Xavier University Ateneo de Cagayan

School of Business and Management

Academic Year 2015 2016

Marketing Plan

Submitted by:
Michelle Ann S. Mabao
Lairyll Lue P. Price
Charliez Jane R. Soriano
(BA 11 - ACA)

Submitted to:
Milbert P. Dialogo

Submitted on:
March 14, 2016
 KENKO NAI CHA TEA LOUNGE
Vista del Rio Building, Patag Road, Waling Waling
Street,
Carmen, Cagayan de Oro City
Contact No.: +639175491204
Email: kenko.naicha@gmail.com
LEGAL PAGE

TABLE OF
CONTENTS

1.0 Executive Summary

2.0 Situation Analysis

2.1 Market Needs

2.2 The Market
2.2.1 Market Demographics
2.2.2 Macroenvironment
2.3 The
Company
2.3.1 Mission
2.3.2 Service Offering
 2.3.3 Positioning
2.3.4 SWOT Analysis
2.3.4.1 Strengths
2.3.4.2 Weaknesses
2.3.4.3 Opportunities
2.3.4.4 Threats
2.4 Competition
2.4.1 Direct Competition
2.4.2 Indirect Competition
3.0 Marketing Strategy
3.1 Product Marketing
3.2 Pricing
3.3 Promotion
3.4 Place
3.5 Implementation Schedule
4.0 Conclusion
5.0 Recommendation
6.0 Appendices

1.0Executive Summary

Kenko Nai Cha Tea Lounge primarily offers different variety of hot
and cold milk teas to meet different customer preferences with a
touch of adventure. They value their customers fondness, so, they let
them decide for their level of sweetness and chewies they want for
their milk teas. They serve the milk teas in different sizes and flavors,
which also vary in prices, for the customers to choose from. For full
customers satisfaction, they provided a cozy ambiance to give
customers a comfortable and relaxing feeling while inside the tea
shop. Aside from milk teas, Kenko Nai Cha Tea Lounge also offers
delectable and novel meals for the Kagay-anons to experience
adventure right on their table. Meals are cooked as it is ordered to
ensure its freshness and quality at its best.
People located near the area are primarily part of the target market
of Kenko Nai Cha Tea Lounge. These includes students from Liceo de
Cagayan University, St. Marys of Carmen, Angelicum Learning Center,
Cagayan de Oro College and other neighboring schools. Employees
from SSS, GSIS, and other establishments are also included. Aside
from the said customers, they also have regular clients that really opt
for their products. With this kind of business, Kenko Nai Cha Tea
Lounge generates sales approximately 150 000Php a month and
incurs expenses around 50 000Php a month. Kenko Nai Cha Tea
Lounge is encouraged to continue its current strategies and could also
re-examine their goals and objectives on a bi-weekly basis and assess
successes and shortcomings to develop an increase in sales while
achieving a status quo state or decrease in marketing expenses. They
are also encouraged to Develop brand awareness through a steady,
month to month increase of new customers and make appropriate
changes to drive the company forward to fully stabilize its advantages
With its Carmen branch as the recipient of this marketing plan, its
one of the perfect places for deliciously refreshing milk tea and
building memories with friends and relatives for its target markets.
The company does not only answer its market need through excellent
customer care and service but also provide procurement program to
its workforce. This only shows that the company is not only customer-
driven or revenue-driven but also employee-driven. Despite its
identified weaknesses and threats such as its competitors, Kenko Nai
Cha Tea Lounge remains to its objectives and mission highlighting its
healthy milk tea among other teahouses in Cagayan de Oro City and
its nearby places. After gaining the necessary information based from
its previous and projected results, Kenko Nai Cha Tea Lounge can now
make changes, innovate, and even eliminate that may cause its
demise.

2.0Situation Analysis

Kenko Nai Cha is one of the many teahouses in Cagayan de Oro.

