Professional Documents
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Morals and Malice Final.7.3.19
Morals and Malice Final.7.3.19
A Thesis
Presented to the
In Partial Fulfillment
By:
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ABSTRACT
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Acknowledgement
This thesis would not have been done successfully without the help of the
following people that will be mentioned. The researchers would like to extend their
gratitude to them.
Foremost, we offer this thesis to GOD Almighty for showering us with blessings,
To our families, for the support and encouragement all throughout the process.
Thank you to the present Co-Owner and Operations Manager of Morals and
Malice, Mr. Joseph Michael Yu, for allowing the researchers to conduct a survey and
interview them about their company, not only has he continued to grow the company,
he was able to help the 6 students from the University of San Carlos pursue with his
To our thesis adviser, Mrs. Angelita Valles, for guiding us and for constantly
To the distinguished members of the panel, for the approval of our research, for
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Table of Contents
COVER PAGE i
APPROVAL SHEET ii
ABSTRACT iii
TABLE OF CONTENTS iv
LIST OF TABLES v
LIST OF FIGURES vi
Chapters Page
1 INTRODUCTION
THE PROBLEM
Statement of Assumption 7
DEFINITION OF TERMS 10
2 THEORETICAL BACKGROUND
Theoretical Framework 24
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3 RESEARCH METHODOLOGY
Research Design 32
Research Environment 32
Research Respondents 33
Research Instruments 34
Research Procedures 35
Treatment of Data 36
Customer Profile 42
Demographic 42
Psychographic 43
Behavioral 47
Proposal 55
Summary 57
Findings 58
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Conclusion 61
Recommendation 62
BIBLIOGRAPHY 64
APPENDICES
Transmittal Letter 70
Company Questionnaire 71
Customer Questionnaire 73
Timetable of Activities 78
Curriculum Vitae 83
Originality Report 96
Compliance Matrix 97
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LIST OF FIGURES
Figure Page
2 STP Process 26
4 Conceptual Framework 30
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LIST OF TABLES
Table Page
2 Reliability Statistics 35
10 Price 48
11 Promotion 49
12 Physical Evidence 50
13 People 51
14 Product 52
15 Process 53
16 Place 54
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CHAPTER I
INTRODUCTION
Globally the bar and nightclub industry has been growing in terms of popularity
and trend. The global statistics of the industry in the world has risen by 1.4% in terms of
Industry Sales. The alcohol consumed by consumers globally has a sales share of 27.5%.
The Bar and Nightclub industry is a large contributor to the global economy with a
Revenue in the Alcoholic Drinks Market amounts to US$2.6 trillion in 2018. The forecast
market share in the Philippines and should inspire major alcohol producers to escalate
their volume. The introduction of new bars in the Philippines also permits direct and
Cebu with bars, nightclubs, and even KTVs showing up in almost every plaza or street
you pass through. Locally, the nightlife business is ruled in popularity by bars such as
company identify its target markets and set measurable objectives (Jeremy Bradley,
2018). The promotion strategy is, when defined, the choice of a target market and the
services cannot attract the attention of worried and moving customers. (Neil Kokemuller,
2018).
The marketing mix is a key tool used to develop the strategic section of the marketing
plan of a company (Jeremy Bradley, 2018). A marketing mix mainly relates to the 4P
marketing, the 7P service marketing and the theories of 4 Cs developed in the 1990s
(Mark Acutt, 2018). The 4P’s of marketing goes as is: Promotion, Place, Price, Product;
these 4P’s are essential to the success of the marketing of the company as it is, as
previously mentioned, the central tool in the marketing strategy of the company. A
marketing mix for Morals & Malice will be important in discerning the Bar & Lounge’s
marketing problems and how they can adjust to increasing their consumer base.
Social media is a very important tool in boosting Morals & Malice’s marketing strength.
The annual report on social media marketing provides information on social media
marketing. The latest report showed that 90% of marketers believe that social media is
important for their marketing initiatives (Tuten & Solomon, 2017). Social Media will
play a big part in improving Morals & Malice’s brand image as it is the largest platform
for communication today; with most of humanity using social media, the marketing
potential is endless.
Morals and Malice’s target market mostly consist of Class A, B, and C consumers.
According to Emily Wilson, the main problem of Morals and Malice is the brand image.
The business lacks the ability to create a strategic campaign suitable for different markets
and classes of customers in Metro Cebu area accompanied by the rising cost of alcohol
due to sin tax has hindered the potential of rapid growth for the bars and lounges.
Currently, the company is looking at a steady at a steady growth rate with a good market
share in Cebu. The biggest endeavor the company is undertaking is breaking into the
market of Cebu which also has big names in the bar and lounge industry.
In an interview with Emily Wilson (Manager), Morals and Malice’s goal are expected to
grow more and more better each year. By the end of 2018, it will have achieved its goal
of catering to more classes and generate more consumers for the bar and nightclub
industry. In the same year, Morals and Malice aims to release more signature cocktails
and hold more events that cater to class A, B, and C market to build up better branding
By the end of the study, the authors expect to fix Morals and Malice’s problems with
solutions formulated by gathering information from customers and the management team
Branding, by definition, is the process in creating a unique name and brand image
towards the consumers. The aim being to establish uniqueness in the market to attract
new consumers and retain loyal consumers. Morals and Malice has entered the market
with an eccentric approach to Cebu, offering premium cocktails and a unique layout of
the bar, being the first of its business design in Cebu city, with their tagline “Where Art
Morals and Malice definitely has the looks and the drinks to be one of the most exciting
bars in Cebu; and yet, Morals and Malice is still one of the less populated bars in Cebu in
comparison to bars like Craft, Complex, and etc. Morals and Malice needs a new
approach to their marketing strategies and branding in hopes to increase their customers’
loyalty towards their brand and maybe even an increase to their market share in the
Nightlife Industry.
THE PROBLEM
The study aims to assess the marketing strategies of Morals and Malice in Cebu City in
No. of employees
Initial capital
Segmentation
Targeting
Positioning
Demographic profile
Age
Gender
Nationality
Occupation
Psychographic Profile
Personality
Values
Attitudes
Interests
Lifestyles
Behavioral Profile
Reasons of visit
Frequency of visit
7P’s
Price
Promotion
Physical Evidence
People
Product
Process
Place
4.What are the challenges faced by Morals and Malice with their current marketing
strategies?
5.Based on the findings of the study, propose new marketing strategies for Morals and
Malice.
Statement of Assumption
There has been a raise of a mix Foreign-Filipino in the country; however, the
company despite its opportunity to grow. The researchers assume that by presenting more
promotional strategies to Morals and Malice, the company is capable of getting more
customers and earning more to increase its sales. Morals and Malice is currently has been
promoting through social network sites and we the researchers would like to introduce
Statement of Hypothesis
The following groups of people are benefitted by the findings in this study:
Morals and Malice - The findings in this study can help the Bar and Lounge company as
well as the Marketers of Morals and Malice to maximize their marketing strategies as it
will benefit them in increasing their customers, branding, advertisements and profit. The
company may also find out which type of marketing tool and techniques to use to gain
more customers. In addition, this research may also help them distinguish themselves and
position themselves from their competitors even better and use each of their distinctions
to their competitive advantage as well and to make use of their opportunities being
presented.
The consumers - The findings in this study can benefit Morals and Malice customers as
this study can offer recommendations to Morals and Malice to make them the bar and
lounge of choice when spending a night out. upon assessment of the marketing strategies
currently being used the results of the marketing strategies, with basis of improvements
Investors - The findings of this study provided useful information to investors that are
looking to invest in the Cocktail culture of the Bar and Lounge/Night establishment
industry. Investors may use the information gathered in this study to better assess the
Other existing night establishment industries - The findings of this study will provide
and may use this information to their advantage whether they replicate or differentiate
from it.
The Researchers - The findings of this study provided the researchers with useful
information about the company and the popularity they have earned for years in the Bar
researchers are also able to better understand the effectiveness of marketing promotional
strategies.
Future Researchers - The findings of this study will help future researchers that are
looking to research in a similar topic by providing them with useful information as well
as secondary data regarding the effectiveness of Morals and Malice’s current marketing
strategies.
The reason for this study is it to establish Morals & Malice’s branding and promotional
strategies and how it is influencing the bar/nightclub industry in the Cebu region; and
then, improving upon them. The information gained from studying Morals & Malice’s
branding and promotional strategies will possibly be used to increase Morals & Malice’s
popularity and influence in Cebu. Consumer perception and behavior will be described
This research study is limited to Morals & Malice focusing on their establishment in
Cebu; therefore, the result is not applicable for any other company. The results and
findings can be applied as basis to similar start-up companies who want to seek and
expand their business ventures among potential markets through the use of effective
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DEFINITION OF TERMS
Average Total Company of Previous Year - The total number of customer the company
has catered.
