Business Feasibility Study

Executive Summary

This study demonstrates the feasibility of milk tea shop beside

school; this also features some innovation about the way of marketing
strategies. The group will identify the pros and cons that is highly
significant before launching the business. They will seek guide from the
modern investors and industry experts, advocates, and organization
(individually or in partnership) to gather the support necessary to launch
the business and services that the owners need before the
implementation.

Table of Contents

Executive Summary……………………………………………….i
I. Introduction………………………………………………….1
II. Product or Service…………………………………………...2
III. Technology ………………………………………………….3
IV. Market Environment………………………………………....4
V. Competition………………………………………………….5
VI. Industry…………………………………………………...….6
VII. Business Model……………………………………………...7
VIII. Marketing and Sales Strategy………………………………8
IX. Production/Operating………………………………………..9
X. Requirements Management and Personnel Requirements.…10
XI. Intellectual Property………………………………………...11
XII. Regulations/Environmental Issues……………………...…..12
XIII. Critical Risk Factors……………………………………..….13
 I. Introduction
A variety of milk tea products has been in line to quench the thirst
of every milk tea lover even before pandemic. They value milk tea so
much to expense of buying this product each day. However, as the
time passes by, more and more are getting enamored by its sense.
They even try to experiment their own style of selling the product;
some adds something to it, while others decrease its delightful taste.
Unfortunately, as life goes on, some customers lose their interest in
milk tea to the point of not buying anymore.

Henceforth, in this study, the business owners aim is to invigorate

and arouse the dying interest of milk tea lovers. Conversely, they
want to make sure that milk tea is not merely a cup that contains milk,
water, and pearls. But a cup of delicacy, beauty, art, and a
personification of thirst-quencher. Additionally, to make their product
more engaging the business owners adds something delightful to the
menu —coffee —for coffee lovers. Thus, in dealing with customers,
the owners wants to make sure that the result of their operation is
successful and can serve everyone with positive vibes and friendly
approach.

II. Product/Service
• The branding of the product is called “ArtTea or Art-Tea” which is
more focused on the beauty and classy style of service toward the target
customers. We aim to promote the aesthetic vibes of surroundings not
merely the delicacy of the said product. In addition, there are two
choices for the customers: It can be a Milk tea or a Coffee.

• There are several choices in which the customers can select regarding
their orders. For instance, they can dine in or take out, they can order
thru online methods, they can order a coffee in the morning and a milk
tea when it’s noon until afternoon before the sun sets.

• Minimal supplies needed to make a milk tea and coffee are:

1) Shaking Cup.
2) Measuring Scoop.
3) Containers for milk tea flavor powders.
4) Container for cooked tapioca.
5) Stove top or burner to cook tapioca.
6) Pot to cook tapioca.
7) Strainer.
8) Cups & Lids (Small, Medium, & Large).

• The business owners are planning to set up a pilot launch for the
product and free taste for the first 10 customers that will order in the
store. In addition to that, the owners will sanitize the store thoroughly to
avoid some potential threats while operating the business.

• The business owners aim to clean the store and its surroundings, and
afterwards they are going to apply the design inside and outside the
shop. The theme of the design is generally focused on the aesthetic and
vintage designs along with the modern trends making the best out of
everything they can think of.

III. TECHNOLOGY
 To go along with the trends, the product will amplify its
engagement online by the use of advertisement thru the following
social media platforms: Facebook, Instagram, and TikTok.
Additionally, the goal is to reach 10-15 thousand audience online
as a promotion to the product.

 Further research is still ongoing, seeking for the accurateness of

order lists and the process of delivery. The business owners will
establish a contract with the Food Panda and Grab Managers to
make an efficient transaction of orders.

 The business owners will also utilize the idea of hiring social
media managers or admin of different accounts in order to observe
and manage the progress of daily orders.
 IV. INTENDED MARKET ENVIRONMENT

Target Market
 Majority of our consumer is Students and other people inside and
outside of the Campus that love to drink and be refreshed with
milk tea.
 Target aging is 18-24 years old.
 This means that our products and services must cater the wants,
requirements, and demands of this demographic. Students make up
90% of the population.
For Business-to-Business Markets
 Our target is to become the best milktea shop in the city, and to be
able to expand to two more stall in different campuses.
 The important people behind this shop is the Manger who will look
and observe to the workers. 2 barista, 1 cashier and 2 helpers.
 Our Tea’s is ranging to 39-50 Php so the  target income per week
(5days) is estimated to 10.000 Php and up.

