Macao Imperial Milk Tea: Bsa16 Chand, Scarlet Evangelista, Rina Villanueva, Geraldine

Macao Imperial Milk Tea BSA16 Chand, Scarlet Evangelista, Rina Villanueva, Geraldine 1

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INTRODUCTION

the milk tea industry in the Philippines started booming recently

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blogger Jasper Castro (2019) coined this as the “true start of the explosion”

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Threat of New Entrants

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“ -

The threat of new entrants for the milk tea industry in the Philippines is relatively high.

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As reported by FNB report, in the Philippines alone, orders for milk tea beverages increased by 3,500 percent from June to December 2018. This data makes the Filipinos rank second highest to milk tea drinkers in southeast asia. 4

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According Macao

to

Moneymax,

Imperial

milk

tea

belongs to the top 12 Best Milk

Tea

Brands

in

the

Philippines. -

Generally, milk tea production

Economie s of scale

doesn't require much costs.

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Product Differentiati on

They have different kinds of products offered, from milk tea beverages to sodas and hot coffees.

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There are also a variety of add ons you can choose from to go with your drink.

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Cabaero stated to SunStar Philippines,

the

milk

tea

business “does not need much capital required, even less than P50,000 to get a franchise”.

Capital Requirement s 7

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Access to distribution channels

Macao Imperial Milk tea reaches their customer by hand through their store.

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Another method the business uses to reach their customers is through delivery.

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Based on a newspaper report of Manila

Bulletin

in

2015,

Sen.

Aquilino "KOKO" Pimentel III also “urged local governments in Manila to check whether food establishments are complying to food and safety

Government Policies

standards to prevent an outbreak of food poisoning in the city”

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Threats of substitute products 10

“ -

The profitability of an industry can become a factor of availability of a substitute. ( Wilkinson, 2015)

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Because of the popularity of milk tea in the Philippines, Macao Imperial Tea encounters many competitors, in which their products can be easily substituted.

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List of Beverage Industry in SM Dasmariñas (credits by www.smsupermalls.com ) Black Scoop Cafe

Dakasi

Happy Leaf

Ochado

Blue Nektar

Farron Cafe

Infinitea

Serenitea

Buko Express

Foss Cafe

John Lemon

Starbucks

Buko Juan

Fruitas

Juice Avenue

The Coffee Bean and Tea Leaf

Chatime

Fruity Lemons

Lemon Aid

Zagu 12

Bargaining power of suppliers 13

“ -Refers to the pressure on a company by changing higher prices, adjusting the quantity of the product or controlling availability and delivery timelines. -In accordance to Macao Imperial Tea, the bargaining power of the supplier can be considered very high tea shop. When looking at the major inputs that Macao Imperial Tea companies need.

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Bargaining power of buyers

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“ -

It indicates to the power that consumers can gain towards businesses to get them to provide higher quality products, better customer service, and lower prices.

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Aligning to the perspective on the side of Macao Imperial Tea, the bargaining power of the buyer is deduced into three factors.

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According to the FNB report, Philippines is the 2nd ranked highest

milk

tea

drinkers

in

Southeast Asia. -

Hence, the competition between the companies of the milk tea

High competition in the industry

industry are strong and high.

17

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Low product differentiati on

The taste and preference of the consumers varies from the identical flavors of different brands of milk tea stores.

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The

accessibility

promotions

and

of

the

supplemental

flavors in their social media platforms, gives the customers the power to judge it subjectively without even visiting the store physically.

Easy access of information 19

Rivalry among existing firms

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“ - Rivalry among existing firms in the milk tea industry is a bit intense -Rivalry may even become more intense in the said industry because of the freedom of entry of new entrants.

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SWOT Analysis

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Strength

The location of the store was strategically chosen, which is the mall.

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The availability of WIFI and the “instagrammable” vibes.

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The authenticity of the tea and the premium-class pearls that distinct from other brands.

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Travel-friendly packaging to

Weaknesse s

-Macao Imperial tea has received complaints from the

Opportunitie s -They

can

FoodPanda,

use

which

is

customers about the prices of

its

milk

tea

while

according to the review of the customer.

another

famous

food

app in the Philippines. -Young

entrepreneurs

ensure the best experience and

can opt for putting up a

convenient way of bringing it

milk tea business for its

anywhere.

ease of establishing.

Threats - The high competition in the milk tea industry can be

its

reason

substituted

to

to

be other

brands. - The entry of a new company

offering

something different from their current product. - The advantages of other brands

that

Macao

Imperial Tea does not possess.

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Conclusion

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“ -Its plays a vital role in Macao Imperial Tea. By applying the Porter’s five forces, it helps to determine the position of business in the market. -They can find out their weakness and try to implement by taking the best decision -Macao Imperial tea is one of the successful tea shops. Its provide the best and quality milk tea to the customers. Day by day the Macao imperial te business is growing high one making more profit in the business. 25

THANK YOU!

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