HealTea Milk Tea

A Project Feasibility Study

Presented to
The Faculty of College of Business and Accountancy
Accountancy Program
National University

In Partial Fulfillment of the

Final Requirements for the course
MANAGEMENT CONSULTANCY

Presented by:
BANGGA, CARL AARON B.
DEZA, MARIA MICHAELA MONIQUE G.
ELLORIMO, DAX A.
MARQUEZ, DANIELLE NICOLE V.

Presented to:
PROF. RODERICK RONIDEL, CPA

JANUARY 2020
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DEED OF DECLARATION

We, 5th year students of Bachelor of Science in Accountancy, hereby submit our project
feasibility study entitled, HealTea Milk Tea, to the Faculty of College of Business and
Accountancy and truthfully declare that the above titled paper is a product of our own ideas,
research, and analysis.

We further assert our right and responsibility relative to the use of this resource and in any
purpose possible. Anyone who intend to use this research output for his/her own study may
contact the researches for permission and information.

Done this day of January on the year of our Lord, 2020 at National University – Manila, 551
MF Jhocson St., Sampaloc, Manila, Philippines.

BANGGA, CARL AARON B.

DEZA, MARIA MICHAELA MONIQUE G.

ELLORIMO, DAX A.

MARQUEZ, DANIELLE NICOLE V.

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Chapter I
SUMMARY OF THE BUSINESS PROJECT

Brief Discussion of the Business

HealTea Milk Tea, a newly built and an addition in the Milk Tea Industry in the
Philippines, formed by the partnership of four (4) investors: Carl Aaron B. Bangga, Maria
Michaela Monique G. Deza, Dax A. Ellorimo and Danielle Nicole V. Marquez.

The massive demand for a flavourful and refreshing Milk Tea drink by many people is
the main reason why HealTea Milk Tea was established. Giving the satisfaction and fulfilment to
cravings for a refreshing Milk Tea while considering the health of our prospective consumers is
our main concern – by using a much healthy ingredients like Chia seeds which is a good
substitute for fiber and a lot more. Letting them enjoy what they have raved for without giving
them a thought of worry about their health, will going to be the edge of this business among
the other, in the Milk Tea Industry.

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Chapter II

INTRODUCTION OF THE STUDY

Brief Background of the Study

Nutrition can be a tricky thing. We are always looking for the next big beneficial super
food or drink. One of the most popular health drinks in the world today is tea, because it has
numerous benefits for the body when consumed in regulated quantities. It is rich in anti-
inflammatory properties, has elements that help you relax and overall is full of rich antioxidants
and blood purifying agents. (Kanksha Raina, 2019)

Nowadays, it is not surprising to see someone you know drinking milk tea at least once a
week, lining up for hours, or having it delivered to their doorstep.

Milk tea has a wide fan base since probably ever. With a flavour that tastes neither milk
nor tea, but a new zest altogether, the milk tea is uniquely refreshing with every sip; not to
mention, very tasty.

Milk tea shops began to compete with coffee shops. Milk tea shops, after all, carried a
similar ambience, a casual space that allowed visitors to stay for long periods of time-perfect
for the student with a paper to finish or friends to hang out with.

The massive number of students getting in on the trend, buying milk tea as both a
caffeinated pick-me-up and a sweet treat, allowed these milk tea shops to thrive. On top of
that, milk tea had the edge of being branded as a "healthier" drink.

When your occasional dosage of milk tea comes from a stall or a shop, the chance is
good that the drink you are consuming would come in the form of a “Bubble Tea” which is
essentially a term for the sweet-tasting milk tea with tapioca pearls underneath. But there go
the red flags to it—it is sweet, which means that there might be “tons” of sugars in it, and it has
tapioca pearls which only adds to the overall number of carbohydrates you consume

Carbohydrates are typically broken down into smaller components in the form of sugar
which is used by the body as a source of energy for the cells. But any excess of carbs becomes
stored energy for the body called body fats.