This one is different, though, because it serves the Asian Milk known
as Nai Cha. Nai Cha teas are freshly brewed daily. Its exquisite taste
comes from premium quality tea leaves. Additionally, no artificial
flavors or sweeteners are used in creating Kenko Nai Cha teas. It is the
healthy version among all other milk teas in Cagayan de Oro. Kenko
Nai Cha offers its modern, adventurous and young at heart customers
the ultimate tea experience by allowing them to personalize their
drinks. Traditional tea choices are mixed with creative modern
ingredients that make their every tea experience more memorable. In
addition to this, customers can also choose the sweetness level they
desire, as well as chewies that are added into their teas. They also
offer a wide variety of desserts you can choose from like Bevato egg
rolls. From its original branch in Carmen, Kenko Nai Cha now has five
branches regularly serving authentic Nai Cha teas and its other
products to Kagay-anons. Aside from franchising, concessionaires in
different locations, for example inside school grounds, offer their
exemplary milk teas.

2.1Market Needs

Tea continued to show positive growth in the Philippines in

2015 while remaining largely secondary when compared to
coffee in overall hot drinks. Awareness of the health benefits
of tea continues to grow but, while this keeps sales afloat, it
continues to have a slow impact on the overall growth of the
tea industry in the country.

Kenko Nai Cha Tea Lounge seek to fill the exquisite taste
comes from premium quality Asian Milk tea leaves and to
have the ultimate tea experience not just by allowing them
to personalize their drinks but also to provide an ambiance
of tranquility for learning, paperwork or even just hang-outs.
Due to demand, the company invests into food delicacies
which add on to the revenue and uniqueness of the products
of the company that gave its advantage against its
competitors. There are also other products such as
pasalubong which all can savor and enjoy. Kenko Nai Cha Tea
Lounge is the first and only all-natural milk tea and beverage
place fully home-grown from Cagayan de Oro City which is
for all Kagay-anons to buy, to have and to enjoy.

Selection: a creative choice of food and drink and a well-

constructed structured conversation system.
Accessibility: the market will gain access to Kenko Nai
Cha Tea Lounge with minimal waits and long business hours.
Customer service: the customer is ALWAYS right.
Competitive pricing: all products are as much as possible
competitively priced relative to the competition.

2.2The Market

The audience for tea is changing as rapidly as the market for

tea is expanding. What was once a predominately female,
older consumer has evolved into much broader target
 audience depending upon the specific segment and drinking
occasion.

In the forecast period, tea may remain secondary to coffee

in overall hot drinks, but it will continue to grow its own
following. Its forecast growth remains minimal but positive,
likely to be driven by slowly increasing awareness of brands.
While positive, growth rates are on a slow decrease as the
demand for tea in the country remains limited.

The target markets of Kenko Nai Cha Tea Lounge would be

the students in the nearby university of the main branch, the
workers of the different nearby companies and others who
wish to try the company's products and services. The table
below shows the companys number of potential customers
in five months base on their past sales experiences and on
the seasonal occasions happening during the month.

Market Analysis
Oct. Nov. Dec. Jan. Feb.
Potential Customers Growth
High School Students 6% 200 212 225 239 253
College Students 4% 350 364 379 394 410
Young Professionals 3% 300 309 319 328 338
Middle-Aged Professionals 5% 150 158 166 174 183
Others 0% 0 0 0 0 0
Total 4 % 1,000 1,043 1,089 1,1351,184

Market Analysis

Middle-Aged Professionals
High School Students

Young Professionals

College Students
 2.2.1 Market Demographics

Kenko Nai Cha Tea Lounges demographic for its

market considers high school and college students,
young professionals and middle-aged professionals
which are mostly Flipinons, specifically Kagay-
anons. Their ages vary from 11-16, 16-21, 21-30,
and 30-45. They are usually found near the
business location in the companys Carmen
branch. Students go to tea houses for
refreshments and studying purposes. Professionals
go there for meet-ups with friends and family or for
relaxation. Some just want a taste of milk tea or its
delicacies and experience the different flavors and
twists. The market may also purchase products
that will match their personal preference or need,
since they have many options in doing so because
they can personalize their drinks.

