CHAPTER 1 Introduction

It includes:

 Introduction
 Background of the problem
 Statement of the Problem
 Purpose of the Study
 Research Question
 Significance of the Study
 Definition of Terms
 Limitations and Delimitation of the Study

CHAPTER 2 Review Related Literature

It includes the following parts:

 History: History of the topic being studied

 Importance: the importance of the topic
 Current Practice: Current practices related to the topic
 Recommended Practices: recommend practices related to the topic
 Example: example of existing model or work related to the topic
 Connections: connections between the topic and other related topics
 CHAPTER I

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.

Review Related Literature

This study will explore o how waste used oil can be used as a fuel for a cooking stove.

The main objective of this chapter is to analyse and review past studies and on how used oil is

being used.

The 21st Century North American coffee shop has commodified the experience of coffee

and tea drinking on a global scale and has become symbolic of a globalized society. These

spaces have become ubiquitous in cities worldwide, and have turned social drinking into a

commodity, rather than a respite from everyday life as they were originally intended. This

project proposes a teahouse as a response to the ubiquity of the North American coffee shop,

while addressing changes in work culture, consumer trends, and cultural diversity in the city of

Winnipeg. Tea and coffee are the two most widely consumed beverages on the planet and

throughout history coffeehouses, coffee shops, tea shops, and teahouses have served as important

gathering places for millions of people around the world. These third places — places outside the
workplace and home, serve an important social function, and have responded to societal changes

over time. This project delves into the shared history of these typologies, while also investigating

their potential in fostering a sense of home and community for diaspora.

Small business organizations (SBOs) employ less than 500 individuals with less than

$7.5 million in yearly revenue (SBA, 2019). Fifty-five percent of all jobs include small

businesses (SBA, 2019). The three largest small business sectors include (a) housing, (b) retail,

and (c) the manufacturing (SBA, 2019). Small business growth helps improve the United States

economy (Kaya, 2018).

Small business owners deliver first-time job opportunities to communities (Panwar,

Nybakk, Hansen, & Pinkse, 2017; Parawansa, 2018). Sales from small businesses generate

investment in local communities through tax collection and charitable benefits (Razalan, Bickle,

Park, & Brosdahl, 2017). SBOs provide a safe space for community members and offer products

and services designed to encourage social responsibility (Sequeira,Weeks, Bell, & Gibbs, 2018).

Social responsibility refers to an individual or organization members’ ethical obligation to

benefit society at large (Hsu, Koh, Liu, & Tong, 2019).

Small business owners develop innovative products and services using limited resources.

Innovation occurs when individuals introduce a new or enhanced product, service, or process for

consumers (Wang & Dass, 2017; Yan & Yan, 2016; Zang & Hartley, 2018). For instance, small

business owners innovate by displaying flexibility, adaptability, and quick responses to market

changes (Taneja, Pryor, & Hayek, 2016). Factors that drive small business owners’ innovation

include prolonging the product life cycle through improvement, ensuring customer satisfaction,

and small business owners’ personal pride in small business success (Ferreira & Regina, 2018).
Innovative small business owners create value for consumers and business partners by reducing

costs and implementing strategies (Abdullah & Bin Mansor, 2018). For example, small business

owners can avoid leasing 2 agreements by using social media to promote and sell products online

(He, Wang, Chen, & Zha, 2017; Kvitka & Kramarenko, 2018). Entrepreneurs struggle to survive

despite providing consumers innovative products and services.

More than 50% of small businesses do not survive past five years (SBA, 2018).

Economic shocks, competition, and changing consumer demand impact small business owners’

ability to mitigate challenges (Kativhu, Mwale, & Francis, 2018; Krol, 2017). The 2008

recession resulted in less small businesses contributing to the economy compared to large

businesses (van Scheers, 2018). For instance, the rise of large corporations and government

regulations increased costs and decreased small business owners’ ability to grow revenues (SBA,

2019).

