Part 3 Business Mark

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 1
PART THREE
MEMBERS :
Hinagpisan, Herzyl, C.
Lopez, Christian A.
Iglesias, Arnold I.
Lugar, Daniela Rose B.
Lubay, Johannah Marrie B.
Morada, Justin Dominic T.
Cardinoza, Tricia Nicole D.
Rocafor, Van Aaron R.

ORGANIZATIONAL CHART
SOCIAL MEDIA
WEBSITE
TWITTER ACCOUNT
INSTAGRAM ACCOUNT
FACEBOOK PAGE
POSTER
FLYERS
MENU
OFFICE LAY OUT

MILKCREAM SHOP LAY OUT

WAREHOUSE LAY OUT

V. MARKETING STRATEGIES
(a) Mission
 Our mission is to stand out on the crowd and market by providing the best
quality experience, customer service and to make more different variations of
milktea flavors to give a satisfying taste and experience for our beloved
customers. We aim to become one of the top milk tea shops in the country and
to be the pioneer in our industry attained by a well-planned expansion through
retail outletsand wide product distribution.
(b) Objectives (These may be identified by doing SWOT/TOWS Matrix)
  Beverages and entertainment are our products. They must be of the high
quality and value.
 Service: Their experience will suffer if service is not of the highest caliber. Each
member of the staff will be courteous, efficient, and attentive.
 Marketing: We will need to target our audience early and often. While the
business is located in a central and accessible location, many people will
have to be reintroduced to the neighborhood.
 Management: We will need to have a firm grasp on beverage, and labor
costs. The experience must be delivered in a fashion that will not only inspire repeat
business, but also encourage word-of-mouth recommendations to others.
 Proper inventory, employee management, and quality control are key.

STRENGHT We have the best person Our shops have excellent

who examine every and lovable places where
ingredients of our product every customer will enjoy
that makes it unique and of taking selfies/group
delicious. pics.
WEAKNESSES High rental cost and lack We have a lot of

of capital. competitors that make
other people think that we
have the same taste of
products.
OPPORTUNITIES During this time of Our brand is unique so

summer, people will love there is a big possibility
our product because it’s that customers will love it
not just only milk tea, it not just because of the
has also an ice cream that current weather and the
make out product more product but because of
delicious and colder. the heart and
determination that we put
in it.
THREATS Competition between Fake news and other

other product that as competitors will to take
same as ours. down our business.
VI. MARKETING PROGRAMS

(A) PRODUCT
(1) Product Strategy
THE CORE
 MilkCream beverage in a pre-bottled, ready to drink format.
THE ACTUAL PRODUCT
 Packaging and labeling: This aesthetic milk tea packaging is a design concept
by the owner. The minimalist cup design is highlighted by the color red, shades
of the milk teas and the labels that match the hue just right.
 Branding: Colorful, aspect of play, round shaped, prominent MilkCream logo

written in modern font, catchphrases such as “Sip it, feel the heaven!”
 Trade name: MilkCream
 Brand personality: Energyy, funky, cool, functional, original, funny and Healthy
 Brand equity: MilkCream providesa quality, consistent, innovative and accesible

soft drink reputation.
AUGMENTED PRODUCT
 Nutritional information. Status (Social Drink). Features promoting the website.

Health benefits of a MilkCream product and drinks.
MARKETING CONSIDERATIONS
 Product life cycle: MilkCream have a strong marketing campaign, “sales will
begin immediately and the benefits of the purchase arereadily understood”.
Since MilkCream is prone to product imitation, MilkCream strategy is to broaden
distribution quickly, which is currently feasible thanks to the company’s high
manufacturing capacity.
(2) Product description/feature/USP
 PRODUCT DESCRIPTION
1. Nirvana – Milk Tea with a combination of Wintermelon and cheesecake and one
(1) flavor of our special Ice cream for toppings.
2. Love Potion No. 9 – Milk Tea with Assam Black Tea, Crushed oreos, cheesecake
and one (1) flavor of our special ice cream for toppings.
3. Buddha’s Tears – Fresh-Brewed Fruit Tea with a combination of Jasmine Tea,