Market
Demographics

Market Segments Age Allowance Purpose

High School Students 11-16 P75-150 Refreshment, Snacks
College Students 16-21 P150-300 Studying
Young Professionals 21-30 P300-500 Catching-up w/friends
Middle-Aged
30-45 P500-above Just relaxing
Professionals

2.2.2 Macroenvironment

The external, environmental issues that affect

the Kenko Nai Cha Tea Lounge are:

Political: A stable environment where little

affects our ability to generate revenue.

Economic: The increasing number of tea

lounges around the place which put the
company in against its competitors.
 Social: The trend towards cost effective
business in advertising and marketing products
which is where such added value differentiation
strategy comes into play.

Technological: The conceptualized, created,

and eccentric technical facilities that often
subdue installations.

2.3The Company

Kenko Nai Cha Tea Lounge is the pioneer of the freshly brewed
milk tea concept in Cagayan de Oro, born simply out of love for
tea. On November 2011, the first branch was opened in
Robinsons Supermarket CDO. Since then, it has maintained a
strong foothold in the city, having presence in major malls such
as SM City CDO, Ayala Centrio and Rustans Supermarket. The
company is presently branching out in other areas in Mindanao
and Visayas.

The company is known for constantly innovating out-of-the-

ordinary beverages suited for adventurous foodies with
discerning tastes. It ensures their customers that all their
beverages creations are made with the best ingredients
available, resulting in the best-tasting flavours. In addition, it
prides itself in the variety of tea offerings, giving their
customers a reason to try something new with every visit.

2.3.1 Mission

To provide the customers with innovative tea

beverages that perfectly and consistently match their
food personality through menu variety and drink
customization.

To enhance consumer experience with exceptional

customer service and a stylish ambiance.

To concoct the most creative, innovative and

adventurous line of tea beverages that can satisfy the
most discerning palette.

2.3.2 Service Offering

 Kenko Nai Cha Tea Lounge has a vast array of milk tea
and other drink choices such as the different varieties
of Asian Milk Tea, Iced Tea Latte, Snow Tea, Au Lait,
Yakult Tea, Fruit Tea, Caffeine-free Tea, and Freshly
Brewed Tea which cost from Php75 to Php110 each
and can even include chewies in additional to ones
chosen level of sweetness also.

Kenko Nai Cha Tea Lounge has go into food fragility

also with these products: BEVATO Egg rolls is an
Asian-inspired product originally from Taiwan. They
are completely different from the more popular
barquillos; Frozen Brazo is a play on the popular Brazo
de Mercedes frozen cakes today being infused with ice
cream. However, instead of ice cream, Kenkos Frozen
Brazo uses whole cream made from their special
hatch eggs. The eggs used for these are special hatch
eggs only from the Vista Fresh Eggs farm. These
pasalubong egg rolls are manufactured only from
fresh and organic ingredients with no preservatives
and artificial ingredients added, hence the somewhat
short shelf life. Even while focusing on milk teas and
other beverages, Kenko finally launched the only
Brewed Coffee using 100% pure local Arabica coffee
beansand also the new Banana Muffin with chocolate
bits. All of these other items cost from Php100 to
Php150.

All the ingredients for all the Kenko Nai Cha products
are either taken from different national suppliers or
from foreign suppliers, but are never replaced with
artificial alternates. They must all be fresh or organic
or both with no preservatives and additives.

2.3.3 Positioning

Kenko Nai Cha Tea Lounge offers home-grown milk

tea shop in Cagayan de Oro to introduce pure and
healthy milk tea using all-natural products without
preservatives and artificial additives. The wide
variety of teas has been carefully handpicked from
all over Asia by certified tea lovers, thus, the
company is delighted to serve only REAL and
AUTHENTIC milk teas. Kenko Nai Cha Tea Lounge
 have recreated traditional tea into creative mixes
that appeals to the modern, adventurous and
young at heart. The company uses only tea leaves
with ALL-NATURAL FLAVORS. This is in line with the
commitment to only serve HEALTHY and GUILT-
FREE beverages for everyones enjoyment.