In order for us to enjoy more of this milk tea, the researchers wanted to make an
innovated product that would make the milk tea healthier to drink and the consumers would
not think that this tea could make them gain more weight. This study will determine if this idea
is feasible, it’s degree of feasibility, and if the brand per se is appreciable to the Filipino Milk Tea
consumers.

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Objectives of the Study

The objectives of the study are as follows:

 To engage its customers so as to gain understanding on customers point of view and to

gather feedback
 To analyse existing competitors to see if the proposed product will be able to break into
the market
 To initiate strong awareness about Diet Milk Tea throughout younger generations’
consumers as well as the people who are in for a healthy lifestyle
 To project financial information and requirements of the business as a key measure for
its success
 To assess the information and data gathered to determine the feasibility of this study in
the Philippine setting

Scope and Limitations

This study is being conducted to determine if HealTEA Milk Tea is effective and
acceptable to those consumers that are commonly having milk tea drink but wanted to be
healthy. This aims to give people the drink that they can consume without concerning their
healthy lifestyle.
The researchers performed various tests of ingredients to achieve a perfect blend of
milk tea not only for diet conscious people, but also for everyone.

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CHAPTER 3

MANAGEMENT ASPECT

Legal Requirements

In order to have an official and legitimate running milk tea business, you need to
procure all pertinent business permits and licenses and make sure you have registered in
appropriate governing bodies to operate. This is to protect your business and your recipes
from any copycats.

The following are the legal requirements that this business, HealTea, needs to comply with;

 Securities and Exchange Commission (SEC) Registration - assert the form of ownership
of the business
 Department of trade and Industry (DTI) Registration – assert the name of the business
as the company’s branding. Securing trade name will guarantee the legal and exclusive
right to use it within its validity period.
 Mayor’s business permit – assert that the company complies on getting the license to
operate in the city or municipality and payment of local business taxes
 Sanity Permit – assert that the business observes the standard of the Sanitary Code of
the Philippines.
 BIR registration – assert that the company complies on getting TIN, official receipts and
invoices, registering books of accounts, and paying national internal revenue taxes
(Income tax, VAT or Percentage Tax, Withholding Taxes, etc.,).
 SSS, PhilHealth, and Pag-Ibig Fund registration – assert the registration of the company
as an employer and for remitting employees’ contribution together with the employer’s
share.

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Type of Business

This proposed business, HealTea, will adopt a General Partnership type of business
organization. This business is composed of 4 investor and/or entrepreneurs that agreed to
share in all assets, profits and financial and legal liabilities, namely:

Carl Aaron B. Bangga

Maria Michaela Monique G. Deza

Dax A. Ellorimo

Danielle Nicole V. Marquez

HealTea is under Food and Beverage Industry, specifically in the Bubble Tea section and
encompasses Health and Wellness Industry which promote physical and mental wellness.

Capitalization

HealTea Milk Tea is owned by 4 business partners, namely: Bangga, Deza, Ellorimo, and
Marquez. All partners are Capitalist-Industrial partner. Bangga contributed a space with a
parking lot that has a fair value of Php 16,000,000 and the remaining partners contributed Php
8,000,000 cash each. The partners will also contribute their services to the business.

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Organizational Structure

Figure 3.1 The organizational structure of HealTea Milk Tea Company

This is the organizational structure for the business. The top level compromises the General
and Functional Manager. The positions reporting under are the Administrative officer,
Operation Officer and Marketing and Finance Officer. Reporting under their positions are
existing employees.

