MilkTea Shops: Consumer Satisfaction and Perception to their Marketing

Strategy
INTRODUCTION:

Milk tea is one of the trends and most purchased beverage at the present. Milk tea is
popular not just because of its health benefits, but also because of its unique blend and
taste, no wonder why a lot of customers are being addicted to it. It is a combination of
milk and tea, which also comes up with different flavors and ingredients. There are
variants where customers can choose from. New generations customers fell in love with
this new trend of product. With that, entrepreneurs consider this as a huge opportunity to
raise income as well as develop a new and unique product out of the original ones. Just
like coffee shops, milk tea shops are good venue for people hanging out, socializing, and
spending their free time. The demand for milk tea increased that caused a lot of
entrepreneurs to enter the industry and open a milk tea business. Milk tea business is a
perfect example of a market structure called monopolistic competition, a market
structure where in the competition is very aggressive which leads for different brands to
compete for the consumers’ loyalty. Entrepreneurs have to make a way on how their
product will stand out among all of their competitors. This is where marketing strategy is
considered in order to catch the attention of the consumers. Entrepreneurs have to come
up with the best and most unique way of introducing and selling their product to the
market. Marketing strategy is considered to be the first step of any business to the world
of success. The future of the business depends on how good and unique your marketing
strategy is.

Filipinos were ranked to be the second highest drinker of milk tea in Southeast Asia.
According to Grab Food, (2019) data which caters thousands of milk tea brands
throughout Southeast Asia, an individual in the Philippines consumes an average of five
cups of milk tea per month. Compared to Thailand who consumes the highest average of
six cups per month individually while other countries like Malaysia, Singapore, Vietnam
and Indonesia consumes an average of three cups of milk tea per month. (Ichimura,
2019) This study will attempt to find out which milk tea shop have the best marketing
strategy in attracting and satisfying their costumer. The purpose of this paper is to find
out the level of satisfaction of the customers to the products sold and to the marketing
strategies used by the selected Milk Tea Shops in the city. The researchers will conduct
this study because it has been observed that a huge number of customers are
patronizing milk tea shops regularly. There are many factors affecting the number of
customers. It may be the different influences to the customers in choosing a milk tea
brand. Possibly, the marketing strategies used by these selected successful milk tea
shops, which the researchers will be focusing about.
Since Taiwan milk tea entered the mainland market, the fashionable drink milk tea has
gradually gained attention from the public. Different from the milk tea made by brewing
the milk tea powder in early times, which was lack of taste and characteristics, at
present, with the development of economy, consumers increasingly pay attention to the
requirements of quality and characteristics of milk tea. Among them, with the popularity
of milk tea, many online famous milk tea brands attract many consumers, which occupy
a place in people's daily life.

CHAPTER 1
In this chapter, the researchers presented the background of the
study, the statement of the problem, the significance of the study,
the scope and limitation, and the definition of terms.

BACKGROUND OF THE STUDY

In the article of Castro (2019), after 11 years of introduction to the Philippine market, the milk tea industry
keeps growing as milk tea shops keep popping with extensive menus that ensure avid customers find their exact,
perfect cup. People nowadays have a milk tea in their hands at least once a week or a delivery on their doorsteps
even almost every day. Filipinos are not really a big fan of brewed drinks, however, milk tea had become one
of the most popular beverages in the country. The Serene tea is the first milk tea house introduced in the
country. Husband and wife Peter L. Chen and Juliet D. Herrera-Chen built a shop in the city of San Juan after
coming back from a vacation in Taiwan where milk tea was trending everywhere at that time. Their business
immediately s gained popularity and was readily accepted by Filipinos. Because of the popularity, milk tea
shops from other countries began to enter the Philippines and start their own businesses like Gong Cha and Chat
time which originated in Taiwan. Milk tea is a refreshing beverage that has different toppings like pearl jelly,
coconut jelly and many more. Some want their milk tea sweet and some others do not. People have different
preferences in choosing milk tea, but what are these that helped them decide what milk tea they’re going to
buy? How will be the marketing strategies of milk tea stores affects the customers? What do people think are
the strategies of the milk teashops that captured the heart of every consumers? According to Barone (2019),
Marketing strategy is the plan of the business to attract people to buy their products. Stated by Basin (2019),
There are 15 types of marketing strategies: Business to consumer, a marketing strategy that the business
 

Statement of the Problem: This study seeks to find out the different marketing strategies used by the selected
successful milk tea shops in Taguig City. Specifically, this study attempts to find answers to the following sub-
questions:

1. What is the demographic profile of the respondents as to: 

Age

Sex

Religion

Educational Background

Family Socio – Economic Status

2. Who are the regular patrons of the milk tea shops in Taguig City? 3. What is the level of satisfaction of the
customers to the products sold at the successful milk tea shops in Taguig City during 2019? 4. What is the
level of satisfaction of the customers to the marketing strategies used by the selected successful milk tea
shops in Taguig City during the year 2019? 5. What are the marketing strategies used by selected successful
milk tea shops in Taguig City that attract the customers during the year 2019? 6. What are the measures of
effectiveness of the different selected successful milk tea shops in Taguig City? 7. Is there a significant
difference among the marketing strategies used by the selected successful milk tea shops in Taguig City? 8. Is
there a significant relationship between the marketing strategies and the success of the selected successful
milk tea businesses in Taguig City?

Hypothesis The following hypotheses were used by the researchers to serve as guide while in the process of
conducting their research work:

1. There is no significant difference among the marketing strategies used by the selected successful milk tea
shops in Taguig City.

