CHAPTER I

PROBLEM AND ITS SETTINGS

Introduction

MilkTea Shop is one of the top rated place and business industry in the Philippines
especially in town of Guimba, Nueva Ecija. The MilkTea has completely invaded the Town.
People are walking on the streets holding their cups filled with tapioca pearls and sipping from
large colorful straws. Although popular Milktea chains have been around for many years such as
Serenitea, Chatime, Infinitea, A Rest Tea, Taipei Royal Tea Guimba etc. Local Milktea shops are
emerging everywhere, taking advantage of the craze and catering to the taste of teenagers and
young adults. It has become a staple drink for the young generations.

Most of Guimbanian’s grew up drinking Jelly Pearl and Milk Silky Tofu which are both
milky and creamy in texture having their sago or tapioca pearls. Milktea is most likely an
evolution of these traditional Filipino drinks.

It has been a decade since milk tea was introduce in the country. In 2008, the first milk
tea store opened in San Juan City, and since then, Filipinos were drawn towards this tasty drink.
People started loving it more than ever, especially Filipino teens and young adults.

This milk tea craze started in Taiwan. As regular tea drinkers, Taiwanese realized that
they have respective teas for breakfast, lunch, or dinner, but none for their snack. To fill in the
gap, they developed a drink that we can be considered a snack and beverage simultaneously, the
milk tea. Milk tea is a refreshing flavored iced tea with tapioca balls at the bottom. Milk is mixed
with a tea base, fruits, and flavored syrups, and later, the tapioca balls are added. With its
delicious and different take on a supposedly typical drink, milk tea became a real hit.

The popularity of milk tea among youngsters can also be attributed to it being a
convenient drink. Enjoying it in a café is just as satisfying as consuming it while on the go. It
complements the fast-paced professional and personal life of Filipinos.
 The popularity of Milk Tea in the Philippines is undeniable. We love milk tea, and that’s
proven. An average teen and young adult consume milk tea 3 to 5 times a week. Many milk tea
stores are open throughout the country. Despite the pandemic, these local milk tea stores have
strived and coped with the demands of many. 

OBJECTIVES

1. To describe the Socio-Demographic and Economic Profile of the consumer’s.

2. To identify the Different Marketing Strategy of the Milktea shop in Guimba
3. To know the effect of competitors.
4. To describe the advantage and Dis-Advantage of Milktea Shop in Guimba.

STATEMENT OF THE PROBLEM

Specially, this research seeks to answer the following questions:

1. What are the Socio-Demographic and Economic Profile of the respondents in terms of:
a. Age
b. Gender
c. Civil Status
d. Occupation
e. Educational Attainment
f. Annual income of the Parents
2. What are the Advertisement Strategy of Milktea Shop in Guimba?
3. What are the main reason why Milktea Shop in Town of Guimba will be increasing?
4. What are the Strategy of Milktea Shop owner to have more customers?
5. What are the reason why consumers cannot afford to purchase Milktea?

SIGNIFICANCE OF THE STUDY

This study will benefit the following people/person:

 Students. With this study, the students will be equipped with important self
-knowledge about businesses or become an Entrepreneur that would help them become effective
students inside and outside the classroom. This will provide them insights on how they can
enhance their study to improve their self-confidence and discover their strength and weaknesses
in relate in business industry.

Teachers. They will be able to identify diversity inside classroom because with this
study it will gives solution to find out the appropriate in teaching in terms of popular business
industry in the century.

Parents. This research will provide insights to parents about understanding the
Entrepreneurial Method on having a business and to gives more knowledge to put up a business
in industry with their child.

Business Owner. This will provide guidelines on which place to build a business
with less competitors and more customers and it use for effective in motivating and encouraging
people to become a loyal customers.

School Administrators. It will give them a clearer picture on what appropriate

program, facilities, and learning curriculum they will provide for the needs of students in terms
of Business Industry.

Future Researchers. This will give them the opportunity to conduct a study in
the same manner and if they found some lapses that could be used for further studies.

SCOPE AND DELIMITATION

This study was conducted among Randomly Consumers in Guimba, Nueva Ecija. Our
target respondents were the 50 consumers in Town of Guimba, Nueva Ecija. This was conducted
on January 13, 2022 at 11:30 am-6:00pm using Google Form.
 CONCEPTUAL FRAMEWORK

INPUT PROCESS OUTPUT

A. Socio Demographic and

Economic Profile of the
Respondents

Age
Gender
Civil Status
Occupation
Educational Attainment Websites

Annual Income of the Survey

Increasing Popularity of
Parents Questionnaire Milktea Industry in Guimba,
Nueva Ecija
Checklist
B. Different Marketing Books
Strategy of Milktea Shop
in Guimba, Nueva Ecija
C. Advantage and Dis-
Advantage of Milktea
Shop in Guimba, Nueva
Ecija
D. Effect of Competitors
DEFINITION OF TERMS

Socio-Demographic and Economic Profile: are nothing more than characteristics of a

population. Generally, characteristics such as Age, Gender, Civil Status, Occupation,
Educational Attainment and Annual Income of Parents.

