A Feasibility Study of Tea of Heaven

In Partial Fulfillment of the

Course Required in Bachelor of Science

In Business Administration Major in

Marketing Management

By:

Bauzon, Paul Jykyll R.

Avila, Christian

Ducusin, Elton John

SUMMARY OF THE PROJECT

NAME OF THE FIRM

December 2020
 The business will carry the name Tea of Heaven. It is the shop that offers quality
standard product. The word ‘tea’ definitely connotes its natural meaning pertaining to a
fruit or milk tea that contains polyphones, which are naturally occurring compounds that
act as antioxidants.

LOCATION OF THE FIRM

Tea of Heaven will be strategically located at Mintal, Davao City. This location is
expected to be an effective location because there will be no competitors that offers the
same product and services which the establishment shall cater. The location is near in
market where many people visit, wander and purchase which are exactly thirteen
thousand two hundred twenty-seven (13,227) populations.

VISION

Our vision is to help create the best tasting teas that marked as one of the shop’s
highly reputable market that could attract visitors within the Mintal district as well as
from other places in Davao, City.

MISSION

Our mission is to help create a different milk tea drinking experience that would
leave customers satisfied and looking forward to more. Moreover, the business aims to
go on extra mile in giving its clients the ultimate revitalizing stay by offering luscious milk
or fruit tea beverages providing efficient and friendly service a midst, a clean and cozy
environment.

SUMMARY OF THE FINDINGS

MARKETING ASPECT
 Marketing strategies like local fliers, tarpaulins, banners and pre-opening promos
are appropriate for advertising the business in the market.

TECHNICAL ASPECT

The proposed business will require a fully built building with an area of 40 square
meters. Materials and other supplies will be obtained from the manufacturers which we
have selected.

FINANCIAL ASPECT

The amount of the 450,000 is substantially enough to put up the proposed project
of Tea of Heaven. Based on the projection as depicted by the financial statements the
proposed project is kind productivity on profitable undertaking.

SOCIO-ECONOMIC ASPECT

The Tea of Heaven is under small business which creates impact to the society.
First to the customers to fill their satisfaction, second is to the government for paying
taxes and lastly to the proposed business because it generates employees.

CHAPTER I

Tea of Heaven came into existence in Taiwan, when the beverage was created
during the 1980’s. Although it is known which exact Taiwanese shop is the creator of
Tea of Heaven, several shops are speculated to be the origin. One possible origin is
Chun Shui Tang tea house in Taichung, where Ms. Lin Hsui Hui (product development
manager) poured sweetened tapioca balls into the tea during a meeting in 1988. The
beverage was well received by the people at the meeting, leading to its inclusion on the
menu, ultimately becoming the franchise’s top-selling product. An alternative origin is
the Hanlin tea house in Tainan, Taiwan, owned by Tu Tsong-he. He made tea
traditional white tapioca, which has the appearance of pearls, supposedly resulting in
so-called “pearl tea”. Shortly after, Hanlin changed the white tapioca balls to black
version that is seen most today. The drink became more popular in most parts of east
and southeast during the 1990’s.

ORGANIZATIONAL DEFINITION OF TERMS

1. TEA Contains polyphenols, which are naturally occurring compounds that acts as
antioxidants for disease prevention and treatment of many health-related
illnesses.
2. FRUIT TEA. A hot or cold beverage consisting of fruit extract and shall amount of
brewed tea.
3. MILK TEA. A beverage that is a mixture of milk and brewed tea which can either
be served hot or cold.
4. Tea of Heaven
 TEA. Recipes that contain a tea base mixed with fruit or milk.
 Heaven. A place to rest.

CHAPTER II MANAGEMENT STUDY

FORM OF BUSINESS ORGANIZATION

The Researchers chose partnership as the form of business organization.

CAPITALIZATION

The initial capital of the partnership shall four hundred fifty pesos and zero centavos
pesos (P 450,000.00), Philippine Currency contributed in cash by the partners as
follows:

Table 1

Amount Contribution

Amount
Name
Contribution
Bauzon, Paul Jykyll 200,000.00
Avila, Christian 150,000.00
Ducusin, Elton 100,000.00
Total 450,000.00

. ORGANIZATION CHART

This organization chart or structure is based on direct flow of authority from the owner
which is also the manager

MANAGER

CASHIER BARISTA

JOB SPECIFICATION

Table 2
 JOB SPECIFICATION

POSITION DUTIES AND RESPONSIBILITIES

MANAGER Responsible for planning, organizing,
directing and controlling the areas of
operation and that service is carried out in
accordance with prescribe standard and
policies of the Tea of Haven
CASHIER  Must wise in buying merchandise
from the supplier.
 In charge in paying and signing
receipt from supplier.
 In charge of keeping record of
purchased items.
BARISTA Highly skilled in presentation with a
comprehensive understanding of
coffee or tea blends, quality, coffee
or tea variety, roast degree, and
espresso equipment. His
responsibility is to execute and
making tea orders and ensuring
quality product is being served.