Coffee retailers make a compelling segment for business researchers to learn about SBOs

due to the growing coffee industry and mass appeal to consumer interests. Consumers drink

more than 500 billion cups of coffee annually (Dierberger, McIntosh, & Johnson, 2016). Small

local restaurants consist of 185,000 businesses with 179 billion dollars in total U.S. revenue

(IBIS World, 2019). Coffee shops include 77,000 businesses with an annual total revenue of 51

billion dollars (IBIS World, 2019). In the U.S. small local retail stores consist of 147,000

businesses with 39 billion dollars in total revenue (IBIS World, 2019). Coffee retailing provided

a good example of larger sectors since the industry increased in size and offers data on how

relationships with actors along the coffee supply chain impact small business owners’

survivability. Supply chain refers to a network of business leaders who develop, produce, and

sell products to consumers (LeMay, Helms, Kimball, & McMahon, 2017; Manders, Caniëls, &
Ghijsen, 2017). Providing information on the intricate relationships between coffee supply chain

3 actors helped the researcher explain how entrepreneurs in the independent coffee shop industry

developed strategies to gain a competitive advantage.

The coffee supply chain process contains seven phases for production (Contreras Medina,

Sánchez, Olvera Vargas, & Romero, 2019). After the initial phase of the coffee supply chain

occurs, global transporters deliver the coffee to distributors and coffee product manufacturers

who supply the commodity to retailers including small coffee shops and big box stores

(Contreras et al., 2019). An intricate and stable network requires carefully planned interactions

among intermediaries. For example, Lavazza S.p.A., a major coffee retailer, requires critical

engagement activities to empower coffee farmers, protect the coffee plants from climate changes,

and make coffee smallholder farmers more socially aware (Cerutti & Büchi, 2018). Lavazza

S.p.A. business leaders view supply chain actors as entrepreneurs rather than task performers

(Cerutti & Büchi, 2018). Trust between actors along the coffee supply chain ensures quality

sustainably grown coffees. Consumer interest in specialty coffee increased due to its availability

in small coffee shop enterprises, accessibility online, and ability to spark positive social

experiences among individuals who share similar values (Haight, 2017; Quintão, Brito, & Belk,

2017). Coffee culture emerged based on consumer experiences which transcend simple drink

purchases (Krol, 2017). The National Coffee Association USA reported in 2019 that coffee

remained the most consumed beverages in the U.S. with more than 70% of coffee consumers

preferring to prepare products at home (Mordor Intelligence, 2019).

A local coffee shop owner’s survival depended on controlling costs and growing future

revenues (Kühn & Bothma, 2018; ÖZTOPCU, 2017). In the small independent coffee shop

industry, competition among suppliers increased due to the number of suppliers who used 4
sustainable sourcing. More than 90 percent of coffee production occured in developing countries,

while consumption happened in industrialized economies (Carvalho, Paiva, & Vieira, 2016). At

nearly 112 million 60 kg bags or 6.72 million tons, raw coffee beans consisted of the largest

traded non-oil commodity in the world (International Coffee Organization, 2016). Coffee

retailers attain quality coffee products through several essential stages.

(Boughton and Ian, 2005) note, from the current scenario we see that the demand of

coffee is more than tea and earning good amount of profit. It is assumed that about 20 billion

cups of hot drinks are sold every year. In the UK tea sales have fallen by 84 million pound in the

last five years. Taste also changing all around the world, British customers drank more café latte

(47.4%) than cappuccino (47.1%).

Coffee is one of the most popular beverages worldwide and it has played an important

role in consumer culture since the mid-sixteenth century.Over the last decades, coffee has

undergone a transformation from a pure commodity to a specialty product, an evolution that is

commonly divided into the so-called “three waves of coffee consumption” (Manzo, J., 2014).

The first wave of coffee consumption started in the 1960s, which was characterized as a mass-

market with exponential consumption growth and wide availability. The second wave of coffee

consumption began in the 1990s with the formation of coffeehouse chains, mainly Starbucks.

Coffeehouses introduce specialty coffee1 to respond to the new consumer interest in coffee

quality. Coffee becomes a luxury product rather than a commodity (Carvalho et al., 2015). The

third wave of coffee had its genesis with small roasters, who promoted specific regions and new

brewing techniques.2 Coffee is now considered a high-quality artisanal food, often compared to

wine. The act of drinking a coffee means more than just consuming a beverage. It is about

pleasure, experience, lifestyle and social status. This change in consumer behavior has been
possible due to three approaches that currently characterize the consumer product coffee:

pleasure, health and sustainability (International Coffee Organization (ICO), Global Coffee

Forum, 2015).

