ACKNOWLEDGEMENT

This work would not have been possible without the support of the ACLC College of

Tacloban. I am especially thankful to Mr. John Rey Peros, our General Mathematics adviser

who have been supportive of our goals and who worked actively to provide us with the

protected academic time to pursue those goals. We are grateful for your unending guidance

for this activity to be done. To my groupmates, thank you for your cooperation. This would

have done without your help.

 TABLE OF CONTENTS

Title Page ……………………………………………………………………………………….………………………………..…………. I

Acknowledgement ……………………………………………………………………………………………………..………………..2

Executive Summary ……………………………………………………………………………………………………..………………3

Company Description ………………………………………………………………………………………….……………………….3

Company’s Direction …………………………………………………………………………………………………..…………….…4

Industry Environment Overview …………………………………………………………………………………..………………4

Marketing Plan……………………………………………………………………………………………………………………………5-6

Production/Operational Plan………………………………………………………………………………………………………6-7

Financial Plan………………………………………………………………………………………………………………………………8-9
Section I. Executive Summary
DM's Tea Hub is a milk tea business that offers authentic milk tea along with a
variety of pastries and desserts. We decided to launch this business because it is nearby to
a university. Since students are typically our target market, we bought all of our raw
materials from a supplier who offered them to us at the lowest price possible. This allowed
us to sell our goods for a very reasonable price. Dhale Vince Caharop and Ruth May Atizon
are the business's owners. Both of them have degrees in business marketing and
accounting. As milk tea goods are currently popular, we plan to build this business in one
month in order to capitalize on this. Strong competitors are currently entering the market.
In order to surpass previous performance and boost efficiency, we at DM's Milk Tea Hub
integrated and analyzed our previous strategy: milk tea as a product would give consumers
the new flavor of the innovating milk tea. As a new product, DM's Milk tea Hub seeks to
increase consumer awareness through advertising, increase sales of our new product, and
develop a solid reputation in the milk tea sector.

Section II. Company Description

History behind the Business Description
One of the owners is a completer under the major of Food and Beverage and
Cookery subject thus she has experience making drinks and baking food. With
enough knowledge, we come up with this idea to build this business.

Business Name
DM's Milk tea Hub is derived from the owners' initials which are Dhale and
Ruth. We decided to name our shop after this since it is easy to remember, and
people can easily spell it. It is called milk tea hub because we are offering a wide
variety of flavors to choose from.
Business Location
Our shop is located alongside Eastern Visayas State University which is an
exemplary idea to get many customers like students and young professionals. With
this being near to a school, it would benefit them whenever they crave or need
something to drink or eat. On Google Maps, you can search 6XRW+3W9, Salazar St,
Downtown, Tacloban City, Leyte to get the exact location of our milk tea shop.
Type of Business
The type of business we're running is a service type. We aim to provide
products and services relevant to the situation and location we have. We decided to
start this business as we are the only milk tea business that manages to be in a
school zone area which makes it much more advantageous compared to our
competitor.
 Form of Business
We're operating a partnership form of business where 2 people are the
owner of the enterprise. One of the advantages of this form of business is that our
business is very flexible since it is free of government control.

Business Owner

Name of the Owners Roles of the Owners Contact Numbers

Dhale Vince Caharop Marketing Manager 09207286922
Ruth May Atizon Accounting Clerk 09760875405

Section III. Company’s Direction

Mission of the Company
We desire to provide our customers a peaceful, comfortable environment
where they can enjoy the high caliber of our cuisine, drinks, and services at reasonable
prices.

Objectives of the Company

1. Marketing Objectives – Increase revenue every 3 months.
2. Production Objectives – To produce goods and services of the right quality, right
quantity, at the right time and at minimum cost.
3. Management Objectives – Ensure Business Development and Growth.
4. Financial Objectives – Maintain profitability, liquidity, efficiency, and stability.
5. Socio-Corporate Objectives - Increase company value.
6.
Section IV: Industry Environment Overview
The industry of milk tea business is rapidly expanding throughout the city. Shops like Zentea,
Imperial Tea, and Macao Mumu, are one of our largest competitors. As we did our business
analysis, we noticed their way of pricing their products, mostly cost 70 pesos above which
seems to be not budget-friendly for students for whom the minimum allowance is 100
pesos. This makes our shop advantageous as we offer milk tea for as low as 39 pesos.
Section 5: Marketing Plan
Market Objectives:
-Our Milk tea shop wants to increase customer lifetime value, increase profitability, and Improve
awareness and demand around new products/services, by giving them a good quality product and
good interacting skills to our customers, we assure that our business will grow.
Market Description:
Our company targets the students, couples, family, your professionals and even tourist. Wherein
they can relax the environment and enjoy our products.
Market Segmentation:

Product: Segmentation Specific Segment  Capture needs and wants

process
Milk tea Geographic 6XRW+3W9, Salazar St, To be able to locate our target
process: Downtown, Tacloban City, customers
Philippines  Leyte

Demographic Young adults between 15-25 Positive mood and feelings of

process: years old mental and physical relaxations
Age
Psychographic Middle class individuals To offer our products to those
segmentation: -Students people who can access social
Different media
individuals 
Behavioral Holidays  To promote our products 
segmentation:
Daily activities
Special occasion 

