Marketing Research

Aklan Catholic College
Faculty of Business and Management Education
Bachelor of Science in Business Administration
A Marketing Research in Luna Coffee
Presented to:
Ms. Michelle Glen A. Gaila
in partial requirement for the courses
Marketing Research and Marketing Management 1
Presented by:
Alde, Marikit T.
Arrieta, Dwayne A.
BSBA 2 and 3 - Marketing Management
Academic Year 2022 - 2023
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A. Executive Summary
Luna Coffee is a coffee shop that sells a variety of hot and cold coffee beverages and food
options in the heart of Kalibo, Aklan. It all started during the two best friends' round trip abroad,
being coffee lovers, there they tasted different varieties of rich coffee beverages with savoring
touches and brought it to the Philippines during the pandemic where it had a significant impact
because of the trend it made. Thus, there has been a rise in caffeine-dependent and addicted
individuals, in which Aklan has hopped on that trend. With the growing demand for high-quality
coffee beverages and great service that is worth the customer's money. Luna Coffee will
capitalize its proximity in the whole town of Kalibo and in the province of Aklan to build a core
group of repeat and new customers.
There have been newly opened cafes in Kalibo, Aklan, but Luna Coffee is a type of coffee
business that highlights its handcrafted espresso, which is one of their unique aspects among
the other brands, and they also offer various non-caffeinated beverages and food options.
Luna Coffee is strategically located at Roxas Avenue Extension, Andagao, Kalibo, Aklan. It
started competing with other popular coffee shops in the municipality of Kalibo, Aklan, wherein
they carefully combined into a unique marketing mix like promotional strategies such as
creating social media accounts, giving loyalty cards to its first customers, and other marketing
strategies that are necessary to keep and attract customers. The prices of the products are
slightly higher, which allows them to serve the best quality coffee beverages that will keep
people coming back to patronize and buy the products, which is both beneficial for the
business and its customers.
Luna Coffee aims to be the leading provider of hot and iced coffee beverages not only in
Kalibo, Aklan, but also in the Philippines, where it continues to compete in the market with
other popular coffee shops that also help in providing employment and changing the society
into a world of coffee lovers because of the reputation it made during the pandemic.
B. Study Background
A. Brief History of the Company
It all started when two best friends had a round trip for their vacation, which opened the
doors for them to think of the concept of starting up a coffee business, which is now Luna
Coffee. During their stopovers in different countries, they took the opportunity to taste
different varieties of rich coffee beverages since they are also coffee lovers. The two of
them found out that those have different savoring touches, which are one of a kind; it has
a unique way of processing; and as Filipino coffee lovers, they brought it to the Philippines
and wanted their fellow countrymen to have access to these rich coffee beverages that
are waiting to be flexed. The coffee business is one of the most in demand and successful
businesses in this generation, which is why they developed the ideas and decided to
make a business out of it since it has a kick to it.
B. Mission and Vision
Mission
1. To provide customers with the best quality of a wide variety of coffee beverages.
2. To offer continuous innovation in hot and iced coffee beverages driven by continuous
research and development.
3. To be in the business of the coffee industry by providing customer care and service,
customer satisfaction, and trust.
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4. To create an environment of ultimate coffee experiences that change lives which
could bring people back.
5. To provide the society with more authentic coffee lovers.
Vision
To envision and recognize Luna Coffee as the leading provider of hot and iced coffee
beverages, thereby creating the ultimate coffee experience worldwide and ensuring a
commitment to excellence and continuous innovation for the growth and development of
our employees, customers, partners, and shareholders.
C. Product/Service Offerings
Luna Coffee offers a wide variety of food and coffee beverages that range from ₱65.00 to
₱225.00. They specialize in their unique process of producing handcrafted espresso
which could be served either hot or on ice. To cater the non-coffee drinkers, they also
serve non-caffeinated beverages which could be served hot or cold. On the other hand,
they also provide food products and pastries such as Wafflers, Grilled Sandwiches,
Cinnamon Buns, Red Velvet Crinkles, Muffins, Mamon, Korean Garlic Cheese Bread and
Pasta that is ordered from their sister business, Sandy's located in Capitol Site, Estancia,
Kalibo, Aklan.
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C. Macroenvironmental Analysis
A. Economic
1. The Philippine inflation rate has slowed down as of February of this year, but it is still
at 8.6% (Department of Finance, 2023). Inflation can reduce the revenue of a
business as labor and raw materials are priced higher than usual, requiring more
allocated funds (StudySmarter, n.d.).
2. Businesses are tasked with adapting to the changes of the Tax Reform Acceleration
and Inclusion (TRAIN) Law and R.A. 11534, or the Corporate Recovery and Tax
Incentives for Enterprises (CREATE) Law, to avoid legal impediments (Razon, 2023).
B. Political-legal
1. The Senate of the Philippines calls for the renewal of regulations regulating the use of
single-use plastic. Establishments that consume these are to receive penalties and
other appropriate fines applicable to their violation (Philippine News Agency, 2023).
2. Senator Sherwin Gatchalian introduced legislation to improve the Philippine