In 2015–2016 around 151.3 million 60-kg bags of coffee were consumed worldwide

(ICO, 2018). The USA is the largest coffee consumer as a country (25 million bags). Brazil is the

second largest consumer (20 million bags) and the largest coffee producer (55 million bags) in

the world. The European Union stands alone with the highest consumption of 42 million 60 kg

bags, while the strongest growth rates of coffee consumption have been found in Asia & Oceania

(ICO, 2016–2017; Euromonitor International, 2014). Scandinavians have the highest per capita

coffee consumption (Finland 12,2 kg). Italy, a country known for its strong coffee culture, has a

per capita coffee consumption of 5,6 k. The USA, where coffee is also deeply rooted in

consumer culture and where the world leading specialist coffeehouse brand Starbucks comes

from, has a per capita coffee consumption of 4,5 kg. In comparison, the UK and Japan, as

countries with a long tradition of tea consumption, both have a lower per capita consumption of

3,6 kg (Brandeins Wissen, 2017).

Age

U.S. coffee chain sales grew by 10% from June 2021 to June 2022, getting very close to

reaching pre-pandemic sales. And chains expanded their footprint, growing the total market size:

despite early-COVID closures and staff shortages, there are now 2.8% more branded coffee

shops in the US than there were pre-pandemic.

 Branded coffee shops, like Starbucks and Dunkin’, still have significant market share in

the U.S. coffee market, but independent cafes continue to open and become cornerstones of their

communities. Data for revenue in independent cafes is less consistently tracked, but their

popularity with Millennials and Gen Z has helped keep many afloat. Over one-third of people

aged 18-29 report having recently visited a coffee shop — while only one-quarter of older adults

could say the same. Older Americans are much more likely to drink a cup of coffee from a drip

maker at home, whereas younger people tend to try different coffee preparation methods. The

coffee market in the U.S. as a whole is the largest in the world, bringing in an annual revenue of

$80 billion. It’s easy to see how: the average American coffee consumption rate is 1.87 cups of

coffee a day. With over 300 million Americans, that’s a lot of coffee! Though the most common

location for coffee drinking is at home, followed by the office, cafes — and the baristas who

work there — play a huge role in keeping Americans caffeinated.Coffee consumption varies by

age. Nearly half of people between the ages of 18-24 drink coffee, and nearly 70% of seniors do,

too — and they drink more of it. There’s variety in what kinds of coffee people choose to drink,

too: When surveyed in 2021, 58% of Americans reported drinking coffee in the past day, with

another 22% saying they’d drank espresso-based coffee beverages instead, like macchiatos,

straight espresso, cappuccinos, lattes, and americanos. Overall, 29% of all coffee sales are for

traditional coffee — as opposed to specialty coffee drinks like blended iced coffees.

News outlets and individuals on social media have been complaining about “tip fatigue”,

which is the concept of diners being done with tipping as generously as they had been doing

throughout the pandemic. Supporting local businesses and employees was a popular priority,

especially in the early days of COVID, but these reports say that people are getting fed up with

paying big tips every time they go out. But current data shows that tip fatigue is actually a myth:
Across the U.S., the average tip is 19.6% in full-service restaurants, and 16.9% in quick-service

restaurants (like cafes). Understandably, people tip less when taking drinks or food to go, but the

fact that they’re tipping at all still shows a willingness to help support local businesses.

In other words, people are still tipping generously to help service workers make ends

meet. In the current economic climate, where cost of living is so much more expensive than it

once was, hospitality patrons who can afford paying a slightly bigger tip — especially if it helps

keep the workers at their favorite businesses safe, housed, and fed — are continuing to do so.

