Chapter I

Background of the Study

1.1 Introduction

For today’s generation, we tend to innovate simple things into a

new and artistic one. Just like in beverage industry, creating a

fusion that could catch up the trend in the society.

In Iloilo City, milk teas are in trend. Milk Tea shops sprout like a

mushroom, wherever you are, you can easily spot a milk tea kiosk or

store. Ranging from local brand up to the more established brand.

Common flavors like wintermelon,oreos, honeydew and a lot more. With

just a combination of milk, tea, sugar and your preferred add-

ons(jelly, pearl or nata de coco).

3 years from now, after we graduate from college, we plan to

venture on a business which is on trend and suited for every

generation. We observed that Milk Tea is currently the leading start

up business for first timers. Since we are fond of drinking this, we

come up to the idea of making it as our inspiration to put up a

business. Since milk tea is common drink for now, we come up to

innovate the usual taste of it, so we created “JACCS Tipsy Tea Series”

an innovated mix of milk tea that contains a small amount of liquor.

1.1.1.1 Background of the Study

This study will help analyze and evaluate the proposed

“JACCS Tipsy Milk tea Series” and to make sure that the

proposed project is legally and technically feasible and

 economically justifiable. This study will also help to

determine different variables involved with our proposed

product and how it will be accepted on the open market

along with who will be the target market.

Innovations of beverage nowadays are being used by

business owners to catch the attention of the customers.

From our usual drink up to the most unimaginable

combination of ingredients. Giving us a new variety of

taste that could soothe our thirst. The researchers

believe that this new product has a competitive advantage

and positive impact in milk tea industries. Therefore, we

are aiming for the feasibility of our new milk tea series

the “JACSS Tipsy Tea”

1.1.1.1.1 Statement of the problem

It is a concise description of an issue to be

addressed or a condition to be improved upon. It identifies

the gap between the current state and desired state of a

process or product. Focusing on the facts, the problem

statement should be designed the five W’s. (Wikipedia)

When should we start our business? Where it is located? Why

we chose that field? What are the strategies that we are

going to use in order to market our product and Who is our

target market?.
1.1.1.1.2 Name, Location, and Logo and Color

Name

JACCS Tipsy Tea Series

We derived this name by combining our name

initials, Jeremie, Angel, Chona, Charlene and Shaina.

Since we all love milk tea and liquor and milk tea is

in trend we decided to come up to business wherein we

could use the trend to gain our target market. We

decided to innovate the common ingredients of the

usual one.

Location

Our location is at M.H del Pilar Street, between

7-Eleven and La Fiesta Hotel. We chose this location

since it was near schools, hospitals and other

establishments that contains our possible target

market. It was also accessible to PUJ and other

vehicles.
 Logo

Our logo is composed of

our name (JACCS) with a photo

that represents a milk tea

product with pearl.

Color

Our colors for the logo are black which

symbolizes strong personality of the owners, and light

brown that represents milk tea product.

1.1.1.1.3 Vision and Mission

Vision Statement

“To provide the best quality, most innovative and

reasonable priced products in the beverage industry.

To be the leader in our industry attained by a well-

planned expansion through retail outlets and wide

product distribution.”

Mission Statement

“To create a different milk tea drinking

experience that would leave customers satisfied and

looking forward to more.”

1.1.5. Hypothesis

A hypothesis is a proposed explanation for a

phenomenon. For a hypothesis to be a scientific

hypothesis, the scientific method requires that one

can test it. Scientist’s hypothesis on previous

observation that cannot satisfactorily be explained

with the available scientific theories. Wikipedia

1.1.5.1 Age:

H1: Age influences consumption of milk tea

H0: Age doesn’t influence consumption of milk tea

1.1.5.2 Income

H2: Income doesn’t influence consumption of milk tea

H0: Income influences consumption of milk tea.

1.1.5.3 Gender

H3: Gender doesn’t influence consumption of milk tea

H0: Gender influences consumption of milk tea.

1.1.5.4 Price per cup

H4: Price per cup doesn’t influence the consumption of

milk tea.