Budget Allotted per Visit – It is the client’s budget of purchasing the product per visit
Company Profile – the data of a company’s background that consist of No. of employees,
Customers Profile - consist of the background on the customers of Morals and Malice in
Frequency of visit – the rate at which something occurs or repeats over a certain time or
sample.
Lifestyles – A way of living of individuals, families and societies, which they manifest in
coping with their physical, psychological, social, and economic environments on a day-
to-day basis.
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Product – A good idea, method, information, object or service created by a process that
Place – Decisions describe where a company sells a product and how the product is
portion of a market.
People – companies depend on people to operate the business all the way from frontline
therefore, the conveyance of a service is part of what the customer pays for.
Promotion - Shows consumers why the product or service is needed and why they should
Segmentation – the method of establishing and dividing a big, homogeneous market into
Targeting – The choice of potential customers for whom a company wants to sell
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important in life.
CHAPTER 2
THEORETICAL BACKGROUND
The bars, pubs and clubs of the business sector have their main business function
being a seller of alcoholic beverages, while using music and entertainment to entice
possible customers into visiting and patronizing their establishment. The three types of
nightlife establishments vary in terms of; venue size, primetime days of the week,
location, primetime for the year, building structure and layout, and legal regulations
For many years, people have enjoyed consuming alcoholic beverages as part of
social gatherings. Bars, pubs, and clubs give both a leisurely and entertaining experience
in a socially active environment where people can relax while eating, drinking, partying
or lounging, and chatting with their buddies. The consumption of alcoholic beverages is,
in most cultures, a normal aspect of socializing, or for some specific occasions where a
different type of alcohol may be consumed, like when people choose to drink stronger
alcoholic beverages for more intense parties, celebrations, or even to compensate for
Sometimes called inns and taverns, they are usually small to medium-sized
establishments that provide tables and seats to allow customers to socialize while
drinking or eating (Stuart Moss, 2010). The core function of bars and pubs are the more
relaxed and social ambience supported by special drinks and delicious foods. One type of
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pub is a Gastropub wherein the main focus of this type of pub would be having
high-end drinks and high-end food. Bars and pubs can still have entertainment produced
by a DJ, but normally also have live-band performances as well to relate to the calmer
atmosphere. Bars and pubs are treated more like nightlife restaurants, with people just
chatting, drinking, and eating; but, bars and pubs can also become just as wild as a
nightclub can if the occasion calls for it (usually during the weekends). In Cebu, bars and
pubs are the more popular type of nightlife establishment and so most of the places to be
at night in Cebu are bars and pubs like Rumour Gastropub, Craft Cafebar, The Distillery,
Clubs
There are many types of clubs but the type of club most popular in Cebu is the
Nightclub. This is a versatile space that can be decorated with certain themes pertaining
to the trend, or occasion of the time. The core function of a nightclub is the intense
entertainment provided with the drinks and food. The entertainment is usually offered by
the bright strobe lights all around the club and the music produced by the DJ (or ‘Disc
Cebu’s being the LIV Super Club having a variable entrance fee depending on the
magnitude of their current event or the popularity of the DJ currently playing inside.
The customers will normally be taking part in social activities, the most popular
activity being dancing; but finding potential ‘partners’ is also high on many people’s
agendas within a nightclub. As such, a nightclub is, most of the time, viewed as
possessing a ‘sexier’ vibe than bars and pubs. The main market for nightclubs is usually a
younger audience and are actively seeking partners (Stuart Moss, 2010).
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From 2010 to now, a large growth on the popularity of the nightlife beginning
with bars such as Penthouse, Vudu, Sunflower City and now bars and nightclubs such as
LIV Super Club, Morals and Malice, Craft, Distillery, Rumour, and Complex; has created
a trend of a weekly party schedule for most people in Cebu. This growth has allowed
many bars and nightclubs to surface in Cebu and even popularize local DJ’s including
Victor Jao, Joachim Go, Jabbie Azanza, NixDamnP, CRWN, and Gino V. With the
change of pop culture becoming more “hip-hop” in the Philippines and more specifically,
in Cebu; the local Cebuano nightlife has become an exciting and popular scene with bars,
pubs, and nightclubs teeming with people enjoying the entertainment and drinks the
Economic Environment
considerable amount of studies (Kirchhoff & Acs, 1997), but what hasn’t obtained a
comparable amount of attention is the politico-economic elements that govern the appeal
of building a business. With lack of an all-embracing theoretical framework, there has not
been any set of elements that has neither been accepted nor transpired. (Bruno & Tyebjee,
1982; Van de Ven, 1993; Birley & Westhead, 1993; Kolvereid & Obloj, 1994; Gnyawali
& Fogel, 1994; and Kouriloff, 2000). Although unprejudiced environmental impacts give
the impression of being largely pertinent in terms of looking into macro-level rates of
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social problem to be restrained by policing, licensing and the management of supply (D.
Talbot,, 2006). It portrays a regular adjustment and debasement of principles, laws and
approach. Nightlife especially in big cities has been liable to be subjected to lawful and
ethical regulation for its lifelong association with disorder and crime (N. Dom, 1983).
Entertainment and leisure during the twentieth century was conditioned to widespread
coordination which has been planned through larger state licensing, entanglement,
restriction and aiming a more formalised policing. (P. Cohen, 1997) Hence, it is
important to acknowledge that the nightlife industry has a number of basis — legal
(legislation and laws), economic (door entry and drinks prices), technical (radio nets and
CCTVs) and finally, socio-cultural (dress codes, cultural youth styles and music taste) (L.
Lees, 1999). Considerably, nightlife vary within national setting such as cultural norms,
habits and traditions (F. Beccaria and A. Sande, 2002). For the legal part of establishing a
business consists of a systematic process, effort, expenses, time and payment for the
minimum capital that is necessary for an entrepreneur to set up and formally manage a
business. There are laws and regulations especially made to govern business registration,
owners know what specific business laws are applicable to their type of business and
enterprise. To dodge punishment, forfeiture and charges from the government, these laws
and rules must be followed. The Department of Trade and Industry (DTI) recently
released a new guide with shortened transactions from 16 to 10 easy steps on how to
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and financial officer’s affidavit are to be authenticated. Third, payment and claiming of
certificate of SEC registration. Fourth, present required documents for business permit
utilization at an all-in-one shop government office. Fifth, payment of taxes, fees and
certificates; settle taxes, costs and charges at the Bureau of Internal Revenue (BIR)
office. Seventh, print receipts and invoices from BIR. Under Republic Act 1161 for the
last remaining steps, it is compulsory for business owners must register new employees in
Social Security Agencies namely Social Security System (SSS), PAG-IBIG and
entertainment and chaos (J. Bannister and N. Fyfe, 2001). Environmental changes and
demands from the society required the local government to not only provide service but
also enable authority which delivers the appropriate kind of environment to facilitate
economic progress of the community (P. Legaspi, 2006). Within the urban economy now,
seeking pleasure and choosing from a wide range of nightlife activities is lawful which
has constructed the demand for further complex and distinctive kinds of administration
Tourism
Tourism is one of the world’s largest and fastest growing industries today. In
2000 alone, it accounted 10.6% of the workforce and 10% of economic production
globally. In Asia-Pacific alone, tourism generated $2.5 trillion of the total APEC demand
and its supports 8.1% of the jobs in the region. Aside from contributing to the growth of
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the economy, tourism can be used in making sustainable development for the future. It
deals with many aspects of life – physical, cultural, social and economic. Tourism
development should address to the present needs and wants of the consumers without
Tourism aims to create employment for people and income creation. Tourism can
be one of the most important sources of income for many countries. The economy can
benefit from tourism depending on its ability to supply the wants and needs of tourists
and the development of necessary infrastructure to cater to tourism. (Xhiliola Agaraj &
Merita Murati, 2009) Because of the economic benefits of tourism, such as increases in
governments have started in tourism development for promoting economic growth (Sahli
In the Philippines tourism is one of the most successful and important industries.
Having contributed to 10.6% of the country’s total GDP. The Philippines as we know has
7,641 islands with 82 provinces that are divided into 17 regions. The country is popular
for its rich natural biodiversity due to the tropical climate. The most popular tourist
destinations are mostly beaches, islands, rainforests, and dive spots. In 2015, 5 million
Filipinos were employed in the tourism industry, and attracted over 5 million tourists.