2. There is no significant relationship between the different marketing strategies and the success of the
successful selected milk tea businesses in Taguig City.

Significance of the Study This study hopes to establish an understanding about the significant difference
among the marketing strategies used by the selected milk tea shops and to also understand the level of
satisfaction of the costumers to the product sold and to their marketing strategies. For the researchers, this
study is important and could enhance the knowledge of an individual about entrepreneurial skills of business
practitioners.

Benefiting the study is the various sectors as follows:

For the Students: The significance of this study is to help students, most specifically ABM strand and Marketing
students to further understand what marketing strategy is. This is to help them have an idea on how to
formulate a good and effective marketing strategy just like what the selected milk tea shops implemented. This
study will also heighten their capability of employing their knowledge to the business world and as a part of
their daily practices.

For the Customers: This study will help the customers on their consuming behavior, giving them knowledge on
how the milk tea shops are being operated. It may help customers to be

aware and to be informed about the marketing strategies used by selected milk a tea shop that influences them
in making a decision on where to buy. This will help them realize how these marketing strategies affect their
behavior.

For the Business Owners: This study will benefit an individual as an eye opener on how they can operate their
business. It is also beneficial for entrepreneurs, to help them in formulating and applying the most effective
marketing strategies that is used by successful milk tea shops in order to gain larger profit and for the
betterment of the strategies that they are using. This will help them have an idea on how they can adapt these
strategies to their own business.

For the Marketing Staff: This study will help the marketing staff in knowing if they are meeting the satisfaction
and expectations of the consumers. They will also have an idea of what people like, what to sell and raise new
ideas for the betterment of the strategy that they can use to their businesses.

For the Future Researchers: This study will help the future researchers as a basis for further study about
marketing strategies of milk tea shops. They can also use this study as their reference and as their guide in
doing their own study. They can also use the presented ideas as

reference data in conducting a new research or in testing the validity of other related findings.

For the Professors: This study will help the professors in delivering ideas and providing them plans and
procedures in delivering every lesson. They can also be aware even though they are not fond of the topic.

For the Administration: This study will help the administration on providing sufficient information on illustrating
different mindset and behaviors of an individual towards financial matters. They may also know how the milk
tea shops get their customers from their marketing strategies.
For the Future Entrepreneurs: This study will help an individual who is willing to have a business. This study
will give them an idea on how to strategize a business to achieve a goal on the business. This will also serve
as their reference to encourage them to build their own business. Scope and Limitation of the Study The
aspects of motivation the study will focus is on establishing an understanding about the significant differences
among the marketing strategies used by the selected milk tea shops and to also understand the level of
satisfaction of the customers to the product sold and to their marketing strategies. This study will be done

through the use of survey questionnaire and will be distributed to 75 milk tea customers and will be used as a
reference. The study is survey research design which the respondents are only limited to customers of the Top
3 successful milk tea shops in Taguig City specifically Macao Imperial Milk Tea, Chatime, and Dakasi. With this
strategy, the researchers will be able to determine the Level of Satisfaction of the Customers to the Products
Sold and to the Marketing Strategies used by Selected Successful Milk Tea Shops in Taguig City. This study
will not cover problems that are not related to the level of satisfaction of the customers and to the marketing
strategies of different milk tea shops in Taguig. The customer who doesn’t buy milk tea is not within the scope
of this research.

Definition of Terms Acceptability - the quality of being tolerated, allowed, or accepted Accessibility - customers
have the ability to access the product or service Accustomed - often used or practiced Advertisement - way of
promoting product or service through the use of public medium to make an announcement or promotion
Availability - being able to purchase or obtain the product Awareness - being knowledgeable and having
enough information about the product Behaviour - the attitude or the way how someone behave Cleanliness -
the state of being free from dirt and unpleasing smell

Competitive Advantage - the advantage gain through having a good service, lower price value or a good
branding Consume - to devour, eat or drink Consumer Behaviour - the study of how people make decisions
about what they buy, want, need, or act in regards to a product, service, or company Consumption - the using
up of a resource Customer - the buyer of a certain products or one who avail services Customer Satisfaction -
when the customer is being satisfied on a particular product or service that they bought Dissatisfaction - lack of
satisfaction; not meeting the expectations Demographic Factors - age, gender, education, income and
experience have a considerable impact on business performance Dominate - have a commanding influence
on; exercise control over Extrinsic - not part of the essential nature of someone or something Fraud -
intentional perversion of truth in order to induce another to part with something of value or to surrender a legal
right Influence - the thought process that leads a consumer from identifying a need, generating options, and
choosing a specific product and brand Innovation - the improvement and progression of a particular thing

Intrinsic - belonging naturally; essential Lactose - the sugar found in milk Madness - extremely foolish behavior
Marketing Strategies - a plan or action with different techniques to promote a certain business or company and
the way how sellers attract customers to buy products and services Milk Tea - a beverage which is a
combination of milk and tea Phenomenon - an aspect known through the senses rather than by thought or
intuition Palpable - so intense as to seem almost tangible Patent - open to public inspection Patronize - to be a
frequent or regular customer or client Product - object that is created to sell for consumers Promotion -
includes all the ways available to make a product and/or service known to and available to purchase by
customers Purchasing Decision - the thought process that leads a consumer from identifying a need,
generating options, and choosing a specific product and brand Satisfaction - achieving one’s desire or
expectation Service Quality - the quality of the service that is being rendered

