CHAPTER I

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 tea shops, which the researchers will be focusing about.

Statement of the Problem:

This study seeks to find out the different marketing strategies used by the selected

successful milk tea shops in Taguig City.

Specifically, this study attempts to find answers to the following sub-questions:

1. What is the demographic profile of the respondents as to:

 Age
  Sex

 Religion

 Educational Background

 Family Socio – Economic Status

2. Who are the regular patrons of the milk tea shops in Taguig City?

3. What is the level of satisfaction of the customers to the products sold at the

successful milk tea shops in Taguig City during 2019?

4. What is the level of satisfaction of the customers to the marketing strategies used

by the selected successful milk tea shops in Taguig City during the year 2019?

5. What are the marketing strategies used by selected successful milk tea shops in

Taguig City that attract the customers during the year 2019?

6. What are the measures of effectiveness of the different selected successful milk

tea shops in Taguig City?

7. Is there a significant difference among the marketing strategies used by the

selected successful milk tea shops in Taguig City?

8. Is there a significant relationship between the marketing strategies and the

success of the selected successful milk tea businesses in Taguig City?

Hypothesis

The following hypotheses were used by the researchers to serve as guide while in

the process of conducting their research work:

1. There is no significant difference among the marketing strategies used by the

selected successful milk tea shops in Taguig City.

 2. There is no significant relationship between the different marketing strategies

and the success of the successful selected milk tea businesses in Taguig City.

Significance of the Study

This study hopes to establish an understanding about the significant difference

among the marketing strategies used by the selected milk tea shops and to also

understand the level of satisfaction of the costumers to the product sold and to their

marketing strategies. For the researchers, this study is important and could enhance the

knowledge of an individual about entrepreneurial skills of business practitioners.

Benefiting the study is the various sectors as follows:

For the Students:

The significance of this study is to help students, most specifically ABM strand

and Marketing students to further understand what marketing strategy is. This is to help

them have an idea on how to formulate a good and effective marketing strategy just like

what the selected milk tea shops implemented. This study will also heighten their

capability of employing their knowledge to the business world and as a part of their

daily practices.

For the Customers:

This study will help the customers on their consuming behavior, giving them

knowledge on how the milk tea shops are being operated. It may help customers to be
aware and to be informed about the marketing strategies used by selected milk a tea shop

that influences them in making a decision on where to buy. This will help them realize

how these marketing strategies affect their behavior.

For the Business Owners:

This study will benefit an individual as an eye opener on how they can operate

their business. It is also beneficial for entrepreneurs, to help them in formulating and

applying the most effective marketing strategies that is used by successful milk tea shops

in order to gain larger profit and for the betterment of the strategies that they are using.

This will help them have an idea on how they can adapt these strategies to their own

business.

For the Marketing Staff:

This study will help the marketing staff in knowing if they are meeting the

satisfaction and expectations of the consumers. They will also have an idea of what

people like, what to sell and raise new ideas for the betterment of the strategy that they

can use to their businesses.

For the Future Researchers:

This study will help the future researchers as a basis for further study about

marketing strategies of milk tea shops. They can also use this study as their reference

and as their guide in doing their own study. They can also use the presented ideas as
reference data in conducting a new research or in testing the validity of other related

findings.

For the Professors:

This study will help the professors in delivering ideas and providing them plans

and procedures in delivering every lesson. They can also be aware even though they are

not fond of the topic.

For the Administration:

This study will help the administration on providing sufficient information on

illustrating different mindset and behaviors of an individual towards financial matters.

They may also know how the milk tea shops get their customers from their marketing

strategies.

For the Future Entrepreneurs:

This study will help an individual who is willing to have a business. This study

will give them an idea on how to strategize a business to achieve a goal on the business.

This will also serve as their reference to encourage them to build their own business.

Scope and Limitation of the Study

The aspects of motivation the study will focus is on establishing an

understanding about the significant differences among the marketing strategies used by

the selected milk tea shops and to also understand the level of satisfaction of the

customers to the product sold and to their marketing strategies. This study will be done
through the use of survey questionnaire and will be distributed to 75 milk tea customers

and will be used as a reference. The study is survey research design which the

respondents are only limited to customers of the Top 3 successful milk tea shops in

Taguig City specifically Macao Imperial Milk Tea, Chatime, and Dakasi. With this

strategy, the researchers will be able to determine the Level of Satisfaction of the

Customers to the Products Sold and to the Marketing Strategies used by Selected

Successful Milk Tea Shops in Taguig City.

This study will not cover problems that are not related to the level of satisfaction

of the customers and to the marketing strategies of different milk tea shops in Taguig.

The customer who doesn’t buy milk tea is not within the scope of this research.