cheesecake and one (1) flavor of our special ice cream.
4. Milk Cream other famous drinks include: •Yakult Teas, •Frappes, •Salt & Cheese
•Foam Blends, and •Iced Coffee Blends. There’s so much to choose from. There’s
also a wide choice of add-ons to your drinks: Pearls, Honey Aloe, Caramel Jelly,
Nata de Coco, Coffee Jelly, Egg Pudding, Tricolor Jelly& Panna Cotta.
 EQUIPMENTS:
- Shaking Cup
- Measuring Scoop
- Containers for milk tea flavor powders
- Container for cooked tapioc
- Stove top or burner to cook tapioca
- Pot to cook tapioca
- Strainer
- Cups & Lids
- Straws
OPTIONAL EQUIPMENT INCLUDE:
- (K-Tec/Blended is recommended)
- Cup sealing machine (Seals a lid on plastic cup)
- Pumps for syrups
 FEATURE
The Milk Cream shop featured a minimalist ambience a casual space that allowed
visitors to stay for long periods of time-perfect for the student with a paper to finish or
friends to hang out with. The massive number of students getting in on the trend,
buying milk tea as both a caffeinated pick-me-up and a sweet treat, allowed these
milk tea shops to thrive.
 USP
-Constant innovation is what makes Milk Cream unique. An example of this is the
product extensions we have undertaken to go beyond beverage. We have started
selling chocolates ice-cream for topping and many more flavor, using our signature
tea ingredients/flavors. This has proven very successful so far and has created for
us a strong branding position because as I observed no milk tea place has ever
explored this possibility in Philippines. Be different from the rest of the pack. If our
competitors are having “buy 1 take 1” promo every anniversary, we hold our annual
JUMBO cup promo instead. By doing this, our customers noticed us more and made
us stand out from the crowd. The JUMBO cup is unique to Milk Cream.
(3) Packaging
 This aesthetic milk tea packaging is a design concept by the owner. The
minimalist cup design is highlighted by the color red, shades of the milk teas and
the labels that match the hue just right.
 As communicated through the logo and the overall feel of the bottle, this milk tea
packaging design aims to unify the Milktea Cream's seemingly opposite assets
of ancient tradition and a contemporary freshness that consumers can relate to.
 Perfectly designed for Instagramable aesthetic pictures, the branding and

packaging concept for Milk Cream expertly dedicated to cultivating fresh, organic
tea blends.
 The logo communicate the customers emotions to always smile and look for the
bright side of our world. Milktea Cream is designed to give customers
satisfaction and mood lifting vibes that can boost customers productivity.
(B) PRICE
(1) Pricing Strategy
 For our newest Milkcream products, we choose market-skimming pricing

strategy. Nirvana is a popular brand in the MilkCream market using 100%
natural ingredients and minus preservativesand additives. We believe that the
customer is willing to pay for this product that you’ll never forget. We believe that
customers weigh our new product’s price, quality,and ability to satisfy their
needs because MilkCream products is the only brand in this industry that
introduce this product. We will not set the price too high to ensure the middle
income population is able to afford the product. Furthermore, we used odd-even
pricing strategy because customers tend to perceive the price is cheaper based
on the customer survey about 70% would pick the acceptable price for the new
tumbler of MilkCream. Besides, most of the customers is from middle income

families and tend to gain more, but spend less lead to the setting prices a few
cents under arounded number.
(2) Detailed Product costing
(3) Selling Price Index vs. Competition
Love potion no. 1

 Small - 65
 Medium - 75
 Large - 85
Love potion no. 2
 Small - 69
 Medium- 79
 Large - 89
Love potion no. 3
 Small - 85
 Medium - 95
 Large - 105
Buddha tears
 Small - 100
 Medium - 120
 Large - 140
Nirvana no. 1
 Small - 95
 Medium - 105
 Large - 115
Nirvana no. 2
 Small - 85
 Medium - 95
 Large -105
COMPETITION AND BUYING PATTERNS:
 Local customers are looking for a high quality product in a relaxing atmosphere.
They desire a unique and classy experience. In addition to sales through
company operated retail stores, leading competitors sell drinks through other
channels of distribution (specialty operations). Larger chains vary their product
mix depending upon the size of each store and its location. Larger stores carry a
broad selection of drinks in various sizes and types of packaging, as well as
accessories. Smaller stores typically sell a limited line of drinks and, maybe, a
few accessories. Technologically competitors make fresh milktea and tea-related