Consumer Act in December 2022 (Romero, 2022). Under this bill, it seeks to
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strengthen the rights and guide consumers, as well as establishments, to have proper
labeling with complete translations and content (Torregoza, 2022).
3. If the government decides to impose stricter laws when it comes to the importation of
goods, it could affect the business and change certain aspects of it. Businesses
should comply with a proper import permit or clearance to avoid penalties
(International Trade Administration, 2022).
C. Sociocultural
1. In the past year, the Philippines has been considered a heavy coffee drinker and
even placed second in Asia. In 2022, 3.05 kilograms of coffee were consumed per
person and could even rise to 3.78 kilograms by 2025 (MacDonnell, 2023).
2. Filipinos prefer coffee because it fuels them and boosts their energy for the rest of the
day. Each Filipino consumes at least 2.5 cups of coffee per day (Cigaral, 2021).
3. Filipinos do not only drink coffee because of the coffee but also because of the café
(Coffeellera, 2021).
D. Demographic
1. In recent years, the younger generation of coffee drinkers in the Philippines has been
dominating the market. These individuals do not only visit cafes for their coffee but
also for the atmosphere the business provides (Curated.ph, 2022).
2. Millennials, or those ages 18 to 24 years old, are the best target market for a coffee
business, as researched by Dataessential and the National Coffee Association. Luna
Coffee is focused on serving individuals of all ages, allowing their business to reach
the majority of people within Kalibo.
E. Technology
1. Online Ordering Applications and Convenient Payment Options
One technological upgrade they can integrate into their operation is an online ordering
system. The most convenient platform is to offer an open type of ordering. People do
not need to become a member of the coffee shop. All they ever need to do is download
and install an app on their smartphone. An essential component of an online ordering
system is secure payment options. People love using their credit or debit cards to pay
for online purchases. Some also use other digital payment platforms. The coffee shop
must include as many secure payment options as possible, giving coffee lovers
optimum convenience (Vellana, 2021).
2. Advanced Barista Technology

One of the most challenging aspects of running a coffee shop is ensuring consistency
across beverages. People want their coffee to taste precisely the same every time they
order a shot or two. Even in single-store coffee shops, consistency is key to winning
customers. The store may have several baristas working in shifts, and each may have
a different take on the ideal preparation parameters of a particular beverage. Using
advanced barista technology allows coffee shops to collect, consolidate, analyze, and
manage beverage-related data. Advanced barista technologies guarantee consistency
across beverages, regardless of who prepared the drink or which branch sold it
(Vellana, 2021).
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3. Responsive and Engaging Website or App
A virtual extension of an establishment is an absolute must. A digital presence is
necessary so that anyone and everyone can connect with the coffee shop. Having a
website optimized for both desktops and mobile devices is essential. One cannot rely
on a desktop website to work efficiently on a handheld gadget. If the café must create
two separate websites, so be it. The name of the game is an engaging and responsive
digital platform where coffee lovers can share and exchange thoughts among
themselves. Such digital technologies also empower cafes to understand and
appreciate their customers’ nuances (Vellana, 2021).
F. Natural
1. One of the environmental calamities that could affect business’ operations would be
heavy rain or flooding. Customers and employees will not be able to visit and work at
the shop due to this event. In addition, heavy rain or flooding could also be the cause
of the delay in the delivery of supplies.
2. Earthquakes can also be a problem for the business since Luna Coffee is located
inside a hotel building. This event can cause damage to the shop and even risk the
lives of the employees and customers.
D. Opportunities and Threats