Definition of Terms

Acceptability - the quality of being tolerated, allowed, or accepted

Accessibility - customers have the ability to access the product or service

Accustomed - often used or practiced

Advertisement - way of promoting product or service through the use of public medium

to make an announcement or promotion

Availability - being able to purchase or obtain the product

Awareness - being knowledgeable and having enough information about the product

Behaviour - the attitude or the way how someone behave

Cleanliness - the state of being free from dirt and unpleasing smell
Competitive Advantage - the advantage gain through having a good service, lower

price value or a good branding

Consume - to devour, eat or drink

Consumer Behaviour - the study of how people make decisions about what they buy,

want, need, or act in regards to a product, service, or company

Consumption - the using up of a resource

Customer - the buyer of a certain products or one who avail services

Customer Satisfaction - when the customer is being satisfied on a particular product or

service that they bought

Dissatisfaction - lack of satisfaction; not meeting the expectations

Demographic Factors - age, gender, education, income and experience have a

considerable impact on business performance

Dominate - have a commanding influence on; exercise control over

Extrinsic - not part of the essential nature of someone or something

Fraud - intentional perversion of truth in order to induce another to part with something

of value or to surrender a legal right

Influence - the thought process that leads a consumer from identifying a need,

generating options, and choosing a specific product and brand

Innovation - the improvement and progression of a particular thing

Intrinsic - belonging naturally; essential

Lactose - the sugar found in milk

Madness - extremely foolish behavior

Marketing Strategies - a plan or action with different techniques to promote a certain

business or company and the way how sellers attract customers to buy products and

services

Milk Tea - a beverage which is a combination of milk and tea

Phenomenon - an aspect known through the senses rather than by thought or intuition

Palpable - so intense as to seem almost tangible

Patent - open to public inspection

Patronize - to be a frequent or regular customer or client

Product - object that is created to sell for consumers

Promotion - includes all the ways available to make a product and/or service known to

and available to purchase by customers

Purchasing Decision - the thought process that leads a consumer from identifying a

need, generating options, and choosing a specific product and brand

Satisfaction - achieving one’s desire or expectation

Service Quality - the quality of the service that is being rendered

Stagnant - having no current or flow and often having an unpleasant smell as a

consequence

Strategy - a technique, plan, or idea of someone

Tapioca Pearl - a small edible ball made primarily from tapioca starch

Tea Industry - the industry where tea is manufactured

Trend - it is where something is shifting or developing

Variations - a change or difference in condition, amount, or level, typically with certain

limits

Vicinity - a surrounding area or district

Conceptual Framework

The researcher’s purpose in this investigation is to discover the factors that affect

consumer’s buying behavior in terms of the customer’s personal influences, cultural

influences, social influences, and psychological influences.

 The researchers used survey questionnaire as the primary source of information

and data pertinent to the study since it is the most reliable and an accurate means of

gathering facts about the study. The questionnaires were given to 100 customers

(convenient sampling method) of each milk tea store. The measurement instruments that

were used in the questionnaire are percentage, weighted mean and a four point, Likert

scale method. In addition, the researchers conducted tan interview with the manager of

CHA TIME: store regarding the marketing strategy, product strategy and pricing of the

establishment.

Theoretical Framework

According to the Tracking the Local Milk Tea Trend: How Did This Obsession

Start by Jasper Castro (2019), eleven years after the milk tea became popular, and the

customer’s love for milk tea is at an all-time high. The number of milk tea fanatics

became high as milk tea shops keep doing different strategies in order to get the people’s

taste. Nowadays, it's normal to see people lining up for hours to get milk tea, having it

delivered to their doorstep, or even consume milk tea at least once a week.
 The timeline below shows the milk tea trend in the Philippines according to Jon

Tolentino

Serenitea, a

milk tea shop that

opened its first branch

on December 2008, after the founders Juliet D. Herrera-Chen and Peter L. Chen. Peter,

who spent some time in Taiwan, where milk tea was already trending full-swing, thought

that us Filipinos were going to want in on it, too.

Milk tea invades campuses by 2009. Happy Fanshu, opened near Far Eastern

University in 2009, bringing milk tea to student droves. That was just the beginning.

Then the dairy tea shops began to flood near Ateneo, La Salle and UP with their funky

tea puns: teaology, Infinitea, Q-Tea and more. This was the real beginning of the blast.
Coffee shops began to clash with the milk tea shops. After all, milk tea shops held a

similar atmosphere, a relaxed space that encouraged visitors to linger for long periods of

time-perfect for the student to finish with a paper or friends to hang out with. The large

number of students joining the trend, purchasing milk tea as both a caffeinated pick-me-

up and a sweet treat, made this milk tea possible.

Taiwanese milk tea will enter market in the Philippines by 2011. As the milk tea

finish is getting higher and higher, milk tea franchises from milk tea origin, Taiwan,

have entered our business. Gong Cha and Chatime not only entered the market, but they

soon climbed the lists, encouraging other milk tea shops to keep up. Taiwanese milk tea

shops weren't just taking over our country at this time, but were also taking the country.

