Glaynxenn Ojeras
Macey Janelle B. Parama
Precious Quirante
Aliyah Mae Rago
Francine Mae Ortega
TEALICIOUS MARKETING PLAN SUMMARY
Based on an evaluation of the Milktea shops and our strengths, the General will
introduce tealicious.
SITUATION ANALYSIS
Tealicious is a tea shop that has been around since 2012. It has many branches all over
the Philippines. We also focused our products on the likes of people ages 14 to 35 years old but
almost 54% of our consumers are ages 14 to 19 years old. Tealicious encountered a lot of
struggles in the past few years, since we have many competitors appearing that have similar
concepts and pricing to us, but we gained customers' trust, so even if we increase our price due
to the demands, they will still come because we have the quality products, best services and
discount promos to offer.
OBJECTIVES
Tealicious aims to improve their marketing strategies and increase market sales. Focus
on how they handle and have a connection to their customers. We will release more variants or
flavors to expand their options, and add some promo deals like snacks or meals. Tealicious also
aims to have more branches and franchises.
MARKETING STRATEGIES
We are bound to expand our advertising to social media platforms to attract more
customers. We are planning to give more discount promos and introduce new products, such as
combo meals. Tealicious targets to have some freebies and a fun concept every month to keep
our customers' loyalty and increase our revenue. Tealicious also aims to build a rooftop for
customers who love alfresco vibes.
ACTION PLAN
To achieve our objectives, our company will offer unique flavors and budget-friendly
prices. Tealicious will be located near schools, malls, and parks, etc. Our distributors cover 78%
of sales. We will increase our revenue and add some sales trainers to support and guide us in
our market plan. To increase consumer awareness, we will have an advertising campaign such
as billboards, television advertising, and social platforms.
FINANCIAL ANALYSIS AND EXPECTED RESULTS
We are anticipating to have 210 million peso sales in the first year in the business.
Tealicious is planning to expand globally, and open numerous branches across the country. We
are looking forward to meeting new customers, and ensuring that they probably enjoy our
concepts every month. By this strategy we can earn their trust and gain a huge amount of
revenue for our company. We will strive to provide the best customer services and high-quality
products among our competitors. Our company is hoping to become more successful in the
future and make an impact on the business industry.
CONTINGENCY PLANS
We prepared a 20 million peso budget for advertising our products to attract more
consumers. We are willing to add some more budget if our competitors rise and our sales are
less than expected.
TEALICIOUS - THE MARKET PLAN
SITUATION ANALYSIS
Milk Tea is popular with this generation and is also one of the healthiest types of tea you
can drink. Tealicious is known for its quality ingredients, discount promos, innovation in the
product, and long operating hours. It can also provide the best quality of customer service
because we want to be welcoming and comforting in every community we serve. Tealicious
always stays true to our word, we never want our customers to feel less special.
Since 2012, our profit of 109 million pesos represents 78 percent of the total sales. The
current state of the Tealicious is currently growing, people always like the usual flavors that
keeps the increasing growth rate of the business.
Market Analysis
Tealicious will compete with numerous milk tea companies all around philippines. The
market size is 89 million and is projected to reach 200 million by the end of the year 2022, the
sales growth was expected to reach 83 percent.
Market Segments:
Table 1: Market Segments by Age
Age
Percent of
Milk Tea
buyers
Percent
of
populatio
n over 13
Relative
Purchase
Index
14-19
54%
25%
1.69
20-30
22%
31%
1.97
31-40
15%
20%
1.0
41-48
8%
17%
0.89
49+
2%
7%
0.43
Most of the consumers are below 20 years olds, they purchase the most percent of milk
tea in all shops around the philippines and that is the reason why our target audience is
teenagers and mostly, young girls always like the milk tea industry. The average consumer is 30
years old since they are still conscious and we are expecting more because the numbers keep
on increasing.
Consumer purchases of milk tea shops in every region is shown here in Table 2, The
most milk tea sales are around the National Capital Region, And Region III because of its large
population plus the branches of the milk tea companies are numerous.