A. Opportunities
● Strong and rising demands for hot and iced coffee beverages.
● Millennials and Gen Z are fond of drinking iced coffee beverages regardless of how
much money they are willing to spend.
● Technology, innovation development, and continuous research from time to time in
order to continue to offer something new to meet customers’ wants and demands.
● Retain and attract new customers through special offerings and customer satisfaction
to establish loyalty and trust.
● Product line expansion by offering a variety of cafe and food products that will attract
more customers.
B. Threats
● Strong branding image of well-known coffee shops in Kalibo, Aklan that will lead to
tougher competition.
● Continuous increase in inflation rate that causes rise in raw materials and ingredients
prices which makes products being slightly priced.
● Change in customer preferences that results in finding alternative or substitution of
coffee beverages from other coffee shops.
● New competition will be opening soon.
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E. Microenvironmental Analysis
A. The Company
Luna Coffee is a franchise business that was first established in Roxas City. It is a
collaborative effort between the two best friends, who came up with the idea of starting
this business during their trip abroad. In September 2022, one of them decided to bring
Luna Coffee to Kalibo, Aklan. They wanted to spread and share the strong aroma and
taste of the fresh, locally sourced beans, together with their unique preparation of their
caffeinated beverages. They are handcrafting their coffee like no other. Luna Coffee
Kalibo is currently owned by a couple and has two employees. These employees do the
business' production, accounting, and other necessary errands, which is not enough for
the daily operations of the business. Luna Coffee needs to hire more employees that will
perform the duties and responsibilities needed to fill in the lapses in order to continue
running the business’ operations smoothly and to provide excellent customer care and
service.
B. Suppliers
As a coffee business that ensures the quality of the products offered, it continues to strive
in keeping and attracting more customers to gain their loyalty. Luna Coffee ensures that
their suppliers are well-trusted and will provide them with the best-quality raw materials
and ingredients that are necessary for them to serve quality products that are worth the
customer’s money and also arrive on time in order to prevent any kinds of production
inconveniences and delays that cause any kinds of substitution. Most of the raw materials
and ingredients for the beverages are sourced locally, mostly from the main branch of
Luna Coffee in Roxas City. Specifically, the beans used to create their handcrafted
espresso come from Sagada, in the Cordillera Mountains. The ingredients of the matcha
beverage are ordered from the United States because it gives the quality that meets
customer satisfaction, but the arrival takes a long time, making it unavailable for either a
few weeks or months. If other supplies are not available within the Panay region, they opt
to purchase them online or find alternatives.
C. Marketing Intermediaries
Luna Coffee, a recently opened franchise café, has only one marketing intermediary.
Sandy's is also a newly established business located in the 10 Commandments Building,
Capitol Site, Estancia, Kalibo, Aklan. They have stated on their Facebook page that Luna
Coffee Kalibo and Sandy's are in a collaborative effort to elevate the coffee experience
they provide to customers. Sandy's is a retailer-type intermediary for Luna Coffee, as it
provides their hot and iced beverages that complement their food offerings well. Likewise,
the pasta that Luna Coffee offers comes from Sandy's.
D. Customers
Hot and iced coffee beverages have a trend that never dies at any time or in any era and
have been consumed all throughout the different parts of the world, mainly the Western
countries, and thus, they have reached the Philippines, giving the Filipinos a craze that
has never been seen. Millennials and Gen Z are the main patrons of different coffee
beverages, specifically iced coffee, which has become part of their daily routine,
especially students, teenagers, and employees who are willing to spend any amount just
to satisfy their coffee cravings daily. According to the National Coffee Association,
Millennials and Gen Z are driving the specialty coffee category in particular, including
espresso-based beverages, non-espresso-based beverages, specialty traditional coffee,
and ready-to-drink beverages. The 2022 Fall National Coffee Data Trends report shows
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that a record number of young adults (ages 18–24) are drinking coffee, and 51% reported
drinking coffee in the past day. This is the highest number since this report began tracking
consumption trends by age, and it follows an upward trend in younger demographic coffee
consumption since the start of the pandemic (Winn, 2022).
E. Competition
Competition is normal for any kind of business because it allows businessmen to think
and innovate new things that they can offer to customers from time to time in order to
keep them and attract more. It arises as days go by in which coffee businesses are also
established from time to time in Kalibo, Aklan and new coffee beverages pop out at the
same time, which makes the competition tougher because coffee business is one of the
most in-demand and successful businesses in these present times. Some popular coffee
shops in Kalibo, Aklan that are main competitors of Luna Coffee are the following: But
First, Coffee, Café Sicilia, DEJA CAFÉ, Ceylon Coffee Club, Island Tea Co., Bluestar
Bistro Cafe, Coffee Break, JD Bakery, and Dunkin Donuts, in which these coffee shops
offer some similar products as Luna’s, but what is unique in Luna Coffee is their
handcrafted espresso and the sip of the strong aroma of their coffee that makes it more
different from the other coffee shops. Luna Coffee does its very best by continuing to give
new and special offerings to its customers and patrons to gain their trust and loyalty, which
will allow them to keep on choosing the coffee shop as part of their daily routines.
F. Publics
Luna Coffee is a type of business that is open to all ages because coffee beverages do
not choose any age brackets, especially in these present times in which every individual
loves to drink coffee. Aside from its highlighted handcrafted espresso coffee beverages, it
also provides the best customer accommodation by treating its customers as their own
family or friends, thereby creating long-lasting bonds and emotional connections. It is
beneficial to have an attachment to the community and society in order to be accepted
and trusted by the public. It also establishes a healthy relationship with its stakeholders
and employees by providing proper care and benefits on time. Media publicity is a great
way of promoting a business and boosting customer attention. Good media publicity will
lead to more positive reviews, which could help Luna Coffee. Moreover, the business
follows and complies with all laws and regulations regarding business operations and
other related factors. Having good financial stability for the business is necessary for
financial institutions to allow Luna Coffee to obtain a loan with better terms for innovations,
necessary expenses, and expansions.
F. Strengths and Weaknesses

A. Strengths
● Luna Coffee is the only coffee shop in Kalibo, Aklan that serves handcrafted espresso
coffee beverages that have a strong and beautiful aroma which makes it more unique
and one of a kind. It is the only coffee shop that offers strawberry flavored iced latte.
● Coffee and non-coffee beverages are made in front of the customers which makes it
more interesting because of the unique method of preparation.
● Staff are very accommodating and caring wherein they treat customers as their own
family and friends.
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● It offers loyalty cards to first customers where they can avail discount, free drink, and
free merch in its designated purchase.
● It is strategically located in the heart and one of the busiest streets in Poblacion,
Kalibo, Aklan near schools, establishments, and other commercial industries.
B. Weaknesses
● Branding Identity needs to be improved because it does not have an established
reputation in the coffee industry and Luna Coffee is not yet popular compared to other
coffee shops.
● It has limited market share because the coffee shop was newly opened.
● Coffee and food beverages are slightly priced because the raw materials and
ingredients used are slightly priced, which is necessary in order to maintain the
products’ quality.
● Many alternative substitutes from other competitive coffee shops because of the
prices.
G. The Market
A. Market Size
Despite the rising addiction to coffee, not everyone is as caffeine-addicted as some. Luna
Coffee has segmented its business to serve those in the age range of 17 to 40 years old,
specifically Millennials and Gen Z, who are mostly students, teenagers, and employees. In
Kalibo, Aklan, there are about 80,605 individuals as of 2015, and 70% of this population
are 17 to 40 years old (PhilAtlas, n.d.). And considering the target market, Luna Coffee's
market size ranges from 5,000 to 8,000 individuals, wherein this particular group is more
than willing to spend almost 100% of their daily allowances just to visit a coffee shop, buy
hot or iced coffee beverages, and have a sip of the strong aroma with the ultimate coffee
experience. They often visit coffee shops three times a week to satisfy their coffee
cravings, which became part of their daily routines because a day without drinking coffee
is not complete. As time goes by, there is a continuous rise in population in Kalibo, Aklan,
which will add to the market size of Luna Coffee, especially in these present times where
drinking coffee is still in demand. And with the finest quality of unique handcrafted
espresso coffee beverages and food products from Luna Coffee, together with excellent
customer care and service and loyalty programs that are worth the customer’s money, it is
guaranteed that Luna Coffee’s market size will be maximized and they will reach their
target sales and profit.
B. Market Needs
Currently, passionate coffee drinkers are interested in every flavor profile they may
experience from drinking a cup. They are also attentive to where these beans come from,
as they admire coffee beans that are sourced locally (Curated.Ph, 2020). Every customer
buys something to fulfill their needs, meet their wants, or satisfy their cravings, but making
sure that every purchase is worth their money allows them to establish loyalty and trust
with the business. Luna Coffee was established to offer continuous innovations of the
finest quality in coffee beverages and food options, provide excellent customer care and
service, and give an unforgettable customer experience. It also seeks to fulfill benefits that
are important to maintaining a healthy customer relationship with the business in order to
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keep and attract more customers. It is important that their needs are met to prevent them
from choosing other alternatives and allow them to share positive reviews through social
media posting and word of mouth, which is a powerful tool that will encourage customers
to visit Luna Coffee and have a sip of the ultimate coffee experience.
C. Market Trends
Drinking coffee beverages that become part of people’s daily routines is one of the trends
in these present times globally because it does not choose any age brackets in which
every individual loves to drink coffee, especially Millennials and Gen Z who prefer to drink
it compared to other beverages. Luna Coffee hopped in and took advantage of this trend
by offering handcrafted espresso coffee beverages with a strong aroma from locally
sourced fresh beans, which is different from their competitors’ method of preparation and
makes them unique. Luna Coffee will maximize new methods of advertising and
promotional strategies to establish a strong brand identity that could help in keeping and
attracting more customers. Continuous research, innovation, and development of new
product and service offerings will be made because the trend increases from time to time,
making the growth market of coffee drinkers double, especially when there is something
new in their eyes and taste buds, which will push customers to buy regardless of the
amount.
H. Marketing Objectives
Within the arrival in its first year of operations, Luna Coffee is planning for expansion in products,
brand awareness, and increase in profit wherein it will strive its best to continue in offering unique
value proposition They have decided on objectives that are specific, measurable, attainable,
realistic, and timely (SMART) for the business.
● To improve branding awareness by December 31, 2023.

