Group 2 ICT

Members

Rochelle T. Tomas Jamille Jimenez Jomari S. Marjalino

Monica Albaytar Kenneth Toledo

Ruby Trilles Christian Banania

Rosalie Sabater John Benedict Dayto

Luis Avila Aguinaldo Sabater

Simple Business Plan

Milk Tea

A. Executive Summary

TMS Milk Tea Shop is a brand new milk tea shop in Cabañgan Legazpi City that will serve you milk tea
with unique flavours at an affordable price. Our purpose is to grow more money to a point that we
can increase our menu and production.

B. Introduction

TMS Milk Tea Shop is a consumer-goods concept that focuses on differentiating our product to the
other milk tea shops, since there are no other milk tea shops in Cabañgan we saw this as a great
opportunity to start our business here. Our brand belongs to the food and beverage industry that
will focus on mainly serving the students near Cabañgan high school, since milk tea is popular
amongst young people we are figured that selling milk tea will bring a lot of customers. The
proposition that we’ve come up with is that we would sell our product in a cheaper price but still
high quality than the other milk tea shops, that way the customers will have no choice that to come
to our milk tea shop.

C. Product or Service Description

Milk tea is a refreshing flavoured iced tea with tapioca balls at the bottom. Milk is mixed with a tea
base, fruits, and flavoured syrups, and later, the tapioca balls are added. With its delicious and
different take on a supposedly typical drink, milk tea became a real hit. We get all of our supplies
from the 523 Enterprise Imperial St, Legazpi Port District, Legazpi City, Albay. We will be serving our
milk tea in 3 different servings, there’s small cup which cost ₱20, medium for ₱40, and large for ₱60.
D. Industry Analysis

The bubble tea market size in Legazpi city is estimated to be around ₱2,083,107 and is projected to
reach ₱6,249,322 by the end of 2027.

Coffee and tea are traditionally consumed beverages across the world. Modified tea products called
bubble tea have gained immense popularity in recent years across the world, especially in Southeast
Asia. It has various names associated with it such as boba tea, pearl milk tea, boba juice, or bubble
milk tea. It is made using various ingredients such as fruit powder, tapioca, and others.

It is creating a buzz among the major trends in the food and beverage industry. The major ingredient
is the tapioca pearls/balls that are added to the tea. These tapioca balls are chewy and are a flavor
addition. The growing interest of consumers in innovative beverages with bold flavors and their
willingness to experiment with various flavors has positively impacted the market.

There are various types and flavors available in the market, such as fruit-flavored, green jasmine,
and black tea. The fruit-flavored tea has various types such as fruit-flavored cream drink and
sweetened fruit drink. The lactose-intolerant population are given options to consume black, green
jasmine, green tea, and others. The availability of various types of boba tea gives the consumer more
options.

E. Market Analysis

We expect our strongest market to be people under the age of 30 in Cabañgan , Legazpi City. In
particular we believe that students at the local schools will be our strongest market segment.

According to our research, there are approximately over 900 students in Cabañgan high school main
campus. Of those, about half are students of school are within walking distance. While the low
population of the schools in this area sets a low upper limit on a regular customer base, a
conservative estimate would place our regular daily service in the high Hundreds. These numbers are
likely to fluctuate, with more customers in the summer during tourist season, and fewer customers
in the rainy seasons when our product is out of season.

There are no true competitors to TSM Milk Tea currently in Cabañgan . The closest indirect
competitor would be the Fast food chains in the near Malls such as Jollibee or McDonalds, also
located near Cabañgan. Outside of Cabañgan, there are also drink mixes available in many grocery
stores that some consumers may choose to use in going out for refreshments.

F. Marketing Plan

 Market Segmentation
A more diverse market segment is desired. This includes young and old. The current market
consists of multiple economic backgrounds, and multiple age groups, most notably the teen
and young adult age group.
 Target Market
14-45 years old. This age group and segment is important because capturing it can increase
profitability and increase the market demand if they are reached. Part of being able to reach
a greater market will be aided by a brand ambassador. This ambassador can hand out
 promotional fliers and spread the word. They will also represent the company’s brand by
being clean, happy, and driven by quality
 Differentiation
New flavors are offered and should continue to be offered. The newest flavors are Creme de
Banana, and Caribbean Breeze. In our marketing plan, we offer to add more frozen coffee
flavors, and diet options. This will help expand the market by introducing new flavors of the
same quality product. Seasonal and Promotional flavors test well in the past and are being
marketed currently. The Brand ambassador program will also expand the market by reaching
further areas.
 Positioning
TMS is still relatively new so it doesn’t have much of a strong presence on the internet but
could stand from more exposure by both staff and customers. Positioning themselves in the
media more aggressively will help with exposure and will act as advertising as well. The
Facebook page is a huge tool for the target consumer group. The company is positioned as
moderately priced and with great and high quality products.

G. Production or Operation Plan

 Product/Service
1.1. Product: Handcrafted Teas, Premium Ingredients, Unrivalled Quality. Service: Purest
Perfection, Utmost Attention.
1.2. Type (good, service, idea, etc.): Bubble Tea
There are many variations of bubble tea with a wide range of ingredients. Most recipes
contain a base of tea which is mixed or shaken with fruit or milk. Ice blended versions of the
tea are usually mixed with fruit or syrup, resulting in a slushy consistency. Chewy tapioca
balls - also known as bubbles/Boba - are often added, hence the name: bubble tea. While
there are many other toppings, like Nata jelly, pudding, herbal jelly, the bubbles remain the
crowd favourite.
 Place
A brand based in Cabangan , TMS Milk Tea is a brand new milk tea shop that will be serving
our customers with cheap and high quality milk tea.
AM Recess Time
9:30AM – 10:00AM
PM Recess Time
3:00PM – 3:00PM

H. Organization Plan

The organization plan that our brand will be taking is sole proprietorship in which there is no legal
distinction between the owner and the business entity.

I. Financial Plan

Use of Funds

Use of Funds Current estimates of start-up costs for TSM Milk Tea is around ₱1650 in total.
Sources of Funds

All of the people in the group will be investing up to ₱150 of their own funds into TSM Milk Tea in
order to cover basic start-up costs.