products conveniently available via mail order and online. Additionally, a few
larger competitors have made mail order catalogs offering Milktea products and
certain drink items, and select Milktea-making equipment and accessories,
available. Websites offering online stores that allow customers to browse for and
purchase Milktea, gifts, and other items via the Internet have become more
common place as well.
LOCATION AND COMPETITION:
 MilkCream is located at 101 Milk Cream started as an Express Brew Tea Shop located
at #101 España Boulevard St. Brgy. Maligaya, Manila City, we choose to build our milk
tea shop here because this Milktea are targeted for the people who are studying and
working. The restaurant is located one block east of Westgate between Cabo
Cantina and Q's tea shop, two restaurant-bars with the highest sales in all of
Manila for its category. The main survival obstacle that this Milktea faces is that
beverage sales can be inconsistent and that sales come and go in waves,
leaving the ownership at the mercy of these fluctuating trends, reducing working
capital reserves and the resulting short lifespan these cafes go through.
However, this particular location is relatively immune to this obstacle because of
its exceptional location. Q’s teashop has been in its current location for 22 years
and Cabo Cantina, at least 6 years; both of establishments continue to generate
significant profits year after year for their owners, even during these last few
years of economic depression. This is such a prime location that almost any
drink/tea cafe concept would do very well here. This ideal urban location already
has an existing built-in clientele. This venue is located within minutes of UCLA
and Santa Monica. MilkCream shop is in the heart of the student hang out
neighborhood and also surrounded by small businesses and numerous high rise
office buildings that employ thousands of workers looking for an affordable and
quality place to relax. The venue, matched with our concept, will provide an
unparalleled oasis for the drink enthusiast. The space measures approximately
2,450 square feet, of which approximately 500 square feet are located upstairs
as storage and office and 1,950 square feet are downstairs for business. The
shop is large enough to accommodate a varied crowd of wi-fi business/student
patrons. It has a patio that access Wilshire Boulevard that has extremely high
visibility and will be an integral part of MilkCream shop experience.
 Hours of Operation: MilkCream will be open for breakfast, lunch and late night
hangout seven days a week. Service will begin at 9:00 AM and end at 11:00 PM
Sunday through Wednesday and 10:00 AM-12:00 AM Thursday through Saturday.
LOCAL DEMOGRAPHICS
RING RADIUS: 1 MILE 3 MILES 5 MILES
Total Population 4,560 21, 237 53, 382
2019 income:
Median HH Income 2, 405 22, 305 55, 368
Per Capita Income 5, 703 27, 610 54, 766
Average HH Income
16, 308 5, 143 19, 075
2019 Household:
Total Household 4, 650 19, 379 33, 933
Average 1.81 1.98 2.08

Household Size
2019 Housing
Owner Occupied 20.30% 33.70%

Housing Units
34.00%
Renter Occupied 73.90% 59.50%

Housing Units
58.90%
Vacant Housing 5.80% 6.70%

Units
Population:
2020 Population 5, 705 26, 308 48, 256
2019 Population 5, 560 31, 237 50, 382
2018 Population 4, 762 25, 065 48, 426
2020-2018 Annual - 3.90% - 2.70%

Rate 3.80%
Household:
2020 Household 4, 785 17, 394 32, 036

2019 Household 4, 650 19, 379 33, 933
2018 Household 4, 822 11, 841 36, 710
2020-2018 Annual 0.70% 2.30% 1.20%

Rate 3.80%
(C.) PLACE
(1) Distribution Strategy and service channels
 MilkCream will be distributed through these channels: supermarkets,