The job description of each position is as follows:

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Table 3.1 Description for Job Roles inside the organizational structure of HealTea

JOB ROLE JOB DESCRIPTION

General Manager  Overseeing daily business operations.
 Developing and implementing growth
strategies.
 Creating and managing budgets.
 Researching and identifying growth
opportunities.
 Generating reports and giving
presentations.
Functional Manager  Manage activities within their functional
areas
 Assist with problems related to team
member performance with the general
manager
 Improve staff utilization
Administrative Officer  Organize a filing system for important and
confidential company documents
 Answer queries by employees and clients
 Maintain a company calendar and schedule
appointments
 Prepare regular reports on expenses and
office budgets
Operation Officer  Manage Available Resources
 Communicate Operations Performance
 Monitors product inventory
 Devise and Implement Innovative Strategies
 Oversee Operational Procedures
 Review Market and Regulatory
Developments
Marketing and Finance Officer  Research and analyze financial reports and
market trends
 Review financial data and prepare monthly
and annual reports
 Monitors marketing and sales performance
and adjusts strategies as needed
Employee  Front line face of HealTea, responsible in
taking orders
 Prepares and serves beverages to
customers

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Recruitment and Selection Process

HealTea is committed to employing the best qualified candidates while engaging in

recruitment and selection practices that comply with all applicable employment laws. It is the
policy of HealTea to provide equal employment opportunity to all applicants and employees.
Until now, HealTea does not plan to accept administrative personnel and only plan to accept
employees working under the operations itself. As stated by the HealTea Organizational
Policies, a minimum of three (3) employees should work for Healtea Milk tea.

The hiring process followed by the HealTea Milk Tea is as follows:

(naka figure to)

1. Job posting - Announcements for job opening will be posted outside the main
office premises and social media accounts, also in job-posting websites.
2. Evaluation - accepted candidates will be scheduled and undergo an interview with
the administrative officer.
3. Training - hired interviewees will now undergo seven (7) days of training before
going through the business operations.

Job posting - this process will be done through posting job opening outside the main
office premises and through posting on the HealTea Milk Tea official website -
www.HealTeaMilkTeaBrand.com. Applicants may submit their application and
requirements personally to the main office located at: 65 Amorsolo Street, San
Lorenzo, Makati City 1223 Metro Manila, or through submitting it to the official e-
mail address of the administrative officer at: healteamilktea.admin@gmail.com.

The following are the job qualifications to be observed for application:

* High School Diploma

* Experience in food and beverage preparation or customer service preferred.
* Training and willingness to continue learning about food and beverage
preparation.
* Exceptional listening and communication skills.
* Ability to walk, bend, and stand for extended periods.
* Availability to work around peak hours, including nights, early mornings,
weekends, and holidays.
* A polite, engaging personality.
* Commitment to customer satisfaction and service excellence.
* Willingness to work as part of a high-energy, efficient team in a fast-paced

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environment.

Evaluation - in this process, an interview is scheduled and will be conducted to

assess the general knowledge of the candidates relating to the milk tea industry.
Different set of questions and situations that may arise in the everyday business
operations will be asked. The most important part in this process is to know the
candidates’ commitment, willingness and desire to continue learning about food and
beverage preparation.

Training - after evaluating the interviewees by the administrative officer, along with
the other requirements, the newly hired interviewees will undergo seven (7) days of
training. This training ensures that the newly hired interviewees will be familiarized
of the Organizational Policies, the preparation of the new brand kind of milk tea, and
other material business activities.

Remuneration and Benefits

Employees’ salaries will be based on the new minimum wage of the Department of Labour
and Employment (DOLE) in Metro Manila. The salary of the employees on a month basis is
computed by multiplying the minimum wage per day to the number of days worked in a month.
HealTea Milk Tea’s operating hours is from 10:00 am to 10:00pm, Monday to Sunday.