The government collected over P227.62 billion pesos coming from tourist alone which ¼
came from Boracay island, and in 2017, welcomed the most tourist in Philippine’s history
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The urban nightlife defines as the field of study as social activities during the
bars, pubs, restaurant & bar, karaoke-television (KTV), and nightclubs. (Brands,
Schwanen and Aalst, 2014; Chatterton and Hollands, 2002), where people both foreign
and local can enjoy their evenings spent in the nightlife informally among peers and
strangers. Expansion of the nightlife industry is an important common strategy used for
stimulating the local economy. Urban nightlife plays an important role in the benefits
commercially and politically of cities. (Chatterton and Hollands, 2003; Pratt, 2009;
Roberts and Eldridge, 2009a), and with the promotion of the global cities as prime
getaway destinations for tourism which would be a potential investment such as Shanghai
What goes about in the nightlife is about meeting new people through socializing,
creating social identities and having a good time; it isn’t only on the economy. And with
the urban nightlife it has sociological importance. (Liempt et al., 2015), The nightlife
economy gives a lot of social benefits, urban nightlife has the potential to allow to create
social identities and create meaningful memories. (Anderson, 2009; Bennett and
Despite all the potential social benefits the urban nightlife has to offer, there is a
growing concern towards the social exclusion in urban nightlife has focused primarily on
comprehensive difference of class (Bromley et al., 2003; Chatterson and Hollands, 2003)
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Racial divisions, gender inequalities. (Bromley et al., 2003; Grazian, 2009 Schawen et
al., 2012), And social status are present. The nightlife scene has order with its
exclusivity which argues that the nightlife scene would efficiently generate bonding than
actually bridge the social capital, consisting of students, young professionals and middle
Some studies have found nightlife alternatives with bars and nightclubs which
target youth cultures that are non-mainstream found in the cities of the United Kingdom.
(Chatterton and Hollands, 2003; Boogaarts, 2011; Gallan, 2015). Due to differences on
social/ethnic groups the decision making of these minorities are made through various
considerations. Some youth ethnic groups have constraints with their nightlife
establishment choices. (Boogaarts, 2011). As for the Asian group, partying with friends
and co-ethnics may persuade them to consider going to an Asian dominated party scene,
because they feel more relaxed with their friends with less of the social anxiety compared
the type of consumer these factors of consumer practices in going to these establishments
are where, when, who is going to be there, what, and why, the hour upon arrival to the
geographical location and nightlife establishment, the departure, the peers and the
beverages and snacks being consumed, and their general patterns of going to the nightlife
scene and how frequent the visits are when going to these establishments. (Oldenburg,
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Marketing
managing customer relationships in ways that help the organization and its members.
(Andrian Palmer, 2012) The main role of marketing can be defined as the
management of consumer demand and the utilizing of such demand into sales
In the competitive world of the nightlife industry today, customers flock to the
nightclubs or bars considered most popular and trendy and will endure long queues just to
bask in the places considered to represent the current and contemporary hotspots of the
In order to increase popularity and generate more profit, all nightclubs or bars,
should research and create a good marketing strategy with the intent of identifying
oppurtunities and achieving the goals of the company. A great in-depth analysis and
examination of the industry and its movements is of extreme importance for constructing
the organization structure. Likewise, analyzing the target market, choosing the right
The nightclub business is highly monitored and has a high risk of failure. (Liana
Cassavoy, 2013) So, choosing and establishing the right marketing plan will increase the
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probability of success and can set in motion any atmosphere one desires to create. Soon
after, any company will begin to build a constant clientele base that would be loyal for
time, and continuously receive new clients who’ll come regularly. (Robert Smith, 2001)
One marketing strategy used is by highlighting a host of special events that will
vary from week to week during the evening. Many popular college level events shall also
be carried out to entertain the customers. Various drink specials and promotional nights
through social media will also be used to encourage customer traffic. (Robert Smith,
2001)
Attachment Theory
attachment greater familiarity and responsiveness is required. This theory explains how a
bond between mother and infant is made based on the availability of the mother towards
its infant. Through constant interactions the infant in turn learns to adjust feelings,
thoughts and behaviors towards the mother. (Patwardhan, H., & Balasubramanian, S. K.
Marketing Mix
marketing and determines the role of each component in terms of promoting products and
services and delivering those to the customers. This profitable code must be learned and
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1) Product:
This is a mix of substantial and insubstantial features of the products and services
that are presented to the consumers by the manufacturers. Planning the product is a vital
step in the marketing mix and includes practices and methods that relate to offered
product lines such as, design and quality; and what, where, when, how many, and to
2) Price:
This is the pecuniary value of the product. It is the amount that the consumer pays
for the product or service. Price levels may vary and need to be adopted, and must
include price policies such as, price maintenance, one-price, etc. (Borden, N. H. 1964)
After examining multiple factors including market share, competition, material cost,
product identity etc., the product or service is then fixed. It may be troublesome to come
to the breakeven point if it is fixed very low and it may affect sales if it is fixed very high.
3) Promotion
Promotional procedures relate to placing special selling plans that are directed at
course, the business, require promotion. Promotion includes all the communication used
to capture the market’s attention and direct it to the product or services being marketed,
in order to create awareness and to convince the customer to buy the product in the
future.
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4) Place
It is the location where the product or service is made available to the consumers
to purchase or avail. This term is used for distribution channel. Place totally depends on
the consumer’s perception as it is nothing but where the product or service takes place.
Theoretical Framework
The marketing mix is a crucial tool to help understand what the product or service can
offer and how to plan for a successful product offering. The marketing mix is most
commonly executed through the 7 P's of marketing: Price, Product, Promotion, Place.
4 P’s
Product – it is an item that is offered to the consumers to satisfy their wants and
needs. It can be anything tangible or intangible presented to the market for use and
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consumption of the needs and wants of the consumers. Product can also include service.
Price - is an amount that a consumer has to pay for a certain item or service that
the consumer wants or needs. Price is a vital component of the marketing mix because it
establishes profit and survival. Price is a sensitive area in marketing because if a new
company doesn’t have the brand recognition like others do, the market will not want to
pay a high price for the product or service. Pricing helps in shaping perception from the
consumers about your product. If product has a high price, consumers may see the costs
Place – is a vital part of the product mix where the business has to position itself
in the market so that you can easily distribute your product to consumers. Place can
identify the best position and distribute channels for your consumers.
advertising, and sales promotion. Advertising covers paid advertisements like televisions
ads and internet ads due to the shift in to the digital age. Promotion also relies on the
company’s budget to go about the strategies that they should communicate to the target
market.
needs or wants, qualities, or behavior of the consumers in that market that may require
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Targeting is to choose a segment of the market that the company wants to serve,
in which each marketing segment is evaluated by determining the unmet needs or wants
and its product/service would be retained in the minds of the prospect (Berry Wilson,
2000). Positioning is all about the consumer's brand and product perception, which can be
determined by the quality and the various characteristics that make it stand out. The
visual plays a big role in how a consumer perceives a brand or product, which is more
Using the STP model can be very useful to enhance marketers in prioritizing
propositions and then grow and deliver personalized and applicable messages in
messages to consumers rather than focusing on the product alone. (Best, R. 2013).
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segmentation, targeting and positioning. The approach accesses the mass market which is
distinct wants and needs. Marketers objectives here is to identify the market segments, to
direct their marketing programs at these segments which the marketers believe that they
can gain the favor of their target consumer over their competition. And to position their
2011).
The marketing mix is a crucial tool to help understand what the product or service
can offer and how to plan for a successful product offering. The marketing mix is most
commonly executed through the 7 P's of marketing: Price, Product, Promotion, Place,
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study on the marketing mix strategies using the 7Ps on health care services of a tertiary
hospital in India.
(Kotler, 2005), hence product mix becomes very important for marketers. In order to
provide effective and reliable services the hospital is fully equipped with various facilities
Price: Pricing is the most important factor and element in marketing mix (Gupta,
may not be required element since treatment is easily available, but when it comes to
treatment of complex diseases people often opt for good hospitals irrespective of how
crucial role (Kumar, 2003), this focuses on services available to patients. It is an element
which is associated with channels of distribution by services which can be delivered. i.e,
adequate transport and communication facilities, pollution free place, Prime location
taking into consideration the target customers, media type, channels used and sales
People: Under marketing mix variable people includes all the different people
involved in service providing process which includes all medical, nursing and supporting
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staff who are involved directly or indirectly in service delivery process. Physical
evidence:
patient seeks proper diagnosis and cure of the problem. It is the evidence of environment
in which the service is delivered with physical or tangible commodities, where hospital
Process: Process generally forms the different tasks that are performed by the
hospital, the process factor is mainly dependent on the size of the hospital and kind of
The only difference between Nitin, et al (2016) study with the current
investigation is that Nitin et al (2016) study investigated the marketing mix 7Ps in a
hospital setting while this present study was conducted in a bar specifically Morals and
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CONCEPTUAL FRAMEWORK
COMPANY PROFILE
No. of Employees
Initial capital
The challenges
STP
Segmentation
Targeting Proposed
Positioning Improvements of
CUSTOMER
7Ps Marketing
Product Price Strategies
PROFILE
Place
Demographic profile Promotion People
Process Physical
Psychographic profile Evidence
Behavioral profile
Reasons of visit
Frequency of visit
Products or
services availed
Budget Allotted
per visit
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Conceptual frame work mainly consists of STP process and 7P’s of marketing
mix used for marketing mix strategy for sustainability. The researcher will use the input-
process-output that signifies the company’s profile in terms of the data of a company’s
background that consist of No. of employees, Average customers last year, Average
Annual income, Initial capital. It will also signify the different demographic factors under
interests, lifestyles. And behavior profile of the customers in terms of reasons of visit,
frequency of visit, products or services availed and budget allotted per visit.