2.3.4 SWOT Analysis

2.3.4.1 Strengths

Kenko Nai Cha Tea Lounges advantage from

other tea shops is the health benefit they offer
to the customer in choosing their products,
other than that, they also offer comfortable,
more quiet and relaxing ambiance for the
customers to enjoy their milk teas and
structured conversation system. They also
serve meals which are not usual to other tea
shops. The company also has excellent staff
who are highly trained and customer attentive.

2.3.4.2 Weaknesses

Since Kenko Nai Cha Tea Lounge is currently

expanding to reach a wider range of market,
there is a great necessity of man power to
operate into its different branches. With lesser
number of man power, operation is significantly
affected. This includes the time it takes to serve
the foods and beverages ordered by the
customers, which could take too long,
especially during peak hours when customers
are dense.

2.3.4.3 Opportunities

Milk tea was loved by the Kagay-anons when it

was introduced to the market and so this field
on the business industry boomed because of
the increasing number of Filipinos who are
patronizing this kind of beverage.The owner
saw this opportunity and with the love for milk
tea, Kenko Nai Cha Tea Lounge was established.
 It experience an increasing sales opportunities
as people become familiar with the advantages
of the structured conversation system of its
place. Also, with the increasing number of
health conscious people, Kenko Nai Cha Tea
Lounge was designed to support healthy
lifestyle.

2.3.4.4 Threats

Kenko Nai Cha Tea Lounge is new to the market.

Before it was established, there were already
other teashops present in the city and have
already penetrated into the market. The
challenge is for Kenko Nai Cha Tea Lounge to be
known and penetrate into the market
considering that it is a new entrant in this field
of business. Also, the negative issues about
milk teas which were reported few years ago
might affect the image of milk teas making it a
challenge to ensure our customers that Kenko
Nai Cha Tea Lounge is reliable.

2.4 Competition

Here in Cagayan de Oro, there are a lot of milk tea cafes that
serve refreshing, unique-flavored milk teas. There are five at
least five favorites, though, that have evolved from being just
simple milk tea cafes into a culture that many have come to
embrace and love. Kenko Nai Cha Tea Lounge is proud to be one
of such.

2.4.1 Direct Competition

Chingkee Tea considered the mother of all milk

tea cafes in CDO. Chingkee Tea is a class all its own
the caf has no Wi-Fi. Talk is in the menu when you
are at Chingkee Tea.

Sweet Leaf Bubble Tea Caf one of the first to

offer the refreshing drink to Kagay-anons. The caf
comes up with different flavors every now and then,
like the well-loved Oreo and Matcha varieties. Sweet
 Leaf also serves pastries, sandwiches, and pasta.
Sweet Leaf is also the choice of many who need a
quiet place for work especially since they have good
Wi-Fi connectivity.

Wangs Tea Fuzion a simple but comfortable and

relaxing tea caf. Its no-nonsense interiors attract a
lot of customers day in, day out. Wangs serves Boba
teas such as the all-time favorite milk tea, plus other
varieties like fruit teas, tea latte (Caramel, Caramel
Macchiato, and Hazelnut), and freshly brewed teas
(Jasmine Green Tea and Ceylon Black Tea).

Teamptation Its one of those hole-in-the-wall milk

tea shops that you never thought existed. But,
regardless of this, it is guaranteed that Teamptation is
an awesome milk tea place. Its fun flavours are: Drive
Me Crazy, Adore Me, Love Me, Hold Me, Date Me,
Marry Me, and Take Me Home. These teampting
treats can be customized with teasers like coco jelly,
tapioca, grass jelly, egg pudding, peppermint, rocksalt
& cheese, and coffee jelly. Teamptation also serves
snacks like one of their bestsellers, the Popcorn Bowl.

