THE INFLUENCE OF MARKETING STRATEGIES ON BRAND

IMAGE AND POPULARITY OF MILK TEA

A Research Paper Submitted to the

Faculty of Integrated Basic Education Department

San Beda University, Mendiola, Manila

In Partial Fulfillment of the Requirements in

Practical Research 1

CANDARE, Ma Angelica G.

CONCEPCION, Marknette Jr B.

ESGUERRA, Antonio Tristan S.

JALANDONI, Frances Anne L.

LIGON, Christine O.

OCAMPO, Ghemille Amber C.

August 2019
 CHAPTER I

THE PROBLEM AND ITS SETTING

In this chapter, the researchers presented the background of the study, the statement of the

problem, the significance of the study, the scope and limitation, and the definition of terms.

Background of the Study

In the article of Castro (2019), after 11 years of introduction to the Philippine market, the

milk tea industry keeps growing as milk tea shops keep popping with extensive menus that ensure

avid customers find their exact, perfect cup. People nowadays have a milk tea in their hands at

least once a week or a delivery on their doorsteps even almost every day. Filipinos are not really a

big fan of brewed drinks, however, milk tea had become one of the most popular beverages in the

country. The Serenetea is the first milk tea house introduced in the country. Husband and wife

Peter L. Chen and Juliet D. Herrera-Chen built a shop in the city of San Juan after coming back

from a vacation in Taiwan where milk tea was trending everywhere at that time. Their business

immediately s gained popularity and was readily accepted by Filipinos. Because of the popularity,

milk tea shops from other countries began to enter the Philippines and start their own businesses

like Gong Cha and Chatime which originated in Taiwan. Milk tea is a refreshing beverage that has

different toppings like pearl jelly, coconut jelly and many more. Some want their milk tea sweet

and some others do not. People have different preferences in choosing milk tea, but what are these

that helped them decide what milk tea they’re going to buy? How will be the marketing strategies

of milk tea stores affects the customers? What do people think are the strategies of the milk tea

shops that captured the heart of every consumers? According to Barone (2019), Marketing strategy

is the plan of the business to attract people to buy their products. Stated by Basin (2019), There

are 15 types of marketing strategies: Business to consumer, a marketing strategy that the business
know its target market and they also know their customers more by giving surveys and asking for

their customer’s feedbacks so that they will be able to provide what their target market needs;

Employee Marketing, a marketing strategy of business owners by taking care of their employees

and giving them benefits so that the employees will recommend the business’ product to other

people because the employer treats him/ her right; Business to business , a marketing strategy that

includes having good relationship and good ways of persuading other existing businesses to work

with the owner’s business so that they can work together; Direct selling, a marketing strategy of

directly selling the product to the customers and demonstrating on how to use the business’

product; Cause marketing, a marketing strategy that involves the business in participating in

charity organization, the customers will also feel good and satisfied when purchased the product

for they know that it is for a cause and for a better community; Earned Media, a marketing strategy

that requires large amount of money but the most effective marketing strategy. It is the

advertisement of the company’s product through newspaper, television commercials and social

media. The company even pay a celebrity or someone popular to indorse their product; Co-

branding and affinity marketing, a marketing strategy that involves the indorsement of a celebrity

or a famous personality who can relate to the company’s product that can convince people because

of his or her popularity; Internet Marketing, a marketing strategy that is conducted through the use

of internet such as posting in social media, blogs, emails and vlogs, it requires the ability of the

business to persuade their customers by just posting and promoting their product online; Point- to-

purchase, a marketing strategy where in the business is putting their product in places where their

target customers more visible.; Paid media advertising - a marketing strategy where in the company

pays a large amount of money to advertise their product. Some example of these are radio

commercials, print ads and billboards.; Storytelling - a marketing strategy of a company that
includes the real- life story of a customer after taking or using the business product.; They can earn

a large amount of profit if they have good marketing strategies. Referral Program - a marketing

strategy using existing customers to refer the product to others by word-of-mouth. Growth Hacking

– a marketing strategy in which you try several marketing methods simultaneously in a short span

of time. In a study of Alfafara, Canlas, Dimalibot, Lim, Salvatierra & Valerio (2012), the research

is conducted by distributing survey questionnaires to College of Fine Arts and Designs students of