Through 2013 the movement towards milk tea is approaching its first point.

According to SPOT.ph's Top 10 List in 2013, several shops were ranked as household

names: Serenitea in #9, Happy Lemon in #8, Tokyo Bubble Tea in #5, Chatime in #4,

Dakasi in #2 and Gong Cha in #1.

However the trouble also began in 2013. Just as the trend in milk tea had hit its

high peak, gradually the decline was coming. A Dakasi branch in Iloilo served milk tea

that had been tainted with E that year. Coli and Salmonella caused 50 clients to become

ill, and one of them died.

Milk tea has been branded as a healthier coffee substitute. But a test was

conducted in 2016 to determine just how much sugar milk tea drinkers got. They had got

a lot. In their research, they found that not only were Asian Americans susceptible to

bingeing on milk tea in Southeast Asian communities (which includes the Filipino
community) but were also vulnerable to diabetes. Locally however people still see milk

tea as a healthy drink.

With the passing of time, new milk tea items and the introduction directly from

Taiwan of new milk tea shops meant one thing: the trend for milk tea was officially

back. Macao Imperial Milk Tea Shops, Yi Fang Taiwan Fruit Tea, famous Taiwanese

dairy tea brands, all opened shop locally in 2017. Thai brand Cha Tuk Chak came in

with their distinctly flavored Thai milk tea. A combination of marketing efforts of these

shops captures the heart of the millennial market.

Review of Related Literature

Local Literature

The craze for milk tea has completely infiltrated the subway. Citizens walk the

streets carrying their cups filled with tapioca pearls and sipping big colorful straws.

Although famous milk tea chains like Serenitea, Chatime and Happy Lemon have been

around for many years, local milk tea shops are emerging everywhere, taking advantage

of the craze and catering to the taste of teenagers. Milk tea is said to originate in Taiwan.

A Taiwanese named Liu Han Chie of Taichung's "Chun Shui Tang" tea house, served it

in 1890s, provided cold Chinese tea and eventually added tapioca pearls as an

experiment that quickly became popular not only in Asian countries, but also in the US

and Europe. As the cravings of Dabawenyos for milk tea becomes evident, so too has the

number of milk tea shops in the city increased considerably. Business people compete

not only with their distinct drink collection but also with their milk tea shops' ambiance

and comfort level. Milk tea shops in Davao don't normally run out of patrons. Such
facilities are packed during weekdays with students either studying or actually lounging

after a busy school day. As this craze continues to escalate, with current projections

indicating that this phenomenon will linger for a while, environmental policies must

become important for all consumers. (Intern, 2019)

In an article made by Castro (2019) about “Tracking the Local Milk Tea Trend”,

stating that Filipinos have been a fan of tea since then. Few businesses have been selling

traditional milk tea made with tea and evaporated milk pearls even before but it was not

that popular. Milk tea shops started to compete with coffee shops, for having the same

ambiance in accommodating customers. Some customers prefer to buy milk tea for it is a

healthier drink and a substitute for coffee. When the trend for milk tea started, customers

had their own favorites which lead to many business owners to enter the milk tea

industry. Southeast Asian countries were a big influence for many milk tea shops here in

our country, especially Taiwan where most of the famous milk tea shops originated.

Macao Imperial and Yi Fang Taiwan Fruit Tea are some of the famous milk tea brands

from Taiwan which started way back 2017. Innovations were made which made the

market go crazy purchasing milk tea. It even became more accessible when some of the

tea brands, Nestea and Lipton created milk tea powder in a sachet. The milk tea trend

made the emergence of many milk tea shops which contributed a lot not just in the

economy but also to the health of many consumers.

Based on the study “Milk Tea Mania: Your Guide To The Best Milk Teas In

Metro Manila” by Marc Adrian (2019) stated that Metro Manila has plenty of milk-tea

shops that give Filipinos plenty of choices to satisfy their new-found love for milk teas.

While the basic milk-tea beverage may all taste similar, there are more ways than one to
add flavors to this beverage – this is how milk-tea shops define themselves in this

competitive but delicious market. With so many shops to choose from with menus

featuring a wide variety of milk-teas, it may not be humanly possible to taste everything

without risking the health of a person from sugar. Milk teas have been around years ago,

but it wasn’t until the popularity of this beverage has soared – it’s basically the new

Starbucks of the beverage line. Today in Metro Manila, milk tea shops are filled with

customers at all hours, that buying one would allow you to last in line for at least 15

minutes. According to the 2018 report by Grab Food, the Philippines ranked second in

Southeast Asia's milk tea consumption. In that year alone, from June to December,

Grab's milk tea orders rose by 3,500 percent. Given that even in app-based food delivery

services, the Philippines is not on top of the list, yet the country has managed to

dominate Grab's milk tea statistics.