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CHAPTER 3
RESEARCH METHODOLOGY
to assess Morals and Malice marketing strategies as a brand. Qualitative approach was
used to focus on studies and research questions that included gathering and analyzing
data, while the quantitative approach used statistical, computational and mathematical
methods. (Coopers and Schindler, 2008) The basis for employing both quantitative and
qualitative designs is to broaden the capacity of the research to cancel out any
weaknesses of the two approaches. (Blake 1989). By reaching the study’s conclusion, this
research will help improve Morals and Malice’s marketing strategies in increasing brand
loyalty.
Research Design
The study is designed to be descriptive. This is because the study aims to identify
the frequencies of the A, B and C socio-economic class’s profile and tendencies on the
respondents, using marketing models such as, STP, 4P’s and 7Ps in assessing their
marketing strategies.
Research Environment
The research is based upon the Cebuano market, so the research is conducted in
Morals and Malice, Cebu city. Cebu City is a strongly developing city among its
neighbors in Visayas and even against other cities in the entire Philippines. It is the fourth
richest city in the Philippines in terms of assets. The city has a welcoming community
with much to offer in terms of leisure; most especially, for the night life goers; boasting
33
numerous and unique bars and nightclubs to keep the night fun and creative.
Thousands flock to this highly-urbanized city for its exciting nightlife events like
Sinulog, Spectrum, Plus63, and many more. Cebu itself is also a great spot for tourists
with many beautiful waterfalls and beaches to wonderfully spend their time in. Cebu is
the number one place in the Philippines to taste a perfect balance between the urban and
Morals and Malice is located at 2nd floor of the Tinderbox, Governor M. Cuenco
Research Respondents
composed of the higher positions such as the company’s managers and the owners; and
34
the customers. The survey involved customers who have experienced Morals and Malice
For the number of customers that were involved in this study, a total of 60 were
conveniently chosen. According to Ronald Walpole (1973), that the sample size is
Research Instruments
The two instruments that were used by the researchers are an interview guide for
the company, gaining facts and opinions from the company’s managers and/or owners
and the survey questionnaire, presenting a standard set of questions and response options
based on the statement of the problem of the thesis. The survey questionnaire was
subjected to pre testing in order to know if the questionnaire is viable for the use of the
study’s actual respondents. This survey questionnaire will be formulated from the
researcher’s reading and literatures related to the study. To ensure the efficiency of the
whole questionnaire, the researchers will prepare Likert-Scale type questions as well as
open-ended questions. These features of the questionnaire will ensure the most accurate
way of obtaining valid answers from the respondents needed to provide more insights for
the study. Due to the nature of the instrument, it is a more affordable approach. To
provide a liberated form of answering the survey as well as keeping the confidentiality of
the respondents. The research instrument will be examined by our thesis adviser pending
approval to ensure the validity of the research instruments. The questionnaire was
interpreted as instrument with very high reliability. See reliability testing results below.
35
Research Procedures
consumers and the information collected through the interview guide as to the manager of
Morals and Malice. There was a direct communication between the researchers and the
customers of Morals and Malice in order to gather the data needed to complete the study.
In case the customer forgot to fill in a particular question, the researchers will approach
and ask them politely to fill in their answer. Secondary data will be gathered from
secondary sources such as books, journals, and other internet sources. The Measuring
36
Treatment of data
demographics, social and traditional media, and by behavior of customers of Morals and
Malice. The researchers used regression and correlation analysis to have assessed the
development of the branding model of Morals and Malice. This will be deployed to
of the respondents.
Formula:
Where:
% = Percent
f = Frequency
n = Sample Size
37
The researchers will also incorporate the use of the Likert scale for the consumer
used in the study will use a 4- point design where respondents may choose from four pre-
coded responses. These responses will be quantified and treated statistically to provide
accurate data needed by the researchers. The four points of the scale will be rated from 1
agree.
2. Data Interpretation
33
CHAPTER 4
This chapter presented the data that were collected from the responses of the
participants of the study to the questionnaires as well as the results of the interview that
was conducted to the management of Morals and Malice (M & M) in Banilad in Cebu
City. The presentations of the responses of the customers of M & M were made using
tables and graphs where appropriate, while the results of interview the conducted to the
management of M & M were presented qualitatively.
Company Profile
Morals and Malice is a resto bar located at Banilad, Cebu City. Its mission is to
introduce craft cocktail culture to the Cebuano population. “Craft cocktails” are
cocktails where every element is handmade or tailored specifically to the drink. Drinks
served in custom glassware, poured over custom ice cubes, mixed with syrups and
finished with a dash of small-batch bitters. Cocktails are prepared using traditional spirits
and unexpected barrel-aged liquors that are prepared by bartenders and other unusual
flavor combinations. Whether simple or complex, the results are cocktails that are made
with a lot more care than the usual mixed drinks and deliver a much more satisfying
experience. The process of making craft cocktails is a lot like that of the artisan food
movement, focusing on flavour, high quality ingredients and taking time in order to do
those ingredients justice (Sharp, 2013).
39
At present, the Morals and Malice has 7 employees. These are the two (2)
bartenders, one (1) cashier, one (1) server, one (1) administrative staff, and one (1) bar
manager. M & M has an average weekly customer of 225 who spent an average of Php650
per visit per customer.
Based on the interview with the bar manager, the estimated initial capital of
Php1.5M as start-up capital to be able to operate the business. They target customers who
are 24 to 55 years of age of both sexes. They may be working professionals, college
students, celebrities, public figures, dignitaries and business owners, and belonged to class
A, B and C statuses. M & M uses social media, word of mouth, and occasional radio ads
to be able to target its markets.
The owners of M & M believed that Morals and Malice is a high class craft
cocktail bar with a signature design to its Interior created by Mr. Kenneth Cobonpue. In
terms of the products, the bar sees to it that the customers are comfortable every time they
come to the place because of the ambiance and VIP treatment and signature cocktails
accorded to them. M & M offers foods, drinks, and at times, live entertainment such as
mini concerts and the like.
40
Targeting. Morals and Malice hopes to capture the heart of the A B, and C market
which includes young millennial professionals, businessmen and women, celebrities,
public figures, politicians, and other dignitaries who are usually known in the community
Positioning. Morals and Malice aims to introduce craft cocktail culture to the
Cebuano population. It is mild social drinking to customers who are financially stable.
“Craft cocktails” are cocktails where every element is handmade or tailored specifically
to the drink. Drinks served in custom glassware, poured over custom ice cubes, mixed
with syrups and finished with a dash of small-batch bitters.
Price. Prices of M & M products are affordable to customers who belong to the
Class A, B, and C social status. The owners see to it that it is competitive compared to
businesses who offer similar products and services.
Promotion. Morals and Malice is situated in Banilad, Cebu City. The bar was
previously owned by a businessman who decided to sell it to Kenneth Cobonpue, who
designed the bar and eventually bought the place and re-branded it, and is currently one
of the owners of the bar. In order to promote the place and the bar, Morals and Malice
made use of social media as a channel of marketing as well as radio for specific special
events only. It also relies on the word of mouth of those who have experienced the
ambiance and the quality of services and products of Morals and Malice. Morals and
Malice considered a great challenge their not getting sufficient audience engagement with
social media posts. They do not constantly engage with our target audience through social
media. They are trying to branch out and target class C market but they failed because
most people or customers perceive Morals and Malice as an exclusive luxury bar for the
rich or the elite.
Place. Morals and Malice is located at the 2nd floor of the Tinderbox Building
along Banilad, Cebu City. It has 2 separate rooms that represented the two (2) themes:
The Morals side and the Malice side. The place is not so spacious but it has good audio
41
system and clean comfort rooms. The parking space is just adequate. However, additional
or extended parking area is available across the street with free valet parking.
Process. In terms of processes, the management of M & M makes sure that the
customers’ orders are served within 3 minutes upon ordering. Each customer is treated as
a VIP guest and employees make it a habit to make friends with the guests. The people
who manned M & M always provide quick service and attention to detail with products
and services. They also try to go the extra mile for the customer. M & M calls this as
“butler” treatment.