Stagnant - having no current or flow and often having an unpleasant smell as a consequence Strategy - a
technique, plan, or idea of someone Tapioca Pearl - a small edible ball made primarily from tapioca starch Tea
Industry - the industry where tea is manufactured Trend - it is where something is shifting or developing
Variations - a change or difference in condition, amount, or level, typically with certain limits Vicinity - a
surrounding area or district

Conceptual Framework The researcher’s purpose in this investigation is to discover the factors that affect
consumer’s buying behavior in terms of the customer’s personal influences, cultural influences, social
influences, and psychological influences.
The researchers used survey questionnaire as the primary source of information and data pertinent to the
study since it is the most reliable and an accurate means of gathering facts about the study. The
questionnaires were given to 100 customers (convenient sampling method) of each milk tea store. The
measurement instruments that were used in the questionnaire are percentage, weighted mean and a four
point, Likert scale method. In addition, the researchers conducted tan interview with the manager of CHA
TIME: store regarding the marketing strategy, product strategy and pricing of the establishment.

Theoretical Framework According to the Tracking the Local Milk Tea Trend: How Did This Obsession Start by
Jasper Castro (2019), eleven years after the milk tea became popular, and the customer’s love for milk tea is
at an all-time high. The number of milk tea fanatics became high as milk tea shops keep doing different
strategies in order to get the people’s

taste. Nowadays, it's normal to see people lining up for hours to get milk tea, having it delivered to their
doorstep, or even consume milk tea at least once a week. The timeline below shows the milk tea trend in the
Philippines according to Jon Tolentino

Serenitea, a milk tea shop that opened its first branch on December 2008, after the founders Juliet D. Herrera-
Chen and Peter L. Chen. Peter, who spent some time in Taiwan, where milk tea was already trending full-
swing, thought that us Filipinos were going to want in on it, too. Milk tea invades campuses by 2009. Happy
Fanshu, opened near Far Eastern University in 2009, bringing milk tea to student droves. That was just the
beginning.

Then the dairy tea shops began to flood near Ateneo, La Salle and UP with their funky tea puns: teaology,
Infinitea, Q-Tea and more. This was the real beginning of the blast. Coffee shops began to clash with the milk
tea shops. After all, milk tea shops held a similar atmosphere, a relaxed space that encouraged visitors to
linger for long periods of time-perfect for the student to finish with a paper or friends to hang out with. The large
number of students joining the trend, purchasing milk tea as both a caffeinated pick-meup and a sweet treat,
made this milk tea possible. Taiwanese milk tea will enter market in the Philippines by 2011. As the milk tea
finish is getting higher and higher, milk tea franchises from milk tea origin, Taiwan, have entered our business.
Gong Cha and Chatime not only entered the market, but they soon climbed the lists, encouraging other milk
tea shops to keep up. Taiwanese milk tea shops weren't just taking over our country at this time, but were also
taking the country. Through 2013 the movement towards milk tea is approaching its first point. According to
SPOT.ph's Top 10 List in 2013, several shops were ranked as household names: Serenitea in #9, Happy
Lemon in #8, Tokyo Bubble Tea in #5, Chatime in #4, Dakasi in #2 and Gong Cha in #1. However the trouble
also began in 2013. Just as the trend in milk tea had hit its high peak, gradually the decline was coming. A
Dakasi branch in Iloilo served milk tea that had been tainted with E that year. Coli and Salmonella caused 50
clients to become ill, and one of them died. Milk tea has been branded as a healthier coffee substitute. But a
test was conducted in 2016 to determine just how much sugar milk tea drinkers got. They had got a lot. In their
research, they found that not only were Asian Americans susceptible to

bingeing on milk tea in Southeast Asian communities (which includes the Filipino community) but were also
vulnerable to diabetes. Locally however people still see milk tea as a healthy drink. With the passing of time,
new milk tea items and the introduction directly from Taiwan of new milk tea shops meant one thing: the trend
for milk tea was officially back. Macao Imperial Milk Tea Shops, Yi Fang Taiwan Fruit Tea, famous Taiwanese
dairy tea brands, all opened shop locally in 2017. Thai brand Cha Tuk Chak came in with their distinctly
flavored Thai milk tea. A combination of marketing efforts of these shops captures the heart of the millennial
market.

Review of Related Literature Local Literature The craze for milk tea has completely infiltrated the subway.
Citizens walk the streets carrying their cups filled with tapioca pearls and sipping big colorful straws. Although
famous milk tea chains like Serenitea, Chatime and Happy Lemon have been around for many years, local
milk tea shops are emerging everywhere, taking advantage of the craze and catering to the taste of teenagers.
Milk tea is said to originate in Taiwan. A Taiwanese named Liu Han Chie of Taichung's "Chun Shui Tang" tea
house, served it in 1890s, provided cold Chinese tea and eventually added tapioca pearls as an experiment
that quickly became popular not only in Asian countries, but also in the US and Europe. As the cravings of
Dabawenyos for milk tea becomes evident, so too has the number of milk tea shops in the city increased
considerably. Business people compete not only with their distinct drink collection but also with their milk tea
shops' ambiance