Benefits offered by HealTea Milk Tea to their employees:

1. Social Security System Contribution - based to the basic salary every month, the
employer also remits monthly contribution to the SSS for the employees. The SSS
benefits cover maternity, retirement, sickness, disability, death, and pension
benefits.
2. PhilHealth Contribution - employees covered by the SSS medical coverage
mandatorily contributes to PhilHealth, employer also contributes equal monthly
amounts to PhilHealth Insurance Corporation.
3. Home Development Mutual Fund Contribution - also known as PAG-IBIG FUND, is
mandatory to all employees compulsorily covered by GSIS or SSS. Employer always
remits 2% of basic salary of employees as their share of contribution.
4. 13th Month Pay - the HealTea Milk Tea grants 13th month pay to their
employees, equivalent to one-month salary.
5. Double Pay Holiday - the HealTea Milk Tea will grant a double pay to an
employee who works during holidays.

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Organizational Policies

An organizational policy is a set of guidelines and best practices put in place to protect the
company, employees, and customers. It can be define as what is acceptable and unacceptable
behaviour. By doing this, they establish expectations and limitations related to behaviour and
provide clear definition of boundaries within which to work.

1. Workplace Security Policies- Policies on security are in place to protect not only the
people in an organization, but the physical and intellectual property as well. Policies
may cover entrance to a facility, such as the use of ID cards and the procedures for
signing in a guest. Equipment such as a company laptop or smartphone may need to
be signed out.
2. Attendance and Time-off Policies- Attendance policies define how employees may
schedule time off or notify superiors of an absence or late arrival. This policy also
sets forth the consequences for failing to adhere to a schedule. For example,
employers may allow only a certain number of absences within a specified time
frame. The attendance policy discusses the disciplinary action employees face if they
miss more days than the company allows.

Procedures

Absent
 An employee is absent when he/she is unavailable for work as
assigned/scheduled and such time off was not scheduled/approved in
advance as required by Administrative notification procedure.

Tardy
An employee is tardy when he/she:
 Fails to report for work at the scheduled work time.
 Takes an extended meal or beak period without approval.

Time Clocks and Failure to Clock in/out

Employees are required to follow established guidelines for recording their actual
hours worked. A missed clock in/out is a violation of this policy and includes:
 Failure to clock in/out on their designated time clock at the beginning and/or
end of their assigned time schedule
 Failure to clock in/out on their designated time clock for the meal break

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 Failure to accurately and timely report time worked.

 Clocking in/out early (or late) of assigned shift without prior approval
3. Dress Code Policy- Employees are expected to dress their prescribed uniform.
Employees of HealTea must always present a clean and professional appearance to
our beloved customers as they also reflect the company’s identity.
4. Food Quality and Safety- Having a business under food and beverage industry,
sanitation is a vital concern. Businesses in food industry are required to have well-
maintained equipment and to practice safety in preparing beverages that will be
served to customers.
5. Code of Conduct- These are rules, principles, values, and employee expectations,
behaviour, and relationships that an organization considers significant and believes
are fundamental to their successful operation. Each employee should do their roles
with an appropriate attitude and work ethic.
6. Performance Appraisal- Harmonious environment within the organization helps
employees, managers, supervisors and other staff to perform efficiently and
effectively with every given circumstance they are engaged into.

Compensation packages which include bonus, high salary rates, extra benefits,
allowances are given to employees and pre-requisites are dependent on
performance appraisal. Also, employees are given the chance to be promoted for
being efficient at work. In this regards, inefficient workers can be dismissed or
demoted in case.

Every violation committed should be in black and white and acknowledged by the
employee. And consequences are established in order not to tolerate those
violations and will not go out of hand to the extent that termination is the only left
solution.

7. Business Practices/Core Values

 Professionalism
 Integrity
 Customer Satisfaction

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CHAPTER IV

OPERATIONAL ASPECT

Product and Service Concept

Our product HealTea is a diet milk tea drink not just for health conscious people, but
also to everyone who craves for this drink. In order to make a healthy milk tea, we replaced all
rich in carbohydrates, sugar and calories ingredients into lesser or none of those things that
make us gain weight. We used green tea, soy milk and honey as main ingredients of our
products as it gives more benefits and it adds unique flavor to our product. The partners
decided to come up with this business to create and innovate more products that can be
consume in everyday living not concerning our health and just enjoying life.