According to GrabFood data that states bubble tea orders in Southeast Asia saw a

3,000 percent growth rate in 2018. In the Philippines alone, orders increased by 3,500

percent from June to December 2018.” states Anri Ichimura (2019) in her report

regarding the highest bubble tea drinkers in Southeast Asia. It has been stated in the

report that GrabFood has estimated that Southeast Asians drink four cups of bubble tea

per person per month. The Thai consumers had placed first among the highest bubble tea

drinkers in Southeast Asia followed closely by Filipino consumers who reportedly drink

five cups of bubble tea per person per month.

According to Agno, et al (2015) The study “Customer Satisfaction on the

Quality Services of one Department Store in Batangas City, Philippines” is about

assessing the customer satisfaction on the service quality of one Department Store in
Batangas City in terms of employee’s professional appearance, customer relation,

customer service and facilities. Also the study wants to propose an action plan to

improve the customer satisfaction and service quality of the Department Store. The

participants of this study is a total of 100, only the customers who support, patronize,

and visit the Department Store were involved in this study, also to be able to identify

their respondents the researchers used the quota sampling to determine the number of

respondents. Quota sampling is a method where in the researchers gathering

representative data from a group. The results of the study showed that the customers of

the Department Store in Batangas City were satisfied on the service quality that was

rendered to them. Hence, Department Store can continuously improve and provide

trainings, orientations, seminars to help their employees have a better customer relations

and customer service, also to be able to achieve and have a full customer satisfaction.

According to Michael Van Supranes (2014) on his study about The “Milk Tea

War”: A Case Study on Using Social Media as a Source of Business Intelligence

indicated that there are 23,000 popular milk tea brands related posts on social media

platforms like Instagram and Twitter. It showed how social media is a big source of

information. The recent obsession about milk tea is really not about the product itself,

but it is about the strategy the shop did in order to improve its interestingness to their

products since the milk tea products are still the same. The study concluded that

influencer marketing sometimes makes the brand of the milk tea interesting. In general,

brands who can provide a new milk tea flavor, a change in the product or a new way on

attracting the customers are said to win the milk tea war.
 Satisfying the customer is one of the achievement/goal of a seller, when

consumers are satisfied it will continue going back again and again and also because of

it their customers will became loyal to them. To maintain this, companies should

consider different consumer buying behaviors. Consumer buying behavior is the

behavior of individuals regarding the decisions they have in mind when spending their

resources for goods and services. (Lee, N. and Vega, A. 2014)

It is difficult to understand consumer behavior when it comes in goods and

services. Therefore, sellers should understand the variations and adjust their products

and marketing strategies according to what the consumer demands to obtain retention or

sustainability because, sustainable success is achieved through generating satisfaction in

recognizing and understanding consumer needs and desires. (Lee, N. and Vega, A. 2014)

The study conducted by Juliet Ilusorio talks about the Increase of Popularity of

Milk Tea in the vicinity of Mendiola. It is eloquently stated that milk tea craze in the

Philippines is continuing to grow as a result of the rapid expansion of sales of milk tea.

The study will provide much information on the popularity of milk tea among student

brand preferences, price differences, and many more. The information contained in this

research can answer questions and help solve problems concerning dairy tea products

and consumers. (Ilusorio, 2014)

According to Bea Marie Alfafara et al (2012) milk tea is the new craze for CFAD

student in their university. It has an average of 3percent of population that does not

know of milk tea. Based on the gathered data the researchers discovered that the most

patronized milk tea shop in their campus is the Moon leaf which gained the average vote

of 23.77percent.
Foreign Literature

Bubble tea, also called pearl milk tea, bubble milk tea, or simply boba was one of

the most popular drinks to cross from east to west shores in modern times and took the

youth culture and online foodies of the world by storm. Globally, as of 2017, the bubble

tea market is valued at USD 1.94 billion and is expected to continue to grow at a rate of

8.5 per cent over the forecast period of 20182025. Fast forward to today and bubble tea

has become a sensation not only in Taiwan but worldwide as well. GrabFood, the

Southeast Asian ride hailing company's food delivery service, Grab, underlined

Southeast Asia's growing obsession with drinking. Bubble tea orders have seen a steady

and dramatic increase in 2018 with an average global growth rate of 3,000 per cent.

GrabFood now has about 4,000 bubble tea outlets in its networks of over 1,500 brands–a

200 percent increase in the region's bubble tea outlets, owing to this growing consumer

demand. Thai customers are taking the top spot in bubble tea consumption, with six cups

per person per month, based on Grab's data. They are followed by the Philippines with

an average of five cups and then with three cups per person per month in Malaysia,

Singapore, Vietnam and Indonesia. It has become a kind of self-fulfilling prophecy,

especially in the age of social media where online speculation shared serves as a tinder

for further excitement and momentum sustainability.

