Chapter I

INTODUCTION

BACKGROUND OF THE STUDY

Market is where the buyer and seller makes a contact with one another for the

exchange of goods or services, or it is a place where the buyer and seller interact. A

marketing strategy is an overview of how business or organization will articulate it’s

value proposition to it’s customers. Generally, a marketing strategy outlines a business

goals, target market, buyer personas, competitors, and value for customers. It provides

a long term vision for overall marketing efforts, often looking many years ahead. While it

may be tempting to hash out a marketing plan right away, thinking about the marketing

strategy first can improve your product’s success and give you a competitive advantage.

Rather than describing the concrete actions required in specific advertising campaigns,

marketing strategies are a compass used to guide marketing efforts (Coursera, 2023).

According to shareteabubble-tea-history, bubble tea, also known as pearl milk tea

or boba milk tea, is a Taiwanese tea-based drink that was invented in the 1980s and

was originated in Taiwan. The tea is mixed with milk or fruits and topped off with chewy

tapioca pearls. By the early 90’s, bubble tea became prevalent in Japan and Hong

Kong.

According to an article by Regiena Sy (2021), Milk tea was established by Julieta

Herrera-Chen and Peter Chen in 2008, and Serenitea was the pioneer of milk tea in the

Philippines. Peter had spent some time in Taiwan, where he had experienced the milk

tea buzz, and he thought that the drink would appeal to Filipinos as well. And now that
the Philippines is one of the countries with milk tea businesses, based on the latest

survey, Filipinos rank as the second-highest bubble tea drinkers in Southeast Asia.

Young people and even adults love drinking milk tea, not even eating main meals

of the day, and drinking milk tea instead. Bubble milk tea uses sugar or condensed milk

to create sweetness and that is also a risk for regular milk tea users. The higher the

amount of sugar in milk tea, the more it will affect the health of the user. This is the

cause of overweight, obesity, diabetes, of blood fat. You will also face the risk of

cardiovascular disease or liver disease or cognitive decline. Bubble milk tea is

combined with many foods such as pearls, tea, milk, egg tarts so if you are allergic to

one of them, it will be extremely dangerous (Ha Noi 2019).

In addition, milk tea has experienced tremendous growth in popularity in China,

especially among youths. Milk tea consumption might lead to addiction and it is

associated with depression, anxiety, and suicidal ideation (Elsevier 2023).Having milk

tea first in the morning or empty stomach and morning tea when combined with healthy

snacks ae bad. According to Bakshi milk tea could have several side effects like it’s

propensity to cause bloating and indigestion or causing weight gain due to fast present

in the dairy.

Milk tea shops in the nation confront a spectrum of challenges that extend from

hygiene concerns to economic viability. A study by Smith et al. (2019) underscores the

importance of stringent hygiene and food safety standards, highlighting the ongoing

need for vigilance in these areas. The National Tea and Coffee Association (NTCA,

2021) contributes insights into economic challenges, noting the impact of fluctuating

ingredient prices on the overall financial health of milk tea businesses. Labor shortages,
as discussed by Johnson (2020), pose operational challenges and necessitate strategic

workforce management to ensure smooth operations. Additionally, regulatory

compliance, as emphasized by the Food and Beverage Regulatory Council (FBRC,

2023), remains pivotal, demanding adherence to local and national regulations for the

sustained success and legitimacy of milk tea shops.

The online platform and food delivery became businesses that helped milk tea

owners reach more customers, especially their sales. Also, the future milk tea business

aspirants are encouraged to take heart. Facing the reality that there can be a season of

low sales, discrepancies, struggles, especially now that everyone meets a crisis.

Instead of losing hope for might having low income, future aspirant business owners

must find ways to cope and adjust to the challenges they're facing. Maintaining

customer satisfaction and listening to the customers' feedback and demands will help

improve their services to keep their customers (Muelle et al, 2022).

Milk tea became a trend that causes the surge of competition in Bacnotan, La

Union. Since the pandemic started, milk tea owners here in Bacnotan, La Union, have

faced different challenges due to the different changes and adjustments made because

of the effect of the pandemic. And now that the virus is decreasing and the new normal

is happening where people can go outside, but this is not the end of their problems, the

pandemic caused the Philippine economy to go down plus the never-ending inflation

gravely affected small businesses such as milk tea shops.