Age: Refers to an Individual’s development

Gender: Refers to the status of man and woman. Gender is based on how women and men live in
public and private place.

Civil Status: Refers to a person’s status if he or she is single or married.

Educational Attainment: Refers to the Educational Background of the Respondents.

Occupation: Refers to the status of the respondents if employed or unemployed.

Annual Income of Parents: The total money that earn annually of parents.

Advertisement: Refers to the promotion of product, brand or service to viewership in order to

attract interest, engagement of sales.

Business: Refers to the organization that seek profit by providing goods and services in
exchange for payment.

Consumers: Refers to a person who buys things or uses services.

 CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES

Foreign Literature

The outbreak of the COVID-19 pandemic has forced the government bodies to impose
strict closure of restaurants, farms, and factories to maintain safety measures and implement
social distancing. This has led to transportation delays and the functioning of both supplies (tea
estates) and demand for the consumption points to a standstill due to a shortage of manpower and
reduced visits of customers to coffee shops amidst the lockdown.
According to the Indian Tea Association, tea prices have risen by 25%-40% on average due to
lockdown in the tea-growing regions, as well as because of the irregular movement of cargo and
drop in crop size. The whole tea production cycle which includes raw material procurement,
chemicals, fertilizers, and fuel for the factories has also been affected which will take time to
recover, as stated by Harrisons Malayalam (HML), in 2020. Furthermore, the tea exports have
also declined by 6%-8% due to the paralyzed logistics movement as per Tea Board India, which
is also hampering the industry growth.

There are various types and flavors available in the market, such as fruit-flavored, green
jasmine, and black tea. The fruit-flavored tea has various types such as fruit-flavored cream drink
and sweetened fruit drink. The lactose-intolerant population are given options to consume black,
green jasmine, green tea, and others. The availability of various types of boba tea gives the
consumer more options. This is a marketing strategy that helps attract more consumers. Its
outlets are also launching new flavors and formulations in order to attract consumers. Further,
the shift of millennials towards such products owing to their demand for premium tea varieties
with unique flavor offerings has aided in the growth.

The product is available in different flavors and the most popular flavors include coffee,
fruit, chocolate, classic/original, and others. Among the various flavors, the fruit flavor is more
popular and this segment dominated the market in 2019. It includes flavor variants such as
lychee, mango, passion fruit, peach, plum, strawberry, avocado, banana, grape, kiwi, lemon, and
others. This segment of this tea market is expected to grow significantly throughout the forecast
period due to its high nutritional value, as compared to the other flavors, diversity in flavor, and
high consumer preference.

After working as a mixologist in an izakaya in Taiwan under Japanese rule during WWII,
in 1949 Chang Fan Shu opened a tea shop selling unique shou yao (hand-shaken) tea made with
cocktail shakers. The result was a rich and silky iced tea with fine air bubbles on top dubbed
foam tea in Taiwan.

Today, shou yao is an essential bubble tea element. No shou yao, no bubble tea. It was a
revolutionary invention at that time not only were cold drinks not common then, but the idea of
consuming food and beverages for pleasure had only begun to grow in post-war Taiwan. In the
coming years, the island's passion for tasty cold beverages intensified.

"The trend of tea beverages prospered together with the rise of the leisure food trend in
the 1980s as Taiwan was experiencing rapid economic growth," says Tseng Pin Tsang, a
Taiwanese food historian. "In addition to the industrial pre-packaged tea products, there were
more tea shops on the street and tea restaurants in the suburbs." In 1986, Taiwanese artist and
entrepreneur Tu Tsong He decided to kick start a new business venture by riding on the tea shop
trend. After his previous business blunder -- a hot pot restaurant that went bust -- Tu was left
with a TWD 4 million (about $133,000) debt and desperately needed an idea to set his tea shop
apart from the masses.

Local Literature

To say that Filipinos love milk tea is an understatement. With its cool, refreshing taste,
coupled with fun, delightful sinkers such as chewy pearls, pudding, jelly, or even ice cream, the
Philippines has officially embraced the beverage as an everyday feel-good staple. That’s why
milk tea lovers are in for a treat, as Equilibrium Intertrade Corporation, the country’s leading
distributor of top-quality coffee, tea, and specialty beverage products, and partner to Manila’s
biggest luxury hotels, restaurants, and coffee shops, is offering a variety of milk tea bundles at
special discounted prices for the month of July, with its Milk Tea Madness promo.