(Ian Estares, 2019)

According to “The effect of extrinsic cues on consumer perception: A study using

milk tea products” by Yoonkyung Choi and Jeehyun Lee (2019) stated that the

acceptability of consumers may be affected by both extrinsic factors and sensory

intrinsic characteristics. The goal of the study was to determine the effect of extrinsic

signals on consumer acceptance and perception of flavor, to examine the discriminatory

power of the check-all-that-apply (CATA) customer assessment tool, and to explore the

possibility of using CATA as a reference for complex flavor products and many words

using commercial milk tea products. A total of 240 consumers tested eight samples of

ready-to-drink milk tea under both intrinsic and extrinsic conditions. Participants rated

the overall love, liking, and strength of three dominant characteristics: sweetness, milk

taste, and black tea flavor, and selected attributes that they recognized among 93 CATA

terms that were presented. While extrinsic information on packaging positively affected

the acceptability of liked samples, the preference for tested samples was not altered.

Nevertheless, in the extrinsic evaluation, the shift in acceptability varied between

customers who had previously purchased the particular product and those who had not.

Analysis of comparability showed that the intrinsic and extrinsic assessments

contributed to similar organization of the sample and the term organization. Consumers

were able to use a large number of terms, and differentiated between complex flavor

samples using CATA process, and variations in intensity with varying frequency rates

were shown. It was also possible to reduce words based on the frequency data obtained

from customer evaluations using CATA process. Therefore, assessment of CATA could

be considered for different categories of food that had not previously been formed with

sensory words.

Traders must develop products, according to different consumes desire, and they

should also create new marketing strategies, in order to make consumers have a tough

buying experience in products. Therefore, traders should pay attention to the modeling
of brand qualities and emphasize the uniqueness of the brand. At the same time, they

should include greater attention to the strategy of product pricing, product category

development and product packaging. (Han, Y. 2018)

Obesity has been an ongoing problem already for decades. the study suggest that

boba milk tea fits the us dietary guidelines definition of a sugar-sweetened beverage but

as an additional 0ne 16-ounce boba drink was there for stated exceeds the upper limit of

added sugar intake recommended by the 2015 US DGAC. The high caloric sugar content

of these boba milk teas can furthermore exacerbate the epidemic of childhood obesity.

As the population for this milk tea shops continues to grow, health practitioners and

dieticians should give special attention towards the moderate consumption of boba milk

teas that is to be implemented to the customers (Jae Eun Min, et al 2017).

A study conducted by Saesieo (2016) investigates the factors affecting buying

decision of pearl milk tea in Bangkok. It has been concluded that demographic factors

such as gender, age, income, and occupation had made an influence to the consumer’s

purchasing decision. The best seller selection had little influence, though the cost to pay

has influence with Product, Price, Place, Promotion, thus affecting a consumer’s buying

decision. It has also been concluded that a consumer’s behavior has influenced the

purchasing decision towards pearl milk tea.

The study conducted by Thong Kai Yip tackled about the Public Perception on

Taiwan Bubble Tea Consumption in Miri. Based on the study, milk tea consumers worry

about their health when consuming milk tea. This causes milk tea shop to control and

focus more on the quality of their products. The deliciousness of the milk tea will affect
the success of the business and sell it on a reasonable price. It concludes that milk tea

shops should offer a good customer service to their customers.

According to Shams (2014) in his study about the “Assessment of Consumers’

Loyalty and Switching Behavior: A Study on Selected Tea Brands in Bangladesh”, it was

said that the customer satisfaction is important for the business to make the customers

repurchase the product or be a loyal customer. Different customers have their own

different taste, and different expectations when purchasing or trying new products, they

consider the price, quality, customer service, the accessibility, availability and the brand.

The business should be aware of these standards considered by the customers so that

they can have consistent sales and increasing or consistent number of customers.

Expectations that should turn into satisfaction of the product for the customers are an

important thing that should be managed by the business. However, the dissatisfaction of

the customer can cause customers to switch brands. In order to encourage customers,

different marketing and promotional tools are used such as gift certificates or discounts

can be used to attract customers. Marketing staffs should know how to promote their

business. Increasing the brand awareness should be considered first in order for the

customers to have an idea about the business or product. Advertisements and handing

out free gifts are the strategies that they can do to gain customers. Evaluating the

customers’ feedback and recommendations about the product or service can also help

them to improve their business.

The study conducted by Bernadine Racoma tackled about the Milk Tea Madness

in Southeast Asia, that nowadays, a lot of people have been addicted into drinking milk

teas. Historically, people from some Southeast Asian countries were only used to
drinking coffee, soda, juice ice teas, and hot tea– a very American practice to say the

least. But just a few years ago, various types of milk tea brands were introduced, and

many businessmen became interested in investing to them, prompting the insanity of

milk tea in Southeast Asia.