Table 2: Milktea Sales by Region
Region
Milk tea
sales
Populati
on
Index
of milk
tea
sales
Region I - Ilocos
Region
9%
14%
1.40
Reg II - Cagayan
Valley
4%
4%
0.73
Reg III - Central
Luzon
8%
7%
1.12
Region IV‑ A –
CALABARZON
14%
10%
1.00
MIMAROPA region
5%
4%
0.89
Region V - Bicol
Region
6%
7%
1.56
Region VI Western visayas
5%
4%
1.03
Region VII - Central 8%
Visayas
9%
1.77
Region VIII Eastern Visayas
4%
6%
1.10
Region IX Zamboanga
peninsula
3%
2%
0.50
Region - X
Northern Mindanao
3%
2%
0.63
Region XI - Davao
4%
3%
0.99
Region
Region XII SOCCSKSARGEN
4%
7%
1.41
Region XIII- Caraga 2%
1%
0.38
NCR
19%
16%
1.99
CAR
2%
1%
0.82
BARMM
4%
2%
1.25
Consumer Behavior
Consumers in this generation are encouraged by the trends and popular products therefore we
made sure that Tealicious milk tea will be well liked. Tealicious will provide the customers with
their wants and needs. Starting with listening to their demands and point of view in order for us
to improve. Our flavors, price range, and sugar level and pearls are the most important
attributes for us to captivate the customers attention and make loyal customers that will come
back once they experience it.
In all of these milk tea companies, we will take advantage of the place or venue of our every
branch in every region in order to have a tendency to get more consumers, for example in front
of the school for the High school students to drink whenever they want. We are also bound to
give discounts or promos like buy 1 take 1, or percent sale.
Competitive Analysis
We have a lot of competitors and the most powerful ones are Mighty Tea, Sip Spot, and
BeauTEA. They covered half of the percent in every table. Mighty Tea has a lot of customers
but they don't know how to figure out their wants and needs which results in the decreasing
number of their consumers. Sip spot has a very amazing venue or place, the setting is very
aesthetically pleasing but they only have plenty of products and the taste is not at all pleasing.
While BeauTEA? Their products are mouthwatering and appetizing but they have a small
number of branches and their place isn't very much in the cities, that's why they cannot be
discovered by many individuals. In spite of the fact that Tealicious has many competitors we still
have the opportunity for growth and improvement because we become proficient and
competent.
Company Analysis
Our company is growing and gaining more than we expected and it is because we have
the right strategies and knowledge on how to keep it effective. We have the right proficiency and
good mastery on how we handle Tealicious, all of the employees have experience and expertise
on how we approach and do a successful plan, all in all the company is doing well.
SWOT Analysis:
Strengths
● Our store has convenient and fast service
● We have quality ingredients
● Loyal customers
● marketing strategy
● long operating hours.
Weaknesses
● not enough barista to surely prepare the drinks with the correct ingredients.
● Lack of product differentiation
Opportunities
● The trendy products
● Promote new flavors to introduce
● Innovative technology
Threats
● The increase of demand
● Numerous competitors
OBJECTIVES
Our objective is to provide customers with great quality milk tea at a reasonable price,
and although it contains sugar, Tealicious products are a much healthier alternative to
carbonated drinks and may therefore appeal to health conscious consumers. Milk tea has a
certain novelty value that might appeal to people looking to try different tastes and flavors.
That's why we also have more than 16 flavors and will be making more soon.
MARKETING STRATEGIES
The company's marketing strategy is to find ways on how we will gain consumers. For
example is the idea of doing advertisements whether it's on television, articles and posters. We
also wanted to test if doing charitable works is effective for a good advertisement strategy.
ACTION PLAN
Product
The name of our business is Tealicious. We will establish 12 flavors of our milktea. 6 of it will be
plain while the other 6 will be premium flavors (with add on) but with a higher price. There will be
3 cup sizes (s, m, l). The design of these cups will have a picture of our business logo. We will
also be establishing the straws with colorful pastel design so that most of the consumers can
really be interested in it. These are targeted at consumers 14 yo - 35 yo.
Price
The product will be sold for a suggested retail price of 60.00 peso for the small cup, 70.00 peso
for the medium cup, and 80.00 peso for the large cup, adding only 10 peso per size. The
premium version will have a plus 10 peso pricing. This pricing strategy, combined with our
efficient manufacturing procedures, has helped us achieve a pretty high market share for a new
product.
Distribution
We will introduce Tealicious near schools, markets, malls etc. where most people go to. With
our current distribution networks here in the Philippines covering 78% of sales, we will limit our
potential if we restrict our distribution to specific regional markets. Main revenue comes from
beverages and target customers are people from 15 to 38 ages so our shop must close to
school and official, service and entertainment areas.
Promotion
Our company will begin promoting to consumers at least monthly. Will be connecting with
existing customers to make sure they are happy because our goal is to actively and effectively
recruit new prospects to our business without getting overwhelmed. This will be within our
400,000 peso sales support budget based on an average salary and benefit cost of 50,000 peso
for each position.