Partnership will be the suited form of business organization for the venture. Partners will
be monitoring the daily operation to look after the business on a daily basis. Employees
must well select in compliance with the job requirement.

POLICIES THAT PERSONNEL MUST FOLLOW

Table 3

POLICIES THAT PERSONNEL MUST FOLLOW

  Personnel must be in store thirty (30) minutes before the operation.
 Personnel must always be able to check all records of sale and disbursement
before the opening and closing the store.
 Regarding the accomplishment of every personnel performance.
 Maintain the cleanliness and orderliness of the store.

JOB QUALIFICATION

Table 4

JOB QUALIFICATION

MANAGER  At least 21 years managerial course

 2 to 3 years’ experience on the
same field
 At least 25-30 years of age
 With pleasing personality
CASHIER  Female
 At least 18 years old
 At least graduated of 2 years
course
 Preferably with accounting
background
 With pleasing personality
BARISTA  Male/Female
 18-21 years old
 With pleasing personality
 Must perform without supervision

SALARIES AND WAGES

The researchers used the word “HONORARUIM” to avoid legal issues because
the salary rate listed above is below the minimum salary wage. In this regard, we have
agreed to that as sacrifices for the existence and continued operation of the business.

Table 5
 SALARIES AND WAGES

Monthly
Daily Honorariu Annua
Position No. Salary m l
Manager 1 300 3600 43200
Cashier 1 280 3360 40320
Barista 1 250 3000 36000
Total 3 850 9960 119520

ORGANIZATIONAL COST

Table 6

ORGANIZATIONAL COST

PERMIT AND LICENSES DESCRIPTION AMOUNT

Mayor’s permit 1,200.00
Sanitary permit 200.00
Barangay clearance 100.00
SEC 250.00
BIR 500.00
Business permit 1,000.00
TOTAL 3,250.00

CHAPTER III

MARKETING STUDY

Market Segmentation

Customers are likely to be:

 Young professionals may consider tea of heaven a novelty and luxury alternative
to the commuter, lunchtime or after-work coffee.
  Although it contains sugar, tea is a much healthier alternative to carbonated fizzy
drinks and may therefore appeal to health conscious consumers.
 It is popular for people to hold meetings such as craft circles and book groups in
local cafés and coffee shops and a tea café could appeal as an unusual
alternative.
 Due to its fairly new status, tea has a certain novelty value that might appeal to
people looking to try different tastes and flavors.
 Office workers looking for a quick snack and drink or a relaxing meeting place.
 Travelers will be attracted to tea of haven situated at transport locations such as
bus stations or airports; these can provide a useful way of relaxing before or
during journeys. Increasingly tea of heaven or outlets is being located at
transport terminals servicing clients throughout journeys, even short distance
commutes. Capital Tea of Heaven will focus on two different market segments:
Commuters and Captive Consumers. Commuters are defined as any one or
more individuals in a motorized vehicle traveling from point "A" to point "B."
Capital Tea Cafe greatest concentration will be on commuters heading to or from
work, or those out on their lunch break.

MARKETING ASPECT

The objectives of the marketing aspect are strategically centered on 3 criteria:

 to create strong consumer awareness towards a completely new Tea of Heaven

 to establish a wide brand recognition through the capture of market shares in the
functional drinks segment, and;
 To become the top market leader.
Market Analysis