● Boosting social media presence and engagement through frequent interactive posting.
● Increase leads by 10% in the next year.
● Growing monthly and yearly revenues and increase in profitability.
● Increase market share by the end of the fiscal year by reducing customer churn by 10%.
● To garner press mentions and articles.
● Increasing customer lifetime value by promoting customer loyalty programs and its
benefits.
● Gain positive reviews.
● Continuous research and development for innovative offerings and attractions, new
advertising, and promotional strategies.
● Creating larger marketing plans.
I. Marketing Strategies
A. Product/Service Strategy
Luna Coffee is a coffee shop well-known for its handcrafted espresso hot or iced coffee
beverages, which are unique compared to other coffee shops. Continuous research and
development in order to add new offerings to the menu, such as new flavors of hot and
iced coffee beverages, more food options, and creating an emotional connection with the
customers through ensuing daily escape. Luna Coffee strives to provide an environment
in which individuals have access to rich coffee beverages that allow them to relax. The
majority of cafés follow a similar model that consists of providing hot or iced coffee
beverages and a cozy space. At Luna Coffee, however, the goal is to enhance the
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customers’ traditional café experience by adding a truly valuable element to their
otherwise run-of-the-mill experience and to establish an image of acceptance and
friendliness. Luna Coffee can be seen as a place where people can go where they are not
only included but also where they can make lasting bonds and friendships. The coffee
shop will advertise the fact that it is not only a unique business in Kalibo, Aklan, but that it
also supports local as well as ethically sourced goods. They believe that branding
themselves in a socially responsible manner will be attractive to their target markets.
1. Target Market
Coffee consumption in the country has surged, with millennials willing to shell out a
hundred pesos just for a cup. The Department of Agriculture (DA) Undersecretary for
High-Value Crops, Evelyn Laviña, shared an observation at the opening of a four-day
coffee exposition. "Our millennials are willing to shell out ₱100.00 or more in
whatever innovative concoctions they prefer to have their coffee--traditional, plain,
brewed, espresso, or blended, such as cappuccino, latte, macchiato” Laviña said.
Raul Paz, deputy director of the Philippine Center for Postharvest Development and
Mechanization (PhilMech), echoed Laviña's remark that coffee shops that
mushroomed all over the country are frequented mainly by young people (Agoot,
2018). Luna Coffee is a type of coffee shop that is open for all ages, but it has most of
its customers belonging to the age brackets from 17 to 40 years old in which most of
them are Millennials and Gen Z, who are mostly students, teenagers, and employees.
These particular groups are fond of drinking a variety of hot or iced coffee beverages
that have the best quality and are willing to spend any amount just to satisfy their
coffee cravings which is already part of their daily routines. They also seek a coffee
shop that has a peaceful ambiance, aesthetic designs, and best accommodation from
the staff that are all provided by Luna Coffee.
2. Brand Positioning
Luna Coffee offers quality beverages, especially their coffee, made through their
unique process of handcrafting it. It stands out because of this procedure, as most
coffee shops around the area use espresso machines. It can be easily identified that
it is a product from Luna with just a sip because of its strong aroma and taste. The
prices of their products are slightly higher compared to their competitors because of
several factors, mainly the continuous increase in the inflation rate, but Luna Coffee
ensures that it continues to offer the best quality products worth the customers’
money. Luna Coffee is strategically located in the heart of Kalibo, Aklan, specifically
on one of the busiest streets where there is a wide range of commercial
establishments nearby. It is more accessible for customers to come and visit the café.
More than this, they provide free wifi with good internet speed, attracting their student
consumer target. The café also provides an aesthetically pleasing and cozy
atmosphere to chill and study in, which most customers look forward to.
B. Pricing Strategy
When perfect pricing is adopted by a business, surely success comes along. Gaining a
competitive advantage is truly what a business wants, and this could be done through a
good pricing strategy for what one offers (Simon Kucher, 2018).
1. Value-based Pricing
As the business is known for its handcrafted espresso, which took time to perfect and
more effort to prepare, it surely deserves a price that is accurate to it. Luna Coffee
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uses value-based pricing for its products. This pricing strategy is based on the
consumer's perception of the value of their product (Bloomenthal, 2023). It may be
highly priced, but comparing the business to its competitors, handcrafted espressos
are something new to the market in Kalibo, Aklan, as most of the cafes in the area
provide machine-brewed coffee.
2. Odd-even Pricing
The business also uses an odd-even pricing strategy, as can be observed from their
product list. Odd-even pricing is when a business uses a strategy involving the last
digit of their product price (Shopify, 2022). Most of the products of Luna Coffee either
end with the numbers 0 or 5. This plays with the psychological perception of the
customer regarding the price of their product. They may see it as cheaper since
change would still be given to them (Campbell, 2020).
C. Distribution Strategy
As a small business, Luna Coffee has only one distribution channel. They purchase their
ingredients directly from wholesalers, produce most of their products in-store, and then
directly sell them to their customers; thus, they use a direct distribution strategy. Direct
Distribution Strategy is the process in which the manufacturers themselves directly deliver
the products to customers using a physical storefront or an online ecommerce site
(CoSchedule, 2023). In addition, if online orders are received from their social media
platforms, they would also directly deliver the product to their customers without any
foodservice partner.
D. Advertising and Promotions Strategy