For Business to Consumer Markets

 Our Tea’s is ranging to 39-50 Php so the target income per week
(5days) is estimated to 10.000 Php and up.
 Our target consumers is Female and Male Students and By passers
ranging to 19-24 years old. 
 After purchasing our product, each customer will be given a survey
question to assess their purchase habit and review the flavor,
service, and atmosphere of our milk tea product and the business.

VI. COMPETITION
 Competitors in the near areas who sell the same product.
 Personalized brand. ARTea focuses on reshaping the uniqueness of
its brand: adding ingredient, sweetness, and ice to the drinks. And
the sweetness of the tea will always depend to consumers desires.
  Our tea and tapioca pearls are highly organic and authentic, and we
export them from another countries, making it hard for the
competitors to copy. 

VII. INDUSTRY
 Our shop will be installed beside the city campus. with the
estimated population is 5,804 students and others.

VIII. BUSINESS MODEL

Before you open your bubble tea shop, you should have a general
marketing strategy in mind. Explain how you intend to reach out to
customers in an efficient and cost-effective manner. This section
explains your outreach strategy.

 Branding & Design - Once you've identified your store's branding

concept, you can use it as a foundation for the aesthetics of your
shop. In order to start a bubble tea business, you must first
determine your service type (take-out, dine-in, hybrid, food truck,
etc.) and understand what motivates your brand. A strong concept
can be used to explain the reasoning behind details such as floor
plan and operation, employee uniforms, lighting, and even
packaging disposables such as cups, lids, and straw styles.

 Customer Database - It is critical to keep track of your customers

by understanding their behavior and frequency of visits. This
information is valuable because it can be used to improve your
store's customer service and marketing strategies.

 Public Relations - This is a great way to get some much-needed

exposure to the right people. Consider marketing your bubble tea
shop through specialty food publications, press releases,
newspapers, or even bloggers.

 Advertising & Social Media - Set up a Twitter Page, Facebook,

 Instagram, and TikTok. These platforms are so widely used for
free advertising that you would be doing your store a disservice if
you skipped them.

IX. MARKETING AND SALES STRATEGY

We believe that determining our marketing and sales strategy is

critical because we understand that without marketing, we will be unable
to sustain the business and grow it to the level that we desire. Because
marketing and sales are so important, we intend to conduct a thorough
marketing analysis that will allow us to understand the market we intend
to enter and the best way to penetrate it. Aside from assisting us in better
understanding our target market, marketing research would also assist us
in better structuring our business so that we could be proactive in
dealing with our customers and their varying demands. Having the right
marketing strategy would also help us stand out from our competitors
while also allowing us to compete favorably with them. Not getting the
marketing strategies right could result in a lot of customers leaving and
potential customers not wanting to come in, so we hired a reputable
marketing consultant who not only understands the beverage market but
also knows what we need to do to get the customers we need for our
bubble tea business.

The marketing consultant will collaborate with our marketing and

sales teams to ensure that all strategies developed are effectively
implemented and in accordance with our company's core values. We will
also not ignore the internet as a means of marketing our products and
services at ArTea because we are aware of its far-reaching impact.

As a result, the marketing and sales strategies that we intend to

employ for ArTea are as follows:

1. Make sure we run large advertisements in local newspapers,

magazines, radio, and television – this will help us get
noticed.
 2. Throw a spectacular launch party for ArTea that will get us
noticed.
3. Make certain that our company is listed in both offline and
online directories.

4. Participate in direct marketing and sales.

5. Utilize our social media platforms – Facebook, Twitter,

Instagram, and TikTok – to ensure that our products and
services are thoroughly advertised.

Encourage our customers to refer us to others by offering discounts and

incentives.

X. PRODUCTION/OPERATING BUSINESS SERVICES

ArTea's headquarters are in a 600-square-foot building with a

parking lot. To make it the most customer-friendly store in the area,
approximately 60% of the building will be used for seating and customer
resources. In addition, this section will include the two blender vendors.
A blender vendor is a machine that takes orders from customers, as
explained in greater detail in the production plan section. The remaining
20% of the building will be used for the kitchen, staff room, and storage.
The remaining 20% will be allotted to a storage room, and the remaining
20% will be allotted to a parking space.