To examine the above problem, a survey was conducted in 1189 young people (567

males aged 19.3 ± 1.5 years; 622 females aged 19.1 ± 1.2 years). The coffee consumption rate

was significantly higher in males (50.8%) than in females (32.8%). In the coffee consumption

group, no significant differences were found in the reasons for consumption, the components of

coffee, and its effects on health. In the coffee nonconsumption group, significant gender

differences were noted in the reasons for avoiding coffee; females (64.8%) disliked its taste more

than males (39.4%). More young people of both genders in the consumption group were aware

that coffee contains caffeine (79.9% - 86.5%) as compared with the nonconsumption group

(67.0% - 74.2%). However, few people in both groups were aware about the components other

than caffeine. In addition, more people in the nonconsumption group were unaware of the

adverse effects of coffee on the body. The results of this study demonstrated that young males

drink coffee more than young females. Among those who avoided coffee consumption, females

disliked its taste more than males. Many people regardless of coffee consumption were aware

about the components of coffee, but few knew about the other ingredients in this beverage. In

addition, few people were aware of the negative effects of coffee on the health and body.
 Households have been at the core of interests of many economic historians since the

1970s. In recent years, this interest has further increased, not least as a result of Jan de Vries’

influential work on the Industrious Revolution. In his theory on the Industrious Revolution De

Vries proposes households as key agents of the fundamental economic changes taking place in

Northwestern Europe, especially in the Northern Netherlands and England, after 1650.

According to De Vries households changed their work patterns during the late seventeenth and

early eighteenth centuries in order to be able to increase their consumption. These changes in

consumer behaviour would not only have entailed an intensification of (male) labour, but also a

shift by household members, in particular married women and children, from household to

market production.2 Nevertheless, the evidence on married women’s work as presented by De

Vries is rather limited and sheds only oblique light on the actual workings of the pre-industrial

household economy. More generally it is fair to state that, despite the growing attention for pre-

industrial women’s work and household economic strategies, we still know remarkably little

about work patterns of married couples and what factors determined their character.3

Based on three case studies for the early modern Northern Netherlands and England, as

presented in a special issue of Continuity and Change, we have earlier concluded that social and

professional status were very important in determining whether husbands and wives shared a

trade; the middling sorts, and among them the self-employed in particular, were most likely to

form spousal work partnerships.4 From this collection of essays it also appeared that
transformations taking place in the wider economy significantly affected married women taking

on work independently from their husbands. In market-based retailing in Dutch urban centres the

expansion of the food trades resulted in a decrease of spousal cooperation, at the same time

allowing more (married) women to start an independent business.5 In the pre-industrial Dutch

textile industry on the other hand, the early capitalist shifts in the organization of production led

to the proletarianization of weaving, and an accompanying increase in the number of households

in which both husbands and wives were wage workers.6 These two examples, taken from two

studies that overlap in chronology and in geography, clearly illustrate that shifts in work patterns

among married couples were very complex and far from one-dimensional: whereas declining

work partnerships among married couples in retailing may point to an increase in opportunities

for married women, in the textile industry a similar decline is more likely to be explained by

economic necessity. These case studies also show that although De Vries may be right in

assuming a rise in married women’s market work from the late seventeenth century onwards, it is

still far from clear what caused this increase.

In addition to such macro-economic transitions, embarking on a new trade may also be

inspired by life-cycle changes. Marriage may have provided women with both the need for a new

occupation (as they could no longer work as domestic servants or in their parents’ trade) as well

as the opportunity to start a business (since they could use the financial means of both bride and

groom in setting up a business). Furthermore, the transition to parenthood may have also caused

people to change work patterns. Not only is it often suggested that shop-keeping was a trade par

excellence for mothers with young children, as it could be done from home and on a part-time

basis, previous research furthermore suggests that households were especially strapped for cash

when they had young children.11 This may have been a further possible incentive for people to
set up a tea and coffee trade. By analyzing the occupations of people who were issued a permit

and those of their spouses, as well as their marriage and reproductive behavior, we aim to shed

light on the possible reasons for married women to embark on a new trade.

Conceptual Framework

The independent variable for this study were the participants age, gender. While the

dependent variable is Examining business practices among coffee and milk tea shop in Parang

Maguindanao Del Norte.

Independent Variables Dependent Variables

Participant’s Demographic
profile Examining business practices
among coffee and milk tea
a. Age; shop in Parang Maguindanao
Del Norte
b. Gender
a. Advantages; and
c. Status
b. disadvantages
d. Educational Background

Figure1. A schematic diagram that shows the relationships between two variables

Statement of the Problem

This study aimed to determine the Examining business practices among coffee and milk

tea shop in Parang Maguindanao Del Norte

 Specifically, it sought answer to the following question.