University of Santo Tomas. Through the interpreting of data, Moonleaf Tea is the milk tea shop

that is most preferred by their respondents, however, they were not able to elaborate and to explain

further the reasons on why students preferred such milk tea brands and what causes them to buy

in that shop. In this research paper, the authors conduct a study to know the factors of the students

in choosing milk tea brands. The researchers will also discuss the different marketing strategies

use by milk tea businesses as their technique in gaining customers. They also figure out if the

customers are buying milk tea because of its quality or just because it is popular. By conducting

this study, milk tea shops will know what they need to do and what are the things they need to

acquire in order for them to gain customers.

Statement of the Problem

This study aims to determine the level of probability in consuming milk tea depending on

their brand names. To determine why other brands are popular than the others and how other

brands had retention on consumers.

1. What marketing strategies are effective that the consumer keeps on buying milk tea?

2. How are the consumers influenced by the marketing strategies of milk tea companies?

3. What are the factors affecting the consumers buying behavior on milk tea products?
Significance of the Study

The outcome of this study will be beneficiary to those people that are attracted to milk tea

because of their marketing strategies and the businesses that are into this business. The

contributions of this study specifically here as follows:

Milk tea business/es It will benefit the businesses on knowing what they can do to acquire

more milk tea consumers, especially milk tea enthusiasts. Not only

that they will have a better marketing strategy, this will also help

them to modify their products into something that the consumers

will like.

Senior High School They will benefit on knowing which brand will be their top

Students choices when it comes to milk tea brands, knowing that milk tea

drinks are not that cheap to buy. In result to this, the consumers must

know where their money will be spent well and get the satisfaction

that they need.

Stockholders Milk tea businesses are quite a trend product right now, stocks and

sales are rising as well as the franchises of the stores. It will be

helpful to know which company can be more profitable when it

comes to investing money and such.

Scope and Delimitation

This study focuses on analyzing and examining the influence of different marketing

strategies on brand image and popularity of milk tea to the students. These marketing strategies

include Business to consumer, Employee Marketing, Business to business, Direct selling, Cause
Marketing, Point- to- purchase, Storytelling, Referral Program, Growth Hacking and the usage of

media such as social media platforms and other techniques milk tea brands use to encourage people

to consume their products especially the students. Since the study relies on the strategies of

different milk tea brands in getting students to consume their products, a face to face interview

will be conducted to provide the information needs throughout this research. The respondents are

the students of SBU-M during the S.Y 2019-2020. The students were chosen to be the respondents

because they will provide information on how these marketing strategies persuaded them in buying

a milk tea product.

This study only cover the actual milk tea products consumed by students from milk tea

joints excluding those in the menu of fast food chains or joints selling as an additional product in

their menus. The study is limited to the Grade 11 students in SBU-M. S.Y 2019-2020. The target

population of the respondents is limited to the current Grade 11 Senior High School students from

the Accountancy, Business, and Management (ABM) strand students.

Definition of Terms

Affinity Marketing A method of selling goods and services by creating partnerships

with similar or compatible companies and brands. This increases

brand loyalty for both companies and products and heightens market

awareness of both. Opposite of competitive marketing (Business

Dictionary). As used in the study, we will observe how branded milk

tea uses famous celebrity for gaining popularity.

Beneficiary Person or other legal entity for whose present or future interest

(Benefit) an annuity, assignment (such as a letter of credit) contract,

insurance, policy, judgement, promise, trust, will, etc. is made

 (Business Dictionary). In terms of use the beneficiary will change

or maintain depending of the outcome of the research.

Consumer A purchaser of a good or service in retail, an end user, not

necessarily a purchaser, in the distribution chain of good or service.

See also a costumer. (Business Dictionary). As used in the study the

consumer is the maintaining grade 11 students.

Enthusiast One who is ardently attached to a cause, object, or pursuit (Merriam-

Webster). As use in the study we will see how they influence others

to try the product (Milk Tea).

Influence Effect of the fluctuation in the value of an independent variable on

the value of a dependent variable (Business Dictionary). As used in

the study this will help us if the consumer was influenced by others

on trying milk tea.