The local issues of milk tea business is challenges that includes competition from

other milk tea shops, fluctuating ingredient costs, maintaining consistent quality, finding

and retaining skilled staff, changing customer preferences, and increasing operational
expenses. Milk tea shop owners may also improve the factors include the quality, taste,

appearance, and brand name of the milk tea. Additionally, the packaging, advertising,

and past purchase experiences also contribute to consumer satisfaction, and so that

they will be choosing your product if you improve it and make it beautiful. And make

sure that the location of your business is located at the market or should be near the

school, so that the students will buy.

The main purpose of this study is to determine the marketing strategies and

challenges or difficulties encountered by milk tea shop owners. These challenges

include operational efficiency, financial management, customer engagement, and

market competition. By understanding these challenges, we can provide targeted

solutions that directly address the main points faced by milk tea shop owners. The

significance of this study will provide a piece of knowledge that involves understanding

the techniques that will contribute to business growth.

This study will be conducted among Bacnotan specifically for five to ten (5-10)

milk tea shop owners. The respondents will be interviewed in their shops or any

comfortable place that the respondent will choose to. These respondents will be

interviewed face to face. This approach ensures that the researchers target milk tea

shop owners with their marketing strategies and the challenges they face.
STATEMENT OF THE PROBLEM

1 .What problems and difficulties do milk tea shop owners experience when

competing with others?

2. What are best marketing strategies of milk tea shop owners.

THEORETICAL FRAMEWORK

Business Strategy Competition (2022)

According to Hayder (2022), in this study we want to know and understand the

strategies that the Milk tea Shops use to overcome the problems and to keep the

Business successful and better than the competitors. This study is anchored on the

theoretical support of the Business Strategy Competition (2022) by Kamrul Hayder.

Business Strategy Competition proposes that strategies are combinations of innovation,

technology and new features with plan, vision and design that make a company stand

out from the competition. Just as Milk tea Shops in Bacnotan, La Union use different

strategies in the problems they face and to stand out from other competitors.

The Influence of Marketing Strategies of Milk tea Shops on the Preference of the

Consumers

According to De Guzman et al. (2020), milk-tea business is affluent in the town

specifically in Malolos. As this business booms in the market, one problem that owners

may encounter is the multiplying number of competitors. Setting up a strong trademark

based on the target market supports the longevity of the business. Varieties of gimmick

also helps the business to be more favored by the people. The study aims to find out

the marketing strategies and which of these strategies influence the preference of the

consumers. A quantitative research method with a descriptive approach was utilized in

the study. In-depth analysis was employed to identify which of the marketing strategies

influence the preference of the consumer. The respondents of the study are 10 milk-tea

shops along Malolos and 100 customers randomly selected from the milk-tea shops.

The instruments used in the study were researcher-made questionnaires validated by

experts. For the managers, it is a four-item questionnaire with multiple response

questions to determine the marketing strategies that their milk tea shop use. While the

checklist for the consumers is composed of sixteen questions that are answerable

through the Likert Scale. The findings show that the consumers consider the location,

price and marketing strategies of a milk-tea shop. As a conclusion, both respondents

find branding the most appealing marketing strategy.

The Popularity of Milk Tea Amidst Covid-19 Pandemic: Perspectives of Selected

Entrepreneurs in Minglanilla

Milk tea became so popular that numerous entrepreneurs tried to venture into this

business. The Philippines is dubbed the second-most populous country in Southeast

Asia regarding bubble tea users. Though the Philippines was dubbed as such, it was

not until late 2019 that Pearl Milk Tea exploded its popularity in the country. It paved the

way for the tea-enthusiast to venture into the business by experimenting with various

creamers, flavors, and sweeteners. In Minglanilla, Cebu, Philippines, there is also a

growing Milk tea shop on every corner of the street; however, before the boom reached

a year, a pandemic halted every operation on every establishment. Through a

phenomenological approach, the researchers of this study interviewed the owners and

management of milk tea businesses in this new level of difficulty. The study's significant

findings merged the theme scope, including Covid-19 Business Impact, Digital

Marketing, Adapt Delivery Services, Safety and Security Protocols, and Menu

Engineering. Furthermore, findings suggest that Covid-19 negatively impacted business

establishments. Nevertheless, the management and entrepreneurs still push through

and invest more in their business, with a clear perspective of success and execute

modern alternatives that keep the business operating (Alqueza et al. 2022).
SCOPE AND LIMITATION

This study focused into the challenges and difficulties that milk tea shop owners

faces and how do they survive in the competition of business industry, given that the

milk tea shops in Bacnotan are increasing.