In the study of Herath and De Silva (2011) The research “Strategies for

Competitive Advantage in Value Added Tea Marketing”, stating that nowadays the world

tea market is rapidly growing and it satisfies the customer needs. To be able to achieve

and gain competitive advantage the tea industry developed an innovation to their

marketing strategies. The study gathered data through interviewing the founders of nine

firms, the researchers propose an interview guide to be able to answer their questions.

The interview was conducted with the Chief Executive Officers of the firms. The

selection of the companies for the study was done using the records of tea exporters

issued by the National Chamber of Exporters, National Chamber of Commerce and the

Tea Board. The results of this study revealed that brand building, niche marketing,

product differentiation, cost leadership, and customer focus were the most prominent

marketing strategies adopted by the firms. Putting up a new market abroad, fair trade,

environmental sustainability, and faster delivery were the most important strategies that

market leaders must apply, also it was shown that strategic decision has an impact on the

vision of the leaders, their enthusiasm and commitment. Identifying marketing strategies

will help the firm to succeed in this business.

Research Paradigm

LEVEL OF SUCCESS OF

SATISFACTION THE BUSINESS

AND DIFFERENT
WITH THE USE
MARKETING
OF DIFFERENT
STRATEGIES OF
MARKETING
MILK TEA SHOPS
STRATEGIES

CHAPTER II

Research Design

The researchers used a Qualitative Approach of data analysis and presentation.

This helped the researcher come up with a fact-finding analysis with clear and correct

interpretation. For the research method, descriptive method will be use. According to

Adi Bhat, descriptive research explains the features of the studied population or

phenomenon. This approach focuses more on research subject’s “what”, rather than

research subject’s “why.” The objective is to discover the Level of Satisfaction of the

Customers to the Product Sold and to the Marketing Strategies used by Selected

Successful Milk Tea Shops in Taguig City during the year 2019. The research study will

be based on the perspective of the customers on the Selected Successful Milk Tea Shops

regarding the different marketing strategies used. This is to know how effective the
marketing strategies of the Selected Successful Milk Tea Shops are as observed by the

customers.

The research method is intended to share information on the marketing strategies

of the Selected Successful Milk Tea Shops and how will they satisfy, attract customers,

and their buying behavior. According to Gauri and Gronhaug, (2005), "The research

design is the overall plan for relating the problem of conceptual research to relevant and

feasible empirical research." In this, the researcher used a survey questions to

completely comprehend and effectively describe the results. Providing respondents with

a set list of answers, they will not normally be able to give lengthy open-ended

responses. Data were collected through questionnaires, analyzed and interpreted by

using descriptive techniques.

Participants of the Study

The respondents of the study will be the customers of milk tea in Taguig city

particularly in BGC (Bonifacio Global City). The survey questionnaire will be given to

one hundred milk tea customers. The respondents will be divided into four groups that

consist of twenty five customers. The first group will be the Macao Imperial Tea

customers, the second will be from the customers of Chatime, the third will be from

Dakasi customers, and the last group of respondents will be coming from the customers

of random milk tea shops in Taguig City. The researchers decided to divide the

respondents into four groups to avoid bias answers, and avoid equal results. The same

was likewise done to identify properly the different marketing strategies and the level

of satisfaction of the customers of the selected successful milk tea shops in Taguig City.
The researchers can gather information and opinions from the customers of milk tea in

Taguig City that could help the milk tea shops improve their marketing strategies that

will help their business partners achieve their future goals.

Table 1
The table below indicates the age of the respondents.

15 (%) 16 - 25 (%) 26 to % 31 (%)

below 30 abov
e
10 10% 73 73% 6 6% 11 11%
Table 2
The table below indicates the gender of the respondents.

Female (%) Male (%)

69 69% 31 31%

Table 3
The table below indicates the religion of the respondents.

Christia (%) Catholi (%) INC % Born (% Others: (%

n c Agai ) Angelica )
n n Bible
Based
18 18% 63 63% 6 6% 8 8% 5 5%
Table 4
The table below indicates the educational background of the respondents

Above (%) Average (%) Below %

Average Averag
e
35 35% 60 60% 5 5%

Table 5
The table below indicates the socio economic status of the respondents.

P20k (%) P21k to (%) P31k %

below P30k above
31 31% 30 30% 39 39%

Research Instrument

The study utilized the researcher-made descriptive survey questionnaire in order

to achieve the purpose of this study which is to determine and describe the strategies

used by milk tea shops in the city of Taguig. It is descriptive in the sense that the data

obtained from the survey questionnaire were analyzed and described. In preparation of

the descriptive survey questionnaire, the requirements in the designing of good data

collection instrument were considered. In this manner, the survey will obtain valid

responses of the participants. The aim was to conduct the survey to 100 milk tea

customers. All surveys were fully completed with 100 results included in the analysis.

