MARKETING PLAN

Submitted by: Group 1

Hazel Rosales Sheryl Bautista
Theresa Tabios Lourdelaine Nipes
Marisol Alagos Mary Jane Ocampo
 Executive Summary

QQ Milk tea has been involved in food and beverage industry for almost 5 yrs.
It is your usual milk tea store that you can find in malls, downtown part of the city
and university belts. The company is owned by a corporation composed of 4
young professionals. QQ Milk tea offers a varied menu of affordable meals/snacks
that go with their authentic-Taiwanese-flavored milk tea. Since the company is
located in a area where there is a cluster of colleges and universities, their target
market is mostly composed of university students. The company aims to provide
customer quality milk tea and comfort food that would exceed their expectations
making them one of the top milk tea stores in the country.
 Executive Summary

The company has several challenges: the company doesn't have a varied and
wide market. Also the company is struggling to work at its full capacity since
they aren't generating enough income for them to afford growth opportunities.
The researchers felt the need to make a marketing plan formulated to identify
which strategy the company should pursue in order for them to improve their
generation of income and sustain their existence in the long-term without
compromising the quality of its services. As the researchers determine how best
to enlarge the company's operations, they will consider expanding the business
as defined in our strategy.
 Brief History

•QQ Milk tea Café sells affordable milk teas and offers a variety of both dine-out
and dine-in food selections. It is located in Geronilla Building, Pantaleon Del Rosario
Street, Cebu City just across the University of San Carlos. Their main customers are
students from USC and some from other neighboring schools like CNU, UC, ACT and
Velez College. They are open from Mondays to Sundays from 10:00 a.m. to 9:00 p.m.
They offer free Wi-Fi and an air conditioned room. The café is meant to be casual, the
kind of place that you can go to with a bunch of friends or simply enjoy some me-time.
No one is expecting Michelin standards but what people really want is a place that they
can go back regularly for a quick meal and comforting taste that they are familiar with
without breaking the bank. QQ Milk tea Café has shown that having the right mix of
calm and commotion in an environment can boost creativity.
 Study Background

• Mission
The researchers aim to provide customer quality milk tea and
comfort food that would exceed their expectations making us
one of the top milk tea stores in the country.
• Vision
To create the best tasting milk tea and be the milk tea of choice,
giving people a great tea experience one cup at a time.
 Study Background

• Goal
The company’s goal is to bring milk tea experience closer to home and be
the town’s choice for the satisfaction of milk tea cravings.
• Objectives

1. To operate a successful café with enough number of employees.

2. To increase profitability year by year of operations.
3. To obtain a minimum of 50 regular customers a day.
4. Maintain an average gross margin of forty (40) percent.
 Study Background

• Product/Service Offerings
The QQ Milk Tea is a full service restaurant/cafe located at P. Del Rosario Street
Cebu City in front of University of San Carlos. The restaurant cafe features
simple menu with a friendly prices. They serve delicious food and milk tea
influenced by Taiwanese taste. QQ Milk Tea is a strong milk tea shop which
aims to provide customers with quality products at reasonable and friendly
prices for their target market. The company targets students and young
professionals, especially students of University of San Carlos. As a newcomer
in the milk tea market, QQ seeks to come up with products that will be distinct
from other competitors, a product that will provide satisfaction, quality taste
and new variety of milk tea. The company presents their milk tea with different
add-ons (ex. pearls) that you can add on your drink to taste beyond the milk tea
flavor that is a craze among the younger generation.
Marketing Objectives
Marketing Objectives
SWOT ANALYSIS
Marketing Strategies
Marketing Strategies: WE FOLLOW
 INTEGRATED MARKETING COMMUNICATION

Since QQ Milk tea is small in terms of company size, they only employ a simple
communication system internally and externally. When it comes to internal
communication such as decision making, the parties mainly involved are the
owners and the results are then communicated to the employees once an
agreement has been reached. Decisions pertaining to pricing, budgeting,
changing a supplier, coming up with a new marketing strategy, and the like are
agreed upon only by the stockholders. However, they only seldom hold meetings
because of their busy schedules so oftentimes it is only the employee in charge
who makes decisions which will then be approved by the owners.
 INTEGRATED MARKETING COMMUNICATION

One promotion tool the company uses for marketing is through social media
where they post their menu and announcements. Although this is simple, they
still have a hard time executing it because it is only the owner who manages the
social media accounts and when he gets busy, no one can update them.
 TACTICAL IMPLEMENTATION

