Macao

Imperial
Milk Tea
BSA16
Chand, Scarlet
Evangelista, Rina
Villanueva, Geraldine

1
 - the milk tea industry in the Philippines

started booming recently

INTRODUCTION
- blogger Jasper Castro (2019) coined

this as the “true start of the explosion”

2
 Threat of
New Entrants

3
 “
- The threat of new entrants for the milk tea industry in the Philippines is relatively

high.

- As reported by FNB report, in the Philippines alone, orders for milk tea beverages

increased by 3,500 percent from June to December 2018. This data makes the

Filipinos rank second highest to milk tea drinkers in southeast asia.

4
- According to Moneymax,

Macao Imperial milk tea

belongs to the top 12 Best

Economie
Milk Tea Brands in the

Philippines.

- Generally, milk tea production s of scale

doesn't require much costs.

5
 - They have different kinds of products

offered, from milk tea beverages to

Product sodas and hot coffees.

Differentiati - There are also a variety of add ons you

on
can choose from to go with your drink.

6
- Cabaero stated to SunStar

Philippines, the milk tea

business “does not need much Capital

capital required, even less than Requirement
P50,000 to get a franchise”.
s

7
 - Macao Imperial Milk tea reaches their

Access to customer by hand through their store.

distribution - Another method the business uses to

reach their customers is through

channels delivery.

8
- Based on a newspaper report of

Manila Bulletin in 2015, Sen.

Aquilino "KOKO" Pimentel III also

“urged local governments in Manila

Government
to check whether food establishments

are complying to food and safety

Policies
standards to prevent an outbreak of

food poisoning in the city”

9
Threats of substitute
products

10
 “
- The profitability of an industry can become a factor of availability of a substitute.

( Wilkinson, 2015)

- Because of the popularity of milk tea in the Philippines, Macao Imperial Tea

encounters many competitors, in which their products can be easily substituted.

11
 “
List of Beverage Industry in SM Dasmariñas

(credits by www.smsupermalls.com )
Black Scoop Cafe Dakasi Happy Leaf Ochado

Blue Nektar Farron Cafe Infinitea Serenitea

Buko Express Foss Cafe John Lemon Starbucks

Buko Juan Fruitas Juice Avenue The Coffee Bean and Tea Leaf

Chatime Fruity Lemons Lemon Aid Zagu

12
Bargaining power of
suppliers

13
 “
-Refers to the pressure on a company by changing higher prices, adjusting the

quantity of the product or controlling availability and delivery timelines.

-In accordance to Macao Imperial Tea, the bargaining power of the supplier can

be considered very high tea shop. When looking at the major inputs that Macao

Imperial Tea companies need.

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Bargaining
power of
buyers

15
 “
- It indicates to the power that consumers can gain towards businesses to get them

to provide higher quality products, better customer service, and lower prices.

- Aligning to the perspective on the side of Macao Imperial Tea, the bargaining

power of the buyer is deduced into three factors.

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- According to the FNB report,

Philippines is the 2nd ranked

highest milk tea drinkers in High

Southeast Asia.
competition in
- Hence, the competition between

the companies of the milk tea the industry

industry are strong and high.

17
 - The taste and preference of the

consumers varies from the identical

Low product flavors of different brands of milk tea

differentiati stores.

on
18
- The accessibility of the

promotions and supplemental

flavors in their social media

platforms, gives the customers

the power to judge it subjectively

without even visiting the store Easy access of

physically.
information

19
Rivalry among
existing firms

20
 “
- Rivalry among existing firms in the milk tea industry is a bit intense

-Rivalry may even become more intense in the said industry because of the freedom of

entry of new entrants.

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SWOT Analysis

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 Strength Weaknesse Opportunitie Threats
- The location of the store was
strategically chosen, which is
s s - The high competition in
-Macao Imperial tea has
-They can use
the mall. the milk tea industry can
received complaints from the
- The availability of WIFI and FoodPanda, which is be its reason to be
customers about the prices
the “instagrammable” vibes. substituted to other
another famous food
- The authenticity of the tea and of its milk tea while brands.
the premium-class pearls that app in the Philippines.
according to the review of - The entry of a new
distinct from other brands.
the customer. -Young entrepreneurs company offering
- Travel-friendly packaging to
something different from
ensure the best experience and can opt for putting up a
their current product.
convenient way of bringing it milk tea business for its
- The advantages of other
anywhere.
ease of establishing. brands that Macao
Imperial Tea does not
possess. 23
Conclusion

24
 “
-Its plays a vital role in Macao Imperial Tea. By applying the Porter’s five forces, it

helps to determine the position of business in the market.

-They can find out their weakness and try to implement by taking the best decision

-Macao Imperial tea is one of the successful tea shops. Its provide the best and quality

milk tea to the customers. Day by day the Macao imperial te business is growing high

one making more profit in the business.

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THANK YOU!

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