Marketing The management process through which goods and services move

from concept to the costumer (Business Dictionary). As used in the

study, it will help us understand or observe how they use marketing

strategies

Phenomenon An observable fact or event (Merriam-Webster). As used in the

study we will observe how other businesses got influenced in the

milk tea phenomenon.

 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

In this chapter, the researchers have cited literatures and studies that are related to their

research paper about the marketing strategies businesses use in selling their products. This part of

the study helps to support the researchers on making a conclusion about their study

Popularity of Milktea
In the article of Castro (2019), consumers have different preferences when it comes to

milk tea. Due to the popular demand, lots of milk tea shops opened around UST and not all of

them have the same taste and varieties of flavors. The shops consider to place a stall near schools

that satisfies their target consumers. “Let’s Talk About Milk Tea” (2017) that milk tea is around

decades in various forms. This one simple milk tea drink turned into a revolutionary drink which

has flavors and adds color to the mood and weather outside. Once the people get hooked on one

style of milk tea, they begin to introduce themselves to the other styles of milk tea. It attracts the

new customers and people seeing this kind of refreshment.

The study of Alfafara, Canlas, Dimalibot, Lim, Salvatierra & Valerio (2012) entitled “The

Popularity of the drink Milk Tea among College of Fine Arts Students from University of Santo

Tomas (UST) and which brand they prefer” Most consumers are health conscious, but they also

want to enjoy different kinds of beverages like milk teas. Since milk tea is composed of nutrients,

most of the College of Fine Arts students in UST loves to drink milk tea. The owner of the shop

or stall targeted the curiosity of the consumers with making interesting shop names and exciting

different flavors that surely makes the consumers attracted.

Marketing Strategies of Milk Tea Shops

In an article of Barone (2019), marketing strategy is important for it is the game plan or the

strategy of the business to gain customers. It should be based on the company’s core values that

includes their advantage over the company’s competition. Its main purpose is to communicate with

the customers and meet their needs.

Based on the article of Paguio (2014), presentation is relevant as marketing strategy when

it comes to selling milk tea. The “color concept” of a milk tea house has a big role since customers

relate them for a more relaxing, fun and inviting environment. People perceived that colors send

signals to their brain interpreting its taste, a psychological effect to match their expectations. Red

and yellow for instance evokes taste buds and stimulates appetite, that is why Gong Cha’s milk tea

shop is color red. The color orange which is a combination of red and yellow also induces appetite

which is why the Coco Fresh Tea & Juice shop is orange in color. As a result, people often buy in

milk tea shops that are colorful because it attracts them and the color itself encourages them to

buy. As the milk tea industry progresses, others may venture in a more flexible business target of

customers. The “tea generation” may opt for an all-in-one milk tea shop serving different

beverages other than milk tea like coffee and juices targeting young entrepreneurs and potential

franchisees.

In the article of Bhasin (2018), the concept of marketing strategy relies on the 3 C’s

namely—Customer, Company and Competitor. These variables have the domino effect when one

is change because they are very dynamic and interdependent with one another. The author stated

that having a good relationship with the customer may help the business to grow and be above its

competitors. The business should always assure its consumers that their product is consistently

high quality. A loyal customer will never try other brands if the company has high brand equity
for its appealing product. On the other hand, less competition does not mean that the business can

rest their laurels, but develop more Unique Selling Propositions (USP) so that they are above the

competition in the mind of the customer. Hua (2013) conducted a study, “Research on Marketing

Strategies for Youmo Milk Tea” According to Studies, Now days, especially among the young

generation, milk tea is considered one of the most popular drinks and often selling like hotcakes.

The competition between milk tea enterprises gas been extremely tough. One can see milk tea

stalls, milk tea shops, restaurants, fast food chains, etc., everywhere in the Metro and growing like

mushrooms in the provinces. But how do an enterprise especially small or medium sized keep up

with the competition? An in-depth analysis of the marketing strategies including techniques and

innovation should be taken into consideration. The 4Ps theory: product, price, place, and

promotion is one of the formula that can be implemented and can help strengthen the marketing

management of any milk tea enterprise.