and comfort level. Milk tea shops in Davao don't normally run out of patrons. Such facilities are packed during
weekdays with students either studying or actually lounging after a busy school day. As this craze continues to
escalate, with current projections indicating that this phenomenon will linger for a while, environmental policies
must become important for all consumers. (Intern, 2019) In an article made by Castro (2019) about “Tracking
the Local Milk Tea Trend”, stating that Filipinos have been a fan of tea since then. Few businesses have been
selling traditional milk tea made with tea and evaporated milk pearls even before but it was not that popular.
Milk tea shops started to compete with coffee shops, for having the same ambiance in accommodating
customers. Some customers prefer to buy milk tea for it is a healthier drink and a substitute for coffee. When
the trend for milk tea started, customers had their own favorites which lead to many business owners to enter
the milk tea industry. Southeast Asian countries were a big influence for many milk tea shops here in our
country, especially Taiwan where most of the famous milk tea shops originated. Macao Imperial and Yi Fang
Taiwan Fruit Tea are some of the famous milk tea brands from Taiwan which started way back 2017.
Innovations were made which made the market go crazy purchasing milk tea. It even became more accessible
when some of the tea brands, Nestea and Lipton created milk tea powder in a sachet. The milk tea trend made
the emergence of many milk tea shops which contributed a lot not just in the economy but also to the health of
many consumers. Based on the study “Milk Tea Mania: Your Guide To The Best Milk Teas In Metro Manila” by
Marc Adrian (2019) stated that Metro Manila has plenty of milk-tea shops that give Filipinos plenty of choices to
satisfy their new-found love for milk teas.

While the basic milk-tea beverage may all taste similar, there are more ways than one to add flavors to this
beverage – this is how milk-tea shops define themselves in this competitive but delicious market. With so many
shops to choose from with menus featuring a wide variety of milk-teas, it may not be humanly possible to taste
everything without risking the health of a person from sugar. Milk teas have been around years ago, but it
wasn’t until the popularity of this beverage has soared – it’s basically the new Starbucks of the beverage line.
Today in Metro Manila, milk tea shops are filled with customers at all hours, that buying one would allow you to
last in line for at least 15 minutes. According to the 2018 report by Grab Food, the Philippines ranked second in
Southeast Asia's milk tea consumption. In that year alone, from June to December, Grab's milk tea orders rose
by 3,500 percent. Given that even in app-based food delivery services, the Philippines is not on top of the list,
yet the country has managed to dominate Grab's milk tea statistics. According to GrabFood data that states
bubble tea orders in Southeast Asia saw a 3,000 percent growth rate in 2018. In the Philippines alone, orders
increased by 3,500 percent from June to December 2018.” states Anri Ichimura (2019) in her report regarding
the highest bubble tea drinkers in Southeast Asia. It has been stated in the report that GrabFood has estimated
that Southeast Asians drink four cups of bubble tea per person per month. The Thai consumers had placed
first among the highest bubble tea drinkers in Southeast Asia followed closely by Filipino consumers who
reportedly drink five cups of bubble tea per person per month. According to Agno, et al (2015) The study
“Customer Satisfaction on the Quality Services of one Department Store in Batangas City, Philippines” is about

assessing the customer satisfaction on the service quality of one Department Store in Batangas City in terms
of employee’s professional appearance, customer relation, customer service and facilities. Also the study
wants to propose an action plan to improve the customer satisfaction and service quality of the Department
Store. The participants of this study is a total of 100, only the customers who support, patronize, and visit the
Department Store were involved in this study, also to be able to identify their respondents the researchers
used the quota sampling to determine the number of respondents. Quota sampling is a method where in the
researchers gathering representative data from a group. The results of the study showed that the customers of
the Department Store in Batangas City were satisfied on the service quality that was rendered to them. Hence,
Department Store can continuously improve and provide trainings, orientations, seminars to help their
employees have a better customer relations and customer service, also to be able to achieve and have a full
customer satisfaction. According to Michael Van Supranes (2014) on his study about The “Milk Tea War”: A
Case Study on Using Social Media as a Source of Business Intelligence indicated that there are 23,000
popular milk tea brands related posts on social media platforms like Instagram and Twitter. It showed how
social media is a big source of information. The recent obsession about milk tea is really not about the product
itself, but it is about the strategy the shop did in order to improve its interestingness to their products since the
milk tea products are still the same. The study concluded that influencer marketing sometimes makes the
brand of the milk tea interesting. In general, brands who can provide a new milk tea flavor, a change in the
product or a new way on attracting the customers are said to win the milk tea war.

Satisfying the customer is one of the achievement/goal of a seller, when consumers are satisfied it will
continue going back again and again and also because of it their customers will became loyal to them. To
maintain this, companies should consider different consumer buying behaviors. Consumer buying behavior is
the behavior of individuals regarding the decisions they have in mind when spending their resources for goods
and services. (Lee, N. and Vega, A. 2014) It is difficult to understand consumer behavior when it comes in
goods and services. Therefore, sellers should understand the variations and adjust their products and
marketing strategies according to what the consumer demands to obtain retention or sustainability because,
sustainable success is achieved through generating satisfaction in recognizing and understanding consumer
needs and desires. (Lee, N. and Vega, A. 2014) The study conducted by Juliet Ilusorio talks about the Increase
of Popularity of Milk Tea in the vicinity of Mendiola. It is eloquently stated that milk tea craze in the Philippines
is continuing to grow as a result of the rapid expansion of sales of milk tea. The study will provide much
information on the popularity of milk tea among student brand preferences, price differences, and many more.
The information contained in this research can answer questions and help solve problems concerning dairy tea
products and consumers. (Ilusorio, 2014) According to Bea Marie Alfafara et al (2012) milk tea is the new
craze for CFAD student in their university. It has an average of 3percent of population that does not know of
milk tea. Based on the gathered data the researchers discovered that the most patronized milk tea shop in
their campus is the Moon leaf which gained the average vote of 23.77percent.

