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Big Brew-Milktea Final-Research-Paper

Course materials for third year students 2021

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Marketing Management (MKT MGT)

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Students shared 292 documents in this course

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Far Eastern University

Academic year: 2021/2022

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Aldrene1 year ago
pwede po makita yung full ng research

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Introduction Marketing research and its practices have expanded significantly over time, from the emphasis on marketing as a functional management issue to a broader focus on marketing’s strategic role in the overall company strategy. As a result, retailers must focus on modeling brand traits and emphasizing the brand's distinctiveness; they should pay more attention to product pricing strategy and establishing product categories, for example, items with various costs should be classified differently in their categories, and the step pricing method may be used[ CITATION Han18 \l 1033 ]. This research aims to identify and compare the elements that impact a consumer's purchasing behavior in terms of the consumer's personal, cultural, social, and psychological influences. This study aims to find factors that differ and compare the elements that impact a consumer's purchasing behavior in terms of the consumer's personal, cultural, social, and psychological influences.

Understanding consumer behavior is complex, marketers must be aware of these differences and adjust their products and marketing programs to meet consumer demands to achieve long-term success. This is because long-term success is achieved by recognizing and understanding the needs and wants of customers [ CITATION Lee \l 1033 ]. Merchants should build items based on diverse consumer preferences to create significant purchase incentives for the products.

In this research, we conducted a survey for 100 participants to know their opinion and thoughts about the price and products offered by BigBrew. The method for our survey was made through Google Forms to easily gather information online. Variables that affect customer satisfaction and customer perception about the product and the brand has been identified and concluded. Consumer behavior is a factor that should be considered by the business because it deeply affects the overall spending behavior of a consumer and what can be improved on the business.

1. Existing Knowledge & Background Milk tea is a popular and widely consumed beverage now. Milk tea is renowned not just for its health advantages, but also for its distinctive mix and flavor; it's no surprise that many customers are addicted to it. It is a blend of milk and tea, with various tastes and additions. Customers can select from a variety of options. Customers from the younger generations fell in love with this new product trend. As a result, businesses see this as a big chance to increase income while also developing a fresh and distinct product from the originals. Milk tea shops, like coffee shops, are great places for individuals to hang out, socialize, and spend their leisure time. BigBrew Main started its first branch in Maypajo, Caloocan City on January 18, 2021. They are located near Mercury Drug Maypajo and Puregold Maypajo. They specialize in making milk teas, coffees, and even snacks; however, a new product has lately entered the picture. To fill the need, they created milk tea, a drink that can be regarded as both a snack and a beverage at the same time. Milk tea is an iced tea with tapioca balls at the bottom that is pleasant and flavorful[ CITATION Shi15 \l 1033 ]. The rising demand for milk tea prompted many entrepreneurs to enter the sector and create a milk tea business. The milk tea industry is an excellent example of a market structure known as monopolistic competition, a market structure in which competition is fierce, causing different brands to vie for consumers' allegiance. Entrepreneurs must devise a strategy for how their product will stand out from the crowd. This is where marketing strategy comes into play to capture the attention of customers. Entrepreneurs must devise the most effective and distinctive method of introducing and marketing their product to the market.

1 Primary Data Customers prefer milk tea to other popular beverages like coffee since it is less expensive. The Philippines, which is a known country that loves to drink coffee, is starting to catch up with the rest of its neighboring Asian countries who are now beginning to craze over milk teas. It's catching up with a vengeance, though. Tea shops have sprung up all over the city in the last year, thus solidifying its position as the year's largest food/beverage fad. A glass of milk tea every time you go to the

3. Objectives

Our research aims to identify and compare the elements that impact a consumer's purchasing behavior in terms of the consumer's personal, cultural, social, and psychological influences. The research also aims to study factors that identify and compare the elements that impact a consumer's purchasing behavior in terms of the consumer's personal, cultural, social, and psychological influences. The objectives of the study are to:

● To study attention to food added substances in milk tea. ● To determine the factors that impact buyers to buy milk tea despite wellbeing impacts from food added substances. ● To understand if consumers are aware of food additives in milk tea.

