EFFECTIVE MARKETING STRATEGIES OF MILK TEA SHOPS IN TACURONG CITY

TOWARDS BUSINESS SURVIVABILITY

ABUAN, ANGELICA
BILBAO, DEXTER
GANAYO, AIVY GYLE

SUBMITTED TO THR FACULTYOF THE COLLEGE OF BUSINESS

ADMINISTRATION AND HOSPITALITY MANAGEMENT,
SULTAN KUDARAT STATE UNIVERSITY,
IN PARIAL FULLFILLMENT OE THE
REQUIREMENTS FOR THE
DEGREE OF

BACHELOR OF SCIENCE IN ACCOUNTING INFORMATION SYSTEM

OCTOBER 2022
 CHAPTER I

BACKGROUND OF THE STUDY

We know that China is where tea first appeared. Due to its unintentional discovery, tea
eventually gained widespread recognition for its many health advantages and a significant place
in the diets of the majority of people. Taiwan, a nation close to China, respects the advantages
of tea for one's health (Vitug, 2020). Due to increased competition among Taiwanese retailers,
some companies enhanced their teas by blending them with additional ingredients and adding
additional flavors, resulting in milk tea.

Despite being a foreign beverage from Taiwan, milk tea has clearly become one of the
Filipinos' favorite drinks as evidenced by the fact that Filipinos are the second-highest
consumers of milk tea in Southeast Asia. In the Philippines alone, orders for milk tea increased
by 3,500% from June to December 2018, marking a 3,000% increase in demand across
Southeast Asia. Ichimuran (2019) claims that because of the nation's milk tea industry's trend
and rapid expansion,This kind of business is being pursued by many entrepreneurs.

A business needs marketing because it is one of the few ways to make money. Both
selling and promoting are involved. For business to succeed in this, strategic planning is
necessary. Although marketing can be difficult, trends do shift occasionally. The competition
among milk tea shops tightened as word of the local milk tea industry spread back in 2012,
forcing them to improve in order to meet demand. A marketing strategy's uniqueness can attract
customers' attention and encourage them to buy the product. The degree to which a marketing
strategy is explicit determines how successful a company will be. Goldsmith developed the 4 P's
of Marketing Mix Theory, which will be further discussed in this study.

It is clear how numerous milk tea shops began operating as the milk tea industry gained
popularity. The majority of consumers view milk tea as a refreshing beverage that can quench
their thirst. While this might be one of the factors contributing to milk tea shops' continued
profitability, it's important to understand how businesses can increase and sustain sales. The
best ways to reach the market are part of strategic marketing. A place will change as it
develops, it's inevitable.

The successful marketing tactics used by milk tea shops in Tacurong City, Sultan Kudarat
to ensure their financial viability are covered in this study. Many business owners enter the milk
tea industry and launch milk tea businesses as a result of the rising demand for milk tea. The
milk tea industry is an ideal illustration of the market structure known as monopolistic
competition, in which competition is extremely aggressive and causes various brands to
compete for the loyalty of consumers. Entrepreneurs must devise a strategy for making their
product stand out from those of their rivals. This is the point at which marketing strategy is taken
into account to grab customers' attention. To introduce and market the product, a number of
strategies and approaches must be used. Considering marketing strategy. The development of
a marketing strategy is thought to be the first step in taking a company from failure to success.
To build a successful business, one needs to be aware of the methods milk tea shops employ
for surviving.

With so many milk tea shops now present in Tacurong City, Sultan Kudarat faces fierce
competition. As a result, this study will try to identify the marketing tactics employed by a few
particular milk tea shops in Tacurong City, Sultan Kudarat. The researcher will carry out this
study because many people frequently visit milk tea shops. According to the researchers, it will
significantly benefit not only the chosen establishments but also entrepreneurs, investors,
students, and future researchers.

STATEMENT OF THE PROBLEM

The study sought to know the effect of marketing strategies among Milk tea Shops
Located in Tacurong City, Sultan Kudarat. The study also aims to explore and correlate the
marketing strategies to the performance of the business for its survival.