Foreign Literature Bubble tea, also called pearl milk tea, bubble milk tea, or simply boba was one of the most
popular drinks to cross from east to west shores in modern times and took the youth culture and online foodies
of the world by storm. Globally, as of 2017, the bubble tea market is valued at USD 1.94 billion and is expected
to continue to grow at a rate of 8.5 per cent over the forecast period of 20182025. Fast forward to today and
bubble tea has become a sensation not only in Taiwan but worldwide as well. GrabFood, the Southeast Asian
ride hailing company's food delivery service, Grab, underlined Southeast Asia's growing obsession with
drinking. Bubble tea orders have seen a steady and dramatic increase in 2018 with an average global growth
rate of 3,000 per cent. GrabFood now has about 4,000 bubble tea outlets in its networks of over 1,500 brands–
a 200 percent increase in the region's bubble tea outlets, owing to this growing consumer demand. Thai
customers are taking the top spot in bubble tea consumption, with six cups per person per month, based on
Grab's data. They are followed by the Philippines with an average of five cups and then with three cups per
person per month in Malaysia, Singapore, Vietnam and Indonesia. It has become a kind of self-fulfilling
prophecy, especially in the age of social media where online speculation shared serves as a tinder for further
excitement and momentum sustainability. (Ian Estares, 2019) According to “The effect of extrinsic cues on
consumer perception: A study using milk tea products” by Yoonkyung Choi and Jeehyun Lee (2019) stated that
the acceptability of consumers may be affected by both extrinsic factors and sensory

intrinsic characteristics. The goal of the study was to determine the effect of extrinsic signals on consumer
acceptance and perception of flavor, to examine the discriminatory power of the check-all-that-apply (CATA)
customer assessment tool, and to explore the possibility of using CATA as a reference for complex flavor
products and many words using commercial milk tea products. A total of 240 consumers tested eight samples
of ready-to-drink milk tea under both intrinsic and extrinsic conditions. Participants rated the overall love, liking,
and strength of three dominant characteristics: sweetness, milk taste, and black tea flavor, and selected
attributes that they recognized among 93 CATA terms that were presented. While extrinsic information on
packaging positively affected the acceptability of liked samples, the preference for tested samples was not
altered. Nevertheless, in the extrinsic evaluation, the shift in acceptability varied between customers who had
previously purchased the particular product and those who had not. Analysis of comparability showed that the
intrinsic and extrinsic assessments contributed to similar organization of the sample and the term organization.
Consumers were able to use a large number of terms, and differentiated between complex flavor samples
using CATA process, and variations in intensity with varying frequency rates were shown. It was also possible
to reduce words based on the frequency data obtained from customer evaluations using CATA process.
Therefore, assessment of CATA could be considered for different categories of food that had not previously
been formed with sensory words. Traders must develop products, according to different consumes desire, and
they should also create new marketing strategies, in order to make consumers have a tough buying experience
in products. Therefore, traders should pay attention to the modeling

of brand qualities and emphasize the uniqueness of the brand. At the same time, they should include greater
attention to the strategy of product pricing, product category development and product packaging. (Han, Y.
2018) Obesity has been an ongoing problem already for decades. the study suggest that boba milk tea fits the
us dietary guidelines definition of a sugar-sweetened beverage but as an additional 0ne 16-ounce boba drink
was there for stated exceeds the upper limit of added sugar intake recommended by the 2015 US DGAC. The
high caloric sugar content of these boba milk teas can furthermore exacerbate the epidemic of childhood
obesity. As the population for this milk tea shops continues to grow, health practitioners and dieticians should
give special attention towards the moderate consumption of boba milk teas that is to be implemented to the
customers (Jae Eun Min, et al 2017). A study conducted by Saesieo (2016) investigates the factors affecting
buying decision of pearl milk tea in Bangkok. It has been concluded that demographic factors such as gender,
age, income, and occupation had made an influence to the consumer’s purchasing decision. The best seller
selection had little influence, though the cost to pay has influence with Product, Price, Place, Promotion, thus
affecting a consumer’s buying decision. It has also been concluded that a consumer’s behavior has influenced
the purchasing decision towards pearl milk tea. The study conducted by Thong Kai Yip tackled about the
Public Perception on Taiwan Bubble Tea Consumption in Miri. Based on the study, milk tea consumers worry
about their health when consuming milk tea. This causes milk tea shop to control and focus more on the quality
of their products. The deliciousness of the milk tea will affect

the success of the business and sell it on a reasonable price. It concludes that milk tea shops should offer a
good customer service to their customers. According to Shams (2014) in his study about the “Assessment of
Consumers’ Loyalty and Switching Behavior: A Study on Selected Tea Brands in Bangladesh”, it was said that
the customer satisfaction is important for the business to make the customers repurchase the product or be a
loyal customer. Different customers have their own different taste, and different expectations when purchasing
or trying new products, they consider the price, quality, customer service, the accessibility, availability and the
brand. The business should be aware of these standards considered by the customers so that they can have
consistent sales and increasing or consistent number of customers. Expectations that should turn into
satisfaction of the product for the customers are an important thing that should be managed by the business.
However, the dissatisfaction of the customer can cause customers to switch brands. In order to encourage
customers, different marketing and promotional tools are used such as gift certificates or discounts can be
used to attract customers. Marketing staffs should know how to promote their business. Increasing the brand
awareness should be considered first in order for the customers to have an idea about the business or product.
Advertisements and handing out free gifts are the strategies that they can do to gain customers. Evaluating the
customers’ feedback and recommendations about the product or service can also help them to improve their
business. The study conducted by Bernadine Racoma tackled about the Milk Tea Madness in Southeast Asia,
that nowadays, a lot of people have been addicted into drinking milk teas. Historically, people from some
Southeast Asian countries were only used to

drinking coffee, soda, juice ice teas, and hot tea– a very American practice to say the least. But just a few
years ago, various types of milk tea brands were introduced, and many businessmen became interested in
investing to them, prompting the insanity of milk tea in Southeast Asia.