Pricing Matrix

HealTea offers a healthy and nutritious milk tea beverage and corresponding choices for
additional toppings. The pricing for each product offered is as it follows:

Table 4.1 The proposed pricing for HealTea Milk Tea beverages.

HealTea Regular Large

Flavors
Original Classic ₱90 ₱110
HealTea
Wintermelon ₱95 ₱115
HealTea
Chia Seeds ₱95 ₱115
HealTea
Yakult HealTea ₱90 ₱110

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Table 4.2 The suggested pricing for toppings or add-ons on the beverage

Add-ons Price
White Tapioca Pearls ₱15
Oats ₱10
Red beans ₱15
Coconut Jelly ₱15
Aloe Vera ₱20

Milk Tea Products

 Original Classic HealTea- This is our original milk tea flavour that has the most nutritious
ingredients. It comes with green tea, soy milk, honey and oats for toppings.
 Wintermelon HealTea- One of the classic flavour offered by our company is the
Wintermelon HealTea, which has a distinctive flavour that resembles our original
caramel recipe and adds a new twist to regular milk teas.
 Chia Seeds HealTea- This type of milk tea flavour that really suits all health conscious
people for its so much health benefits. The taste of chia seeds will surely give you a
great way to give you energy and curb your appetite
 Yakult HealTea- Another delicious and favourite of all time is this milk tea flavour. Yakult
is a Japanese probiotic milk-like product. Tastes a little bit sour but sweet. Since Yakult
has sweet taste, it amazingly fits the fresh taste of green tea well! For those who don’t
like the bitterness of tea, this will be a great choice.

Sinkers and Toppings

 Oats- Oats are among the healthiest grains on earth. They're a gluten-free whole grain
and a great source of important vitamins, minerals, fiber and antioxidants. Oats has
many health benefits; these include weight loss, lower blood sugar levels and a reduced
risk of heart disease.
 Red Beans- can help slow the absorption of sugar into the blood and therefore reduce
blood sugar levels. Along with high blood sugar, weight gain is also a risk factor for
diabetes and metabolic syndrome, but kidney beans have the potential to reduce these
risk factors.
 Coconut Jelly- They are made from either real coconut meat or low calories substitute
such as Konjar - A vegetable by product. High in Fiber and low in calories makes them
also a perfect dietary food.
 Aloe Vera- Served in gelatin form. Aloe vera is an extremely healthy (and helpful) plant
product -- it is high in minerals, vitamins, amino acids and fatty acids. It helps with

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digestion, detoxification, and boosts your immune system. It's great for the skin, helps
reduce inflammation and improves joint flexibility.
 White Tapioca Pearls- Clear tapioca pearls are made from starch that comes from
cassava root. These pearls are similar to black tapioca pearls but with lesser sugar

Plant Location and Layout

HealTEA Milk Tea promotes a type of milk tea with good benefits in one’s health.
And with that, it is specifically established near well-known companies where a lot of
people work. The business was located at 65 Amorsolo Street, San Lorenzo, Makati City
1223 Metro Manila This is the proposed layout for the business’ location.

 Figure 4.1 The proposed store floorplan.

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Suppliers

Table 4.3 The partnered suppliers by HealTea for raw materials, packaging and equipment.

Company Name Description Address

Miracle Soybean Food Int'l Miracle Soybean Food 48 Elisco Road, Pasig, Metro
Corp International Corporation, a Manila
HACCP, GMP, and HALAL
certified Company, is a
premium supplier of fresh
and chilled soy products for
the mainstream, institutional,
health, and wellness markets.
Pro Blends Food Corporation ProBlends provides custom Sampaguita Avenue, United
blends, juices and tea, Paranaque, Subdivision IV,
propriety mixes, and Km. 19 West Service Road,
specialty ingredients to food Paranaque City, Philippines
processors, food chains and
food service establishments
in the Philippines.