H0: Price per cup influences consumption of milk tea.

1.1.6 Theoretical and Conceptual Framework

Customer
Satisfaction

Word-of- Needs and

mouth Expectations

Experiences

1.1.7 Scope and Limitation

The scope of this study cover 20 randomly selected people

in Iloilo City. The factors covered in this study are Age,

Income, Gender and Price per cup.

1.1.8 Significance of Study

This feasibility study aims to know the overall

acceptability of JACCS Tipsy Tea Series in the market after

analyzing its market, technical, financial and management aspect

of the project. At the end of this research, the researchers

should be able to prove if the proposed innovation can be

marketable and can compete with the other leading brand and

choices. All in all, this research can be beneficial specifically

to:

Consumer – the result of this research can be beneficial

for them because they can try the new taste or version of the

product. The overall success of the research depends on the

response of every consumer

Owners – the owner can benefit through the existing of new

product since they can create or capture the attention of

consumer. The more consumer they can capture, the more profitable

its business.
 Chapter II

Review of Related Literature and Studies

2.1. Review of Related Literature

2.1.1 Local Studies

A. Tipsy Tea – Marikina

They are located at Manila, Philippines. They offered

different kinds of milk tea flavor infused with different

types of liquor that you preferred. They were the first

milk tea – infused alcohol store in Metro, Manila and first

to offer this kind of product in the Philippines. It was

owned by Ryan Laurente, Matet Laurente, Jeremiah Joaquin,

and Lens Wong, wanted to attract milk tea lovers who are

looking for something different. They have different flavors

such as GraviTea(rhum and hazelnut) and AlmighTEA(vodka and

honey)

B. Zozzle Tea

It is a new, authentic, and innovative milk tea shop

in Cebu City that offers a alcohol-infused milk teas and

tea based cocktails. They opened their store last October

18. Aside from being the first alcohol-infused milk tea in

the City, they have a great advantage since they are using

their very own handicraft muscovado syrup instead of using

 a common sweetener. Their boba is also soaked in the same

signature muscovado syrup. (c.sugba.ph)

C. Default: Café Pub

It is located in the streets of Malate for quite some

time, with its popular aesthetic interior and uniquely

curated menu that will make you invite your friends. You

can choose your preferred base which varies from mild to

the strong taste of alcohol. And you can pick the perfect

partner to complement the alcohol of your choice. Flavors

like vanilla, chocolate, strawberry, caramel and hazelnut.

(c.wethepvblic.com)

2.1.2. Foreign Studies

In Foreign countries milk tea infused with alcoholic

beverages are common. They are using milk tea as the base

and mix it up with cocktail drinks or other alcoholic

drinks to come up with a new taste.

 Chapter III

Research Method

3.1 Market Study

Market study is a study that analyzes market demand for a

particular product or service. It analyses the activities in the

market in regard to such influences as location, demand, and

competition which may or may not affect the value of property.

3.1.1 Methodology

Descriptive – quantitative research design is utilized in

this study to ascertain the feasibility of JACCS Tipsy Tea. This

research design is used to describe the characteristics of

population or phenomenon being studied as well as identify the

factors that may or may not influence the nature of the study.

3.1.2. Survey

3.1.3 Demand

The demand for milk tea for today’s time is high since it

was on trend and in in the society. More people are loving the

taste of this drink. As for our business, since the demand is

high, we are going to expand our business and venture in locating

it all around the city to cater more customers. We will add new

variants and versions to attract more target market.

 3.1.4 Consumer of the Service

The consumers of this product are mostly people that love

both milk tea and liquor. There is no specific age, gender and

profession prescribe as long as they prefer to drink milk tea.

3.1.5. Competitors

We observed the following competitors within the area that

offers the same product to us.

Kai Thai Royal – it is located before Iloilo Doctors Hospital and

across the University of the Philippines Iloilo campus. They sell

a milk tea that offers the same flavors like ours. The company is

ahead of us in terms of establishing and operating. They operate

for 24 hours a day.

Chowking – located before Kai Thai Royal and before John B.