In the study of Herath and De Silva (2011) The research “Strategies for Competitive Advantage in Value Added
Tea Marketing”, stating that nowadays the world tea market is rapidly growing and it satisfies the customer
needs. To be able to achieve and gain competitive advantage the tea industry developed an innovation to their
marketing strategies. The study gathered data through interviewing the founders of nine firms, the researchers
propose an interview guide to be able to answer their questions. The interview was conducted with the Chief
Executive Officers of the firms. The selection of the companies for the study was done using the records of tea
exporters issued by the National Chamber of Exporters, National Chamber of Commerce and the Tea Board.
The results of this study revealed that brand building, niche marketing, product differentiation, cost leadership,
and customer focus were the most prominent marketing strategies adopted by the firms. Putting up a new
market abroad, fair trade, environmental sustainability, and faster delivery were the most important strategies
that market leaders must apply, also it was shown that strategic decision has an impact on the vision of the
leaders, their enthusiasm and commitment. Identifying marketing strategies will help the firm to succeed in this
business.

Research Paradigm

LEVEL OF

SUCCESS OF

SATISFACTION

THE BUSINESS

AND DIFFERENT

WITH THE USE

MARKETING

OF DIFFERENT

STRATEGIES OF

MARKETING MILK TEA

STRATEGIES SHOPS

CHAPTER II Research Design The researchers used a Qualitative Approach of data analysis and
presentation. This helped the researcher come up with a fact-finding analysis with clear and correct
interpretation. For the research method, descriptive method will be use. According to Adi Bhat, descriptive
research explains the features of the studied population or phenomenon. This approach focuses more on
research subject’s “what”, rather than research subject’s “why.” The objective is to discover the Level of
Satisfaction of the Customers to the Product Sold and to the Marketing Strategies used by Selected Successful
Milk Tea Shops in Taguig City during the year 2019. The research study will be based on the perspective of
the customers on the Selected Successful Milk Tea Shops

regarding the different marketing strategies used. This is to know how effective the marketing strategies of the
Selected Successful Milk Tea Shops are as observed by the customers. The research method is intended to
share information on the marketing strategies of the Selected Successful Milk Tea Shops and how will they
satisfy, attract customers, and their buying behavior. According to Gauri and Gronhaug, (2005), "The research
design is the overall plan for relating the problem of conceptual research to relevant and feasible empirical
research." In this, the researcher used a survey questions to completely comprehend and effectively describe
the results. Providing respondents with a set list of answers, they will not normally be able to give lengthy
open-ended responses. Data were collected through questionnaires, analyzed and interpreted by using
descriptive techniques.

Participants of the Study The respondents of the study will be the customers of milk tea in Taguig city
particularly in BGC (Bonifacio Global City). The survey questionnaire will be given to one hundred milk tea
customers. The respondents will be divided into four groups that consist of twenty five customers. The first
group will be the Macao Imperial Tea customers, the second will be from the customers of Chatime, the third
will be from Dakasi customers, and the last group of respondents will be coming from the customers of random
milk tea shops in Taguig City.

The researchers decided to divide the

respondents into four groups to avoid bias answers, and avoid equal results. The same was likewise done to
identify properly the different marketing strategies and the level

of satisfaction of the customers of the selected successful milk tea shops in Taguig City. The researchers can
gather information and opinions from the customers of milk tea in Taguig City that could help the milk tea
shops improve their marketing strategies that will help their business partners achieve their future goals.

Table 1 The table below indicates the age of the respondents. 15 below

(%)

16 - 25

(%)

10

10%

73

73%

26 to 30 6

31 above

(%)

6%

11

11%

Table 2 The table below indicates the gender of the respondents. Female

(%)

Male

(%)

69

69%

31

31%

Table 3 The table below indicates the religion of the respondents. Christian (%) Catholic

(%)
INC

18%

63%

6%

18

63

Born (%) Others: (%) Again Angelican Bible Based 8

8%

Table 4 The table below indicates the educational background of the respondents

5%

Above Average

(%)

Average

(%)

Below Average

35

35%

60

60%

5%

Table 5 The table below indicates the socio economic status of the respondents. P20k below

(%)

P21k to P30k
(%)

P31k above

31

31%

30

30%

39

39%

Research Instrument The study utilized the researcher-made descriptive survey questionnaire in order to
achieve the purpose of this study which is to determine and describe the strategies used by milk tea shops in
the city of Taguig. It is descriptive in the sense that the data obtained from the survey questionnaire were
analyzed and described. In preparation of the descriptive survey questionnaire, the requirements in the
designing of good data collection instrument were considered. In this manner, the survey will obtain valid
responses of the participants. The aim was to conduct the survey to 100 milk tea customers. All surveys were
fully completed with 100 results included in the analysis.