Products. For its products and services, most of them are drinks served in a
variety of mixtures depending on the availability of drinks and upon request of the
customers. Classy finger foods are also available to the delight of the clients. Morals and
Malice would like its customers to experience buying with fun, chill, upbeat, classy, and
safe. At times, they invite DJs for those who wanted to listen to music while engaging to
conversation with their friends on various topics – political, social, entertainment, etc.
Morals and Malice attracts customers to their products and services by making them feel
VIP or special and well taken care of with the bottle service or personal butler where the
bottle brought and poured for the clients.
42
Gender
Male 35 58.3
Female 25 41.7
Nationality
Filipino 43 71.7
Chinese 2 3.3
Korean 6 10.0
American 5 8.3
European 4 6.7
Occupation
Company Employee 27 45.0
Business Owner 14 23.3
Government Officer 3 5.0
Student 15 25.0
Others 1 1.7
Monthly Income
Less than Php20,000 4 6.7
20,000 - 30,000 15 25.0
30,000 - 50,000 13 21.7
More than Php50,000 16 26.7
No Income 12 20.0
n = 60
As shown in the table, a little more than 50% of the customers of M & M
belonged to the 20 – 30 age brackets. These customers are considered millennials of this
generation. Only 17% are below 20 years of age, about 23% are between 30 to 40, and
8% are more than 40 years old. This result indicated that Morals and Malice are
patronized by young professionals and the millennials.
43
In terms of the customer’s gender, the figures indicated that there are more male
customers (58%) who patronized Morals and Malice compared to their female
counterpart (42%). It is understandable that majority (72%) of the customers of M & M
are Filipinos while only 28% non-Filipinos. These are foreigners from China, Korea,
America and Europe.
Moreover, data in terms of the working status of the customers, it is observed that
greater proportion (45%) are employees from different companies and this is followed by
students (25%) who usually have time to go bar hopping during weekends. It is also
surprising to note that most of the customers surveyed (27%) received a monthly income
of more than Php50,000. They usually represent those customers who are either business
owners or working in a company who provides higher compensations for their
employees.
Personality
Frequency Percent
Choices that describe the consumer the best.
I make friends easily 26 43.3
I love large parties 13 21.7
I trust others 3 5.0
I'm shy 2 3.3
I like chill parties 16 26.7
Aspects of the bar enjoyed by the consumer the most.
The music 15 25.0
The people 19 31.7
The drinking 14 23.3
The culture of the bar 12 20.0
n = 60
44
them. The responses of the customers also indicate that they like chill parties (27%). The
two responses are in agreement to each other because chill parties usually involved
people who would like a relaxed party or an easy going party. In addition, the table also
disclosed that 22% of the customers of M & M loved large parties. The above table also
showed that customers of M & M enjoy the most the people in the bar (32%). This
followed by the music (25%), and the drinking (23%).
There are numerous reasons why people go to bars to hang out. It is a lot cheaper
to buy beer and alcohol and drink it at home yet people continually go to bars. Here are
some of the top reasons why people go to bars as mentioned by Ernie (2012): (1) Men go
to bars to meet women and even a few women will go hoping to pick up on guys.
Shocking that people would use a bar to meet people of the opposite sex; (2) Many
people go to bars simply for the companionship of the other patrons. It can be nice to
hang out and vent with your friend at the bar. Maybe you need some life advice and feel
your favorite bartender can help you put more than anyone else can. Some people go to
the bar specifically to talk and have male bonding time with other guys. Nobody likes to
be alone and bars provide an excellent haven for finding friends so you are not all alone;
(3) Some bars are wild and others are very calm. Both types of bars attract people who
want to simply relax. Maybe you had a bad week and you just want to sit at a bar and sip
on a pitcher of beer. Relaxing from the real world is a major reason that people go to
bars, and (4) Having fun is one of the primary reasons people go to the bar. If bars were
not fun then people would not go there. People might go to the bar to sing Karaoke,
dance, or even eat. Bars are always coming up with new gimmicks to get people in the
door and they will keep these gimmicks and variations of the gimmicks to keep the
people coming. (http://www.infobarrel.com/Top_Reasons_Why_People_go_to_Bars.)
45
Table 7. Psychographic Profile of the Customers of Morals and Malice – Values &
Attitude
When asked about what kind of atmosphere they prefer, higher percentages (45%) are
observed that they prefer atmosphere with high energy or a definite party zone. This is
somewhat consistent with their responses to the previous questions that they value most
“fun” or enjoyment and this is may be through attending parties with high level of energy
required.
46
Table 8. Psychographic Profile of the Customers of Morals and Malice – Interests &
Lifestyles
In terms of what conveniences and amenities they interest them most in going to
Morals and Malice, 37% said special events while 23% said because of safety and
security. These responses also revealed that customers visit M & M because of special
47
events and they find the far safe and secured. Moreover, customers mentioned that they
go to a place like Morals and Malice because they would like to hang out with their
friends (43%) and meet someone new (33%). Majority of the customers of M & M (63%)
said that they normally go to the bar during weekends.
Behavioral Factors
Frequency Percent
Reasons of Visit
Convenience of Location 19 31.7
Has good service 21 35.0
A good feeling of security 11 18.3
Reasonable Pricing 9 15.0
Frequency of Visit
Frequency Percent
Once a week 29 48.3
Twice a week 11 18.3
Occasionally 19 31.7
Once a month 1 1.7
Shown in Table 9 are the reasons provided by the customers of Morals and Malice
for their frequent visit. On top of these reasons is: (1) has a good service (35%); (2)
Convenience of location (32%); and (3) A good feeling of security (18%). People go to
48
the bar because of the ease of the atmosphere or for convenience. No one cares where
people have been and no one cares about people mistakes, everyone is just looking for the
same thing – a cold drink and a fun story to listen to (www.botyapp.com).
In terms of the frequency of visit of the customers of Morals and Malice, 48%
said they go to the bar once a week, while 32% they go to Morals and Malice
occasionally. This means that most customers of Morals and Malice visit the bar at least
once a week. It becomes already habit for them because as mentioned in the previous
table that wanted to hang out with their friends through conversations entice with their
favorite drinks. Studies have also shown that some people view bars and going out as a
form of escapism from everyday life. A bar is a place where temporal communities are
formed where people can act out fantasies, pretend to be someone they are not and for a
certain period of time essentially escape their everyday lives. People therefore view the
bar experience as a method of enjoying themselves in a form which separate to the rest of
their lives and this is another reason for why people go to the bar.
Table 9 also provided the products and services availed by the customers during
their stay in Morals and Malice. As expected most of the products enjoyed by the
customers are drinks (52%) while 47% said they loved the foods and drinks.
49
2.94 with a standard deviation of 0.63, and this interpreted as agree. This means that the
customers perceived the prices of the products of Morals and Malice are reasonable,
economical, and suited to their budget. One item under this category obtained an average
perception of 3.27 with a standard deviation of 0.71. This item was about M & M having
suitable prices for customers’ budget. The rating for this was interpreted as strongly
agrees. This is an indication that the pricing adopted by Morals and Malice are effective
for pricing suits customers’ budget.
Price is important to marketers because it represents marketers’ assessment of the
value customers see in the product or service and are willing to pay for a product or
service. Determining the right price for a product can be tricky. A common strategy for
beginning small businesses is creating a bargain pricing impression by pricing their
product lower than its competitors. Although this may boast initial sales, low price
usually equates to low quality and this may not be what the customers expect of the
products of a company (marketingmix.co.uk). However, in the case of Morals and Malice
this is not true. They wanted that their prices are high and are of high standards and
quality.
Table 11. Promotion as Perceived by Morals & Malice Customers
Promotion Std.
Mean Deviation Interpretation
Has advertisement through Mass
2.78 0.87 Agree
Media.
Has a reputation through words of
2.73 0.76 Agree
mouth.
Has a low seasonal discount. 2.57 0.85 Agree
Has long-term stay discounts. 2.42 0.91 Disagree
Has a complementary service. 2.68 0.77 Agree
Has amazing events. 3.28 0.67 Strongly Agree
Promotion 2.74 0.56 Agree
50
2.42, which is interpreted as disagree. Note also that the items on the use of social media
and word of mouth, the ratings are not satisfactory.
The figures shown in Table 12 indicated that the physical evidence as perceived
by Morals and Malice are very satisfactory as shown by the average mean rating of 3.37,
which is interpreted as strongly agree. If fact, all of the statements or items under this
marketing mix – physical evidence have average means greater than 3.32, which are all
interpreted as strongly agree. This means that the customers of Morals and Malice
believed that they have beautiful building, beautiful interior designs, beautiful and clean
location, pleasing products and the bar being unique. Physical evidence plays an
51
important role in the services of a bar like Morals and Malice. It is the evidence of
environment in which the service is delivered with physical or tangible commodities,
where customers and bar employees interact.