Table 3 shows how the advertising levels of the three major companies can be compared by
dividing the voice share percentage of total advertising pesos of 10 million peso by the market
share. Because consumers would be unfamiliar with our brand, we will need to advertise more
aggressively to raise brand awareness. Despite our three percent market share goal for 2012,
we will spend one million pesos on advertising. This will result in a significantly higher
advertising voice market index than our competitors.
Table 3: Tealicious Advertising and Voice
Company
MARKET
SHARE
VOICE SHARE
VOICE/
MARKET
ADVERTISING
MILLION ₱
Tealicious plan
39%
31%
2.0
9.3
Mighty Tea
22%
15%
1.9
7.1
Sip spot
10%
27%
1.4
5.8
BeauTEA
7%
4%
1.0
3.0
Cuppy Cow Tea
9%
10%
2.1
3.7
Brew Base
13%
4%
1.3
2.5
Table 3 shows that the majority of it or the highest advertisement and voice is our company.
Since our company has been going for 10 years already, this explains why the ratings of the
tealicious are higher than the new companies. Although the other companies may be lower than
the tealicious plan, mighty tea may be up for the competition since it is ahead of us. But overall,
Tealicious is still the highest amongst the others.
FINANCIAL ANALYSIS AND EXPECTED RESULTS
In the first year, we plan to reach a market share of 3% and sales of 6 million peso. In the first
year, the Tealicious initiative will break even. During this time, we do not expect any significant
advancements in the milk tea business. Design, price, and attaining extensive distribution are
likely to be areas in which we intend to be very competitive.
To sum up everything that has been stated so far, we will invest 40 million peso in the
Tealicious Milk tea project. We can achieve sufficient market share to achieve our financial and
marketing objectives. During the next 10 years, we are looking forward to the market to grow
and our costs are expected to decline with experience increasing unit contribution. Our greatest
challenge will be tracking the market's tastes in milk teas and meeting and leading these with
creative and innovative designs.
CONTINGENCY PLANS
Table 4: Impact of Advertising Levels on Financial Results
TOTAL AD BUDGET
BREAK EVEN YEAR
NET PRESENT VALUE IN
MIL. ₱
₱ 20,000,000.00
2012
2.0
₱ 37,000,000.00
2013
62.9
₱ 56,000,000.00
2014
184.8
₱ 72,000,000.00
2015
201.6
There is no assumption of increasing price competitiveness as a result of the Tealicious
Milktea's arrival. However, more advertising may result in a rise in industry advertising. Table 4
contains a sensitivity analysis of the impact of additional advertising on our break-even year and
cumulative earnings. Increases in advertising in increments of ₱ 17 million to ₱ 72 million,
assuming no additional market share increases, have a rather little impact on our performance.
As a result, if industry advertising improves, we are ready to expand our advertising by up to
$15 million yearly. Additionally, our expanded promotion will help us to respond to lower
consumer awareness, fewer distribution outlets than anticipated, or lower widespread
acceptance of Tealicious Milktea.
FINANCIAL APPENDIX
TABLE 1: PRO-FORMA INCOME STATEMENT AT $50 PRICE
CURRENT YEAR
2011
BEFORE
RELEASE
₱ 120,140.00
SUGGESTED
RETAIL PRICE
INVESTIGATION
COSTS
₱ 660,000.00
₱ 90,200.00
LESS RETAIL
DISCOUNT (25%)
DEVELOPMENT
COSTS
₱ 930,000.00
₱ 82,512.00
PRICE TO RETAIL
70.97%
₱ 53,500.40
LESS
WHOLESALE
DISCOUNT (20%)
₱ 49,880.00
MFG SELLING
PRICE
RESEARCH &
DEVELOPMENT
DISCOUNT RATE PER
YEAR
ANNUAL COSTS AND SALE
2012
2013
2014
2015
2016
PRODUCER’S PRICE PER
UNIT
₱ 89,500.00
₱
89,500.00
₱
75,500.00
₱
73,500.00
₱ 60,500.00
VAR COSTS PER UNIT
₱ 19,550.00
₱
18,450.00
₱
17,350.00
₱
16,250.00
₱ 15,150.00
FIXED COSTS PER YEAR
₱
20,000,000.00
₱
20,000,00
0.00
₱
₱
20,000,000 20,000,00
.00
0.00
₱
20,000,000.0
0
RETAIL SALES FORECAST
[MIL ₱]
₱
30,000,000.00
₱
30,000,00
0.00
₱
₱
42,000,000 47,000,00
.00
0.00
₱
56,000,000.0
0
INDUSTRY SALES PER
YEAR [UNITS]
₱ 2,530,000.00
₱
3,530,000.
