for future employees of Mabo-Tea. One of the programs listed is
named “Mabo-Tea Time! Be with us towards Mabuting service”, this program aims to
manage the business and run it smoothly with the help of the recruited employees.
Meanwhile, the program “Behind the Tea” aims to teach employees the way on how to
operate the business. On the other hand, the program “Make Your Own Goodness in a
Cup! will enhance and recognize the skills of the employees and see the potential within
them. All in all, the programs recommended aim to attain the goals and objectives of the
business.

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 Fourth, with the current operational method of the business, the team deduced
several recommendations in order to meet customer’s expectations. With the expected
return of sales for the upcoming years, the team recommends the enterprise to utilize the
existing delivery systems like Grab food, Food Panda, Lalafood, etc soon. In terms of
payment method, the team suggests utilizing e-wallets by partnering with Gcash,
PayMaya, PayPal, etc. Under the manpower, the team recommends the job description,
job title, and job qualification. They also recommended how the applicants will be
selected, the compensations that these hired employees will receive, how the enterprise
would develop them, all of which are aligned with the recruitment process in the Human
Resource plan.

Lastly, with the estimated socio-economic impact of the enterprise at this

moment, the team suggested the following engagements which discuss the social and
economic benefits that can be derived from the business in the future. Concerning its
social implications, the team proposed to use environment-friendly cups and straws as
well as the implementation of Bring-Your-Own-Cup Policy is also suggested to reduce
the consumption of single-use plastics. Correspondingly, a proposal to generate local job
opportunities for four persons residing near the shop and having the tricycle drivers as
Mabo-Tea’s official delivery system should be considered. Meanwhile in economic
implications, the team proposed two engagements with the economy. These are the
partnership with other enterprises and the expected compliance with taxes for the
upcoming years.

Overall, the recommended plans of action are focused on increasing Mabo-Tea’s

brand awareness and building customer satisfaction while providing job opportunities to
people as well as boosting the sales and return on investments of the business. With this
in mind, Mabo-Tea will be able to grow and cope up with its competitors and be a well-
known brand.

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