According to the study of Pawar (2014) , customers rely on the three variables namely—

Customer, Company and Competitor to enhance their related knowledge of the brand. They

consult modern marketing tools such as online advertising in making their purchase decision.

Detailed and an ample amount of information is needed for a faster verdict. Most of the businesses

today use social media to advertise their product or services. 60.1 % of the population of the

Philippines is considered internet users as of 2017, that is why businesses should advertise their

products online and that they should also read suggestions from customers to improve their

products and services. As a result, social network and media intensify the efficacy of marketing

with the intent of accessing exclusive content, getting discounts and sharing feedbacks to improve

the product with great consideration on the 3 C’s of marketing.

Brand Popularity Through Marketing Strategy

According to Khuong M.N. & Tran N.T.H, 2018, (The Impacts of Product Packaging

Elements on Brand Image and Purchase Intention — An Empirical Study of Phuc Long‟s

Packaged Tea Products, International Journal trades of Trade, economics and finance, Vol.9, pp.

9) “Quantitative approach is applied. Target population is consumers living in Ho Chi Minh City

(HCMC) no matter if they have known about Phuc Long or bought its products or not.” Other

people reconsider buying products because of its’ brand image or popularity even though they

don’t really know what the product is or does. It’s helpful also to know whether a person is affected

to a product because of its’ popularity to know if by using good brand images is one effect of good

marketing strategies. Even the line affects the judgment of a consumer when it comes to buying a

product, “some outside factors can drive consumers to make decisions, such as the line in front of

the store. The line in front of the store often brings to consumers the concept that “the commodities

have the value of being queued”. The line gives consumers the confidence in making the final

"consumption" decision.” (Han, Y., 2018, Study on Consumption Behavior of Milk Tea Based on

the Customer Value Theory -- Taking "A Little Tea" in Shenzhen as an Example, International

Conference on Management, Economics, Education and Social Sciences (MEESS 2018), Vol. 236,

pp. 504.) Consumers tend to think that it will be worth it at the end cause why would a line build

up in the first place.

Also stated from the study of Lee N.N. & Vega A.T., 2019, (Factors Affecting Consumers’

Buying Behavior on Selected Milk Tea Stores Towards Obtaining Sustainability, pp. 138) “Most

of the customers are composed of groups or partners since they engage more into social

interactions. Also, consumers recognize the milk tea through word of mouth given that these

people love to hangout and bond together” One factor of using marketing strategies through the
popularity of the brand is on what are the comments of consumers about the product, on why they

should buy it. With these comments, other future consumer tends to buy these products because of

it for some maybe from the people they idolize. Then is it all about the term of being a bandwagon?

Where people are just doing and buying things because it is the trend nowadays.

Social Media Marketing Strategy

Chou and Wang (2015) in their article “How People Know About the Contents by Product

Packaging” discussed that one of the key elements of a good and effective marketing strategy is

the Packaging. Packaging is the primary communication between the product and the costumer,

Research findings shows that packaging is composed of two parts: the shape and structure design.

It is important to know who are the target customers will be in order to meet their needs and

expectations. An attractive and user- friendly packaging and design will definitely help promote

visual attentiveness and brand identity. How they present their product

to the consumer (like cooking pearls in front of the consumer). Featuring how clean they process

and preparing the milk tea.

Huang (2019) in his article “Mobile Marketing Strategy”, Another bridge in fulfilling a

marketing strategy successfully is through Mobile Marketing. According to studies, it is a more

personalized and customized interaction between the producer and the consumer. It has three main

purpose:

a. To be able to attract consumers attention

b. To be able to gain the interest of the consumers goods and services

c. To be able to develop the consumer’s needs

A more personal approach and communication between the product and the customers will

promote a positive response and expand the efficiency of the marketing strategy hence, increasing

the percentage of the buyer’s decision to purchase their product.

Brand Popularity of Milk Tea Through Marketing Strategy

According to Coles C. (2019), different milk tea brands used one of the most used media

platform, the social media in which milk tea brands became more popular as it rose up because of

the trends in social media. “Milk tea companies are winning at social media content” says the

author who think that social media makes milk tea companies popular and a trend to the generation

today. Famous milk tea brands like CoCo Fresh Tea and Juice, Dakasi, Tiger Sugar, Chatime, and

Macao Imperial Tea uses social media in getting consumers all around the country. Posting

creative and eye-catching photos as well as using different hashtags was appealing to the users of

media to try different milk tea companies. People tend to try products like milk tea nowadays

because of the social media’s power in encouraging and convincing people to try a brand’s product.