    To combine the American style and the boba tea concept, the store
will have a modern Asian-inspired interior. The chairs and study areas
will be comfortable, allowing students to study for long periods of time
without experiencing back pain. There will be two sound-proof study
rooms with monitors that can accommodate any type of laptop. When
this room is not reserved by customers on the blender level, it will be
available to anyone. The monitor will enable study groups to go over
presentations, hold video conferences, or collaborate on a project. By
providing conference rooms, the company hopes to attract students and
business professionals for extended periods of time. The floor plan
below gives an idea of how the store will look. We have several tables
along the walls to allow for easier access to outlets and to keep the floor
open space.

Production Strategy
The owners, tea tenders, and interns or part-timers will be the three
types of employees. These three positions will have overlapping
responsibilities, such as preparing beverages, delivering beverages, and
keeping the store clean. Owners will be concerned with the company's
financial stability, marketing, and a variety of other aspects. Tea tenders
will primarily be responsible for preparing and delivering beverages, as
well as being customer friendly. Interns or part-timers will focus on
marketing for the company, but they will also assist as tea tender
managers on weekends.

        A customer will be greeted by a blender vendor upon entering the

store. To expedite orders, two blender vendors will be present.
Customers will be able to create their own beverage using this user-
friendly machine. By using the blender vendor, customer-to-employee
interaction will be reduced, and customers will be confident that their
order will be filled correctly. When an order is completed, the machine
will ask the customer if they want tapioca points for the Blender app or
if they want to sign up for email rewards. Customers will be encouraged
to download the app and return frequently to earn points as a result of
this. Customers will receive a receipt with their name and store social
media accounts after making a cash or card payment. On a monitor in
the kitchen, an employee will receive the order, prepare the beverage,
and then deliver it to the customer.

Workforce Strategy
Employee 1 or Employee 2 will always be at the store on
weekends and will work with managers to develop a schedule to balance
the weekdays. With one of the owners presents, the number of
employees required will be reduced while productivity will be increased
by having a passionate manager rather than a hired one. When an owner
goes on vacation, a designated manager takes over the responsibilities. A
tea tender will assist with duties alongside Employee 1 or Employee 2.
On weekends, an additional tea tender may be on duty to assist with
customer flow management. Each year, there will be six part-time tea
tenders and one intern. Employee 1 will typically arrive at 6:00 a.m. to
get ready for the 6:30 a.m. opening he will make certain that the store is
clean and that there are sufficient supplies for morning operations. At
6:30 a.m., a tea tender will arrive. to assist Employee 1 in inventory
management and updating Employee 2 will switch shifts with Employee
1 at 2:00 p.m. and bring in supplies to keep operations running.
Employee 2 and the on-duty tea tender will close the shop at 10:00 p.m.,
clean up, and finalize inventory. ArTea's will be open seven days a
week, excluding holidays, with at least two employees present during
the week and at least three employees present on weekends. These times
are subject to change; however, they will serve as a guide to the overall
strategy of operations Managers will be added if necessary.

XI. REQUIREMENTS MANAGEMENT

The business establishment will take place outside the school. It is

a hot place for the milk tea business and most students will surely be a
fan. The land is leased and the building itself is newly built. An
estimation of roughly 30,000 to 100,00 is the overall cost for the
building and the land. The milk tea business offers to go and deliver
only in partnership with FoodPanda. The business offer dine-in and take
out for customers since the shop vicinity is wide enough to
accommodate a large number of customers. The shop is open from 9:00
AM to 5:00 PM Monday to Saturday only and closed on Sunday. The
area shop is estimated to produce 500 cups a day. The supply sources are
readily available. The ingredients were supplied by the manufacturer
therefore there’s no need for the barista to prepare materials from scratch
since the ingredients are already made.
XII. PERSONNEL REQUIREMENTS

ArTea Employees
The shop needs to hire employees based on the size business
operation. Typically, the ArTea shop needs only two employees during
business operations and is required to have three employees during peak
hours of operation for extra hands needed to accommodate the
customers’ demands.

Qualifications for Artea Employees

Artea shop employees are required to have expertise in handling
and operating a business. They must have a great personality and
patience in entertaining different kinds of customers. Can work under
pressure and is flexible for night shifts and are willing to work overtime
if needed. They must be able to deal with daily challenges and must stay
calm every time, regardless of the situation they are facing. Experience
is a must but anyone who shows the potential that is willing to be trained
is warmly welcome.

The qualifications for Artea employees are the following:

- Must have experience taking orders and preparing drinks
- Must be able to take inventory and place supplies orders
- Must be able to operate a cash register
- Must be able to prepare supplies for the ArTea drinks
- Must be able to speak, in addition to English, the language common to
the area of business operation.