4. Theoretical and Conceptual Framework 4 Segmentation Demographic segmentation is splitting the market into recognizable categories based on physical and factual data. Age, gender, income, employment, marital status, family size, race, religion, and nationality are examples of demographic factors. These segmentation strategies are common for segmenting client markets since demographic data are generally straightforward to quantify[ CITATION Cam17 \l 1033 ]. Below is the demographic segmentation of BigBrew.

● Ages 15-50 years old who love affordable and high-quality milk teas ● Genders Male and Female, LGBTQ ● Family, Friends, Millennials, Employees, Students ● Low to High Income ● Located near Mercury Drug Store in Maypajo, Caloocan City

4 Segmentation Psychographic segmentation might be used to segment markets based on personality traits, values, motivations, interests, and lifestyles. A psychographic variable can be used to segment a market on its own or in conjunction with other segmentation factors[ CITATION Vij12 \l 1033 ]. BigBrew’s ideal consumers are those who like to buy high-quality milk teas but also want to buy them for an affordable price; they offer a wide variety of menus including milk teas, coffees, and also snacks that are affordable and budget-friendly for its consumers. BigBrew’s menu offers mostly cold and hot drinks that are perfect for the weather here in the Philippines. Everyone who wants to satisfy their sweet cravings for hot and cold weather is perfect for them to enjoy along with the scrumptious snacks that BigBrew offers; since milk teas are a big hit for millennials, they would surely enjoy these drinks since it's worth it to buy drinks and snacks from BigBrew.

4 Segmentation

Behavioral segmentation is described as market segmentation based on individual purchasing habits. Behavior-based segmentation is noticeable in terms of the advantages desired from the product, as well as the identification of certain buying behaviors, such as shopping frequency and volume of purchase, and so on. In the behavioral approach, a purchasing client is liked to have a promotion and suggested by a companion or family anyway some of them are investigating an alternate kind of flavor in each milk tea shop[ CITATION Sus16 \l 1033 ]. Furthermore, those experts that are working or visiting around Caloocan which is the fundamental part of BigBrew milk coffee house they are tied in with investigating a few slow down and restaurants. Moreover, a portion of the purchasers are milk tea lovers, and they are dependent on the enhanced beverage.

channel because they get their supplies and raw materials from their supplier.

4 Marketing Mix Marketing Mix is a conceptual framework, not only a scientific theory, but that also defines the major decision-making managers' attempts to configure offers to meet consumers' wants [ CITATION Tha18 \l 1033 ]. The product that BigBrew has to offer is Iced Coffee, Milk tea, and Snacks; they have a lot of varieties of flavors depending on the availability of the product. Many people claim that their milk tea is reasonable due to its low prices, which range from 29 pesos for the 16 oz to 39 pesos for the 22 oz. There are many branches of BigBrew and the main branch is located on Mercury Drug, Maypajo, Caloocan City. You can visit them and place an order through their Facebook page BigBrew Main, as well as through their other branches, depending on where they are located. 4 Model Canvas (SCM)

The Business Model Canvas (BMC) describes the various categories of individuals or organizations that a company wants to reach and serve[ CITATION Sai11 \l 1033 ]. BigBrew is known for its Impressum which is “Big in taste but bit in price”; their main activities are preparing their beverages and cooking. BigBrew also offers delivery for those who cannot go outside and visit their physical store; they have an excellent quality of beverages, especially in milk teas and the price is very affordable for everyone to purchase. The key resources in BigBrew are their employees and their franchisers. In terms of the customer relationship, they have excellent customer service since the staff in every franchise treat their customers very well. The customer segment of BigBrew are students, couples, employees, families, and even kids. 5. Intended Outcomes Our research aims to demonstrate the significant relationship between the consumer's profile variables and the amount of milk tea that they drink. Individuals are strolling on sidewalks while holding their cups loaded with custard pearls and taking a

sip from its enormous vivid straws. Although famous milk tea chains have been around for a long time like BigBrew, Chatime, and Happy Lemon, neighborhood milk tea stalls are arising all over the place, exploiting the frenzy, and considering the flavor palette of youngsters and youthful grown-ups. It has turned into a staple beverage for the young generation, dominating another country with its addicting flavors.