Using social media as a marketing platform, made milk tea brands popular among the audience

because almost everyone in this generation uses social media. The researchers can see that these

popular brands like CoCo Fresh Tea and Juice, Dakasi Philippines, Tiger Sugar Philippines,

Chatime, and Macao Imperial Tea became famous because of the usage of social media as a

marketing platform. The usage of social media platform has great results in a marketing strategy

which also made companies to have famous brands.

Conceptual Framework

Milk Tea

Brand Image and

Popularity

Marketing
Strategies

Other Marketing Social Media

Strategies

Respondents

The quality of a milk tea affects the brand image and popularity which if a brand is famous,

milk teas are also affected. The brand image and popularity of milk tea used marketing strategies

and those also affects how a milk tea brand will be popular. These two marketing strategies are the

use of social media and other marketing strategies from our Review of related literature. Social

Media Marketing has a positive impact to the respondents while the other marketing strategies
does not really convince the respondents to try the milk tea which is a negative result. All in all,

the respondents are the responsible for the feedback which affects the milk tea.

BIBLIOGRAPHY

 Lee and Vega. (2009). Factors affecting consumers' buying behaviour on selected milk

tea stores towards choosing sustainability. Retrieved in

https://www.academia.edu/30356082/Factors_Affecting_Consumers_Buying_Behavior_

on_Selected_Milk_Tea_Stores_Towards_Obtaining_Sustainability

 Kuong and Tran. (2018). Impacts of Product Packaging Elements on Brand Image and

Purchase Intention. Retrieved in http://www.ijtef.org/vol9/580-FM022.pdf

 Han, Y. (2017). Behavior of Milk Tea Based on the Customer Value Theory. Retrieved

inhttps://download.atlantis-press.com/article/25900573.pdf

 Paguio, R. (2014). How milk tea fascinates young consumers and entrepreneurs.

Retrieved in https://www.entrepreneur.com.ph/franchising/how-milk-tea-fascinates-

young-consumers-and-entrepreneurs-esupplier

 Bhasin, H. (2018). 3 C concept of marketing strategy. Retrieved in

https://www.marketing91.com/3-c-concept-marketing-strategy/

 Pawar, A. (2014). Study of the effectiveness of Online Marketinfon Integrated Marketing

Communication. Retrieved in www.dypatil.edu/schools/management/wp-

content/uploads/2015/05/Study-Of-The-Effectiveness-Of-Online-Marketing-On-

Integrated-Marketing-Communication-Am
 De Guzman, N. (2016). Social media management tips for small business owners.

Retrieved in https://www.entrepreneur.com.ph/startup-tips/entrepreneurs-social-media-

management-tips-a1148-20160408?ref=feed_

 Huang, L. (2019). Mobile Marketing Strategy. Retrieved in

https://www.cscjournals.org/manuscript/Journals/IJBRM/Volume1/Issue1/IJBRM-7.pdf

 Coles, C. (2009). Milk Tea Operators: How do they win social media. Retrieved in

https://www.scirp.org/journal/paperinformation.aspx?paperid=92146

 ShiZouHua, F. (2013). Youmo milk tea. Retrieved in https://www.emergelocal.com/milk-

tea-social-media/

 Wilson, M. (2019). Analytical Research Cognizance. Retrieved in

https://www.dissertationtopic.net/doc/2064066

 Alfafara et al. (2012). Popularity of Milk Tea among University of Santo Tomas (UST)

College students. Retrieved in

https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.reuters.com/bra

ndfeatures/venture-capital/article%3Fid%3D90724&ved=2ahUKEwjW96PT643kAhXi-

GEKHbmYD484ChAWMAF6BAgBEAE&usg=AOvVaw3C-

wTYNCg00HZDhyIMVi8k

 Hernandez, A. (2017). Talk About Milk Tea. Retrieved in

https://teafever.blogspot.com/2012/03/popularity-of-drink-milk-tea-among.html?m=1

 Castro, J. (2019). Tracking The Local Milk Tea Trend. Retrieved in

https://worldteanews.com/world-tea-expo-news/lets-talk-about-milk-tea
 CHAPTER III
RESEARCH DESIGN AND METHODOLOGY
In this chapter, the researchers have discussed the research design of the study, what are

the criteria in selecting the respondents and what are the instruments use in collecting data.