Tea is specialist drink increasingly being offered in cafés, coffees shops

and bars. It originates from Asia and is made up of hot or cold tea, milk, sugar and giant
black tapioca balls. Ice is then added and the drink shaken to create the bubble effect.
Tea is often referred to as pearl shake, tapioca ball drink; boba ice tea and bubble drink
among other things. Owing to their influences, tea cafés are often Asian-themed in
décor and may also sell Asian snacks and food. They are often situated in fashionable
areas of cities, populated by urban professionals with high disposable incomes and an
interest in alternative eating and drinking venues. Tea is a tea beverage that originated
in Taiwan in the 1980s. The term "tea" refers to the tapioca balls in the drink. These
chewy tapioca balls, or "pearls," are consumed along with the beverage through a wide
straw. Tea is especially popular in many East Asian and Southeast Asian regions such
as Taiwan, Brunei, China (including Hong Kong and Macau), Malaysia, the Philippines,
Singapore, South Korea, Thailand, Indonesia, Vietnam and Australia. Tea is a mixture
of iced or hot sweetened tea, milk, and often other flavorings. The distinctive
characteristics of tea are the black gummy balls made of tapioca (or, more commonly in
East Asia, yam starch), called "pearls" or "boba" or balls that sit at the bottom of the
cup. The pearls are larger than those found in tapioca pudding, with a diameter of at
least 6 millimeters, but smaller ones are occasionally used. They are generally
translucent brown with a darker brown center, although pearls of other colors or 'jelly
cubes' have also recently become available. The original tea consisted of a hot
Taiwanese black tea, tapioca pearls, condensed milk, and honey. As this drink became
more popular, variations were created. Initially iced versions with a hint of peach or
plum flavoring began to appear, and then more fruit flavors were added until, in some
variations, the tea was removed entirely in favor of real fruits. Today you can find shops
entirely devoted to tea, similar to tea cafes of the early 1990s. They usually contain
colored pearls that are chosen to match whatever fruit juice is used, in addition to
brightly colored oversize straws for sucking up the pearls. Tea is generally split into two
types: fruit-flavored teas, and milk teas. Milk teas may use dairy or non-dairy creamers.
The mixtures that make up tea vary. Several examples of flavors are strawberry,
passion fruit, mango, chocolate, and coconut, and may be added in the form of powder,
fruit juice, pulp, or syrup to hot black or green tea, which is shaken in a cocktail shaker
or mixed in a blender with ice until chilled. The mixture is usually combined with milk
and cooked tapioca pearls.

Marketing Mix

Product

Vacuum sealed
Plastic cover
Fat straw
 Business logo

Tea of
Heaven

Tea mixed with tea container

Fruit and milk

tapioca pearls

Logo

TEA of
Heaven

The green color of the logo stands for the color of tea leaves, and the black dots above
of the business name is pertaining to tapioca pearls as one of our tea’s main ingredient,
while the black outline color is to enhance the shape.

Pricing

Table 7

Pricing

PRODUCT QUANTITY PRICE

Iced green tea with ginger Per serving (500ml) 50.00
Sun tea with mint Per serving (500ml) 25.00
Classic bubble tea Per serving (500ml) 70.00
Creamy Coconut bubble Per serving (500ml) 60.00
 milk tea
Honey bubble tea Per serving (500ml) 65.00

Promotion

The objectives of the business are to initiate strong awareness about the launch
of Tea of Heaven throughout Generation Y (10-29 years old) consumers as well as their
parents. The promotional outputs will convey the clear message that “tea of heaven is a
healthy drink for sporty and young people who simply enjoy taking care of their body
and life and refreshing”. Besides on that, the establishment will be using the buy 1 take
one, a 20% discount of purchase of the product items. Also the “Word of Mouth” has
always proven to be the greatest advertising program a company can instill.

Table 8
Promotion

Promotion Pc/s Cost Total

Flyers 500 2 1000
Tarpaulin 3 800 2400
Leaflets 500 4 2000
Free Taste 25 50 1250
Coupons 100 4 400
Total     7050

Place

The TEA of HEAVEN will be born strategically located at Mintal, Davao City. This
location is expected to be an effective location because there will be no competitors that
offers the same product and services which the establishment shall cater. The location
is near in market where many people visit, wander and purchase which are exactly
thirteen thousand two hundred twenty-seven (13,227) populations. And the researchers
chose this place because of marketability status and this business is the first tea shop in
the prospective place.
SWOT ANALYSIS

This is a summary of the business's most important strengths, weaknesses,

opportunities and threats. It’s enables companies to identify the positive and negative
influencing factors inside and outside of a company or organization. Besides
businesses, other organizations, in areas such as community health and development
and education have found much use in its guiding principles.

Table 9
SWOT ANALYSIS

SWOT Analysis
Strengths Weaknesses
1. Product familiarity 1. Forecast demand
2. Customer value 2. Cash flow
3. Responsive  
Opportunities Threats
1. Huge market 1. Seasonal demand
2. Health property 2. Existing food trucks
3. Trendy product  

DEMAND and SUPPLY ANALYSIS

Since the proposed business will be born at Barangay Mintal, Davao City market the
researcher conducted a market survey, analysis and gathered information.

Based on the Statistic office of Barangay Mintal, the estimated populations of the said
place from January 2015 to January 2018 are 13,227 and also according to the Mintal
Market Organization 90% of the total estimated population are going in the Mintal
Market for annually.

Formula:
Estimated Population X percentage = Prospective Customers Annually

13,227 X 90% = 11,904

Prospective no of Percentage Estimated

Customers people willing to buy demand
saying (Annually)
yes
11,904 132 10% 902

As the result of the survey conducted, 132 respondents are affirmatively saying ‘yes’
indicating that they drink varieties of tea. Whereas 10% has shown willingness to buy
tea from the proposed business

GAP ANALYSIS

Estima
Prospec
ted
tive
demand GAP
Custome
(Annua
rs
lly)
11,
902 11,904
002

Note: GAP Analysis

Formula: Estimated Demand Annually – Estimated Population = GAP
Thus, 1320 – 102,750 = 101,430
Annually Customers

Annually
Market
GAP Customer
Share
s
11,002 20% 2,200

Note:

 The researchers’ Assuming Market share in the proposed business is 20%

 To get the monthly customers, simply multiply the GAP from the
assuming market share.