convenience stores, independent food stores, discount stores, multiple grocery,
vending machines and direct sales.
EMPLOYEES MUST FOLLOW THESE PRACTICES
1. Personal hygiene is very important. All personnel working in the production area
are expected to maintain personal cleanliness. The unit takes precaution measure to
ensure:
• Come to work clean.
• Keep fingernails trimmed and clean.
• Do not wear fingernail polish, false eyelashes or fingernails, badges, pins, etc.
• Avoid touching body parts, including hair, nose, arms, eyes, etc. If hands become
contaminated, wash them.
• Turn away from food, ingredients, packaging materials and food contact surfaces,
when
coughing or sneezing. Use the crook of your elbow or shoulder. Then wash hands/
exposed arms.
• Do not eat, drink, smoke, chew gum or tobacco, or spit in any food handling areas.
All
food should be consumed outside of the production facility.
• Do not taste test in production or storage areas. Products can be taste tested
outside
of the production space or when it reaches the store.
• Do not wear loose items in breast pockets or on shirt collars [or smocks, overalls,
lab
coats, etc.] This includes pens, thermometers, etc.
• Placed all personal items (phone, keys, etc.) in the proper location. This location is
currently in the back storage room.
• Do not store waste on or near food, ingredients, packaging materials or food

contact
surfaces.
• Throw out any ingredient, packaging, or product that falls on the floor.
• Do not store ingredients or packaging materials directly on the floor.
• Do not wear any exposed jewelry, including watches. The only exception is a
medic alert bracelet or necklace, if it’s covered or tucked inside clothing.
• Do not bring glass into food processing and storage areas.
2. Building design and Facilities

Buildings used in the production area are suitable in size, design and construct for
preparing, cooking, handling, serving food, and for storing raw food products to be
used.
Plant and Ground: All these facilities are maintained properly. The proper drainage
facilities are provided to prevent contamination of food by seepage, food borne filth
or by providing beading place for pests. For this purpose effluent treatment plant is
installed.
Plant construction and design: The different sections of building are so constructed
as to reduce the potential contamination of the food, food contact surfaces and food
packaging materials. All machines are so installed that floors, ceiling and walls are
easily cleaned and sanitized daily. Adequate working space is provided for workers
and materials movement without causing any contamination of food.
Kitchen - use for preparing, cooking and handling of food. For food safety the kitchen
should be clean and in order to maintain cleanliness it must be clean regularly
before and after working production. Water supply, hand washing station and toilet
facilities, floor drainage and sewage system are adequate for sanitary operation and
cleaning of facilities, equipment and utensils, as well as to satisfy employee needs
and facilitate personal cleanliness.
Storage room - Products to be used. Cooked and raw foods has separate storage.
Must be clean and sanitize to avoid cross- contamination.
3. Sanitary Facilities and control
 Supplies
 Cleaning and sanitizing agents
 Cleaning equipment such as gloves, brushes, buckets, and foam sprayers
 Sanitation test records

Washrooms - the washrooms are equipped with cleaning sanitizers, hand soap,
tissue and toiletries. Workers are expected to help and keep the facilities clean.
4. Sanitary Operations
• Handling of Products - To prevent the contamination of the products, any behavior

that could result in the contamination of product is prohibited. Wash hands frequently
with hand soap using warm, running water for 30 seconds. Refrain from touching
nose or face, if do wash your hands. Hand-washing signs and proper techniques are
posted in all employee facilities. Do not let product and or packaging material touch
the floor.
5. Equipment and Utensils
The chill rooms, freezers ad cold storages are provided with temperature recording
devices. The chill rooms and
freezers are fitted with dial thermometers and cold storages are fitted with
thermograph i.e. automatic temperature recording system. All the equipments used
in the laboratory are calibrated regularly once in a year.
6. Production and Process control
Adequate quality control measures exercised in receiving, holding, segregation,

packing, freezing, storing of food materials with a minimum time duration of 7 to 8
hours from receiving to storage, so as to ensure that the food is not contaminated
due to unsafe condition.
Preventive maintenance: Preventive maintenance schedules are prepared for daily

and once in a year.
Breakdown maintenance: In case any breakdown of any equipment/machinery the

same is attended properly. Such event and subsequent restoration of the machine to
serviceable condition is recorded in the maintenance log.
7. Warehousing and distribution -Handling and storage of finished products are