Lacson Maritime University. They also sell milk tea as add-ons to

their main product. We considered this as our competitor since

they are also selling the same product like ours.

3.1.4. Supply

The supply for our raw materials are can be easily found in the

market. Sugars, liquors, milk tea mixes, cups and straws and milks are

all accessible and visible in the market.

Sugar – the supply will be purchased at Iloilo Super Public

Market, which is 50 kilos good for 1 month.

Liquors – the supply will be purchased per dozen at a wholesale

store.
 Milk tea Mixes – supply will be purchased per kilo with the

variety of different flavors that will last for a month.

Milk – supply will be purchased at a wholesale store that will

last for a month

Cups and Straws – will be purchased at a wholesale store that

will last for a month

3.1.5. Service Perspective

We assumed that the customer will be satisfied with the products

and services that we offered. Giving them the right expected service

they want upon purchasing our product.

 3.1.6 Sales Projection

Our expected sales in a week, month and year.

4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
Week
2,000,000
Month
1,500,000
Year
1,000,000
500,000
0
2020
2021
2022

Figure 3.1 Sales Projection for the next 3 years.

Sales Projection

For Year 2020

 Weekly Basis

Regular Cup (85 per unit) x 30 pieces sold = P 2,550

Large Cup (120 per unit) x 50 pieces sold = P 6,000

P 8,550 x 7 days

Weekly Income = P 59,850

 Monthly Basis

Weekly Basis P 59,850.00 x 4 weeks =

Monthly Income = P 239,400

 Yearly Basis

Monthly Basis P 239,400 x 12 months

Income for the Year of 2020 = P 2,872,800

For Year 2021

 Weekly Basis

Regular Cup (P85 per unit) x 40(pieces sold) = P 3,400

Large Cup (P120 per unit) x 60(pieces sold) = P 7,200

Daily Basis P 10,600 x 7 days

Weekly Income = P 74, 200

 Monthly Basis

Weekly Basis P 74,200 x 4 weeks =

Monthly Income P 296,800

 Yearly Basis

Monthly Basis P 296,800 x 12 months =

Income for the Year of 2021 P 3,561,600

For Year 2021

 Weekly Basis

Regular Cup (P85 per unit) x 50(pieces sold) = P 4,250

 Large Cup (P120 per unit) x 70(pieces sold) = P 8,400

Daily Basis P 12,650 x 7 days

Weekly Income = P 88,550

 Monthly Basis

Weekly Basis P 88,550 x 4 weeks =

Monthly Income P 354,200

 Yearly Basis

Monthly Basis P 354,200 x 12 months =

Income for the Year of 2022 P 4,250,400

3.1.7 Marketing Strategy

Marketing strategy is a long-term, forward looking approach

to planning with the fundamental goal of achieving a sustainable

competitive advantage. Wikipedia

Strength Weaknesses

S1. Affordable price W1. Customer waiting

S2. Approachable Staff time

S3. Location W2. Lack of pearls

W3. Limited space

 Opportunities Strength-Opportunities Opportunities-Weaknesses

O1. Manufactures their S1,S2,S3,O2 -Expand the W3,O2- provide a loyalty

own ingredients location space. card that rewards them a

O2. Popularity of milk S1,S2,O3 - Provide more discount or a free drink

tea stocks W1,W2,O1,O3 Provide an

O3. Large target market S3, O3 – Generate alternate add-on

promotion to attract ingredient

customers W1,O1- Provide a Wi fi

connection

Threats Strength-Threats Threats-Weaknesses

T1. Competitors within S1,T1 – Maintain the W1,T1 – create a time

the area affordable price frame in serving

T2. Banning of plastic S3,T1,T3 – Provide customers

straws and cups Generator W1,T3 Provide a ready to

T3. Power outage S2,T2 – Using of serve variant

ecofriendly cups and W1,T2 – Customers could

straws bring their own cups

Strengths – Opportunities

S1,S2,S3,O2. Expand the location space. Expand the place of

the shop; more convenient and larger space to cater large amount

of clients in peak hours. Also expand wider market to cater

(cart, schools, and kiosks.)