Table 13 showed the perception of the customers of Morals and Malice in terms
of people marketing mix of the bar. Under marketing mix variable people includes all the
different people involved in service providing process which includes all – how
employees interact with customers, the personality, the efficiency and the like of the
supporting staff who are involved directly or indirectly in service delivery process. Based
on the figures shown in the above table, people obtained an average perception rating of
3.09 with a standard deviation of 0.47, and this is interpreted as agree. This means that
the customers are somewhat satisfied with how they are handled by the employees of the
bar. Note that two items under this category, were interpreted as strongly agree. These are
on staff able to communicate in English (3.35) and staff’s good manners and being
friendly (3.28).
People are the most important element of any service or experience. Services tend
to be produced and consumed at the same moment, and aspects of the customer
experience are altered to meet the individual needs of the person consuming it. Most of us
can think of a situation where the personal service offered by individuals has made or
tainted a tour, vacation or restaurant meal. Note that people buy from people that they
52
like, so the attitude, skills and appearance of all staff need to be first class. People have an
important role in service delivery, they are relied upon to deliver and maintain
transactional marketing and people play an important part in the customer relationship
(marketingteacher.com).
Shown in Table 14 is the perception of the customers with regard to the product
marketing mix variable of Morals and Malice. The perception rating averaged 3.03 with a
standard deviation of 0.47. This is interpreted as agree which is also an indication that
customers of Morals and Malice are satisfied with the product as marketing mix of the
bar. Note also that two items were rated and interpreted as strongly agree and the others
are agree. This means that in terms of products – foods, drinks, entertainment, and other
services such as complementary services, customized service, security and safeness, the
customers are satisfied.
53
name well known. Products may be differentiated in several ways. Some may be
represented as being of superior quality, or they may differ in more arbitrary ways in
terms of styles—some people like one style better than another, while there is no real
consensus on which one is the superior one. Finally, products can be differentiated in
terms of offering different levels of service—for example, Volvo offers a guarantee of
free, reliable towing anywhere should the vehicle break down (Perner, 2018). Consumers
may focus on the specification quality of a product/service, or how it compares to
competitors in the marketplace. Producers might measure the conformance quality, or
degree to which the product/service was produced correctly. According to Martin (2014),
a product is an item that satisfies a need or a desire. This can be a physical item, a service
or a virtual offering. It is produced at a cost and is subsequently made available to the
right audience at a price. Whatever the nature of the product, it will follow a lifecycle and
through reasonable predictions of this lifecycle, a company can increase its competitive
edge. A brand can be revamped or re-launched to remain relevant in a changing market or
at the end of its lifecycle.
Table 15 showed that processes in Morals and Malice are fine or okay as
indicated in the average rating of 2.93, which is interpreted as agree. The customers are
satisfied with how the bar is run such as convenience in making reservation (2.88),
convenience in payment system (2.97), adopts an international standard service (3.10),
staff’s analytical skills (2.83), and fast service procedure. According to Nitin, et al
(2016), process generally forms the different tasks that are performed by the bar, the
process factor is mainly dependent on the size of the bar and kind of service it is offering.
54
Shown in Table 16 is the perception of the customers of Morals and Malice on the
place as marketing mix of the company or bar. The perception rating in this particular
strategy averaged 2.75 with a standard deviation of 0.48, and this is interpreted as agree.
This means that customers are satisfied with the place as marketing mix variable of
Morals and Malice. Richa (2014) mentioned that to be able to maximize sales and reach
out to larger audiences, it is very important for a business to be “visible” to potential
customers. The place of business, distribution channels and logistics plays a crucial role
in the success of a marketing strategy. While product, pricing and promotions go hand
in hand with the place factor, if business location is not appropriately chosen, efforts
would hardly get noticed. Hence, to get the marketing mix right, select the place where
one would set up bar or shop very carefully, choose the channel partners and
distributors wisely and then get on with the marketing efforts in an integrated way.
Except for one item listed in the above table, Morals and Malice can be
contacted through their websites and the Internet, by phone, and by walk in for
inquiries.
Results from the interview with the manager of the bar revealed that the main
problem of Morals and Malice is that they are not getting sufficient audience engagement
with social media posts. They do not constantly engage with their target audience through
social media. The main reason for this is that they don’t have IT personnel to monitor and
maintain activities of their websites.
Another problem that they encounter is that they tried to branch out and target
55
class C market but failed because the management believes that customer brand
perception still perceives Morals and Malice as an exclusive luxury bar for the Rich.
Proposal
Based on the findings and conclusion of the study, the following proposals are made:
1. Targeting - In order for Morals and Malice to gain more customers, they should
also target people belonging to other statuses since their prices are reasonable and
affordable they should focus their promotional strategies to target class C ages 20
– 30 years old which morals and malice will attempt to catch a wider net of class
C.
2. The identified marketing mix that needs improvement can be improved using the
following strategy:
Promotion– Even though most of the customers said that the prices of the
products and services of Morals and Malice are affordable and reasonable,
they can still improve by offering discounts during happy hours such as
discounted prices before 8PM or 9PM since most customers go to the bar
between 9PM and 3AM. They can also offer three (3) drinks for a price of two
(2), and the like.
Create a strong social media presence by being more active and creating
content that peaks the interest of existing consumers and potentially new ones.
They could also advertise through billboards are found near its locations
especially the flyover in the intersection of Mabolo and Lahug Streets.
56
also tell their regular or loyal customers to bring a friend and their drinks will
be 25-50% off at the time they brought new customers.
Process - Connect the bar to a tourist agency to gain the peak of interest of
foreign tourists to be a must experience destination of Cebu city.
39
CHAPTER 5
SUMMARY
The original marketing mix or 4Ps were designed at a time where businesses were
more likely to sell products, rather than services and the role of customer service in
helping brand development wasn't so well known. Over time, Booms and Pitner added
three extended ‘service mix P’s': People, Physical evidence and Processes, and later
Participants was renamed People. Today, it's recommended that the full 7Ps of the
marketing mix are considered when reviewing competitive strategies. he 7Ps helps
companies to review and define key issues that affect the marketing of its products and
services and is often now referred to as the 7Ps framework for the digital marketing mix.
This study was conducted to assess the marketing strategies of Morals and Malice
in Cebu City in order to propose new marketing strategies. This research made use of the
descriptive research method employing the questionnaire as the main tool for data
gathering, and also the interview method was used to collect information from the
management of the Morals and Malice. A total of 60 customers were chosen using
the respondents of the study, the questionnaire was pretested to 12 customers and the
0.804, which means that it is an instrument with a very high reliability and is ready to use
During data collection an interview schedule was also used to obtain information
about the company. Using the interview guide, a series of questions were asked to the
manager of Morals and Malice pertaining to the history, mission and vision, as well as
58
instrument was given to the customers of Morals and Malice which pertain to their
FINDINGS
Morals and Malice is a resto bar located at Banilad, Cebu City and began its
operations in 2016. The company as a bar, introduces craft cocktails. This is a type of
handmade cocktail tailored specifically to the drink upon the requests of the customers.
The process of making craft cocktails is a lot like that of the artisan food movement,
focusing on flavor, high quality ingredients and taking time in order to do those
ingredients justice. The company does not have a vision but considered its organizational
structure and set up to be strong which contributed to institutional success. The company
has a board of directors which consist of owners of the bars aside from the fact that they
At present, the Morals and Malice has 7 employees. These are the two (2)
bartenders, one (1) cashier, one (1) server, one (1) administrative staff, and one (1) bar
manager. M & M has an average weekly customer of 225 who spent an average of Php650
per visit per customer. With average weekly sales of Php146,250 and an average monthly
sales of Php585,000.
Morals and Malice has an estimated initial capital of Php1.5M as start-up capital to
operate the business. They target customers who are 24 to 55 years of age of both sexes.
They may be working professionals, college students, celebrities, public figures,
dignitaries and business owners, and belonged to class A, B and C statuses.
59
lifestyles, demographics and personality of the target consumer. They consider the age,
income bracket, social class, buying behaviour of their customers.
Targeting. Morals and Malice targets the A and B market which includes young
millennial professionals, businessmen and women, celebrities, public figures, politicians,
and other dignitaries.
Positioning. Morals and Malice aims to introduce craft cocktail culture to the
Cebuano population. It is mild social drinking to customers who are financially stable.
“Craft cocktails” are cocktails where every element is handmade or tailored specifically
to the drink.
Price. Prices of M & M products are affordable to customers who belong to the
Class A, B, and C social status. The owners see to it that it is competitive compared to
businesses who offer similar products and services.