performed in separate area under extreme sanitary control. Insulated/refrigerated
vehicles transport the finished products and time temperature abuse is avoided to
provide a safe and wholesome food to the consumers.
(D) PROMOTION
(1) PROMOTION STRATEGY
The long-range goal is to gain enough visibility to leverage the product line into
other cities and generate inquiries from potential inventors. To do that, MilkCream
needs:
- Public relations services per month for the next year intended to generate
awareness of editors and product information insertions, reviews, etc. Advertising
per month concentrating on social media. MilkCream will experiment with social
media platforms. MilkCream expects the facilities and signage to be a substantial
portion of our advertising. However, in the startup phase, MilkCream shop needs to
let people know where to look for the facilities.
(2) ADVERTISING CHANNELS
 Direct mail
 Internet
 Telemarketing
 Television
 Radio
SALES PROMOTION
 sale prices, discounts, coupons, contests, sweepstakes,

tradeshows, etc.
SOCIAL MEDIA
 Website: https://www.MilkCream.com
 Twitter: Milk_Cream Shop
 Intagram: Milkcream_Shop
 Facebook Page: Milk Cream
(3) PUBLICITY/PUBLIC RELATIONS/EVENTS
 MilkCream will rely on building relationships with schools, business and

corporatios to provide significant free publicity because of its community support
program. By giving charitable contributions to these institutions, they will get the
word out to their students/faculty/employees/partners about MilkCream
business.
 Word of mouth has always proven to be the greatest advertising program a

company can instill. In addition, the social media will be more than willing to
promote and provide the opportunity for more exposure.
(4) ADVERTISEMENT COLLATERALS
 LINK: PLAY THE LINK

https://drive.google.com/file/d/14m3QxUh_TjAg03eHJzjI88vB5qppLN75/
view?usp=drivesdk
VII. THREE- YEAR FINANCIAL FORECASTS
(a) Revenue Forecasts

 Tourist comprises approximately 35% of the revenues. High visibility and

competitive products and service are critical to capture this segment of the
market.
(b) Detailed Marketing Budget and Marketing Timetable
(c.) Income Statement

 MilkCream’s monthly income projections were calculated through approximating

daily average and the average spending per customer. One of MilkCream’s main
Competitors has an average daily of 500 and each customer. MilkCream’s
numbers were underestimated to ensure and can handle the worst-case
scenario. Furthermore, typical tea shops in the Manila spend 20% of sales on
producing their products; however, since MilkCream will provide organic, fresh
ingredients and it will estimate cost of goods sold to be 25% of sales. Lastly,
MilkCream accounts sales allowances as 5% of sales to cover the expense of
having discounts and fundraisers. By offering discounts and fundraisers,
MilkCream hopes to draw in new customers and build a larger customer base.
Through successful marketing, curious customers, and location, MilkCream
expects these increased costs and precautions to result in higher profit.
Operating expenses were calculated through actual estimates or projections
from nearby competitors. MilkCream has several fixed expenses, such as rent
and insurance, as well as several variable expenses, such as supplies and
utilities. The fixed expenses make up 61.1% of the total sales. The variable
expenses make up 3.53% of the total sales (income tax and operating profit
make up the remaining percentage). To ensure proper marketing and financial
projections, marketing expense, repairs and maintenance are classified as a
fixed expense every month. If the budget for these expenses is not achieved in
the month, the remaining balance will roll over to the next month. If the budget
for these expenses is not enough in the month, the balance for future months
will be decreased accordingly. This will allow Milkcream to continue branding
and maintain the wellness of the store. Situations like this explain why the
variable expenses make up a small percentage of the total sales. Overall,
MilkCream is projected to make a profit of 6,335,94 in the first year of
operations. This profit may be used toward up keep of the store, additional
marketing expenses, or unexpected payment of the loan.
REFERENCE:
PA TEA Milktea https://talkboba.com/bar-pa-tea/

