MARKETING STRATEGIES OF MILK TEA SHOPS AND CUSTOMERS

SATISFACTION IN POLOMOLOK SOUTH COTABATO

A Business Research

Presented to:

The Faculty of the College Department

General Santos Academy, INC.

In Partial Fulfillment of the Requirements for the Degree

Bachelor of Science in Business Administration

Major in Marketing Management

BY:
Crislen Flores

Kimberly Gonzales

Marites Yang

Ayessha Kristen Rizardo

Fema Verez
 CHAPTER 1

Milk Tea Shops: Marketing Strategies of Milk Tea shops and Consumer Satisfactions

INTRODUCTION:

Milk tea is one of the trends and most purchased beverage at the present. Milk tea is
popular not just because of its health benefits, but also because of its unique blend and
taste, no wonder why a lot of customers are being addicted to it. It is a combination of
milk and tea, which also comes up with different flavors and ingredients. There are
variants where customers can choose from. New generations customers fell in love with
this new trend of product. With that, entrepreneurs consider this as a huge opportunity to
raise income as well as develop a new and unique product out of the original ones. Just
like coffee shops, milk tea shops are good venue for people hanging out, socializing, and
spending their free time. The demand for milk tea increased that caused a lot of
entrepreneurs to enter the industry and open a milk tea business. Milk tea business is a
perfect example of a market structure called monopolistic competition, a market structure
where in the competition is very aggressive which leads for different brands to compete
for the consumers’ loyalty. Entrepreneurs have to make a way on how their product will
stand out among all of their competitors. This is where marketing strategy is considered
in order to catch the attention of the consumers. Entrepreneurs have to come up with the
best and most unique way of introducing and selling their product to the market. Marketing
strategy is considered to be the first step of any business to the world of success. The
future of the business depends on how good and unique your marketing strategy
is.Filipinos were ranked to be the second highest drinker of milk tea in Southeast Asia.
According to Grab Food, (2019) data which caters thousands of milk tea brands
throughout Southeast Asia, an individual in the Philippines consumes an average of five
cups of milk tea per month. Compared to Thailand who consumes the highest average of
six cups per month individually while other countries like Malaysia, Singapore, Vietnam
and Indonesia consumes an average of three cups of milk tea per month. (Ichimura,2019)
This study will attempt to find out which milk tea shop have the best marketing strategy in
attracting and satisfying their costumer. The purpose of this paper is to find out the level
of satisfaction of the customers to the products sold and to the marketing strategies used
by the selected Milk Tea Shops in the city. The researchers will conduct this study because
it has been observed that a huge number of customers are patronizing milk tea shops
regularly. There are many factors affecting the number of customers. It may be the
different influences to the customers in choosing a milk tea brand. Possibly, the marketing
strategies used by these selected successful milk teashops, which the researchers will
be focusing about.

In this chapter, the researchers presented the background of the study, the statement of
the problem, the significance of the study, the scope and limitation, and the definition of
terms.

BACKGROUND OF THE STUDY

In the article of Castro (2019), after 11 years of introduction to the Philippine market, the
milk tea industry keeps growing as milk tea shops keep popping with extensive menus
that ensure avid customers find their exact, perfect cup. People nowadays have a milk
tea in their hands at least once a week or a delivery on their doorsteps even almost every
day. Filipinos are not really a big fan of brewed drinks, however, milk tea had become one
of the most popular beverages in the country. The Serene tea is the first milk tea house
introduced in the country. Husband and wife Peter L. Chen and Juliet D. Herrera-Chen
built a shop in the city of San Juan after coming back from a vacation in Taiwan where
milk tea was trending everywhere at that time. Their business immediately s gained
popularity and was readily accepted by Filipinos. Because of the popularity, milk teashops
from other countries began to enter the Philippines and start their own businesses like
Gong Cha and Chat time which originated in Taiwan. Milk tea is a refreshing beverage
that has different toppings like pearl jelly, coconut jelly and many more. Some want their
milk tea sweet and some others do not. People have different preferences in choosing
milk tea, but what are these that helped them decide what milk tea they’re going to buy?
How will be the marketing strategies of milk tea stores affects the customers? What do
people think are the strategies of the milk teashops that captured the heart of every
consumers? According to Barone (2019),Marketing strategy is the plan of the business to
attract people to buy their products. Stated by Basin (2019),There are 15 types of
marketing strategies.
STATEMENT OF THE PROBLEM

This Study Aims to determine the Marketing Strategies of the milk tea shops in polomolok,
south cotabato.

Specifically, this research aims to accomplish the following:

1. What is the socio-demographic profile of the costumer of the milk teas shops in
polomolok, south cotabato terms of:

1.1 Age;

1.2 Gender ;

1.3 Occupation; and

1.4 Income;

2. What is the level of marketing strategies of milk tea shops in terms of:

2.1 production;

2.2 price;

2.3 place;

2.4 promotion;

3. What is the level of satisfaction on Marketing Strategies of Milk Tea shops in terms of:
3.1 Quality;

3.2 Taste;

3.3 Appearance; and

3.4 Brand Name;

4. is there a significant relationship between the marketing strategies of milk t shops

The study will evaluate the marketing strategies of two (2) Milk Tea shops like
GraviTea , and TLC MILK TEA. Located In polomolok south cotabato.

The Study evaluate the profile of the respondents in terms of years in operation, location
and products sold. Moreover, it will also tackle the marketing strategy adapted by the
respondents as to product, place, pricing, and promotion.

The problems encountered by the respondents in the operation of the milk tea shops
and implication of the study will also be included.

Significance of the Study

The result of this study will benefit the following sectors:

To the Businessmen, this study will serve as guide to what marketing strategy is the most
effective in attaching costumers.

To the Costumers, this study will help them to know which strategy will catch their
attention.

To the Feature Researchers, this study may serve as a reference for the research of the
same topic or related topic. It may also motivate future researchers to construct follow-up
studies that will give insights on the studies.
To the Young Entrepreneurs, this study will enhance their knowledge and
entrepreneurial skills. This study may also improve the way they run their business.
Definition of Term.

For better understanding to this topic, the following terms are operationally defined

Location. This refers to where the two (2) Milk Tea shops are located.

Marketing Strategy. In this study, marketing strategy is the written plan that includes
marketing topics like product development, promotion, distribution, and pricing approach.

Milk Tea industry. In this study, it refers to the economic activity concerned with the
processing and manufacture of milk tea in different shops.

Number of years in operation. It is the span of time that the business has already run.

Place. In this study, place is the portion of space being used by the milk tea shops

Pricing. In this study, pricing is the method of determining the value of the milk tea

Problems encountered. In this study, it refers to the unexpected moments that may
cause the milk tea shops into conflict.

Product. In this study, it refers to the goods that are ready for sale or the milk tea shops
offer.

Promotion. In this study, promotion is the act of letting others know the milk tea shop’s
products through posters, ads, etc.

Selected milk tea shops. In this study, selected milk tea shops are the carefully chosen
stores as being the best or most suitable.