1. What is the demographic profile of the participation in terms of;

a. Age

b. Gender

c. Status

d. Educational Background

2. What is the Examining business practices among coffee and milk tea shop in Parang

Maguindanao Del Norte

a. Advantage

b. Disadvantage

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, 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 4 0

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 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.

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 4 0

reference data in conducting new research or in testing the validity of other related findings.
Scope and Limitation

This research study entitled Examining business practices among coffee and milk tea

shop in Parang Maguindanao Del Norte. This study will be done through the use of survey

questionnaire and will be distributed to 30 milk tea customers and will be used as reference. The

study is survey research a design which the respondents are only limited to customers of the

limited milk tea shop. With this strategy, the researchers will be able to determine the Examining

business practices among coffee and milk tea shop in Parang Maguindanao Del Norte.

Definition of Terms

Acceptability - the quality of being tolerated, allowed, or accepted

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

Behavior - the attitude or the way how someone behave

Cleanliness - the state of being free from dirt and unpleasing smell

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

CHPATER II
 METHODOLOGY

This chapter presents the methods and procedures for conducting the study. This includes

research design, research locale, research participants, sampling techniques, research

instruments, data gathering procedure, and measure.

Research Design

This study utilized both quantitative and qualitative research designs. The quantitative

approach aimed to quantify the data will be gathered. The qualitative approach aimed to

determine the examining business practices among coffee and milk tea shop, Parang

Maguindanao.

Research Locale

This study will aim to conduct at examining business practices among coffee and milk tea

shop Parang, Maguindanao. The researchers choose to this locale of the study because they can

monitor the examining business practices among coffee and milk tea shop Parang, Maguindanao

and thus the data will gather from the participants gave accurate answer to the participants of

examining business practices among coffee and milk tea shop.

Research Participants

The participants of this study are 30 examining business practices among coffee and milk

tea shop Parang, Maguindanao Who gave the examining business practices among coffee and

milk tea shop Parang, Maguindanao.

Sampling Techniques
 Sampling techniques employed will be purposive sampling. The participants were

identified based on the criteria set. The researcher will gather the data from examining business

practices among coffee and milk tea shop Parang Maguindanao. A preliminary survey will

conduct by sending letter of approval to the Business Owner of milk tea shop, Parang

Maguindanao followed by a letter to participants to conduct a survey.

Research Instrument

The instrument use in this study will be a self-constructive questionnaire. The

instruments consisted of two parts. Part 1 will the participants demographic profile such as the

age, gender, Status and Educational Background. Part 2 will compose of 5 items in advantage

and 5 items of disadvantage on entitled the examining business practices among coffee and milk

tea shop Parang, Maguindanao. The instruments will answer with the Likert’s scale.

Scale Range Description Interpretation

5 4.00-4.99 Strongly Agree Participation highly favor on the items

of examining business practices among

coffee and milk tea shop

4 3.00-3.99 Agree Participation highly favor on the items

of examining business practices among

coffee and milk tea shop.

3 2.00-2.99 neutral Participation are undecided on the items

 of examining business practices among

coffee and milk tea shop

2 1.00-1.99 disagree Participation Slightly not favor on the

items of examining business

practices

Among coffee and milk tea shop.

1 0.00-0.99 strongly disagree Participation highly not favor on the

Items of examining business practices

among coffee and milk tea shop.

Data Gathering Procedure

Prior to the conduct of the actual study, a preliminary data will gather on order to

determine possible participants of the study. A letter with the consent of the mentor will give to

the Business Owner of milk tea shop, Parang Maguindanao. To allow the pre data collection.

Once the study will approve for data collection, a letter to the participants will be attached on the

questionnaire. The procedure will be distributed to the questionnaire to the participants. For this

study, the researchers provided the participants specific instruction to answer the questionnaire

honestly as possible, informing them that their answer would be treated with utmost

confidentially. To ensure accuracy in the gathered, the researchers established rapport with the

participants.

Measures
 Since this study will a qualitative – quantitative research, the statistical measures use was

frequency, percentage, distribution and standard and deviation, these descriptive statistics will be

employed, interpret and analyze the data gathered.