Build it, and they will come. In today's world, shops are established on every corner, big
box stores are in every city, and there are thousands of e-commerce sites to choose from.
It has to do more than just open the shop to attract customers. A sound marketing plan
can save a coffee shop from financial ruin. Most shops find success through multi-channel
marketing, which includes both online and offline marketing tactics (Mcdonald Paper,
2018).
1. Social Media Marketing

● In this day and age, social media is one of the most prominent platforms for
advertising, so it is important to build a strong presence on it. Facebook and
Instagram are currently being used by Luna Coffee to engage with and promote
its products. Increasing activities on these platforms could also increase brand
recognition.
● Paid advertising could be done every other month to gain attention from old
customers and attract new ones.
● It is important to use time wisely and post on platforms that are most effective.
Visual platforms tend to work best for coffee shops because drinks and food will
entice potential customers.
2. Traditional Advertising
● Signage is a powerful tool, especially for Luna Coffee is strategically located on a
busy, walkable street. It can entice people to come in, especially if it has
something witty written on it. Whether it's a clever quote, a coffee pun, or an
advertisement for the latest specialty coffee drinks, sidewalk signs can bring
more foot traffic through the coffee shop.
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3. Referral Marketing
● Word-of-mouth marketing has long been the backbone of the small business
world. Luna Coffee trusts its quality drinks and foods, which surely people would
love to tell their friends and loved ones about. Those recommendations are
powerful, and will lead to more customers walking through.
● Taking a more proactive approach to word of mouth. Offer free drinks and treats
for those who recommend the shop to friends, or run a promotion where
established customers get a free cup of coffee for bringing in a friend for their
first time.
● The review online through their social media platforms, local bloggers, and
influencers could help spread awareness and attention to what Luna Coffee can
offer its customers.
4. Customer Loyalty Programs

● Coffee shop loyalty cards give customers a reason to come back to the shop.
Just look at the success of the loyalty program at Starbucks. It helped increase
revenue to $2.65 billion. A constant promotion of the current loyalty card program
by Luna Coffee could entice customers to repurchase from them again.
Emphasizing the rewards they receive from every milestone in the loyalty card
could definitely bring the best experience to loyal customers and even attract
attention from new ones.
● Creating discounts at certain holidays or events throughout the year could
increase brand awareness. In addition, since most of its targeted customers are
students, a discount for those who bring their school I.D. could also bring in more
customers in that range.
J. Tactical Implementation
Luna Coffee will leverage its competitive edge of the highest quality product to quickly gain market
penetration. This competitive edge is sustainable because it is based on a unique or one of a kind
preparation method of coffee beverages through handcrafting. Luna Coffee’s marketing effort will
be based on the communications that assert the public that it has by far the best products. The
business should be vocal in their assertion of the message that while its coffee costs a bit more,
the variance is not material and the difference in quality is immeasurable. The sales strategy will
work on converting prospective customers into long-term customers by emphasizing high-quality
products and high levels of customer service. This strategy recognizes the fact that even though
the business may have the best product, without excellent customer service the organization will
not succeed (Bplans, 2023).
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Marketing Strategy: Market Development
Tactics Operating Details Timetable
Increase Awareness and To keep on thinking and implement effective advertising July 2023
Branding Identity and promotional strategies to increase engagements,
work on good media publicity, and continuously highlight
the quality of its handcrafted espresso coffee beverages
that never change. Products may be slightly priced, but it
is necessary for them to maintain their quality to make
sure that it is worth the customer's money and time to visit
the coffee shop because the standards of the products
and services offered are met to establish customer loyalty
and trust that will lead to a stronger branding identity.
Increase in Sales and Continuous work on advertising and promotional July 2023
Revenue strategies, applying different customer loyalty programs
through loyalty cards and discounts in a particular season
or holiday, providing excellent customer care and service,
and consistently offering customers the best quality of
products to meet customer satisfaction, for them to keep
on coming back.
Offer New Coffee Continuous research and development about new August 2023
Beverages and Products offerings and innovations from time to time for new
high-quality products could be a great way to keep and
attract more customers, build customer loyalty, to provide
something new in their eyes and taste buds, and to
prevent them from choosing other alternatives.
Hire and Train New Luna Coffee has only two personnel, and it is not enough August 2023
Personnel and Embrace to cater to all the necessary errands to run the business
Advanced Barista properly. Hiring more personnel will fulfill the gaps in the
Technology business to perform the duties and responsibilities that
will also provide excellent customer care and service.
Train personnel with the advanced barista technology to
improve the preparation of the products and maintain their
quality for consistency, as well as to develop friendships
with the customers that last because Luna Coffee is
known for having accommodating personnels.
Develop Technological Embracing technology through investments in new December 2023