Market Research Methodology 1. Target Demographics 1 Market Profile A target demographic is identified as a group of individuals with some shared characteristics that an organization has identified as potential customers for its products. According to Stephen Thomas, efficient communication is the greatest way to stand out. Market segmentation allows you to determine exactly what messaging will entice your customers to buy [CITATION Tho \l 1033 ]. There are four types of market segmentation: demographic, psychographic, behavioral, and geographic. One of the most popular and often utilized kinds of market segmentation is demographic segmentation. It refers to statistical information on a certain group of individuals. Psychographic segmentation divides audiences and consumers into groups based on criteria related to their personalities and traits. Behavioral segmentation is concerned with how the client behaves. Geographic market segmentation is the most basic form of market segmentation. It categorizes clients based on their location [ CITATION Smi21 \l 1033 ].

BigBrew Main, Maypajo is located near Puregold Maypajo, Maypajo High School, and Maria Auxiliadora Parish Church. Their demographic segmentation ranges from individuals from ages 15-50 years old that reside near Maypajo, Caloocan City. BigBrew attracts a lot of customers since it is located near a drug store, market, church, and bakery. For the geographic segmentation, since BigBrew is in a nearby bakery, drugstore, market, and church, it will be easy for them to attract potential customers. For the psychographic segmentation, if people want to hang out with their friends, individuals who want to treat themselves after a hard day's work, and families who want

form of study that focuses on describing a population and circumstance. Descriptive research can be used to learn more about the context of a study problem and gather the information needed to do additional studies. It is obtaining the necessary data about their target audience. Descriptive research is a type of quantitative study that gathers measurable data for statistical analysis of a population sample. When dealing with research in the physical sciences, this is particularly common [CITATION For \l 1033 ].

3. Market Study/Survey Questionnaire

The proponents will be using different platforms, such as social media, to collate data from the target population. Due to the unfortunate situation, it is with the convenience that conducting a survey through the online platforms will be more accessible to the subject, themselves.

Do you drink Milk Tea? ● Yes ● No
How often do you drink Milk Tea? ● Once a week ● Twice a week ● Thrice a week ● Four times a week Others: ________________
Why do you usually drink Milk Tea? ● Smooth Taste ● Sweet Smell ● Low Price ● Likeable Cup Design ● Pleasant Customer Service ● Peer Pressure ● For Relaxation
Do you know about Big Brew? ● Yes ● No

● Others:_________________

Do you buy Milk Tea from the shop?

● Yes ● No

If your answer is yes to the previous question, how long have you been patronizing the Milk Tea from Big Brew? ● Less than a year ● 1-2 months ● 3-4 months ● 4-5 months ● More than 5 months ● No, I am not a patron of Big Brew’s Milk Tea
How did you learn about Big Brew and it’s Milk Tea?

● Family Advertisements ● Friends ● Social Media ● Sites Blogs ● Reviews ● Newspaper ● Others:_________________

Do you find Big Brew as a unique brand of Milk Tea? ● Yes ● No ● Not so much
What other Milk Tea shops do you visit?

● Bubble tea ● Bon Appe Tea ● Zen Tea ● Pres-o-tea ● I love Milk tea ● Infinitea ● Universitea ● Simple Line

From a scale of 1-9, 9 being the highest and 1 being the lowest, which Milk Tea shop do you like and visit most? Big Brew: ____ Bubble tea: ____ Bon Appe Tea: ____ Zen Tea: ____ Pres-o-tea: ____

● Chocolate ● Salted Caramel ● Cookies & Cream ● Taro ● Others: _________________

Are you willing to try new Milk Tea flavors in Big Brew?

● Yes No

How much are you willing to spend for a Milk Tea in Big Brew? ● Php 50 – Php 75 ● Php 76 – Php 100 ● Php 101 – Php 125 ● Php 126 – Php 150 ● Php 151 and above
How do you feel about Big Brew Milk Tea’s current price today?

● Cheap enough for me. ● It’s a bit too pricey. ● Perfect for my budget. ● I don’t really care.

If Big Brew’s Milk Tea were to have a price hike today, will you continue being a patron of the product? ● Yes ● No ● Maybe
Would you agree if Big Brew increase it’s price for Milk Tea in exchange for a direct increase in it’s serving and the flavor’s quality?