CHAPTER IV

TECHNICAL STUDY

Technical aspect of the feasibility study explains the technical analysis including
product production process, furniture and fixtures, machineries and equipment. Location
including plant lay out, vicinity map, raw materials and utilities.
SUPPLIERS

Company name Location Contact number

Guangzhou Wangcai Food No. A5 Chaoyang Miss Doris Tang
machinery Co., Ltd Industrial Park, South Tel: 86-666-51346-0
TingShi RD, Shingjing
Town, Baiyon Dist.
Guangzhou Guangdong,
China

MACHENERIES AND EQUIPMENT

EQUIPMENT QUANTITY AMOUNT

Thermo bucket 1 (10 kl.) 2,000.00

milk tea mixer &
2 15,000.00
extracting machine
Digital kitchen
1 495
weighing scale
Digital kitchen timer 1 400

Stainless ladle 2 50

Espresso machine 1 18,000.00

Milk tea barrel
1 2,500.00
stainless steel liner
Cup sealer 1 10,000.00
Espresso machine 1 18,000.00
Wall mounted split
2 25,000.00
type aircon
Fire extinguisher 2 3,000.00
TOTAL 94,445.00

SUPPLIES

CLEANING SUPPLIES QUANTITY PRICE

Mop bucket & wringer 1 200.00
Broom & dust pan 1 set 100.00
Squeegee 2 120.00
Cleaning solutions 5 bottles 1,000.00
TOTAL 1,420.00

OFFICE SUPPLIES QUANTITY AMOUNT

Electronic printing
calculator 1 2,280.00
Wi-Fi router 1 1,480.00
Audio system 1 7,500.00
TOTAL   11,260.00

MILK TEA SUPPLIES QUANTITY PRICE

Jigger 5 500.00
Bar spoons 5 200.00
Disposable cups 1,000 pcs. 10,000.00
Straw 200 packs 2,000.00
Glass wares 5 sets 10,000.00
Tea supplies 600 packs 40,000.00
TOTAL 62,700

FURNITURE AND FIXTURE

FURNITURE AND QUANTITY PRICE

FIXTURE
Four sided table 6 3,285.00
Plastic chairs 24 4800
TOTAL 8085

UTILITIES

UTILITIES Monthly Annually

Electric bill 2500 30000

 Water bill 1500 18000

Communication 500 6000

TOTAL 54000
Note:

The proposed business will be using purified drinking water to minimize the
health issue regarding what water will be use of the business.

RENOVATION

MATERIA PIECE
SIZE PRICE
LS S
1.good Uno de
10 320
lumber dose by 8
1,160.0
2.plywood ¾ thick 2
0
3.Nail 1,2 &1.5 30
4.paint 2 liters 850
Paint
5 inches 5 100
Brush
5.stikwel 2-Jan 150
Total 2,610

Rent Expense

Monthly
Description Area Rental
7500
Rent Expense 2.6x6

CHAPTER V

FINANCIAL ASPECT

Assumptions underlying Projections

1. Sales of products will increase by 10% per annum

 2. Purchases will increase by 10% per annum
3. Salary will increase 10% per annum
4. Depreciation of machines will be computed by using straight line method
5. Electricity will increase by 10% per annum
6. Water expense will increase by 10%per annum
7. Communication expense incremental is 10% per annum
8. No incremental on Rental Fee
9. Miscellaneous expense will increase by 10% per annum

SOCIO-ECONOMIC STUDY

The business named TEA of HEAVEN can be categories under a small business.
Tea of Heaven create an impact to its target market and to the government by paying
regular taxes, choice of the product on the part of the customers and generate
employees from out of school youth and other resident of the prospective place of the
business.

The proposed business will be offering different delight of tea mixing, and this
product will give a refreshing taste to the customers and the objectives of the business
are strategically centered on 3 criteria:

 to create strong consumer awareness towards a completely new tea Heaven

 to establish a wide brand recognition through the capture of market shares in
the functional drinks segment, and;
 To become the top market leader.

Even though there a lot of business being built or some business using some
innovation to their products and some are successful now a days, we may also
overcome what they did by serving our market better for our products through discipline
and hard work.

PLANT LAY-OUT
 Cas
hier

Bar

TABLE window

Chair open window

Door

PLANT LOCATION
Tea of
Heaven