The participants involved in this study is milk tea shop owners around Bacnotan,

La Union. The researcher used qualitative method for gathering data through an

interview.

SIGNIFICANCE OF THE STUDY

Milk tea shop owners. This study will express their insights regarding different

strategies of milk tea shop owners.

Community. This study will contribute to the community on how milk tea shops provide

delicious drink that will refresh them from the hot tropical weather in Bacnotan, La

Union.

The Department of Trade and Industry (DTI). This study will help the consumers by

providing protection and information about trade regulation and fair trade laws.

Researchers. This study will help the researchers how to manage a business in the

future, and to know more about business strategies.

DEFINITION OF TERMS

Marketing- involves the strategic planning and execution of activities, utilizing various

channels and techniques, to create, communicate, deliver, and exchange offerings that

hold value for customers, clients, partners, and society as a whole.

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. It is a combination of milk and tea, which also comes up with different flavors and

ingredients.

Owner- an individual responsible for fostering growth, ensuring stability, providing

direction, and managing the daily operations of the business.

Shop- an establishment or space where products and services are offered for purchase

and the designated location where a specific type of employee performs their duties:

their workplace

Strategy- a comprehensive plan or a series of plans devised to achieve a particular

goal.

Techniques- a practical method, skill, or strategy applied to a particular task.

Chapter II

Methodology

RESEARCH DESIGN

The present study aimed to utilize a descriptive qualitative research design.

According to Creswell et al. (2007), the purpose of the descriptive method of research

was to gather information about present-existing conditions and explain that the

purpose of the descriptive method was to find a detailed explanation and description of

the object of the research systematically. It was also used to examine situations

involving the identification of attributes of a particular phenomenon based on an

observational basis.

This research primarily focused on the marketing strategies of milk tea shop

owners. Descriptive qualitative research was used in this study to analyze the subjects'

challenges, ways or procedures, and output. The objectives of this research study were

rooted in providing a deep explanation of the marketing strategies of milk tea shop

owners, specifically emphasizing the difficulties experienced by milk tea shop owners in

marketing their business, how milk tea shop owners marketed their business, and the

output that could be suggested towards the study.

POPULATION AND LOCALE OF THE STUDY

The participants of the present study where selected through purposive sampling

technique in the municipality of Bacnotan, province of La Union. Five (5) milk tea shop

owners or until saturation was reached served as participants of the study who

underwent an in-depth interview until saturation was reached.

Purposive sampling was a method of identifying and selecting cases that made

the best use of limited research resources. It was used to select respondents that were

most likely to yield appropriate and useful information (Kelly, 2010).

To obtain more accurate results for this study, the researchers will conduct the

study in Bacnotan, La Union, as it was a thriving center of entrepreneurial activities the

province. The municipality of Bacnotan, La Union, stood as a bright testament on

providing good quality services and delicious drinks among consumers in the

municipality, it conducts ease, benefit and satisfaction towards costumers. By giving

them valuable insights and knowledge that is necessary, especially to the food and

drinks business shop owners. This locale, known for it’s progress in food and drinks

business. Thus, the inclusion criteria of the study focuses on milk tea shop owners,

target market, and marketing strategies.

 Additionally, this research transcended the mere accumulation of knowledge; it

embodied a mission to empower these local businesses. By providing them with the

insights and knowledge necessary to enhance their marketing strategies, the

researchers will contribute to the economic development of the entire community.

Furthermore, the researchers believed that their experiences and insights

garnered from their stories would not only enrich our academic pursuits but also serve

as a guiding light for milk tea shops, not just in the municipality of Bacnotan, but all

those seeking to thrive in the realm of entrepreneurship.

DATA GATHERING TOOLS

This present study used full-structured face-to-face interviews employing open-

ended questions in which participants were to answer questions about their difficulties

experienced when competing with other milk tea owners and their marketing strategies

as a business owners. Full-structured face-to-face interviews provided a personal and

human connection between us as a researcher and the participants, making it easier to

establish a rapport and create a comfortable environment where participants felt valued

and heard. During the face-to-face interviews, we could ask follow-up questions and

seek clarification in real-time. This allowed for a more dynamic and interactive

conversation where participants could elaborate on their responses, ensuring a

comprehensive understanding of their experiences and perspectives. Face-to-face

interview offered flexibility in adapting to the interviewee’s pace and comfort level.