Advancements for facilities and the use of new online applications that could
Convenience and the help in the smooth operations of the business.
Improvement of Interior Renovation of the physical store that could provide
Designs peaceful ambiance, aesthetic decorations, cozy designs,
and putting new slogans which could touch customer’s
hearts that are worth posting for wherein people also visit
coffee shops because of its place, and also to improve
the spacing to cater more customers because the size of
the coffee shop is not enough to accept more due to its
small space.
14
K. Marketing Budget
Luna Coffee will maximize its marketing budget to establish a strong branding identity which is
necessary in order to create a good name and reputation in the coffee industry and most
importantly to the public because it is a powerful tool in attracting and enticing customers to
patronize the coffee shop. Effective Marketing allows the business to scale up by effectively
reaching the target audience, helping promote new and existing products/services, and growing the
customer base (The Iirth Company, 2023).
Luna Coffee Marketing Budget, 2023
Advertising Expenses, include the following:

Social Media Marketing ₱ 20,000.00
Traditional Advertising ₱ 5,000.00
Customer Loyalty Programs ₱ 10,000.00
Total ₱ 35,000.00
L. Feedback and Control

Action Plan: Increase Awareness and Timetable: July 2023
Branding Identity
In the last week of June 2023, all social media layouts for promotion and special discounts should
already have been made. This ensures continuous activity on social media platforms in the
following month. This also gains attention from the market because of the promotions they can look
forward to. On July 1st, this marks the beginning of the Facebook ad for Luna Coffee, which will run
for a month until August 1st. These Facebook ads will be done every four months with a ₱5,000.00
budget, aiming to reach 1,000 plus impressions. Consequently, during promotional events, an
allotted ₱5,000.00 could be used depending on the advertising need on par with the current
promotions of Luna Coffee. A signage will also be made beforehand to be placed on the sidewalk
to attract customers passing by in which the location of the business is considered as one of the
busiest streets in the heart of Poblacion Kalibo, Aklan.
Action Plan: Increase in Sales and Timetable: July 2023

Revenue
In July 2023, there will be a change in the loyalty program that Luna Coffee offers. Instead of only
providing loyalty cards to first-time customers, they will now have a loyalty points system applicable
to all consumers throughout their lifetime. There will be corresponding points given depending on
the size of their drinks and the food they purchase. With the accumulated points of the customers,
they redeem discounts and merchandise from the business. Through this new loyalty program, an
increase in purchases and new customers will be experienced. During this time, preparations for
the holiday loyalty stamp cards would be made. In addition, constant monthly monitoring of product
quality and customer service will be done by the owner to ensure excellence is provided at all
times.
15
Action Plan: Offer New Coffee Timetable: August 2023
Beverage and Products
In the beginning of 2023, the research and development for new innovative products should have
already started. Product testing should be done before August 2023; if product testing fails, there is
still room for development. Therefore, by August 2023, the final product line-up should already be
settled. The product supplier, price, and production should already be settled before the last week
of August. On September 1st, to celebrate the first year of Luna Coffee, there will be a release of
this new product line to spice up the current menu and cater to the different needs and wants of the
market.
Action Plan: Hire and Train New Timetable: August 2023

Personnel and Embrace Advanced
Barista Technology
In the middle of May 2023, hiring and training of new personnels should have already made to
have enough time to search and train for the new employees who are able to perform the duties
and responsibilities properly, living the mission of Luna Coffee in providing excellent customer care,
service, and dedication in the job, as well as filling in the gaps needed in the business to avoid any
kinds of conflicts or problems to arise. Embracing advanced barista technology, by training
personnels about the standardized and advanced methods of the production process for
convenience and guaranteeing that the products’ qualities will not be affected to maintain
consistency which is important regardless of whoever will be assigned in the preparation of the
products will prepare the same taste and quality. Having well-trained personnels is one of the ways
in winning customer satisfaction, trust, and being able to perform the tasks properly which is
beneficial both for the customers and the business.
Action Plan: Develop Technological Timetable: December 2023

