ALDRIN CASIO December 06, 2023

BSBA-MM 2-D Marketing Management

PEST ANALYSIS

PEST FACTOR OPPORTUNITIES THREATS

• Government • Low Price • Challenging
Economic • Expansion of Milk Competition
Policies Tea shops in • Increasing
• Taxation Urban areas competition from
Policies on • Growing demand other beverage
products for milk tea companies
POLITICAL
• Government products • Stringent
regulations government
and policies regulations of
on food and food safety and
beverage hygiene
production
• High demand • Expand the menu • Shifting
among selection customers
young • Offer coupons to individual tastes
consumers loyal customers • Decrease in
ECONOMIC • Numerous • offer a unique sales
competitors and seasonal • Increase the
• Price menu price of the
increase • Increase the price product
of strategically
• Cultural • Innovate based • Not adapting
Trend on cultural trends, risks disconnect
• Demographic broadening and outdated
Changes: customer base. offerings.
SOCIO- • Health and • Tailor to • Ignoring shifts
CULTURAL Wellness demographics, risks
Trends enhancing mismatched
satisfaction. products and
• Align with health loss of
trends, attracting relevance.
 health-conscious • Neglecting
consumers. health trends
risks customer
loss to
competitors.
• Modern • Utilizing social • Cybersecurity
equipment media for risks related to
for brewing marketing online
and digital • Integrating point- transactions.
payment of-sale systems • Dependency on
• Customer for efficient digital platforms
Relationship transactions. for orders
Management • Implementing • Potential
TECHNOLOGICAL (crm) tools mobile apps for challenges in
for ordering and adapting to
personalized delivery rapidly changing
promotions technologies
• Implementing
online
ordering
platforms

I. POLITICAL FACTORS

• GOVERNMENT ECONOMIC POLICIES

 Government economic, regulations, political stability, and geopolitical

factors all play a significant role in the tea industry. Governments enforce
policies and laws, affecting production, distribution, and marketing
practices. Political instability can disrupt supply chains, leading to
shortages and lower-quality products. Geopolitical tensions can also
impact the industry, affecting trade agreements, tariffs, and access to
markets. Compliance with these factors is crucial for the industry's growth
and profitability.

• LOW PRICE

 The political factor of government economic policies presents an

opportunity in the form of low prices. Government economic policies,
 such as subsidies or tax incentives, can reduce production costs for
businesses. By taking advantage of these policies, Mangubaea shops
can offer their products at more affordable prices, attracting price-
sensitive customers and gaining a competitive edge in the market. This
opportunity stems from the influence of government economic policies on
cost structures and pricing strategies.

• CHALLENGING COMPETITION

 The impact of the business by influencing factors such as taxation,

regulations and incentives. This can lead to price wars, reduced profit
margins, and increased marketing efforts. The threat of challenging
competition stems from political factors and government economic
policies, which shape the competitive landscape and pose challenges for
milk tea shops in maintaining their market position.

II. ECONOMICS FACTORS

• HIGH DEMAND AMONG YOUNG CONSUMERS

 The high demand among young consumers constitutes an economic factor

for MangubaTea’s shop. It gives the shop the opportunity to capitalize on
this demand and potentially increase their customer base and sales. The
opportunity to expand MangubaTea's menu selection has been identified.
With young consumers in high demand, expanding the menu selection to
cater to their preferences and tastes can help the shop attract and retain
their consumers. However, the threat identified is the shifting individual
tastes of customers. This poses a risk to MangubaTea’s shop because their
preferences can change over time, and if the shop does not adapt and
cater to these changing tastes, they may lose customers to competitors.

• NUMEROUS COMPETITORS

 The next economic factor of MangubaTea is numerous competitors. A high

level of competition can be particularly difficult for the shop of MangubaTea,
as it can result in price wars, increased marketing efforts, and a greater
need for differentiation. The presence of numerous competitors creates an
opportunity for MangubaTea to offer a unique menu. This may entail
 introducing a variety of new and innovative dishes that distinguish
MangubaTea's shop from its competitors. Furthermore, MangubaTea could
consider offering a seasonal menu, taking advantage of locally available
produce, and creating a sense of exclusivity for their customers. Threats
associated with a large number of competitors, on the other hand, could be
a reason for MangubaTea's decrease in sales. With so many options
available to their customers, the shop may face difficulties attracting and
retaining a loyal customer base. This could result in decreased revenue
and profitability, as well as a potential loss of market share to competitors.