In 2019, the Philippines ranked second among the countries with the most number of
bubble tea drinkers in Southeast Asia. A food delivery survey found out that Filipinos consume an
average of five cups of milk tea in a month1. That’s significantly greater than Indonesia, Malaysia,
Singapore, and Vietnam’s average three cups in a month per drinker!

Left and right, Milk Tea shops have also popped up all over the country, from shopping
malls, food parks, to neighborhoods. Some homemade Milk Tea shops even offer delivery! That is
because Filipino’s just cannot get enough of them. So with most parts of the country still under
community quarantine, it’s a great time to get creative in the kitchen and to start whipping up
fantastic milk tea drinks to satisfy your cravings! Crafting your personal milk tea concoction only
gets easier and more.

From July 1 to 31, 2020, consumers from all over the country can avail of a variety of
flavored powder products from Equilibrium that they can use to create exciting milk tea drinks at
home. No matter what their milk tea personality is, they are sure to find a match with the product
bundles included in the promo. Milk tea lovers getting the bundles can enjoy selections like
American specialty beverage company Mocafe’s Okinawa, Winter melon, and Tea Thai Latte
powders, chai and tea company David Rio’s Chai, Assam, and Earl Grey powders. Each of the
bundled offers come with Gippy Full Cream Milk and cafe-grade Torani syrups, completing the full
milk tea experience, enjoyable with the excellent quality products from Equilibrium.

From being a coffee country, the Philippines is now dominated by another drink—milk
tea. Stores and stalls offering milk tea are sprouting like mushroom. They are literally
everywhere, highlighting not just their special concoctions but their witty brand names as well.
 You might be wondering how did the milk tea craze start in the country and how it was
able to penetrate the Philippine market.  The milk tea craze has just been getting crazier. Such a
business industry has grown popular among the Filipinos over the past few years. Several
theories have surrounded where the famous beverage originated. Liu Han Chie of Chun Shui
Tang Teahouse in Taichung, Taiwan, claimed that he tried out the idea of cold tea after
observing the Japanese people who enjoyed drinking cold coffee. 

He experimented with cold milk tea by adding various elements like fruits, syrup, candied yams,
and tapioca pearls in the 1990s. The drink became popular in most parts of East and Southeast
Asia. Several milk tea brands have emerged over the years since it has become famous in the
country.
 CHAPTER III

RESEARCH METHODOLOGY AND DESIGN

RESEARCH DESIGN

This research used to descriptive research design involves observing and describing the
behavior of a subject without influencing it in any way.

RESEARCH RESPONDENTS

Our research respondents were the 50 Randomly Consumer in Town of Guimba, Nueva
Ecija.

RESEARCH POPULATION AND SAMPLE

This research study gathered data from 50 Randomly Consumer in Town of Guimba,
Nueva Ecija. Where gender comprised:

Male Female Others

Total=

RESEARCH INSTRUMENT

We administered the questionnaire descriptive research method using internet, website to

get the related article, books, questionnaire and checklist to get data for our research and for the
evaluation regarding on our research topic.
VALIDATION AND PROCEDURE

As we gathered information for our research, we need to conduct a certain way by means
of questionnaire and checklist using Google Forms to 50 Random Consumers of Milktea in
Guimba, Nueva Ecija.

DATA GATHERING PROCEDURE

We use checklist and survey to gather information. For data gathering, we used Social
Media platform to convince the respondents to answer the questionnaire using Google Form.

STATISTICAL TOOL

This research study used descriptive statistics like Strongly Agree, Moderately Agree,
Dis- Agree, and Strongly Dis-Agree. Strongly Agree refers to 5, Agree is 4, Moderately Agree is
3, Dis-Agree is 2 and Strongly Dis-Agree is 1. For getting the solution, we use the formula of
weighted mean, frequency and analyzing rating scale.

STATISTICAL TREATMENT OF DATA

This statistical treatment of data represented the following scales with the corresponding
numerical equivalents. The items in the questionnaire were carefully tallied and categorized by
using the table together the information derived from research questionnaire and survey. The
frequency counts and percentage were used to analyze the Socio-Demographic and Economic
Profile of the respondents and the data that were collected, tabulated using frequency count and
percentage.
Scale Weight Range Descriptive Rating

Scale

5 4.21-5.00 Strongly Agree

4 3.41-4.20 Agree

3 2.61-3.40 Moderately Agree

2 1.81-2.60 Dis-Agree

1 1.00-1.80 Strongly Dis-Agree