Data Gathering Procedure The researchers allocated intense time, commitment and collaboration to develop a
questionnaire to serve its intended respondents. The survey questionnaire was

developed using the researchers' relevant updated questions from related research, and individual questions.
The primary purpose of the survey questionnaire is to determine the level of customer satisfaction with the
products and the marketing strategies used by selected successful Milk Tea Shops in Taguig City. The main
respondents are the actual customers of these milk tea shops. In the survey questionnaire, this research will
use a mix of closed questions and more open comments. A closed question is one that has precoded answers
that can be answered by yes or no.. The researchers will be able to limit the responses that fall within the
reach of this study through closed questions. The one hundred survey respondents were given a structured
questionnaire. Structured questionnaire asks questions and offers a number of possible responses. The

researchers

also

indicated

the

survey instructions

for

avoiding

misunderstanding among the respondents. This will help the researchers collect accurate data from the
respondents because some respondents fail to ask the guidance from the researcher. The respondents may
not really recognize what the issue is, instead. This could lead to poor data collection.
Data Analysis In this study, the data collected will be analyzed with the use of descriptive statistics. Descriptive
statistics is used simply to summarize and describe the data collected. Univariate Analysis can also help to
observe the variables of the study. With the use of frequency distribution, to group the data and present it in
percentage form. The corresponding answers will be displayed in percentage form in such categories, the
demographic profile, age, gender, etc. There are different types of central tendency of

distribution; it is used to estimate the center of values, such as mean, median and mode. (Trochim, 2020) The
said analysis and statistics will be used in this study to determine the level of satisfaction of the customers of
the selected milk tea shops as well as the marketing strategies used. Content Analysis or review of the
material can also be used to interpret recorded information from text, photographs, and sometimes from
physical items. Narrative Analysis can be used for the analysis of accumulated information from different
resources. There, informal interviews, field observations, and surveys using the questionnaire can be the
sources. Most of the time, people share stories or opinions focus on finding answers to research questions.
Whilst, Discourse Analysis is similar to Narrative Analysis, an analysis of discourse is used to evaluate
people’s experiences. This method however takes into the social context under which the correspondence
between the researcher and the respondent takes place or within which it takes place. Discourse Analysis
focuses also on lifestyle and daily world before drawing some conclusions. Lastly, if you want to understand
why a particular phenomenon happened then the best recourse is to use grounded theory to evaluate quality
data. Grounded Theory is used to study data regarding the host of similar cases that occur in different settings.
Furthermore, the selected successful milk tea shops in the city is the dependent variable, while the level of
satisfaction of the customers to the products sold and to the marketing strategies used is the independent
variable.

CHAPTER III

PARAGRAPH / EXPLANATION ON S.O.P. QUESTIONS

( ARIZ AND NAMOCA) Table 6 The table below indicates the responses of the respondents to whether they
drink milk tea or not. Respondents

Yes

(%)

No

(%)

100

100

100%

0%

YES

NO

Graph 6

100 %
Table 7 The table below indicates the responses of the respondents the reason why they drink milk tea

Respondents

Cravings

(%)

Trend

(%)

Recommendations

(%)

Others: Flavor

100

60

60%

21

21%

17

17%

2%

Graph 7 2%

17%

CRAVINGS

Table 8 The table below indicates the responses of the respondents on how often they drink milk tea

Respondents

Once a month

(%)

Once a week

(%)
100

56

56%

33

33%

Every other day 8

(%)

Twice a week

(%)

Everyday

(%)

8%

3%

0%

graph 8 3%

ONCE A MONTH

8% ONCE A WEEK 33%

56%

EVERY OTHER DAY TWICE A WEEK EVERYDAY

Table 9 The table below indicates the responses of the respondents on their familiarity about milk tea.
Respondents

Yes

(%)

No

(%)

100

99
99%

1%

GRAPH 9 1%

YES

NO

99%

Table 10 The table below indicates the responses of the respondents on their satisfaction with their purchased
milk tea. Respondents

Yes

(%)

No

(%)

100

96

96%

4%

GRAPH 10 4%

YES

96%

NO

Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime
%

100

20

20%

47

47%

33

33%

PARAGRAPH / EXPLANATION ON CHARACTERISTIC OF MILK TEA RESULTS ( LIM AND CAMENTING)

Table 11 The table indicates showing the responses of the respondents on the ambiance of the selected
successful milk tea shop.

GRAPH 11

Table 12 The table below indicates the responses of the respondents on the cleanliness of the selected
successful milk tea shop. Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

32

32%

33

33%

35

35%

GRAPH 12 MACAO IMPERIAL TEA

35% 32%
DAKASI

33%

Table 13 The table below indicates the responses of the respondents on the packaging of the selected
successful milk tea shop. Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

35

35%

40

40%

25

25%

GRAPH 13 MACAO IMPERIAL TEA 25% 35% 40%

DAKASI CHATIME

Table 14 The table below indicates the responses of the respondents on the taste of the selected successful
milk tea shop Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

33
33%

27

27%

40

40%

GRAPH 14 MACAO IMPERIAL TEA 40% 33%

DAKASI CHATIME

27%

Table 15 The table below indicates the responses of the respondents on the pearl texture of the selected
successful milk tea shop Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

26

26%

37

37%

37

37%

GRAPH 15 MACAO IMPERIAL TEA 37% 26% 37%

DAKASI

CHATIME

Table 16 The table below indicates the responses of the respondents on the service of the selected successful
milk tea shop Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