Advancements for Convenience and the
Improvement of Interior Designs
In the first week of November 2023, purchase of new equipments such as advanced machines
should have already been made especially when it is bought outside of Kalibo, Aklan or being
ordered online in order to train personnels of its proper usage that will additionally help in running
the business’ operations smoothly and easier. Use a newly accurate and updated Point of Sale
application for convenience to avoid any unnecessary conflicts because it happened that Luna
Coffee had a problem with the application they have used before and also to purchase a new Point
of Sale printer that is user-friendly. Purchase of new air conditioner should be done because the
cooling capacity of the old one does not fit making the second floor not well-ventilated and cold
enough. Improvement of Interior Designs should have already started to have enough time for
renovation to remove or change what is needed, to add something new in the coffee shop that will
improve its ambiance, new aesthetic designs, decorations, to put new slogans that will touch
customer’s hearts and catch their attention, and also to widen the spacing to cater more customers
because the coffee shop has small area.
16
M. Financial Projection
Break-Even Analysis
Break-Even Analysis
Luna Coffee
Product: Iced Malaya
For the Period: June 1, 2023 – June 1, 2024
Selling Price: ₱130.00 (Medium Size)
Break-Even Units: 7,050 units
Break-Even Sales: ₱916,500.00
Fixed Costs
Rent ₱120,000.00
Marketing and Advertising ₱35,000.00
Payroll ₱507,600.00
Utilities ₱85,500.00
License and Permit ₱5,000.00
Total Fixed Cost ₱753,100.00
Variable Costs
Direct Materials ₱87,500.00
17
Other expenses ₱13,000.00
Total Variable Cost ₱100,500.00
Total Variable Cost Per Unit ₱125.00
Contribution Margin per unit ₱5.00
Break-Even Point
Break-Even Units 7,050 units
Break-Even Sales ₱916,500.00
Income Statement
Luna Coffee
Income Statement
As of December 31, 2023
Sales Revenue ₱ 3,050,000.00
Less: Cost of Sales 1,500,000.00
Gross Profit 1,550,000.00
Less: Operating Expenses 1,369,203.00
Salaries ₱ 507,600.00
Production Equipments 111,103.00
Ingredients and Raw Materials 275,000.00
Legal Services 25,000.00
18
Marketing and Advertising Expenses 35,000.00
Office Supplies 10,000.00
Rental Fee 120,000.00
Utilities 85,500.00
Renovation (Improvement of Interior 200,000.00

Designs)
Net Income before Tax ₱ 180,797.00
Income Tax 38,429.10
Net Income after Tax ₱ 142,367.90
Balance Sheet
Luna Coffee
Balance Sheet
ASSETS LIABILITIES & EQUITY
Current Assets Liabilities
Cash ₱32,500.00 Accounts Payable ₱50,500.00
Inventory ₱55,000.00 Loan Payable ₱45,000.00
Total Current Assets ₱87,500.00 Total Liabilities ₱95,500.00
19
Non-Current Assets Owner’s Equity
Equipments ₱111,103.00 Paid-in Capital ₱103,103.00
Total Assets ₱198,603.00 Total Liabilities & ₱198,603.00

Equity
Cash Flow
Luna Coffee
Statement of Cash Flow
Beginning Cash ₱ 200,000.00
Loan from the Bank 100,000.00
Cash Sales from the Business 3,050,000.00
Total Cash In ₱ 3,350,000.00
Business Registration and Legal 25,000.00

Services
20
Utilities 85,500.00
Tax Paid 38,429.10
Salaries 507,600.00
Inventory 55,000.00
Loan Repayment and Interest 50,000.00

Designs)
Total Cash Out ₱ 1,365,332.10
Net Cash Balance, 31 December 2023 ₱ 1,984,667.90
Luna Coffee Projected Sales and Expenses
Luna Coffee
Yearly Operating Budget
January 1, 2023 – December 31, 2023
Revenue
Gross Sales ₱3,050,000.00
Cost of Goods Sold:
Purchases ₱1,210,500.00
Gross Sales Profit ₱1,839,500.00
21
Expenses
Salary Expenses ₱507,600.00
Rent ₱120,000.00
Marketing and Advertising Expenses ₱35,000.00
Legal Services ₱25,000.00
Raw Materials/Ingredients ₱275,000.00
Office Supplies ₱10,000.00
Production Equipments ₱111,103.00
Renovation ₱200,000.00
Total Expenses ₱1,369,203.00
Net Operating Income ₱470,297.00
Less: Income Tax ₱141,089.10
Net Income ₱329,207.90
22
Break-Even Analysis
Break-Even Analysis
Luna Coffee
Product: Iced Pink Latte
Break-Even Sales: ₱992,250.00
Fixed Costs
Rent ₱125,000.00
Salaries ₱557,600.00
Variable Costs
23
Break-Even Point
Break-Even Sales ₱992,250.00
Income Statement
Luna Coffee
Income Statement
Salaries ₱ 557,600.00
24
Utilities 88,500.00

Designs)
Balance Sheet
Luna Coffee
Balance Sheet
25
Equipments ₱141,103.00 Paid-in Capital ₱143,103.00

Equity
Cash Flow
Luna Coffee
Total Cash In ₱ 3,920,000.00
Business Registration and Legal 27,000.00

Services
26
Utilities 88,500.00
Tax Paid 110,639.10
Salaries 557,600.00
Inventory 75,000.00

Designs)
Luna Coffee
Revenue
Cost of Goods Sold:
Purchases ₱1,450,800.00
27
Expenses
Rent ₱125,000.00
Net Operating Income ₱717,997.00
28
Break-Even Analysis
Break-Even Analysis
Luna Coffee
Product: Iced Dark Malaya
Break-Even Sales: ₱1,200,000
Fixed Costs
Rent ₱135,000.00
Payroll ₱605,900.00
Variable Costs
29
Break-Even Point
Break-Even Sales ₱1,200,000.00
Income Statement
Luna Coffee
Income Statement
Salaries ₱ 605,900.00
30
Utilities 90,700.00

Designs)
Balance Sheet
Luna Coffee
Balance Sheet
31
Equipment ₱215,107.00 Paid-in Capital ₱197,107.00