Product Strategy:
Product Strategy Innovative Feature Product packing
design 
   
We want to give our customers to have Possesses a stress-lowering
a comfortable, relaxing environment property. Drinking our Milktea is
and enjoy the quality of our Milktea at associated with positive mood
affordable price. and relaxations 

Packing type Packaging cost

Small size of cups 25 pesos

Medium size of cups 36 pesos
Large size of cups 55 pesos
 Gallon  90 pesos

Price Strategy

Product Price  Promo price

Regular Milk Tea 150 Buy 1 get 1 for only 75 pesos(down from its original prize)
Strawberry black Tea or 180 Buy 1 get 1-mix- and- match tea with pearls for only 90
mango black Tea pesos(down from its original prize of 180)
Nirvana Milk Tea 240
Winter Milk Tea 170

Promotion Strategy:
Promotional Tool No. Of Unit price Estimated Annual Price
unit
Advertisement  1 50,000 50,000
Facebook 1 1,999 23,988

People Strategy:
DM’s milk tea Shop will hire skilled people or people that is capable to learn, to be qualified for the
position. The company is planning to have a training at least twice a week for the sales agent to be
more motivated to work in the workplace, we will assure that our sales agent is well trained and
knowledgeable about the said business. So, there is a big possibility that our sales will increased.
Sales agent must be good at sale’s talking or communicating with the customers, they must talk
politely to them by answering them with respect.
Cost of The Marketing activity:
Marketing activity  Estimated Annual cost Estimated increase to sales
Advertising  500,000 6%
Tools and technology  800,000 4%
Equipment  1,000.000 8%
Printed materials and displays  70,000 12%
Agency fees 1,500.000 20%

Section VI: Production and Operational Plan:

Production Plan Objectives
 To invest in a good quality equipment that will maintain the quality of the Product.
Product Preparation Process:
Milk tea is a very sweet tea that is often used in Boba. Boba is a drink consisting of tea and balls of
tapioca and honey. This instructible, however, will only tell you how to make the tea. I will hopefully
update it as soon as I can procure adequate tapioca balls to make the boba.
Raw Materials:
Raw Description  Estimated Picture 
Materials  cost
Tapioca Tapioca balls, also known as 25 pesos
Balls tapioca pearls, has a round
appearance. It is divided into black
pearls, original pearls and fruity
pearls, such as orange pearls and
matcha pearls.
Tea Series Tea is one of the essential raw 200 pesos
materials for milk tea. It is mainly
divided into two categories: tea
bags and bagged tea. The most
common ones are the most
commonly used black and green
teas.

Milk Series Milk tea is mainly blended with 400

milk and tea. fresh milk and
condensed milk are used to make
the flavor more mellow. 

Fruity The taste of pearl milk tea is 100

powder mostly divided into original pearl
series milk tea and fruity pearl milk tea.
  The fruity powder is processed
into powder with various fruits.
Adding an appropriate amount to
the milk tea can produce milk tea
with different fruit flavors.

Fructose  Fructose is generally divided into 70

black fructose and white fructose.
The main function is to sweeten
milk tea. Compared with white
sugar or white sugar and refined
sugar, it tastes better.
Section 7: Financial Plan
Financial Objectives:
-Our Financial Plan is similar to other businesses in similar communities and cost estimate
obtained for our equipment, rent and other operating expenses. So, our top priority is
repaying our long-term loans, paying our employees fairly and covering our expenses on
time.
Total Project Cost- 
                           Supply and Operation
Particular.                                                               Amount
Working Capitals.                                                 800,000
Operating expenses.                                           30,000
Pre- operating expenses.                                   20,000
Research and Development                              5,000
                                                      Total of:          855,000
Projected Income statement for 5 years:
Particulars.                       2018.     2019.      2020.          2021                      2022  
Gross sales             3,441,000.    3,548,358.37.  3,772,133.31.  4,000,123          4,890.000
Loss: cost of Sales 1,069.175.80. 1,079,867.56     1,090,666.23 1,390,666.21.     1,500,000
                                  2,371,824.20.   2,468,147.54 2,567,692.14.   2,609,456.79.     3,390,000

Ratio and Analysis:

Sales Growth 0.00% 8.69% 8.09% 5.24% 9.00%
Percent of Total Assets
Inventory 11.23% 10.45% 9.10% 2.72% 5.00%
Other Current Assets 10.03% 8.67% 7.33% 32.59% 26.60%
Total Current Assets 81.14% 85.50% 89.27% 41.88% 33.50%
Long-term Assets 18.86% 14.50% 10.73% 58.12% 40.90%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities 14.85% 14.72% 12.88% 21.75% 25.00%
Long-term Liabilities 67.84% 46.92% 29.78% 29.17% 28.78%
Total Liabilities 82.69% 61.64% 42.66% 50.92% 54.00%
Net Worth 17.31% 38.36% 57.34% 49.08 50.80%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 59.27% 59.67% 61.61% 55.74% 56.36
Selling, General & 52.78% 52.47% 50.50% 37.46% 36.48%
Administrative Expenses
Advertising Expenses 0.00% 0.00% 0.00% 2.06% 5.00%
Profit Before Interest and 16.75% 13.83% 15.30% 1.50% 1.00%
Taxes