Researchers could tailor their approach to each participant, providing additional

support or reassurance when needed, which was particularly important when discussing

sensitive topics. It allowed us as the researchers to clearly communicate the research

purpose, assure confidentiality, and address any concerns or questions that participants

might have, thus upholding ethical standards throughout the study.

DATA GATHERING PROCEDURES

The data collection procedures will begin after the Bacnotan National High School

Committee will approve the research. To collect data, the researchers first seek for

approval from the Bacnotan National High School Research Committee to conduct a

face-to-face interview with milk tea shop owners who served as participants for this

study. The researchers also seek for feedback and approval from their research adviser

to determine to whether their data tool is highly valid, whether the research question

were approved, and if they could begin looking for and soliciting participants. To find out

if their data collection methods and research questions are allowed and if they could

start looking for and approaching participants, the researchers also needed input and

approval from their research adviser.

 The researchers will proceed once all aspects had been approved. After

selection, the chosen participants provided fundamental details about the research

study, including the title, objectives, significance of the interview, and their involvement

in achieving the research goals, prior to the interview. Informed consent is required

before the participants could take part in the interview, which was conducted by the

researchers. Subjects are also asked to having the interview recorded. Each

participants will assure after the interview that all information that will be gathered and

recorded would be strictly confidential.

Additionally, the researchers will ensure that the study will adhere to the

principles of trustworthiness, emphasizing the reliability and validity of the findings,

which encompassed credibility, dependability, and transferability. It is up to the

participants to find the most appropriate and convenient time for the interview to be

initiated and started once the participant felt comfortable and ready for questioning. A

participant could choose to withdraw from the study at any time, in which the

researchers would still be able to use their services in the future, and they would not risk

damaging their relationship. Participants personal information including names, age, IP

addresses, and emails, was kept private, and their responses were recorded on paper

under anonymous like Participant 01, Participant 02, and so on, depending on the

question. The study respected the autonomy of the participants. Prior to their
involvement, each milk tea shop was provided with a clear and comprehensive

explanation of the study’s objectives, procedures, and potential implications.

Informed consent was obtained from each participant, ensuring that they were

fully aware of their participation and could withdraw at any point without consequences.

To protect the privacy of the participants, their identities and specific business details

were kept confidential. This study ensured that no information provided by the

participants would be disclosed in a manner that could identify them individually. Tis

safeguarded their reputation and business interests. The researchers were driven by a

commitment to benefit the local community and the participating milk tea shop owners.

This initiative was self-funded, notably, there was no strict time limit, allowing for a

flexible interview schedule that avoided pressuring participants. Furthermore, by

conducting this study, the researchers aimed to empower these businesses with

valuable insights and knowledge that could enhance their service strategies. The goal

will contribute to the economic development of the entire community and reflecting a

sense of social responsibility. Special care will be done to ensure that the research

process did not harm he participants in any way, either physically or psychologically.

Questions and discussion will be conducted respectfully, participants are not obligated

to share sensitive information.

 The participation, ensuring the participants are neither coerced into participation

nor obligated to continue, and they were free to withdraw at any time without

jeopardizing their future services or relationship with researches or research bodies.

Ensuring that the research process did not cause any harm to the participants in any

way. The study will uphold the principle of Confidentiality, assuring that information was

deliberately excluded from the report. Additionally, the concept of Anonymity was

emphasized, assuring that the identity of the participants remained unknown throughout

the research. Lastly, the study will adhere to the practice of Assessing Relevant

Components Only, posing questions that were directly pertinent to the components

being studied, keeping them, simple, and maintaining a focus on the research intention.

DATA MANAGEMENT

The present study will utilize thematic analyzing the data. According to Mortesan

(2023), thematic analysis sought to identify patterns of themes in interview data. The

thematic analysis described an iterative process for transforming messy data into a map

of the data’s most important themes. In this type of data treatment, a thematization table

was used to categorize participant responses where commonalities were found,

eventually producing themes that sufficed for our research problem. The textual

responses to the two (2) main questions and indefinite follow-up questions will
transcribe, translate and comply into tables in this study, with one table corresponding

to one interview question and one cell of each table allotted to an individuals responses

in each table were rearranged so that those deemed similar by the researches would be

combined as they would produce codes due to commonality.