XIII. ROLES AND RESPONSIBILITIES

Manager – The functions of a manager are planning, organizing,

leading, and controlling to increase work efficiency and productivity of
their employees and the organization as a whole.

Cashier – The role of a cashier is to receive payments, issue

receipts, and keep track of all cash records and transactions.

Barista – The barista is the one responsible for making and

preparing the drinks for the customers.

XIV. REGULATIONS/ENVIRONMENTAL ISSUES

It is the responsibility of a business to comply with government

requirements and regulations. The ArTea shop will ensure to do its part.
ArTea shop complies with sanitary permits and health cards to secure
Mayor’s permit and business license in the Municipality. Rest assured
that the business will maintain a good and clean environment for the
sake and goodness of the business, its consumers, and the environment.
All employees undergo training and accomplish the required seminars in
relation to sanitation and waste management disposal. In participation in
keeping a clean and green environment, ArTea shop will impose proper
waste disposal by providing trash bins for the consumer's litter after
purchasing.

ArTea Shop Waste Disposal Plan:

STRENGTHS WEAKNESS
  Affordable  Many competitors
 Location  High rental
 Offers different flavors
 Freshly made
 Product familiarity

OPPORTUNITIES THREATS
 The location near a school  Many competitors
 Trendy product  Similar or copycat products
 Increase in demands

The concept of strengths encompasses those aspects that the entity

performs well or that it has, and that also make it strong and different
compared to the competition. These strengths usually carry some
competitive advantage in the market. A company weakness is any
resource or process that your business lacks but needs to succeed.
Weaknesses limit your company’s ability to reach its full potential.
Opportunities refer to the occasion or opportunity to start a business
idea, enter a new job sector or launch a new product on the market. A
good example of a business opportunity is when a need is identified in
an unsatisfied market, also having the financial and technological
capacity.
Threats refer to factors that have the potential to harm an organization.
For example, many competitors are other businesses that can offer the
same or similar goods and services to your customers. Knowing who
your competitors are, and what they are offering, can help you to make
your products, services, and marketing stand out. It will enable you to
set your prices competitively and help you to respond to rival marketing
campaigns with your own initiatives.
XV. INTELLECTUAL PROPERTY

Trademark
 This branding of the product is called “ArtTea or Art-Tea” which
is more focused on the beauty and classy style of service toward
the target customers. This logo was used to identify or represent a
business or its product.

 A brand is the prime component of a food company, food product,

or a restaurant’s success. A trademark is a legally protected word,
name, design, logo, or any other symbol of a product or business.

Copyrights

 ArtTea respects of the rights and fair treatment to the customers.

We are legally responsible for ensuring that food sold to customers
is safe and suitable to eat (Food Act of 1984) The purpose of the
Act is to set out offenses for breaches of the food laws and the
applicable penalties and defenses.

Trade Secrets

 Delightful taste to make the product more engaging, the business

owners add something delightful to the menu —coffee —for
coffee lovers.

Patent

 This food patent is a type of utility patent that covers edible

products and food-related processes and compositions.

 The addition of this ArtTea results in a less astringent, less bitter

flavor. This is because milk binds to some of the bitter chemical
 compounds found in tea while covering up some of the flavors of
the tea. Are almost always served with milk to reduce the
bitterness.

XVI. CONCLUSION

The owners are not only focused on earning money, since no one
will succeed with the mere goal of earning a large amount of money. On
the side, there is passion, hard work, and creativity that longs to be
unleashed, and that is only feasible through and by the help of these
aspiring business owners. They are craving for success along with
aspiration and determination to be so; doing the best they could to make
the business climb its mountain. Thus, the best thing to always to is to
plan ahead of time, and that is the next reason why they made this
feasibility study. As the saying goes, “Do whatever you want: eat, write
play, work but with passion.”

Group Members

Azul, John Eric D.

Balasta, Stefhany C.
Bonifacio, Mary Joy L.
Calunangan, Monica C.
Clemente, Katherine C.
XVII. REFERENCES

https://www.constructionfoundation.ca/wp-content/uploads/2017/01/
BC-Construction-Innovation-Accelerator-FINAL-Aug-2016.pdf

https://www.investopedia.com/terms/f/feasibility-study.asp#:~:text=A
%20feasibility%20study%20is%20an,of%20completing%20the
%20project%20successfully.

https://www.youtube.com/watch?v=_Lr6RRXTar4