Promotion. In order to promote the place and the bar, Morals and Malice made
use of social media as a channel of marketing as well as radio for specific special events
only. It also relies on the word of mouth of those who have experienced the ambiance and
the quality of services and products of Morals and Malice.
Place. Morals and Malice is located at the 2nd floor of the Tinderbox Building
along Banilad, Cebu City.. It has 2 separate rooms that represented the two (2) themes:
The Morals side and the Malice side. The place is not so spacious but it has good audio
system and clean comfort rooms.
Process. In terms of processes, the management of M & M makes sure that the
customers’ orders are served within 3 minutes upon ordering. Each customer is treated as
a VIP guest and employees make it a habit to make friends with the guests.
Products. For its products and services, most of them are drinks served in a
variety of mixtures depending on the availability of drinks and upon request of the
60
customers. At times, they invite DJs for those who wanted to listen to music while
engaging to conversation with their friends.
Customers of M & M mostly Filipinos who belonged 20 – 40 age brackets and are
mostly millennials. There are many male customers who patronized Morals and Malice
compared to their female counterpart. Information from the customers revealed that
greater proportion of them are employed from various companies in Cebu City who
earned more than Php50,000 monthly and who loved to go bar hopping during weekends
In terms of the perception and assessment of the customers on the marketing mix
7Ps of Morals and Malice, all the 7Ps are considerably satisfactory having perceived with
a rating between 2.25 and 4.00, which are interpreted as agree to strongly agree by the
respondents of the study. However, there are marketing mix that should be improved
especially to those who ratings do not reach an average of at least 3.00. These Price
(2.94), Promotion (2.74), Process (2.93), and Place (2.75). However, for the other Ps:
Product, Physical Evidence, and People, these should be maintained in order for Morals
and Malice also maintain their regular or loyal customers.
61
CONCLUSIONS
Based on the results and findings of the study, the following conclusions are
made:
1. Morals and Malice is a neophyte establishment in Cebu City that offers craft
cocktails to the Cebuano population. Their line of products is limited to mostly
drink since it is a bar that is exclusive to the elite.
2. Morals and Malice employs social media and the word of mouth as their
promotional strategies. However, no IT personnel to manage or monitor social
media accounts. They lack other promotional strategy to advertise their business
and company.
3. Morals and Malice considered the social status as its target clients. They are
usually prominent people in the community. They consider the prices of their
products as reasonable and affordable.
4. The customers of Morals and Malice are satisfied with the quality of the products
of the bar as well as the uniqueness of the branding of company.
5. Of the 7Ps, Morals and Malice have to improve on the following marketing mix:
Price, Promotion, Process, and People.
6. Of the STP process, Morals and Malice have to improve on Targeting.
62
RECOMMENDATIONS
1. The identified STP process that needs improvement and can be improved using
the following strategy:
Targeting - In order for Morals and Malice to gain more customers, they
should also target people belonging to other statuses since their prices are
reasonable and affordable they should focus their promotional strategies to target
class C ages 20 – 30 years old which morals and malice will attempt to catch a
wider net of class C.
Segmentation - For Morals and Malice to include amenities such billiards,
darts, chess, and other classy sports activities such that customers can engage in
these while consuming some drinks which will grab the interest of the specific
consumer segment of Class C ages 20-30 who are interested in playing drinking
sport activities.
2. The identified marketing mix that needs improvement and can be improved using
the following strategy:
Promotion– Even though most of the customers said that the prices of the
products and services of Morals and Malice are affordable and reasonable,
they can still improve by offering discounts during happy hours such as
discounted prices before 8PM or 9PM since most customers go to the bar
between 9PM and 3AM. They can also offer three (3) drinks for a price of two
(2), and the like.
Create a strong social media presence by being more active and creating
content that peaks the interest of existing consumers and potentially new ones.
They could also advertise through billboards are found near its locations
especially the flyover in the intersection of Mabolo and Lahug Streets.
63
Process - Connect the bar to a tourist agency to gain the peak of interest of
foreign tourists to be a must experience destination of Cebu city.
64
BIBLIOGRAPHY
BOOKS
Afuah, A. (2009). Strategic innovation: new game strategies for competitive advantage.
Routledge.
Chaudhuri, A., & Holbrook, M. B. (2001). The Chain of Effects from Brand Trust and
Brand Affect to Brand Performance: The Role of Brand Loyalty. Journal of
Marketing, 65(2), 81-93.
Grazian, D. (2008). On the make: The hustle of urban nightlife. University of Chicago
Press.
Kotler, P., & Armstrong, G. (2013). Principles of Marketing (16th Global Edition).
Moss, S. (2009). Bars, pubs and clubs. The entertainment industry: an introduction, 57-
77.
Reid, R. D., & Bojanic, D. C. (2009). Hospitality marketing management. John Wiley
and Sons.
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Internet Sources
Allen, R. (2017, January 12). Essential Marketing Strategy Models: The Promotion
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https://www.google.com.ph/amp/s/www.smartinsights.com/marketing-
planning/marketing-models/essential-marketing-strategy-models-promotion-
pyramid/amp/
Grazian, D. (2008). On the make: The hustle of urban nightlife. University of Chicago
Press. Retrieved from:
https://www.press.uchicago.edu/ucp/books/book/chicago/O/bo3752871.html
Hanlon, A. (2018, May 25). How to use the BCG Matrix - Smart Insights Digital
Marketing. Retrieved from:
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planning/marketing-models/use-bcg-matrix/amp/
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Journals
Back, K. J. (2005). The effects of image congruence on customers’ brand loyalty in the
upper middle-class hotel industry. Journal of Hospitality & Tourism
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Bannister, J., & Fyfe, N. (2001). Introduction: Fear and the city.
Birley, S., & Westhead, P. (1993). The owner-managers exit route. Entrepreneurship and
business development, 28(1), 123-140.
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Chatterton, P. (2002). Governing nightlife: profit, fun and (dis) order in the contemporary
city. Entertainment Law, 1(2), 23-49.
Fournier, S., & Yao, J. L. (1997). Reviving brand loyalty: A reconceptualization within
the framework of consumer-brand relationships. International Journal of
research in Marketing, 14(5), 451-472.
Grant, R. W., & Keohane, R. O. (2005). Accountability and abuses of power in world
politics. American political science review, 99(1), 29-43.
Hollands, R., & Chatterton, P. (2003). Producing nightlife in the new urban entertainment
economy: corporatization, branding and market segmentation. International
Journal of Urban and Regional Research, 27(2), 361-385.
Jacoby, J., & Kyner, D. B. (1973). Brand Loyalty vs. Repeat Purchasing Behavior.
Journal of Marketing Research, 10(1), 1.
68
Kirchhoff, B. A., Armington, C., Hasan, I., & Newbert, S. (2002). The influence of R&D
expenditures on new firm formation and economic growth. Washington, DC:
National Commission on Entrepreneurship, 27.
Krishnamurthi, L., & Raj, S. P. (1991). An empirical analysis of the relationship between
brand loyalty and consumer price elasticity. Marketing Science, 10(2), 172-183.
Lau, G. T., & Lee, S. H. (1999). Consumers' trust in a brand and the link to brand loyalty.
Journal of Market-Focused Management, 4(4), 341-370.
Nam, J., Ekinci, Y., & Whyatt, G. (2011). Brand equity, brand loyalty and consumer
satisfaction. Annals of Tourism Research, 38(3), 1009-1030.
Nowak, J. J., Sahli, M., & Cortés-Jiménez, I. (2007). Tourism, capital good imports and
economic growth: theory and evidence for Spain. Tourism Economics, 13(4),
515-536.
Romaniuk, J., & Nenycz-Thiel, M. (2013). Behavioral brand loyalty and consumer brand
associations. Journal of Business Research, 66(1), 67-72.
69
Van den Brink, D., Odekerken-Schröder, G., & Pauwels, P. (2006). The effect of
strategic and tactical cause-related marketing on consumers' brand loyalty.
Journal of Consumer Marketing, 23(1), 15-25.
Yang, Z., & Peterson, R. T. (2004). Customer perceived value, satisfaction, and loyalty:
The role of switching costs. Psychology & Marketing, 21(10), 799-822.
70
71
APPENDIX B1
Good day!
As part of our thesis requirement we, business students of the university of San Carlos would like
to have the opportunity to conduct a interview guide with you regarding the effectiveness of
current Marketing Strategies of Morals and Malice Bar and Lounge. Thanks for your time and
effort!
3.) What is the average amount spent per customer in Morals and Malice?
8.) Products: What do you think are the benefits of these buyers when they buy your
products? What is your basis of pricing? Based on competitors
72
11.) Promotion: Do you use social media? Have you tried using TV, newspaper
or radio for ads?