2.4.2 Indirect Competition

Indirect Competitors include stores that sell

beverages and foods too like Jollibee, Dunkin
Donuts, 7-Eleven, Shoppe 24, Chams, Gram Mini-
mart, Karens Bakeshop, Goldilocks, Stellas Bread
Basket, Sweet Surrender Coffee Shop, JL Junction,
and fast foods seen in between the building of SSS
and GSIS. Street vendors are not exceptions at all.
These stores offer products that Kenko Nai Cha Tea
Lounge doesnt have and so potential customers
might stick to their usual.

3.0Marketing Strategy

3.1Product Marketing

Kenko Nai Cha Tea Lounge is known for constantly innovating

out of the ordinary beverages suited for adventurous food
lovers with discerning tastes. It ensures their customers that all
 their beverage creations are made with the best ingredients
available, resulting in the best-tasting flavors. In addition, it
prides itself in the variety of tea offerings, giving their
customers a reason to try something new with every visit. (See
Picture 1 &2)

3.2Pricing

All products will be competitively priced relative to the

competition. Kenko Nai Cha will try to compete with other
tea houses by cutting off prices by P10-P15 for all drinks. It
is important to compete in terms of pricing because in
Cagayan de Oro tea houses has had a growth and many
tea shops offer more affordable pricing than that of Kenko
Nai Cha. Pricing low means more demand from customers
especially since their main product line are drinks. (See
Picture 3)

3.3Promotion

As a new entrant in this business industry, Kenko Nai Cha Tea

Lounge must limit their promotional tools to flyers, posters,
social media such as Facebook, Twitter, Instagram, Foursquare
and other websites which are commonly visited by most people.
It will make sure that their promotional tools are detailed yet
brief for customer awareness. It will also ensure that the flyers
and posters are presentable to catch attention. (See Picture 4-
12)

Start
Advertising End Date Budget Manager Department
Date
Flyers Design 6/1/2016 6/15/2016 P0 Existing Design
Poster Design 6/1/2016 6/15/2016 P0 Existing Design
Printing 6/16/2016 6/30/2016 P2,500 Existing Design
Other 6/1/2016 6/30/2016 P0 N/A N/A
Total Advertising Budget P2,500

1 P

3.4Place

Kenko Nai Chas location is strategically advantageous. It is

located near campuses, workplaces, residential areas and
 located where there is the main road. The tea house offers a
comfortable, quiet and relaxing ambience to the customers.
Outside, there is also parking space for customers who have
cars. The Tea Lounge can have more potential customers having
a location of a densely populated area. Concessionaire is a
great way to reach potential customers other than their own
branch location. Putting up concessionaires where many people
will gather like a sporting events, festivals, or city-wide week-
long celebrations. (See Picture 13-16)

3.5 Implementation Schedule

The marketing schedule must be put into action as soon as

possible. It will be easier for Kenko Nai Cha to do so because of
its established brand name. as market researchers, it is
encouraged to implement this market plan by June 2016, to test
out the market plan in the earlier months and improve in the
following months. By that date, the store is ready to adapt the
changes recommended in the marketing plan. The prices must
be cut-off to the suggested price range so as to keep close
competition to other tea shops. Promotion must be heavily
emphasized in the internet because of its dominance in this
generation. Though the marketing plan is greatly reducing
prices, there is no need to change the quality of products that
makes the business well-known.

4.0Conclusion

With the fast predilection of people nowadays, traditional tea

choices are mixed with creative modern ingredients that
make every tea experience more memorable and healthier
thats why Kenko Nai Cha Tea Lounge only uses PREMIUM
QUALITY TEA LEAVES for its beverages that are FRESHLY
BREWED DAILY to ensure its companys name itself
Kenko which means health in Japanese and Nai Cha
that literally means Asian beverage Milk Tea.