S1,S2,O3. Provide more stocks. We should develop a product

that eye-catching and instagramable worthy to attract more

customers especially millennial. Consider and be aware of the

trends in the market and maintain the quality.

 S3,O3. Generate promotions to attract more customers.

Advertise more in social media or poster around Iloilo City. Add

LCD TV inside the shop that can advertise your offering and short

video about JACCS Tipsy Tea. Put signage where customers can

locate the shop or have a direction board signage in some roads

to inform possible customers.

Weaknesses – Opportunities

W3,O2. Provide a loyalty card that rewards them a discount

or a free drink. JACCS could encourage customers to make a repeat

order because of loyalty card. Customers often choose a milk tea

shop that offers a discount every purchase or a free drink after

8-10 repeat orders.

W1,W2,O1,O3. Provide alternative ingredients. JACCS Tipsy Tea

could offer a substitute add-on like nata de coco, coffee jelly,

pudding and crushed Oreo.

W1,O1. Provide a Wi-Fi connection. Provide this to keep

customers entertained while waiting or they can also enclosed the

shop and have it air-conditioned to avoid hot atmosphere.

3.1.14 Strengths-Weaknesses-Opportunities-Threats Analysis

SWOT analysis is a framework that analyzes the organization’s

strengths, weaknesses, opportunities and threats that they face. It

helps the organization to focus on its strengths, minimize threats and

take the greatest possible advantage of opportunities available for

them.
 Strengths Weaknesses

S1. Affordable price W1. Customer waiting time

S2. Approachable staff W2. Lacks of pearls

S3. Location W3. Limited space

Opportunities Threats

O1. Manufactures their own T1. Competition within the area

ingredients (add-ons) T2. Banning of plastic straws and

O2. Popularity of Milk tea cups

O3. Large target market T3. Power outage

Table 2 SWOT analysis of JACCS Tipsy Tea

Strengths

Capacity to resist force or pressure, capital, knowledge,

skill or other advantage that a firm has or can acquire over it’s

competitors in meeting the needs of its customers.

S1. Affordable Price. Since the target market of JACCS

Tipsy Tea is students, our prices are affordable.

S2. Approachable Staff. One advantage of JACCS Tipsy Tea is

that all our staffs and owner are approachable.

S3. Location. The location is great since it was near at

schools, offices and hotels.

Weaknesses

A company’s weakness is any resource or process that your

business lacks, but needs to succeed. Weaknesses limit your

company’s ability to reach its full potential. Companies often

analyze their weaknesses as part of a strategic planning process

known as SWOT which stands for Strengths, Weaknesses,

Opportunities and Threats.

W1.Customer waiting time. The preparation of Milk tea is a

bit longer.

W2. Lack of Pearls. the pearl add-ons are fast to get out

of stock since it was common add-ons to the customers.

W3. Limited space. We can’t accommodate more customers

since our location is limited in space.

Opportunities

A business opportunity involves the sales or lease of any

product, service, and equipment that will enable the purchaser-

license to begin a business.

O1. Manufactures their own ingredients (add-ons). We

personally cook our ingredients and add-ons, it help us lessen

our expenses.

O2. Popularity of Milk Tea. As the popularity of milk tea

arises, more customers and profit could make in the future.

 O3. Large target market. It is the best opportunity to us

because our location is near at schools, offices and hotels. And

it is accessible to everyone.

Threats

A threat is an external factor that may affect the

performance of business. Often a business faces many threats,

other than competition, when operating its affairs.

T1. Competitor within the area. Since the milk tea

popularity arising, more competitors with the same product

alignment are visible. Examples of competitor of JACCS

Tipsy Tea within the area are Chowking and Kai Thai Royal

which is more stable and established.

T2. Banning of plastic straws and cups. When plastics are

banned, it could be considered as threats to the business

since it was the main equipment in serving the product. The

company will be using metals or eco-friendly materials that

are bit more costly than plastics.

T3. Power Outage. This threat is unavoidable. Power outage

could generate loss to the business since the product is

created through power generated machine.