00
₱
4,530,000.
00
₱ 5,
530,000.0
0
₱
6,530,000.00
COMPANY MARKET
SHARE [UNITS]
2.00%
4.00%
6.00%
8.00%
10.00%
COMPANY SALES PER
YEAR
₱ 9,560,15.00
₱
12,439,94
0.00
₱ 15,
₱
670,524.00 18,890,10
0.00
INCOME STATEMENT
2016
BEFORE
RELEASE
2012
2013
2014
2015
₱
21,990,580.0
0
SALES REVENUES
₱
30,450,20
0.00
₱
198,800.
00
₱
₱
235,550,44 275,900,8
9.00
00.00
₱
390,690,00
0.00
VARIABLE COSTS
₱
950,100.0
0
₱
1,190,00
0.00
₱
1,240,000.
00
₱
1,365,000
.00
₱
1,490,370.
00
FIXED COSTS
₱
4,000,000.00
₱
8,000,000
.00
₱
8,000,00
0.00
₱
8,000,000.
00
₱
8,000,000
.00
₱
8,000,000.
00
PROFITS
₱
4,000,000.00
₱
5,450,000
.00
₱
9,990,57
5.00
₱
₱
15,900,550 22,590,93
.00
0.00
₱
29,580,390
.00
₱
590,000.0
0
₱
990,960.
00
₱
1,350,000.
00
₱
2,400,960.
00
CUMULATIVE
PROFITS
NET PRESENT
VALUE
₱
1,600,900
.00
₱
81,711,638.3
2
TABLE 2: PRO-FORMA INCOME STATEMENT AT $45 PRICE
₱ 100,990.00
SUGGESTED RETAIL
PRICE
INVESTIGATION COSTS ₱ 660,000.00
₱ 80,650.00
LESS RETAIL
DISCOUNT (25%)
DEVELOPMENT COSTS
₱ 930,000.00
₱ 69,500.00
PRICE TO RETAIL
DISCOUNT RATE PER
YEAR
70.97%
₱ 44,500.40
LESS WHOLESALE
DISCOUNT (20%)
₱ 41,800.00
MFG SELLING PRICE
RESEARCH &
DEVELOPMENT
BEFORE RELEASE
ANNUAL COSTS AND SALES
2012
2013
2014
2015
2016
PRODUCER'S PRICE PER
UNIT
₱ 79,000.00
₱ 75,000.00 ₱
70,000.00
₱
68,000.00
₱ 65,000.00
VAR COSTS PER UNIT
₱ 19,000.00
₱ 17,035.00 ₱
16,999.00
₱
15,780.00
₱ 14,950.00
FIXED COSTS PER YEAR
₱ 21,000.00
₱ 21,000.00 ₱
21,000.00
₱
21,000.00
₱ 21,000.00
RETAIL SALES FORECAST
[MIL $]
₱ 24,000.00
₱ 25,500.00 ₱
26,350.00
INDUSTRY SALES PER
YEAR [UNITS]
₱
3,000,000.0
0
₱
3,000,000.0
0
COMPANY MARKET
SHARE [UNITS]
COMPANY SALES PER
YEAR [UNITS]
INCOME STATEMENT
2%
₱
425,000.00
BEFORE
RELEASE
₱
₱
3,000,000.0 3,000,000.
0
00
5%
₱
599,000,00
₱
27,100.00
8%
₱
3,000,000.0
0
14%
₱
₱
1,580,000.0 2,150,000.
0
00
2014
₱
26, 500.00
2015
17%
₱
2,966,000.0
0
2012
2013
2016
SALES
REVENUES
₱10,300,0
00.00
₱20,599,0
00.00
₱34,250,0 ₱40,120,90
00.00
0.00
₱53,000,00
0.00
VARIABLE
COSTS
₱6,200,75
0.00
₱9,390,00
0.00
₱17,000,0 ₱26,333,43
00.00
2.00
₱39,793,00
0.00
FIXED COSTS
₱4,000,000.0
0
₱
₱
5,000,000. 5,000,000
00
.00
₱
5,000,000
.00
₱
5,000,000.0
0
₱
5,000,000.0
0
PROFITS
₱
4,000,000.00
₱
₱
2,677,000. 8,440,000
00
.00
₱
15,159,60
0.00
₱
30,934,000.
00
₱
38,400,000.
00
₱900,760.
00
₱20,320,7 ₱36,366,29
77.00
0.00
₱60,000,00
0.00
CUMULATIVE
PROFITS
NET PRESENT
VALUE
₱
45,924,680.9
7
₱8,312,84
0.00