Equity
Cash Flow
Luna Coffee
Total Cash In ₱ 4,550,000.00
Business Registration and Legal Services 35,000.00
32
Utilities 90,700.00
Tax Paid 192,987.90
Salaries 605,900.00
Inventory 95,000.00
Renovation (Improvement of Interior Designs) 125,000.00
Luna Coffee
Revenue
Cost of Goods Sold:
Purchases ₱1,810,950.00
33
Expenses
Rent ₱135,000.00
Net Operating Income ₱1,032,343.00
34
N. References
Bloomenthal, A. (2023, January 8). Value-based pricing. Investopedia. Retrieved May 5, 2023, from
https://www.investopedia.com/terms/v/valuebasedpricing.asp
Campbell, P. (2020, February 21). Odd-even pricing strategy: Definition & Examples. ProfitWell.
Retrieved May 5, 2023, from https://www.profitwell.com/recur/all/odd-even-pricing
Coffee in Philippine Culture. (2020, December 20). Curated.ph. Retrieved May 17, 2023, from
https://www.curated.ph/blogs/news/coffee-in-philippine-culture
Coffee Roaster Business Plan. Bplans. (2023). Retrieved May 6, 2023, from
https://www.bplans.com/coffee-roaster-business-plan/strategy-and-implementation-summ
ary/
Distribution Strategy: Strategizing Your “Place” In The Marketing Mix. CoSchedule. (2023, April 26).
Retrieved May 5, 2023, from
https://coschedule.com/marketing/marketing-mix/distribution-strategy
Kalibo, Aklan Profile – PhilAtlas. (1990, May 1). Kalibo, Aklan Profile – PhilAtlas.
https://www.philatlas.com/visayas/r06/aklan/kalibo.html
Millennials wake up to coffee-shop fad. Republic of the Philippines News Agency. Liza Agoot. (2018,
October 9). Retrieved April 22, 2023, from https://www.pna.gov.ph/articles/1050404
Rainy season life hacks: Coffee shop and café trends in the Philippines in 2022. Curated. (2022, July
26). Retrieved April 8, 2023, from
https://www.curated.ph/blogs/news/rainy-season-life-hacks-coffee-shop-and-cafe-trends-i
n-the-philippines-in-2022
Starting A Coffee Shop. Step 9: Marketing And Promotion. Mcdonald Paper. (2018, August 6).
Retrieved April 10, 2023, from https://mcdonaldpaper.com/blog/marketing-and-promotion
The Importance of a Marketing Budget.The Iirth Company. (2023). Retrieved May 5, 2023, from
https://theiirthcompany.com/blog/the-importance-of-a-marketing-budget/
The Importance of Pricing. Simon Kucher. (2018, October 30). Retrieved May 5, 2023, from
https://www.simon-kucher.com/en/insights/the-importance-of-pricing#:~:text=Why%20is%
20 pricing%20 important%3F,invest%20in%20change%20and%20 growth.
Vellana C. (2021, June 29). 7 Must-Have Technology Upgrades for Coffee Shops. Retrieved May 5,
2023, from https://emerging.com/7-must-have-technology-upgrades-for-coffee-shops/
Winn, J. (2022, December 22). How to Boost Gen Z Coffee Sales. Retrieved April 22, 2023, from
https://www.qsrmagazine.com/sponsored/how-boost-gen-z-coffee-sales
35

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Aklan Catholic College

Faculty of Business and Management Education

Bachelor of Science in Business Administration

A Marketing Research in Luna Coffee

Ms. Michelle Glen A. Gaila

in partial requirement for the courses

Marketing Research and Marketing Management 1

BSBA 2 and 3 - Marketing Management

Academic Year 2022 - 2023

B. Mission and Vision

5. To provide the society with more authentic coffee lovers.

2. Senator Sherwin Gatchalian introduced legislation to improve the Philippine

2. Advanced Barista Technology

D. Opportunities and Threats

F. Strengths and Weaknesses

● To improve branding awareness by December 31, 2023.

D. Advertising and Promotions Strategy

1. Social Media Marketing

4. Customer Loyalty Programs

Tactics Operating Details Timetable

Develop Technological Embracing technology through investments in new December 2023

Luna Coffee Marketing Budget, 2023

Advertising Expenses, include the following:

Traditional Advertising ₱ 5,000.00

Customer Loyalty Programs ₱ 10,000.00

L. Feedback and Control

Action Plan: Increase in Sales and Timetable: July 2023

Action Plan: Hire and Train New Timetable: August 2023

Action Plan: Develop Technological Timetable: December 2023

Product: Iced Malaya

For the Period: June 1, 2023 – June 1, 2024

Selling Price: ₱130.00 (Medium Size)

Break-Even Units: 7,050 units

Break-Even Sales: ₱916,500.00

Marketing and Advertising ₱35,000.00

License and Permit ₱5,000.00

Total Fixed Cost ₱753,100.00

Direct Materials ₱87,500.00

Total Variable Cost ₱100,500.00

Total Variable Cost Per Unit ₱125.00

Contribution Margin per unit ₱5.00

Break-Even Units 7,050 units

Break-Even Sales ₱916,500.00

As of December 31, 2023

Sales Revenue ₱ 3,050,000.00

Less: Cost of Sales 1,500,000.00

Gross Profit 1,550,000.00

Less: Operating Expenses 1,369,203.00

Production Equipments 111,103.00

Ingredients and Raw Materials 275,000.00

Legal Services 25,000.00

Office Supplies 10,000.00

Rental Fee 120,000.00

Renovation (Improvement of Interior 200,000.00

Net Income before Tax ₱ 180,797.00

Income Tax 38,429.10

Net Income after Tax ₱ 142,367.90

As of December 31, 2023

ASSETS LIABILITIES & EQUITY

Current Assets Liabilities

Cash ₱32,500.00 Accounts Payable ₱50,500.00

Inventory ₱55,000.00 Loan Payable ₱45,000.00

Total Current Assets ₱87,500.00 Total Liabilities ₱95,500.00