MSCS Prime Goods Inc.
MSCS PrimeGoods, Inc. 2nd Flr. P&D3 Bldg., Calbayog
(MSCS), is a distributor and cor. Mariveles Sts., Highway
sub-distributor of imported Hills, Mandaluyong City,
and local food, and other Metro Manila, Philippines
consumer goods in the 1550
Philippines. MSCS was
established in May 2015 as
family-owned company.

MSCS distributes its products

including Pure HONEY initially
in the Food Service such as
restaurants, cafes, hotels,
commissaries, canteens,
schools, bakeshops, etc.
Dragon Milktea Supplier Dragon Milktea Supplier 70 Kennedy St, San Juan
Wholesale Wholesale Is one of the most 1503, Metro Manila
impressive and trustworthy
suppliers of premium quality
syrups, powders, toppings
and other milk tea shop
needs in the country.

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Swisspac Philippines Swisspac Philippines offers a
wide range of disposable
cups and glasses. Their cups
and glasses are most
convenient, affordable and
made with best quality of
raw materials.
Ecobudget Corp. Philippines Ecobudget product lines are
developed to provide ECO-
friendly, BUDGET-friendly
and Good Quality Products,
Services and Solutions.
Utilities
Table 4.4 The utilities vital to HealTea in conducting business and administrative works.
Utilities Supplier
Electricity
Water
Internet connection and
Telecommunication
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Louis Mclean Far East Inc.
Unit 1907, Antel Global
Corporate Center, Ortigas
Center, Julia Vargas Avenue,
Pasig City
Solare Bldg., CapriOasis, Dr.
Sixto Antonio Avenue, Pasig,
1607 Metro Manila
Uses
The purpose of availing
electricity services from
Meralco is to provide the
overall power supply to the
store.
This will be used as the
general water supply for the
store and for cleaning the
equipment and utensils used
in selling the products.
This is vital to the business
for promoting and
advertising the product in
social medias, as well as to
the people with inquiries
about the product.
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Office Supplies

The administrative works are also conducted by HealTea for some client-business
transactions. As being said, some office supplies are needed and to be used.

Table 4.6: The list of office supplies, including the particulars, prices, and quantity, present in
the business for use.

OFFICE SUPPLIES PARTICULAR PRICE QUANTITY TOTAL

AMOUNT
Paper Thermal Printer Paper P 70 15 P 1,050
8.5 by 11 Bond Paper 120 10 1,200
Electrical Items Biometric Fingerprint 6,900 1 6,900
Time Attendance
Machine
Thermal Receipt Printer 1,500 1 1,500
Dell Computer Set 50,00 1 50,000
0
Multifunction Printer 16,00 1 16,000
0
Small Supplies Stapler 105 2 210
Staples 100 2 boxes 200
Tapes 25 8 200
Pen 60 1 box 60
Furniture Desk 2,500 1 2,500
Rotating Chair 1,800 1 1,800
Office Trash Can 150 1 150
Filling Cabinets 1,500 2 3,000
Grand Total P 84,770

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Ordering Process

Placing of an Delivery from Receiving the

order supplier goods ordered

Inspection of Payment
goods received

Figure 4.2 The ordering process followed by the business - order to payment.

Order to payment is the ordering process that is being followed by HealTea Milk Tea in
their operations. By first placing orders to the respective suppliers and this may be done
through direct contact of sales team to the suppliers. Placing of orders is scheduled every three
(3) weeks and it is done by the Operations Officer. Upon placing the order, the expected lead
time for the goods ordered to be delivered is 2 days. Operations Officer is also responsible for
managing the delivery of goods, inspection as well as the storage of it. Once all of the process is
done, the Financial Officers is already responsible for the payment of the goods received.

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Packaging

Product packaging hooks and pleases the attention of the prospective consumers and it
completes the overall presentation of the product. HealTea Milk Tea wants to provide the best
not only in terms of flavours but also on how the presentation of the product will looks like and
it is also designed to protect the drink from contamination and dirt. Reusable cups are what
HealTea Milk Tea’s using, to somehow help the environment and lessen the trash disposal and
the cup is adorned by HealTea’s logo.