Research Design

The research design of the study is descriptive or narrative research design that is

dependent on the respondents’ the researchers use a face-to-face interview methodology, it is a

data collection method wherein the interviewer directly communicates with the respondent

according to the prepared questionnaire where the respondents share their thoughts and opinions

on milk tea and marketing strategies. In descriptive analysis the researchers aims to accurately and

systematically describe a population, situation or phenomenon. It can answer what, when, where,

when and how questions, but not why questions.

Respondents of the Study

The respondents of the study are the students of the SBU-M. The general population of this

research is the Grade 11 Senior High School pupils of SBU-M and the target population is the

Grade 11 Accountancy, Business and Management students. The researchers selected two students

each from sections ABM 1 to 4 that consumes milk tea as their accessible population. The study

has a total of 8 samples. The researchers use Purposive Sampling Technique in which researcher

relies on his or her own judgment when choosing members of population to participate and has a

relation or connection in the study.

Research Locale

This study is to be conducted at SBU-M. The selected respondents are from Grade 11 ABM

Students of SBU-M also known as a private Roman Catholic University which is handled by the

monks and is located at the 638 Mendiola St, San Miguel, Metro Manila where the respondents
and the interview are bound to happen. The school was dedicated to the Catholic education and

Christian formation to serve God and country. This location which is SBU-M is to be conducted

at the first semester of the AY 2019-2020 ranging from the months of July to November 2019.

Research Instrumentation

The researchers use unstructured interview to get accurate and more data. They are using

qualitative research in their study, in result to that, they give their respondents the opportunity and

the freedom to express themselves in answering the interview questions. Since unstructured

interview have no set of planned questions, its informal way of gathering data from respondents

aims to obtain an in-depth personal information while maintaining the spontaneous and natural

flow of interaction.

Data Collection Procedure

The researchers prepare letters concerning the school, SBU-M ,the Faculty and Milk tea

management, regarding the interviews that would be given to the Accountancy and Business

Management (ABM) students and Managers. Once approved, the researchers will start to set

appointments to the students and the management of the milk tea shops that the researchers have

chosen using stratified technique where the researchers have chosen one student coming from the

Grade 11, sections ABM 1 – 4 and for the milk tea shops, the researchers chose the convenience

technique where the researchers picked the milk tea shops that are near SBU. The researchers made

a set of questionnaires that will be answered by a face-to-face interview with the respondents. The

researchers conduct the interview to the students during break times specifically recess or lunch in

a quiet place which happened to be inside the campus, while for the managers coming from the

milk tea shops is when the proposed date that the researchers and management has agreed on. The

use of voice recorder and written report are to document the said interview. In the interview, the
researchers did not, in any way limited the answers of their respondents to any number of sentence

or the time that will be provided. Within the questions the researchers have prepared, they are

given the free will to share their self-views and opinions about the said topic.

Data Analysis Procedure

Content analysis is a way of analyzing and examining events or occurrence in a reflective

process. One's initial knowledge of the content or event should not affect the understanding of the

story. Data captured can be compared and content can be contracted to the real world. The

analyzation of the documents, text or speech is aim to acquire different views of the events and be

able to identify the cause and effect of the data.

According to Mike Allen (2017) Narrative analysis focuses and interprets stories and

events that are told and have experienced by others. It examines the stories often through the form

of text, journals, environment, picture, film, music or social media posts. It aims to obtain the

meaning and attitude of the way the phenomenon have been structured.
GANTT Chart

GANTT Chart for Four Weeks Each of July ,August and Two Weeks of September

LEGEND
START TO ON-GOING TASK
ACCOMPLISHED TASK
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TASK JULY AUGUST SEPTEMBER

Week 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd
Group Formulation
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Consultation
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