Specifically, it endeavor to answer the following questions:

1. What is the profile of the respondents in terms of the following variables?

1.1 Age
1.2 Position
1.3 Years of operation

2. What is the level of marketing strategy among milk tea shops in Tacurong City, Sultan
Kudarat

2.1 Product;
2.2 Price;
2.3 Promotion;
2.4 Place

3. What is the level of business survivability among milk tea shops in Tacurong City, Sultan
Kudarat

3.1 Cutting costs

3.2 Laying off employees
3.3 Tightening profit margins
3.4 Saving cash

4. What is the significant relationship between marketing strategies and business survivability?
CONCEPTUAL FRAMEWORK

INDEPENDENT VARIABLE DEPENDENT VARIABLE

MARKETING STRATEGIES BUSINESS SURVIVABILITY

- Price - Cutting costs
- Product - Laying off employees
- Promotion - Tightening profit margin
- Place - Saving cash

Figure 1 Paradigm of the Conceptual Framework

The independent variable is the marketing strategy with the following indicators; product,
price, place, and promotion. Product refers to anything that can offered in the market. Price
refers to anything that can be offered in the market. Price refers to the value of the product or
services offered. Place pertains to where organizations decide where to locate their shop.
Promotion talks about the action undertaken to communicate and promote products or services
to target market.

The dependent variable is the business survivability of milk tea shops in Tacurong City,
Sultan Kudarat with the indicators; cutting costs, laying off employees, tightening profit margin,
and saving cash. Business survivability refers to keeping business operating for a certain
amount of time, especially when some crisis situation comes.

SIGNIFICANCE OF THE STUDY

This study may be beneficial to the following persons:

To Entrepreneurs. The outcome of the study will allow entrepreneurs to formulate efficient
strategies and worthwhile approaches that will help identify existing and potential competitors,
industry trends and in improving entrepreneurial skills to sustain the business.

To Investors. The result will enable investors to assess and evaluate the business' strengths
and weaknesses. This study will also give investors idea on which milk tea shops can be
profitable when it comes to investing money and such.

To Future Business Owners. This study will serve as reference to future business owners to
determine what factors the consumers consider. The study will also inform the future business
owners about other effective marketing strategies they could use to attract their desired
consumers and how marketing affects one’s consumer behavior.
To Students. The information presented will benefit the students on knowing which brand will
be their top choice when it comes to milk tea brands, knowing that milk tea drinks are not that
cheap to buy. As a result to this, the consumers must know where their money will be spent well
and get the satisfaction that they need.

To Future Researchers. The ideas presented may be used as reference data in conducting
new research or in testing the validity of other related findings.

ASSUMPTION OF THE STUDY

The following were presumed by the researcher:

1. Milk tea shops that operated for more than a year utilize more effective marketing strategies.
2. Each Milk tea shop in Tacurong City, Sultan Kudarat provides training programs for the staff
to deliver exceptional customer service.
3. Milk tea shops located in Tacurong City, Sultan Kudarat effectively apply the 4P’s of
marketing mix theory of product, price, promotion, and place.

SCOPE AND DELIMITATION OF THE STUDY

The general intent of this study is to identify the effective marketing strategies of milk tea shops
in order to survive in the business industry. This study will mainly assess the strategies of the
selected milk tea shops located only at Tacurong City, Sultan Kudarat. The data will be
gathered among 5 milk tea shops that are currently operating for more than a year. This study
will be conducted during the school year 2022-2023.

DEFINITION OF TERMS

The following terms are defined operationally in order to have a common frame of reference
insofar as this study is concerned:

Business Survivability. Refers to keeping the business operating for a certain amount of time.
Most businesses initially aim to survive their first year.

Investors. An individual, company or any entity that invests capital with the aim of making a
profit. The investor’s main concern is to maximize return while minimizing risk.

Marketing Mix Theory. The marketing mix refers to the set of actions, or tactics, that a
company uses to promote its brand or product in the market.