ADVERTISING
TACTICAL IMPLEMENTATION

PERSONAL SELLING

SALES PROMOTION
 MARKET SEGMENTATION

The company has divided the market into three two segments based on: age of
consumers and class income of consumers. The age of the market is divided into
four: teens, young adults, adults, and senior. Teens being 13 to 19 years old, Young
Adults being 20 to 29 years old, Adults being 30 to 49 years old, and Seniors being
49 to 80 years old. The class income of the consumers is divided into low, middle,
and high income. Class income of the consumers is divided into PHP 0 to 15,000
per month, PHP 15,001 to 29,999, and PHP 30,000 above for low, middle, and high
respectively.
MARKET SEGMENTATION
TACTICAL IMPLEMENTATION

PUBLIC RELATION

PUBLICITY
 TARGET MARKET

The company aims to target itself onto the low and middle income segments
by offering affordable products that are relatively cheaper compared to other
businesses whose core products are milk tea. The company aims to penetrate
the lifestyle of the two segments by pricing their products at a relatively low
price so continuous patronage of the business would not hurt their income.

In regards to the age segment, adolescents and young adults will be targeted.
Since among students and young adults milk tea has been a trend that has
lasted for a couple of years and isn’t something new. In fact, the product has
been a staple drink among their age group.
 TARGET MARKET

The researchers will be marketing the specific age group by presenting

to them a place where they can catch up with their friends amidst the
hustle of school or work. Furthermore, playing trendy music and a
flexible environment that can cater to studying customers and
relaxing customers.
 POSITIONING

The company positions itself as a place where their customers can wind down from a
long day of school work, catch up with friends, or get some work done. Simply, it is a
company that cares for its customers.
The company plans to position the business as such that when “milk tea” is said QQ
Milk tea will be immediately thought of as the number one place to go for its target
markets. Through this positioning, customers will approach the business first before
others. The phenomenon can be achieved through consistently offering a wide variety
of foods that customers can easily choose from at a cheaper price compared to its
competitors.
 POSITIONING

In order for the company to sustain its competitive advantage, it should be present in
the minds of the customers as a food that can be eaten for lunch, snacks, or dinner. As
to lunch and dinner, the company offers silog meals that can be eaten together with
the milk tea. As to snacks, the company offers egg rolls and ramen.
The company aims to brand itself as a business that is easily accessible and affordable
given its near distance from schools and its student-friendly priced products.
 MARKETING MIX DECISION

• PRODUCT
QQ Milk tea Café offers an authentic Taiwanese flavor of milk tea and
affordable meals to its customers; the establishment makes sure to serve
delectable and palatable food and beverages. Such products the customer
offers are ready-to-eat meals like silog, egg rolls, pancit canton and the
like. With its milk tea line, the café serves only one basic drink which is
their authentic Taiwanese milk tea along with add-ons which the
customers can freely choose their own preferences. The choices for the
add-ons are black pearl, coffee jelly, egg pudding, etc.
 MARKETING MIX DECISION

• PRODUCT
The market entry and growth strategies of the café in terms of marketing their
products are on a conservative and not so strong level. They basically rely
on the advantage of their location wherein the students of different
universities are their major market. The entity should rather not limit its
scope of customers but rather think outside the box and enhance their growth
strategy such as marketing and brand management. One of the marketing
programs the café has also implemented is a stamp card wherein a customer
collects a number of stamps (signatures) in order to obtain a free drink after
acquiring all of the stamps required. This program of theirs has long been
running already and not many of the customers even know about it. The said
stamp card program is not highly effective since most of their staff do not
market or promote to their customers the existence of this stamp card.
 MARKETING MIX DECISION

• PRICING STRATEGIES
The business should offer affordable products given its target markets are low
income, middle income consumers, adolescents, and young adults.
The strategy can be accomplished by starting their milk tea products at an
affordable price PHP 65 and adding PHP 15 for every add-on at the choice
of the customer: egg pudding, winter melon syrup, black pearls, and etc. In
line with that, the business should offer another milk tea flavor from their
regular; recommended milk tea flavors being almond and taro. The
premium flavors should start at a slightly higher price of PHP 80; the
increase in price is counter acted as the flavor is different from their
regular and a new flavor.
 MARKETING MIX DECISION
• PRICING STRATEGIES
The company will also offer product bundle pricings. An example would be the
bundle of banana muffin and hot tea – is bought separately it would be higher
but since it is bought together as a bundle it is cheaper. To illustrate better, the
company will offer combo-style products consisting of a milk tea and ramen
for PHP 150 which is cheaper compared to buying the two products
separately for PHP 65 and PHP 95.
As to segmented pricing, senior citizens are also offered discount when buying
the products. Lastly, the company gives discounts to loyal customers. The
business offers a loyalty card at a minimum price and for every milk tea the
customer earns one star and for every corresponding twelve stars earned there
is a free product whether drink or food.
 DISTRIBUTION CHANNELS