12.) People: (Observe how many people in the service are present) How many
people are part of your service? Service crew?
14.) Process: What is the process in order for you to deliver quality products
and service?
15.) What are the challenges you are facing in terms of marketing strategies?
73
APPENDIX B2
2. Customer Profile
2.1 Demographic Profile
Name (optional):
2.1.1 Age:
o Company Employee
74
o Business Owner
o Government Officer
o Student
o Housewife/Retired
o Unemployed
o Others
2.1.5 Estimated Monthly Income
2.2 Psychographic
2.2.1 Personality
Which of these choices describes you best?
o I make friends easily
o I love large parties
o I trust others
o I’m shy
o I like chill parties
o I am distrustful towards other people
When you are in a bar, what aspects do you enjoy the most?
o The music
o The people
o The drinking
o The culture of the bar
2.2.2 Values
75
o Go to bars
o Stay at home
o Go to malls
o Go out of town
o Others
2.3 Behavioral
2.3.1 Reasons of Visit
o Convenience of Location
o Has good service
o A good feeling of security
o Reasonable Pricing
2.3.2 Frequency of Visit
o Once a week
o Twice a week
o Occasionally
o Once a month
2.3.3 Products or Services Availed
o Drinks
o Food
o Drinks and Food
76
3.1 7P’s
Instructions: Please encircle the number that reflects your opinion to the questions addressed to
Morals and Malice with the 4 point likert scale.
Is be very clean. 4 3 2 1
Is unique to others. 4 3 2 1
77
Product / Characteristics of the products Strongly Agree Agree Disagree Strongly Disagree
78
APPENDIX C
TIMETABLE OF ACTIVITIES
Work Plan
79
80
81
83
APPENDIX D
CURRICULUM VITAE
EDUCATION :
Secondary: Elementary:
Childlink Learning Center Childlink Learning Center
V. Rama Ave., Cebu City V. Rama Ave., Cebu City
Graduated March 2015 Graduated March 2011
84
Pre-School:
Childlink Learning Center
V. Rama Ave., Cebu City
Graduated 2005
WORK EXPERIENCE :
QUALIFICATIONS :
- Proficient in English Language
- Good PR skills
- Leadership skills
- Market Analysis
- Computer Literate
85
Mikaela A. Calamba
Mobile : +63-995-394-0170
Email : mikaela_calamba@yahoo.com
PERSONAL INFORMATION :
EDUCATION :
Secondary: Elementary:
University of San Carlos-North Campus Science and Technology Education
Center
General Maxilom Ave., Cebu City Basak, Lapu-Lapu City
Graduated March 2014 Graduated March 2010
86
WORK EXPERIENCE :
QUALIFICATIONS :
- Ability to organize, prioritize and work
under extreme work pressure, heavy work
load and deadlines.
- Strong personal communications skills
- Accuracy and attention to details.
- Organization and prioritization skills.
- Problem analysis, use of judgment and
ability to solve problems efficiently.
87
PERSONAL INFORMATION :
Date of Birth : May 29, 1998
Place of Birth : Cebu City
Citizenship : Filipino
Civil Status : Single
EDUCATION :
Secondary: Elementary:
University of Cebu –Main Campus Mabolo Elementary School
155A Sanciangko St., Cebu City Mabolo, Cebu City
Graduated March 2014 Graduated March 2010
88
WORK EXPERIENCE :
QUALIFICATIONS :
- Fluent in the English language
- Good verbal and personal communication skills
- A good team player
- Tolerant and flexible, can easily adjust to
different situations
- Computer literate
89
PERSONAL INFORMATION :
Date of Birth : March 21, 1995
Place of Birth : Cebu City
Citizenship : Filipino
Civil Status : Single
EDUCATION :
Secondary: Elementary:
Sacred Heart School – Ateneo de Cebu Centre for International Education
Canduman, Mandaue City Panagdait, Cebu City
Graduated March 2012 Graduated March 2009
Pre-School:
Child Development Centre Cebu
Mabolo, Cebu City
Graduated 2002
90
WORK EXPERIENCE :
SKILLS :
- Proficient in English language
- Good work ethic
- Computer Literate (Microsoft office)
- Good marketing skills
References:
Mr. Johnson Dy
CEO, DEH Packaging Corporation
Mandaue City
+639175455658
91
PERSONAL INFORMATION :
Date of Birth : October 06, 1994
Place of Birth : Cebu City
Citizenship : Filipino
Civil Status : Single
EDUCATION :
92
Secondary: Elementary:
Centre for International Education Centre for International Education
Panagdait, Cebu City Panagdait, Cebu City
Graduated March 2012 Graduated March 2009
QUALIFICATIONS :
- Proficient in English Language
- Good PR skills
- Works well with People
- Marketing Management
- Digital Marketing
- Event management
93
OBJECTIVE : A focused Marketing Student of USC who excels in market analysis and
decision-making. A motivated and enthusiastic marketer with a strong desire to hone my skills
and further my knowledge. Specializes in developing, planning, and implementing marketing
initiatives and customer or employee communication; but also displays exemplary leadership
skills. Strong verbal and personal communication skills and can easily adjust to different
situations.
PERSONAL INFORMATION :
Date of Birth : January 2, 1998
Place of Birth : Cebu City
Citizenship : Filipino
Civil Status : Single
EDUCATION :
Secondary: Elementary:
Sacred Heart School – Ateneo de Cebu Centre for International Education
Canduman, Mandaue City Panagdait, Cebu City
Graduated March 2015 Graduated March 2011
Pre-School:
Child Development Centre Cebu
Mabolo, Cebu City
Graduated 2005
94
WORK EXPERIENCE :
SKILLS :
- Proficient in the English language
- Strong verbal and personal communication
- Good leadership skills and a good team player
- Tolerant and flexible, can easily adjust to
different situations
- Computer literate
95
96
97
(Final Report)
Name of Candidate/s: Cary Cabral, Mikeala Calamba, Liana Casas, Ralph Dyenghong,
COMPLIED WITH
SUGGESTIONS NOT APPLICABLE YES NO
Page No. Reason/s
1. Title i
• Change to:
“Assessment of the
Marketing Strategies
of Morals & Malice
in Cebu City”
• Double spaced
• Uppercase
• Bold letters
2. Introduction
2.3 Conceptual
Framework
• Improve conceptual
framework
30
3. Problem
98
3.2 Sub-Problems
• Remove Mission,
Vision, and
Organizational
Structure from
Company Profile 4-6
• Remove Years of
Operation from
Company Profile
• Add annual income
to Company Profile
• Remove marital
status from Customer
Profile
• Change
psychographics under
Customer Profile to:
Personality, Values,
Attitudes, Interests,
and Lifestyle
• Add income range to
Customer Profile
• Change #4 to: “What
are the challenges
encountered by
Morals and Malice?”
• Change #5 to: “Based
on the findings of the
study, propose new
marketing strategies
for Morals and
Malice.”
3.3 Assumptions
3.4 Hypotheses
99
• Update Statement of
Hypotheses
4. Significance of the
Study
4.2 Scope ü
4.3 Limitations
ü
5. Methodology
5.1 Research
Environment
No
5.2 Research Subjects Changes
5.3 Research
Instrument(s) No
• Change entire Changes
39
questionnaire to
answer questions of
SOP
• Not Likert scale
• Only the company
should be asked
about STP, not
100
customers
41
No
changes
6. Definition of Terms 10
• Must be (specific)
operational
definition, not
general
• Must be alphabetized
7. Presentation, Analysis 45
and Interpretation of
Data
• Change the whole
chapter 4 and base it
on the data from the
new questionnaires
8. Summary, Findings, 78
Conclusions and
Recommendations
• Change everything
• Recommendations
must be feasible for
the company
101
9. Mechanics
9.1 Footnotes/Endnotes
• Hidden page numbers
on pages with chapters
and on title page i-iii, 1, 4, 10, 14, 36,
45, 78, 85, 91, 101,
9.2 Documentation 108
9.3 Bibliography
• Follow APA format ü
9.4 Headings
• Add prefatory statement
under headings 85
• Chapter headings must
not be in all caps
• Headings must be
centered
9.5 Tables 1, 4, 10, 14, 36, 45,
• Minimize lines in tables 78
to 3 lines
• Table title must be 1, 4, 10, 14, 36, 45,
italicized 78, 85, 91, 101, 108
• Table annotations must
be at the bottom of the
table
• Add list of tables to the
table of contents
9.6 Graphs 48 - 73
• Figure number must be
italicized
• Figure title and figure
number must be inline
26, 28, 29, 34, 37
9.7 Others: Abstract
and Margins
• Make abstract:
Executive Summary
(must include: problem,
study/analysis,
102