With its Carmen branch as the recipient of this marketing

plan, its one of the perfect places for deliciously refreshing
milk tea and building memories with friends and relatives for
its target markets. The company does not only answer its
market need through excellent customer care and service
but also provide procurement program to its workforce. This
only shows that the company is not only customer-driven or
 revenue-driven but also employee-driven. Despite its
identified weaknesses and threats such as its competitors,
Kenko Nai Cha Tea Lounge remains to its objectives and
mission highlighting its healthy milk tea among other
teahouses in Cagayan de Oro City and its nearby places.
After gaining the necessary information based from its
previous and projected results, Kenko Nai Cha Tea Lounge
can now make changes, innovate, and even eliminate that
may cause its demise.

5.0Recommendation

Market researchers of Kenko Nai Cha Tea Lounge are

encouraged to continue its current strategies and could also
re-examine their goals and objectives on a bi-weekly basis
and assess successes and shortcomings to develop an
increase in sales while achieving a status quo state or
decrease in marketing expenses. Based on its given
information, company is also encouraged to Develop brand
awareness through a steady, month to month increase of
new customers and make appropriate changes to drive the
company forward to fully stabilize its advantages. Above all,
this marketing plan provided is highly recommended to be
implemented as soon as possible or as scheduled and make
sure that this will be faithfully followed to ensure profit
maximization of the company. Go natural, go for Kenko Nai
Cha!
Picture 1 Picture 2

Picture 3 Picture 4
 Picture 5 Picture 6

Picture 7 Picture 8
Picture 9

Picture 10
Picture 11

Picture 12
Picture 13

Picture 14
 Picture 15

Picture 16
 Picture 17 Picture 18

Picture 19 Picture 20
 BIO-DATA

NAME MICHELLE ANN S. MABAO

PERSONAL DETAILS

Nationality FILIPINO

Birthday March 26, 1998

Birthplace Cagayan de Oro City

Address Igpit, Opol, Misamis Oriental

EDUCATIONAL
BACKGROUND

Tertiary BS Accountancy

2014- Present

Xavier University Ateneo de Cagayan

Cagayan de Oro City

Secondary Liceo de Cagayan University

Rodolfo N. Pelaez Blvd.,

Carmen, Cagayan de Oro City

March 2014

Elementary Bulua Central School

Bulua, Cagayan de Oro City

March 2010

Saying Do not worry about tomorrow today,

live your life right now to be happy in
any way.
 BIO-DATA

NAME LAIRYLL LUE P.

PRICE

PERSONAL DETAILS

Nationality FILIPINO

Birthday October 4, 1997

Birthplace Cagayan de Oro City

Address Patag, Cagayan de Oro City

EDUCATIONAL
BACKGROUND

Tertiary BS Accountancy

2014- Present

Xavier University Ateneo de Cagayan

Cagayan de Oro City

Secondary Xavier University Ateneo de

Cagayan

Upper Carmen, Cagayan de Oro City

March 2014

Elementary Liceo de Cagayan University

Rodolfo N. Pelaez Blvd.,

Carmen, Cagayan de Oro City

March 2010

Saying Expect for the worst and hope for the

best.
 BIO-DATA

NAME CHARLIEZ JANE R. SORIANO

PERSONAL NA DATOS

Nationality FILIPINO

Birthday October 15, 1997

Birthplace Cagayan de Oro City

Address Pagatpat, Cagayan de Oro City

EDUCATIONAL
BACKGROUND

Tertiary BS Accountancy

2014- Present

Xavier University Ateneo de Cagayan

Cagayan de Oro City

Secondary Liceo de Cagayan University

Rodolfo N. Pelaez Blvd.,

Carmen, Cagayan de Oro City

March 2014

Elementary West City Central School

West District I

Carmen, Cagayan de Oro City

March 2010

Saying Live as if you die today; die as if you

live forever.