Tyler milktea https://www.facebook.com/tylersmilktea/posts/114118204195904
Vic Soriano https://www.scribd.com/presentation/468777008/My-Girl-Milk-Tea-
Marketing-Plan
Rana Liaquat Ali Khan, Milktea Industry
https://l.facebook.com/l.php?u=https%3A%2F%2F1.800.gay%3A443%2Fhttps%2Fwww.coursehero.com%2Ffile
%2F48238138%2FMILKTEA-INDUSTRY-SWOT-ANALYSISdocx%2F%3Ffbclid
%3DIwAR1792KKxu46ZDoPDHFU5POn7pEAEoTP5ImnchZJoW4Ylsn1POlldxolveI
&h=AT0K6sUZWefwzYJZvpHRfleYDIsSyJiLgKk8vO6Zn5UlBrgK6JC9C9w7SjPrveD
YRbMC159QBY5LCxky2tTYaIvf-
SkYOpzNVYcVH1dLPMEMkS1qrgedLDf6npFr91gXnzvc
Eight Infinity Communications https://bonappetea.com.ph/company-profile/
Summit Digital (2021) https://www.yummy.ph/news-trends/milk-tea-trend-history-

philippines-a00261-20190307-lfrm2
TREND HUNTER INC. (2021)
https://www.google.com/amp/s/www.trendhunter.com/amp/trends/milk-tea-
packaging

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 1

Lugar, Daniela Rose B.

Lubay, Johannah Marrie B.

Morada, Justin Dominic T.

Cardinoza, Tricia Nicole D.

Rocafor, Van Aaron R.

OFFICE LAY OUT

MILKCREAM SHOP LAY OUT

WAREHOUSE LAY OUT

(b) Objectives (These may be identified by doing SWOT/TOWS Matrix)

quality and value.

business is located in a central and accessible location, many people will

have to be reintroduced to the neighborhood.

 Management: We will need to have a firm grasp on beverage, and labor

 Proper inventory, employee management, and quality control are key.

STRENGHT We have the best person Our shops have excellent

WEAKNESSES High rental cost and lack We have a lot of

OPPORTUNITIES During this time of Our brand is unique so

THREATS Competition between Fake news and other

VI. MARKETING PROGRAMS

(1) Product Strategy

 MilkCream beverage in a pre-bottled, ready to drink format.

THE ACTUAL PRODUCT

 Branding: Colorful, aspect of play, round shaped, prominent MilkCream logo

 Trade name: MilkCream

 Brand equity: MilkCream providesa quality, consistent, innovative and accesible

 Nutritional information. Status (Social Drink). Features promoting the website.

(2) Product description/feature/USP

3. Buddha’s Tears – Fresh-Brewed Fruit Tea with a combination of Jasmine Tea,

- Containers for milk tea flavor powders

- Container for cooked tapioc

- Stove top or burner to cook tapioca

- Pot to cook tapioca

- Cups & Lids

OPTIONAL EQUIPMENT INCLUDE:

- Cup sealing machine (Seals a lid on plastic cup)

- Pumps for syrups

 Perfectly designed for Instagramable aesthetic pictures, the branding and

(1) Pricing Strategy

 For our newest Milkcream products, we choose market-skimming pricing

tumbler of MilkCream. Besides, most of the customers is from middle income

(2) Detailed Product costing

(3) Selling Price Index vs. Competition

Love potion no. 1

COMPETITION AND BUYING PATTERNS:

few accessories. Technologically competitors make fresh milktea and tea-related

LOCATION AND COMPETITION:

Sunday through Wednesday and 10:00 AM-12:00 AM Thursday through Saturday.

RING RADIUS: 1 MILE 3 MILES 5 MILES

Total Population 4,560 21, 237 53, 382

Median HH Income 2, 405 22, 305 55, 368

Per Capita Income 5, 703 27, 610 54, 766

16, 308 5, 143 19, 075

Total Household 4, 650 19, 379 33, 933

Average 1.81 1.98 2.08

Owner Occupied 20.30% 33.70%

Renter Occupied 73.90% 59.50%

Vacant Housing 5.80% 6.70%

2020 Population 5, 705 26, 308 48, 256

2019 Population 5, 560 31, 237 50, 382

2018 Population 4, 762 25, 065 48, 426

2020-2018 Annual - 3.90% - 2.70%