● Yes ● No ● Maybe

How about if Big Brew’s Milk Tea were to have a price drop instead today, how would you feel about it? ● Extremely pleased! ● That’s good I guess. ● Don’t really care.
If you are in favor of a price drop for Big Brew’s Milk Tea, will you agree for a direct decrease in quantity of the Milk Tea serving per cup in exchange for a lower price?

● Yes

What would be your preferable price of Big Brew’s Milk Tea as a consumer if you can decide about it? (Please state here): Php_____________

● No ● Maybe

Name:

(optional)

Gender: ● Male ● Female ● Others
Age:

● 17 or below ● 18- ● 25- ● 35- ● 45- ● 55- ● 64- ● 75 or more

Marital Status:

● Single ● Married ● Divorced

Where do you live?:

Employment Status: ● Full-time Student ● Unemployed ● Employed ● Self-Employed ● Other
Your Household’s Average Income?:

● Php34,999 and below ● Php 35,000 - Php 82, ● Php 83,000 - Php 164, ● Php 165,000 - Php 266, ● Php 267,000 - Php 339, ● Php 340,000 - Php 509,

Figure 2. 100% of respondents answered yes, they are drinking milk tea.

Figure 3.

In figure 3, this shows how often do people who know about big brew visit their shop and buy their products. Majority of the respondents which is 32%, answered more than 5 months, followed by 1-2 months which is 20% of the respondents and 18% for both less than a year and not a patron of Bigbrew.

Figure 4. As shown on figure 4, 69% of the respondents learn Bigbrew about their friends followed by Social media which is 50%. This only shows that a lot of bigbrew’s consumers knew about big brew through their friends and social media advertisements of Bigbrew.

Figure 5. In this figure, 69% which is majority of the respondents find Bigbrew as a unique brand of milk tea. While 20% of the respondents answered, “not so much” and 9% answered that they do not find big brew as a unique brand.

From a scale of 1-9, 9 being the highest and 1 being the lowest, which milk tea shop do you like and visit most?

Figure 8. Same question on figure 8, Bon Apple Tea ranked as the least favorite milk tea shop by respondents having 66% answered 1.

Figure 9. 61% of respondents answered Bubble tea as their least favorite Milk tea brand. And only 7% answered Bubble tea is their favorite.

Figure 10. 71% answered that Zen tea is their least favorite milk tea shop and only 3% answered that Zen tea is their favorite brand of milk tea.

Figure 11. In figure 11, it is shown that 71% answered that Pres-o-tea is their least favorite brand and 3% ranked Pres-o-tea a 9 which means only few prefer Pres-o-tea as their favorite milk tea.

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Big Brew-Milktea Final-Research-Paper

Course: Marketing Management (MKT MGT)

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Students shared 292 documents in this course

University: Far Eastern University

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Introduction

Marketing research and its practices have expanded significantly over time, from

the emphasis on marketing as a functional management issue to a broader focus on

marketing’s strategic role in the overall company strategy. As a result, retailers must

focus on modeling brand traits and emphasizing the brand's distinctiveness; they should

pay more attention to product pricing strategy and establishing product categories, for

example, items with various costs should be classified differently in their categories, and

the step pricing method may be used[ CITATION Han18 \l 1033 ]. This research aims to

identify and compare the elements that impact a consumer's purchasing behavior in

terms of the consumer's personal, cultural, social, and psychological influences. This

study aims to find factors that differ and compare the elements that impact a consumer's

purchasing behavior in terms of the consumer's personal, cultural, social, and

psychological influences.

Understanding consumer behavior is complex, marketers must be aware of these

differences and adjust their products and marketing programs to meet consumer

demands to achieve long-term success. This is because long-term success is achieved

by recognizing and understanding the needs and wants of customers [ CITATION Lee14

\l 1033 ]. Merchants should build items based on diverse consumer preferences to

create significant purchase incentives for the products.

In this research, we conducted a survey for 100 participants to know their opinion

and thoughts about the price and products offered by BigBrew. The method for our

survey was made through Google Forms to easily gather information online. Variables

that affect customer satisfaction and customer perception about the product and the

brand has been identified and concluded. Consumer behavior is a factor that should be

considered by the business because it deeply affects the overall spending behavior of a

consumer and what can be improved on the business.