HealTea Milk Tea Cups

Tissue

Take Out Bag

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CHAPTER V

MARKETING ASPECTS

Market Overview

People nowadays are fond of new, trending, popular and convenient to market. One of
the trends as of today is putting up a milk tea business. Milk tea, a beverage containing tea,
milk and add-ons became popular and pleasing to teenagers and professionals but we all know
that a typical milk tea has some ingredients that are harmful to our health and can cause so
much health issues. Hence, the idea of a diet milk tea business is appropriate to those people
who almost drink milk tea every day.

Diet milk tea business is somehow a great start to innovate more healthy and unique
foods that can be sold in the industry. There are many milk tea shops in the country with wide
selection of flavors and variations. This type of business offers utmost convenience, budget-
friendly and healthy drinks that will surely achieve customer’s satisfaction.

GANTT CHART

Before launching a business, there are a lot of things to be accomplished. Below

is the timeline of tasks and works of HealTea Milk Tea to be done in the given timespan.

GANTT CHART

Figure 5.1 The proposed Gantt Chart of HealTea Milk Tea business.

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Brand name and Logo

HealTea is derived from the word health because we are promoting a healthy lifestyle
with a combination of milk tea as the main product of the business. By providing quality milk
tea beverages, we are engaging consumers to taste and try our product.

Our logo symbolizes the concept of our business. We chose the best logo that can
define our business. It can tell potential customers who we are, what type of products and what
benefits we can give to the consumers. We chose green and light brown colours because it
represents nature where we can find the best diet ingredient that suits our milk tea product.

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Unique Selling Techniques

 Company Website- Having a company website is a must for every business because
most of the consumers uses internet to search and gather information about the
business.
 Social Media Advertising- Making a business page and platforms in Social Medias such
as Facebook and Instagram can help boost the number of people who will know the
business. With the use of this advertisement, HealTea can post activities and updates
about the business for the people to know their existence. The more people give
familiarity to the business, the more popular the business is. This can help the business
to gain more profit due to its popularity.
 Flyers and postcards- Since HealTea is a physical store, this kind of promotion is highly
recommended and this is for the consumers who are not into Social Medias and the like.
 Promos and Activities- People are so addicted to promos and with that, we thought of
this as one of the most effective selling techniques. One promo that we will use that can
possible attract customers is buy one take one promo, wherein we will set the promo
that can be availed in which one best seller milk tea partnered with another milk tea
which is low on sales. We can also provide stickers in which they can avail free drink
when they completed 10 stickers.
 Mobile App- We will make sure that HealTea will be available through Grab food or
Food Panda for those consumers who don’t want to go to the shop and make delivery.
Pricing Strategy

Penetration Pricing, a pricing strategy that initially set the price low to gain an
entry to the market, is the most appropriate strategy pricing HealTea Milk Tea must use.
While HealTea Milk Tea is entering in the industry of Milk Tea in the Philippines where
there’s a lot of competitors existing, serving the same quality with a much cheaper price is a
good hook to catch the attention of the consumers and will make them switch to a new
brand of milk tea shops like HealTea Milk Tea.

Distribution Strategy

Milk Tea Shop End User

Figure 5. The distribution channel – from Milk Tea shop to the end-user.

HealTea Company does have a shop representing their only distribution channel.
This store directly sells their flavourful and refreshing drink to the end-users. HealTea is
also open for collaboration with certain events that can promote their company to
reach their markets.

BANGGA, DEZA, ELLORIMO, MARQUEZ

ACTP03
 A Feasibility Study for National University

CHAPTER VI

FINANCIAL ASPECT

Initial Capital Requirement

Initial capitalization for HealTea Milk Tea Company is Php 40,000,000. This consists of
Php 20,000,000 for land and building, Php 2,500,000 for furniture and equipment and Php
17,500,000 for cash.