Data Gathering Procedure

The researchers allocated intense time, commitment and collaboration to develop

a questionnaire to serve its intended respondents. The survey questionnaire was

developed using the researchers' relevant updated questions from related research, and

individual questions. The primary purpose of the survey questionnaire is to determine

the level of customer satisfaction with the products and the marketing strategies used by
selected successful Milk Tea Shops in Taguig City. The main respondents are the actual

customers of these milk tea shops. In the survey questionnaire, this research will use a

mix of closed questions and more open comments. A closed question is one that has pre-

coded answers that can be answered by yes or no.. The researchers will be able to limit

the responses that fall within the reach of this study through closed questions. The one

hundred survey respondents were given a structured questionnaire. Structured

questionnaire asks questions and offers a number of possible responses.

The researchers also indicated the survey instructions for avoiding

misunderstanding among the respondents. This will help the researchers collect accurate

data from the respondents because some respondents fail to ask the guidance from the

researcher. The respondents may not really recognize what the issue is, instead. This

could lead to poor data collection.

Data Analysis

In this study, the data collected will be analyzed with the use of descriptive

statistics. Descriptive statistics is used simply to summarize and describe the data

collected. Univariate Analysis can also help to observe the variables of the study. With

the use of frequency distribution, to group the data and present it in percentage form.

The corresponding answers will be displayed in percentage form in such categories, the

demographic profile, age, gender, etc. There are different types of central tendency of

distribution; it is used to estimate the center of values, such as mean, median and mode.

(Trochim, 2020) The said analysis and statistics will be used in this study to determine

the level of satisfaction of the customers of the selected milk tea shops as well as the
marketing strategies used. Content Analysis or review of the material can also be used to

interpret recorded information from text, photographs, and sometimes from physical

items. Narrative Analysis can be used for the analysis of accumulated information from

different resources. There, informal interviews, field observations, and surveys using the

questionnaire can be the sources. Most of the time, people share stories or opinions

focus on finding answers to research questions. Whilst, Discourse Analysis is similar to

Narrative Analysis, an analysis of discourse is used to evaluate people’s experiences.

This method however takes into the social context under which the correspondence

between the researcher and the respondent takes place or within which it takes place.

Discourse Analysis focuses also on lifestyle and daily world before drawing some

conclusions. Lastly, if you want to understand why a particular phenomenon happened

then the best recourse is to use grounded theory to evaluate quality data. Grounded

Theory is used to study data regarding the host of similar cases that occur in different

settings. Furthermore, the selected successful milk tea shops in the city is the dependent

variable, while the level of satisfaction of the customers to the products sold and to the

marketing strategies used is the independent variable.

CHAPTER III

PARAGRAPH / EXPLANATION ON S.O.P. QUESTIONS

( ARIZ AND NAMOCA)

Table 6
The table below indicates the responses of the respondents to whether they drink milk
tea or not.
 Respondents Yes (%) No (%)
100 100 100% 0 0%

Object 3

Table 7
Responden Craving (%) Trend (%) Recommendatio (%) Others: %
ts s ns Flavor
100 60 60% 21 21% 17 17% 2 2%

The table below indicates the responses of the respondents the reason why they drink
milk tea

Object 5
Table 8
Responden Once a (%) Once (%) Every (%) Twice (%) Everyda (%
ts month a other a y )
week day week

100 56 56% 33 33% 8 8% 3 3% 0 0%

The table below indicates the responses of the respondents on how often they drink milk
tea

Object 7

Table 9
The table below indicates the responses of the respondents on their familiarity about
milk tea.

Respondents Yes (%) No (%)

100 99 99% 1 1%
 Object 9

Table 10
The table below indicates the responses of the respondents on their satisfaction with
their purchased milk tea.

Respondents Yes (%) No (%)

100 96 96% 4 4%

Object 11
 PARAGRAPH / EXPLANATION ON CHARACTERISTIC OF MILK TEA

RESULTS

( LIM AND CAMENTING)

Table 11

Respondents Macao (%) Dakasi (%) Chatim %

Imperia e
l Tea
100 20 20% 47 47% 33 33%
The table indicates showing the responses of the respondents on the ambiance of the
selected successful milk tea shop.

Object 13

Table 12
The table below indicates the responses of the respondents on the cleanliness of the
selected successful milk tea shop.
 Respondents Macao (%) Dakasi (%) Chatim %
Imperia e
l Tea
100 32 32% 33 33% 35 35%

Object 15

Table 13
The table below indicates the responses of the respondents on the packaging of the
selected successful milk tea shop.