To begin, QQ Milk uses direct marketing channel since it has no

intermediary participants. QQ Milk Tea sells their product directly to their
customers. However in 2018, the owner of QQ had a new endeavor on its
distribution. QQ is now coordinating with Grab Food, a mobile application,
which customers can order online and what they have ordered will be
delivered to the delivery address with only a PHP 15.00 charge.
DISTRIBUTION CHANNELS
 SALES FORECAST

The researchers of this study have conducted an interview with Miss Cheryl
Gabasa, the store manager of QQ Milk tea Café. With the said interview, the
researchers have gathered some important data as to how the café copes up
with the demands of the customers and its variation or seasonality.
The researchers have found out that on Tuesdays and Thursdays, the café has
its highest number of cups being sold (50-60 cups per day) through the
week while on Mondays,
 SALES FORECAST

Wednesdays and Fridays, the café sells on an average level of 40-45 cups per
day. On weekends,
30-35 cups per day are only being sold. The sales projections are based on
the information gathered:
Having the information of the number of cups sold per month, the
researchers have managed to do another forecast for the following year’s
demand (in number of cups).
SALES FORECAST IN UNITS AND PESOS
MARKETING BUDGET
Feedback and Control
Feedback and Control
Financial Projection
 SUMMARY

QQ Milk tea has been involved in food and beverage industry for almost 5 yrs. It
is your usual milk tea store that you can find in malls, downtown part of the city
and university belts. The company is owned by a corporation composed of 4
young professionals. QQ Milk tea offers
a varied menu of affordable meals/snacks that go with their authentic-Taiwanese-
flavored milk tea. Since the company is located in a area where there is a cluster
of colleges and universities, their target market is mostly composed of university
students. The company aims to provide customer quality milk tea and comfort
food that would exceed their expectations making them one of the top milk tea
stores in the country.
 SUMMARY

The company has several challenges: the company doesn't have a varied and
wide market. Also the company is struggling to work at its full capacity since
they aren't generating enough income for them to afford growth opportunities.
The researchers felt the need to make a marketing plan formulated to identify
which strategy the company should pursue in order for them to improve their
generation of income and sustain their existence in the long-term without
compromising the quality of its services. As the researchers determine how best
to enlarge the company's operations, they will consider expanding the business
as defined in our strategy.
 CONCLUSION

QQ Milk Tea is a good example of a company that is able to sustain its

business for six years due to an affordable and enjoyable milk tea and
convenient location. The business is relatively cheaper compared to its
competitors while the location of the business is in the vicinity of different
schools. The core strength of the business lies in its ability to be a
welcoming venue for the surrounding students to unwind, catch up, and
study due to the two previously mentioned characteristics.
 CONCLUSION

However, QQ Milk Tea still has the ability to drastically improve its
marketing and operations. The business is currently lacking in awareness
from students relatively distant from the venue. Furthermore, QQ Milk Tea
is lacking in using technology as leverage for its operations since its
transactions are currently manual. Lastly, the business lacks product
diversification and product development of their milk tea as it only offers
one regular milk tea flavor, which is a weak point since the product is their
main selling point.
The marketing strategy of QQ Milk Tea is mainly relying on word of mouth
and recently joining GrabFood as means to increase public awareness of its
products. The business also relies heavily on the affordability and palatable
taste of its products to acquire and maintain customer loyalty.
 CONCLUSION

The business is currently enduring and surviving despite experiencing a

change of ownership and a drastic decrease in market share due to one year
where there was no influx of students during Kto12. However, the business
still has plenty of room to improve its faults. QQ Milk Tea may still refine
and enhance itself from a surviving business to a thriving enterprise.
 RECOMMENDATION

First of all, since QQ Milk tea is within the radius of the nearby universities, the target market
is mostly students. Therefore, it is recommended that the café should use a great variety of
targeted promotional tools. For example, the media selection could include internet, outdoors
personal selling and word of mouth. The researchers highly recommend that the café should
invest in advertising as this helps market their products and attract not just university students
but also earning professionals and households to purchase from them. As it is currently a
growing small-medium enterprise, the company does not have ample budget to fund huge
advertising means (i.e. television and/or radio advertisements and commercials). Since the
internet is an easy, free and less costly medium, so the café’s greatest advertising choice would
be through social media.
 RECOMMENDATION

Also, it is mentioned under the SWOT analysis as the entity’s weakness that they
struggle to comply certain requirements for the application of such business permits
due to the strict implementation policy by the current government; with this, it is
highly recommended by the researchers that the company shall hire someone to
actually process and execute the requirements of these business application permits
so that it will not be a burden for the employees already since currently there are
only 2 employees who work regularly in the café. Another weakness of the
company would be their manual recording system as this can give rise to certain
problems in terms of weak internal control; with this; the researchers also
recommend for the company to have a proper database and maybe install a POS
(point of sale) for an appropriate recording of their daily transactions.