Sources of Financing

The only source of HealTea Milk Tea is from its internal source. Capital contributed by
the partners is the start of HealTea Milk Tea’s source of financing. The remaining capital and
accumulated profits will be used for the next operating years in order to maintain the financial
stability of the business. Additional capital contribution will be done if needed.

Financial Projections

 Financial Assumptions
1. Sales volume on the first year of operations (335 days) averages 375 pieces of
milk tea per day.
2. Selling price per unit increases by 5% every 2 years.
3. Cost per unit of HealTea milk tea increases by 3% every year.
4. Supplies inventory increases by 5% per year.
5. Ending inventory is 5% of cost of goods sold.
6. Depreciation: Straight line method is used. The life of furniture is 6 years and 4
years for equipment with 5,000 salvage value.
7. All sales are cash sales.
8. All purchases of supplies and merchandise are cash purchases.
9. Partners’ share in gain or loss is shared equally.
10. All SSS Premium Payable, PhilHealth Premium Payable and PAG-IBIG Premium
Payable pertain to unremitted employer and employee share for the month of
December.
11. Utilities Payable pertains to unpaid utilities for the month of December.
12. Partners’ withdrawal on the first year of operations is Php 150,000 for each
partner and will increase by 15% year thereafter.

BANGGA, DEZA, ELLORIMO, MARQUEZ

ACTP03
 A Feasibility Study for National University

CHAPTER 7

SOCIOECONOMIC ASPECT

Having a healthy diet nowadays are very difficult to achieve because of delicious and
addictive foods that are popular in the market, one of those foods is milk tea. As we all know,
milk tea have components that are rich in calories and could result to weight gain. Hence, by
selling milk tea with a twist – a diet milk tea, people can be healthier and this type of business
will be promising. This chapter assesses the impacts of establishing HealTea Milk Tea in the
society, economy and environment.

Public Interest

HealTea offers utmost convenience, filled with budget-friendly, delicious and healthier
drinks. Moreover, sending ideas, opinions and other request will be sincerely heard and
consider by the management to exceed customer’s satisfaction. This will also help the business
in gaining more customers.

Government

This diet milk tea business will benefit the government with regards to taxes and legal
fees along with other profit-earning and tax-paying businesses in the country. More funds will
be generated by the government. These funds may be helpful to government in assisting its on-
going projects for the benefit of all people.

Economy

The economy of the Philippines is growing, and it means that many people are on the
go. Most people, especially Filipinos want a cheaper but with good quality of products. With
that, we are ensuring that our diet milk tea product will attain the demand of all consumers at a
very reasonable price with fast and good service.

Environment

HealTea promotes an environmental advocacy of using eco-friendly products to lessen

the pollution and waste in the country. The cups that will be used for our product are reusable
and plastic is not allowed in our store. We will be giving eco bags for customers who will avail
our products by take-out. The business also promotes solid waste management by properly
disposing biodegradable and non-biodegradable trash to help aid in solving pollution issues.

BANGGA, DEZA, ELLORIMO, MARQUEZ

ACTP03
 A Feasibility Study for National University

References

https://ecobudget.ph/?gclid=EAIaIQobChMIov6xgtuA5wIVTD5gCh3r8g3lEAAYASAAEgKFI_D_Bw
E

https://www.swisspac.ph/paper-bags/

https://www.dhgate.com/product/700ml-24oz-disposable-plastic-cups-
thicken/414610361.html#seo=WAP

BANGGA, DEZA, ELLORIMO, MARQUEZ

ACTP03
 A Feasibility Study for National University

APPENDIX

Appendix A. Survey Questionnaire

BANGGA, DEZA, ELLORIMO, MARQUEZ

ACTP03
 A Feasibility Study for National University

BANGGA, DEZA, ELLORIMO, MARQUEZ

ACTP03