31

31%

35

35%

34

34%

GRAPH 16 31%

34%

MACAO IMPERIAL TEA DAKASI CHATIME

35%

PARAGRAPH / EXPLANATION ON MARKETING STRATEGIES RESULTS ( CABALLERO AND AZANES)

Table 17 The table below indicates the responses of the respondents on the pricing of the selected successful
milk tea shop Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

32

32%

33
33%

35

35%

GRAPH 17 35% 32%

MACAO IMPERIAL TEA DAKASI

Table 18 The table below indicates the responses of the respondents on the convenience of the selected
successful milk tea shop Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

26

26%

37

37%

37

37%

GRAPH 18 26%

37%

MACAO IMPERIAL TEA DAKASI

Table 19

CHATIME The table below indicates the 37% responses of the respondents on the social media marketing of
the selected successful milk tea shop Respondents

Macao Imperial Tea

(%)

Dakasi
(%)

Chatime

100

34

34%

28

28%

38

38%

GRAPH 19

38%

34%

MACAO IMPERIAL TEA DAKASI CHATIME

28%

Table 20 The table below indicates the responses of the respondents on the pop-up ads of the selected
successful milk tea shop Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

35

35%

33

33%
32

32%

GRAPH 20 MACAO IMPERIAL TEA

32%

35%

DAKASI CHATIME

33%

Table 21 The table below indicates the responses of the respondents on the flyers of the selected successful
milk tea shop. Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

28

28%

49

49%

23

23%

GRAPH 21 23%

28%

MACAO IMPERIAL TEA DAKASI

49%

CHATIME

Table 22 The table below indicates the responses of the respondents on the promos of the selected successful
milk tea shop. Respondents
Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

47

47%

40

40%

13

13%

GRAPH 22 MACAO IMPERIAL TEA

13%

DAKASI

47% 40%

CHATIME

Table 23 The table below indicates the responses of the respondents on the word-of-mouth of the selected
successful milk tea shop Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

41

41%
36

36%

23

23%

GRAPH 23 23% 36%

MACAO IMPERIAL TEA 41%

DAKASI CHATIME

Table 24 The table below indicates the responses of the respondents on the sponsorships of the selected
successful milk tea shop Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

35

35%

34

34%

31

31%

GRAPH 24 MACAO IMPERIAL TEA 31%

35%

DAKASI CHATIME

34%

Table 25 The table below indicates the responses of the respondents on the influencer marketing of the
selected successful milk tea shop Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

46

46%

32

32%

22

22%

GRAPH 25 22% 32%

Table 26

MACAO IMPERIAL TEA

46%

DAKASI CHATIME

The table below indicates the responses of the respondents on the branding of the selected successful milk tea
shop Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

39

39%
31

31%

30

30%

GRAPH 26 MACAO IMPERIAL TEA

30%

39%

DAKASI CHATIME

31% Table 27

The table below indicates the responses of the respondents on the use of billboard of the selected successful
milk tea shops. Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

44

44%

8%

48

48%

GRAPH 27 MACAO IMPERIAL TEA 48% 44%

DAKASI CHATIME

8%

Table 28 The table below indicates the responses of the respondents whom they think is the most popular milk
tea brand.
Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

43

43%

9%

48

48%

GRAPH 28 MACAO IMPERIAL TEA 48%

43%

DAKASI CHATIME

9% Table 29 The table below indicates the responses of the respondents who used the best marketing
strategies. Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

38

38%

9
9%

53

53%

GRAPH 29 MACAO IMPERIAL TEA 53%

38%

DAKASI CHATIME

9%

Table 30 The table below indicates the responses of the respondents which milk tea brands satisfied them the
most.

Respondents

Macao Imperial Tea

(%)

Dakasi

(%)

Chatime

100

35

35%

16

16%

49

49%

GRAPH 30 MACAO IMPERIAL TEA

35%

49%

DAKASI

16%
PARAGRAPH / EXPLANATION ON THE SUMMARY OF RESULTS ( UMALI)

CHAPTER IV

Significance of the Findings ISYASA AND ARIZ Summary CAMENTING AND CABALLERO Conclusions Milk
tea has been one of the trends nowadays and the most bought beverage. Milk tea is not only popular for its
beneficial effects as well as for its unique blend and taste, no wonder why many consumers are hooked to it.
This study hopes to gain an understanding of the significant difference between the marketing strategies used
by the selected milk tea stores as well as to understand the

level of customer satisfaction with the product sold and their marketing strategies. This study could enrich an
individual's knowledge of the entrepreneurial abilities of business practitioners. Researchers found out that
majority of the customers of the selected successful milk tea shops in taguig are 16 to 25 years old and most of
them are female, because according to Hallam, Boswell, DeVito, and Kober (2016) popular culture also depicts
gender differences in food cravings, such as the notion that men crave savory foods while women crave sweet
foods, particularly as they approach menstruation. In this study, we conducted 100 respondents. For upcoming
researchers, we intend on using this variable and create a model that will help increase the popularity of this
type of research. Some of marketing strategies used by these three successful milk tea shop are packaging,
pearl texture, promos, word of mouth, affordability, ambiance and advertisements. This study reveals the most
perceived of the customers in the city. It is observed that among the three selected successful milk tea shop,
Chatime is the most perceived of the customers when it comes to its popularity, milk tea brand that satisfied
them the most and also it was chosen for having the best and most effective marketing strategy that leads in
attracting more customers compared to Dakasi and Macao Imperial Tea, based on the findings of the study.
We therefore conclude that Marketing Strategy has a significant effect to the successfulness of the selected
milk tea shops.