Respondents (%) Dakasi (%) Chatim %

e

Object 17

Macao
Imperial
Tea
100 35 35% 40 40% 25 25%
Table 14
The table below indicates the responses of the respondents on the taste of the selected
successful milk tea shop

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 33 33% 27 27% 40 40%

Object 20

Table 15
The table below indicates the responses of the respondents on the pearl texture of the
selected successful milk tea shop

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 26 26% 37 37% 37 37%

Object 23
Table 16
The table below indicates the responses of the respondents on the service of the selected
successful milk tea shop

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 31 31% 35 35% 34 34%

Object 25

PARAGRAPH / EXPLANATION ON MARKETING STRATEGIES RESULTS

( CABALLERO AND AZANES)

Table 17
The table below indicates the responses of the respondents on the pricing of the selected
successful milk tea shop

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 32 32% 33 33% 35 35%

Object 27
Table 18
The table below indicates the responses of the respondents on the convenience of the
selected successful milk tea shop

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 26 26% 37 37% 37 37%

Table 19
The table below
indicates the
responses of the
respondents on the
Object 30

social media marketing of the selected successful milk tea shop

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 34 34% 28 28% 38 38%

Object 32
Table 20
The table below indicates the responses of the respondents on the pop-up ads of the
selected successful milk tea shop

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 35 35% 33 33% 32 32%

Object 34

Table 21
The table below indicates the responses of the respondents on the flyers of the selected
successful milk tea shop.

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 28 28% 49 49% 23 23%

Object 36

Table 22
The table below indicates the responses of the respondents on the promos of the selected
successful milk tea shop.

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 47 47% 40 40% 13 13%

Object 38

Table 23
The table below indicates the responses of the respondents on the word-of-mouth of the
selected successful milk tea shop

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 41 41% 36 36% 23 23%

Object 40

Table 24
The table below indicates the responses of the respondents on the sponsorships of the
selected successful milk tea shop

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 35 35% 34 34% 31 31%

Object 42

Table 25
The table below indicates the responses of the respondents on the influencer marketing
of the selected successful milk tea shop

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 46 46% 32 32% 22 22%

Object 44

Table 26
The table below indicates the responses of the respondents on the branding of the
selected successful milk tea shop
 Respondents Macao (%) Dakasi (%) Chatim %
Imperi e
al Tea
100 39 39% 31 31% 30 30%

Object 46

Table 27
The table
below
indicates
the
responses
of the
respondents
on the use
of billboard
of the
Object 48 selected
successful milk tea shops.

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 44 44% 8 8% 48 48%
Table 28
The table below indicates the responses of the respondents whom they think is the most
popular milk tea brand.

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 43 43% 9 9% 48 48%

Object 50

Table 29
The table below indicates the responses of the respondents who used the best marketing
strategies.

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 38 38% 9 9% 53 53%

Object 52
Table 30
The table below indicates the responses of the respondents which milk tea brands
satisfied them the most.

Respondents Macao (%) Dakasi (%) Chatim %

Imperi e
al Tea
100 35 35% 16 16% 49 49%

Object 54

PARAGRAPH / EXPLANATION ON THE SUMMARY OF RESULTS

( UMALI)

CHAPTER IV

Significance of the Findings

ISYASA AND ARIZ

Summary

CAMENTING AND CABALLERO

Conclusions
 Milk tea has been one of the trends nowadays and the most bought beverage.

Milk tea is not only popular for its beneficial effects as well as for its unique blend and

taste, no wonder why many consumers are hooked to it.

This study hopes to gain an understanding of the significant difference between

the marketing strategies used by the selected milk tea stores as well as to understand the

level of customer satisfaction with the product sold and their marketing strategies. This

study could enrich an individual's knowledge of the entrepreneurial abilities of business

practitioners.

Researchers found out that majority of the customers of the selected successful

milk tea shops in taguig are 16 to 25 years old and most of them are female, because

according to Hallam, Boswell, DeVito, and Kober (2016) popular culture also depicts

gender differences in food cravings, such as the notion that men crave savory foods

while women crave sweet foods, particularly as they approach menstruation.

In this study, we conducted 100 respondents. For upcoming researchers, we

intend on using this variable and create a model that will help increase the popularity of

this type of research.

Some of marketing strategies used by these three successful milk tea shop are

packaging, pearl texture, promos, word of mouth, affordability, ambiance and

advertisements. This study reveals the most perceived of the customers in the city. It is

observed that among the three selected successful milk tea shop, Chatime is the most

perceived of the customers when it comes to its popularity, milk tea brand that satisfied

them the most and also it was chosen for having the best and most effective marketing

strategy that leads in attracting more customers compared to Dakasi and Macao Imperial
Tea, based on the findings of the study. We therefore conclude that Marketing Strategy

has a significant effect to the successfulness of the selected milk tea shops.

Recommendations

LIM, AZANES AND UMALI