• PRICE INCREASE

 The economic factor of a price increase in the ingredients used for their
products introduces both an opportunity and a potential threat. The rising
costs of ingredients present an opportunity for the business to strategically
increase its prices. By doing so thoughtfully, MangubaTEA can offset the
higher costs and maintain profitability, ensuring the sustainability of its
operations. However, there is a concurrent threat associated with this
economic factor—specifically, the risk of increasing the final product price.
Customers may be sensitive to price changes, and a significant or abrupt
increase might negatively impact their purchasing decisions. Striking a
balance between addressing rising ingredient costs and avoiding a
substantial product price hike is crucial to navigating this economic
challenge. MangubaTEA should consider transparent communication with
customers about the reasons behind any price adjustments and focus on
providing continued value to maintain customer loyalty despite the potential
for increased prices.

III. SOCIO-CULTURAL FACTORS

• CULTURAL TRENDS

 Understanding and leveraging cultural trends in tea consumption and

snack pairings can be a significant social factor in the success of
MangubaTEA Shop. It can provide the opportunity to expand their
customer base and create a more inclusive and diverse product offering.
However, not recognizing or adapting to cultural trends can pose a threat
to the shop's relevance and appeal in the market. Therefore, it is crucial
for the MangubaTea shop to stay updated and responsive to cultural shifts
and preferences in order to thrive in the industry.
 • DEMOGRAPHIC CHANGES

 Demographic changes have the potential to have a significant impact on

social factors by influencing consumer behaviour, workforce composition,
and demand for social services. Analyzing demographic data such as age,
gender, and income levels allows MangubaTEA Shop to tailor its
marketing and product offerings to their specific customer segments.
MangubaTea, for example, can attract and retain customers from diverse
demographics by offering student discounts or creating tea blends tailored
to different age groups. However, Ignoring demographic shifts or failing to
appeal to the changing demographics in MangubaTea shop area can
result in missed opportunities and decreased sales. For instance, if the
shop's offerings do not appeal to the younger population in the area, it
may struggle to attract new customers and retain existing ones.

• HEALTH AND WELLNESS TRENDS

 For MangubaTEA's customers, social factors such as health and wellness

trends include the adoption of a healthy lifestyle. It is critical to consider
how these social factors can impact their shop operations and success. In
the case of health and wellness trends, MangubaTEA Shop faces both
opportunities and threats. One possibility is to align with these trends and
meet the growing demand for healthier beverage options. The shop can
attract health-conscious customers and position itself as a preferred
choice in the market by offering teas with health benefits or introducing
low-calorie alternatives. Neglecting health and wellness trends, on the
other hand, could be a threat to MangubaTea shop. Failure to adapt to
these trends may result in customers being lost to competitors who better
cater to this growing trend. To capitalize on opportunities and mitigate
potential threats, MangubaTEA Shop must consider these social factors
and make strategic decisions that align with health and wellness trends.

IV. TECHNOLOGICAL FACTORS

• MODERN EQUIPMENT, DIGITAL PAYMENT SYSTEMS, AND ONLINE
ORDERING PLATFORMS

 The use of modern equipment, digital payment systems, and online

ordering platforms is a positive factor for businesses, as it enhances
efficiency and convenience. Additionally, there is a valuable opportunity to
boost visibility and connect with customers through social media
marketing. However, a potential threat accompanies these advancements,
specifically in the form of cybersecurity risks related to online transactions.
As businesses adopt digital payment systems and online platforms for
ordering, they need to be cautious about the possibility of cyberattacks
that could compromise sensitive information. This threat underscores the
importance of implementing robust security measures to protect both the
business and its customers from potential breaches and maintain a
trustworthy online environment.

• THE INCORPORATION OF CUSTOMER RELATIONSHIP MANAGEMENT

(CRM) TOOLS FOR PERSONALIZED PROMOTIONS

 Using Customer Relationship Management (CRM) solutions to customize

promotions is a good idea since it lets you tailor promotions to each
customer's preferences. This integration offers a chance for more
efficiency by streamlining transactions and improving the customer
experience overall when combined with point-of-sale (POS) systems. On
the other hand, relying too much on digital channels for orders could be
dangerous. Leaning too much on these platforms could make it more
difficult for the company to take in and execute orders, particularly if there
are issues or disruptions with the digital channels. MangubaTEA might
lessen the possible impact on the company by lowering this risk by
diversifying its order channels and putting backup procedures in place to
guarantee operational continuity even in the event of issues with the digital
platform.

• IMPLEMENTING ONLINE ORDERING PLATFORMS

 The use of online ordering platforms indicates a discernible movement in

customer preferences toward the ease of digital media. This change offers
chances to add specialized mobile apps for ordering and delivery, which
will improve the customer experience even more. These apps make
processes more efficient, which improves usability and accessibility. But
the ever-evolving nature of technology poses a potential hazard. In order
to match consumer expectations, MangubaTEA must continue to be
adaptable and up to date, which can be difficult given how quickly
technology is changing. To overcome these obstacles, one must be
dedicated to lifelong learning about technology, flexible enough to
embrace emerging patterns, and proactive in keeping the online ordering
systems and mobile apps that have been put into place current and
capable of satisfying user needs.