Integrated Marketing Communication

Final Requirement - Marketing Proposal for Zagu

BAC 3-3
Group 6

Cunanan, Cyril Joie J.

Mactal, Eizel Marie B.
Matibag, Marc Joshua L.
Moya, Ana Katrina C.
Punzalan, Ronit P.

Submitted on 9th June 2023

Take on the revolution, feel the sphere-it.

 I. The Brand

A. Company History

It took several months of experimentation, product sampling and planning before the first ZAGU store was launched
in April of 1999. ZAGU was pioneered by a young enterprising lady with a degree in Food Science from the University
of British Columbia in Vancouver, Canada. To this date, Zagu has blended millions of pearl shakes, a pretty good
number for something that was widely predicted as a passing fad. Now, ZAGU has grown from a tiny kiosk to a
current network of over 500 stores nationwide and in the UAE. Zagu has also gained recognition locally through
awards such as the National Consumers Quality Awards. From this humble beginning to its present success, ZAGU
has proven that is not a passing fad, 85% of our current stores have been occupying the same leased space for more
than three years. ZAGU foods can be found in malls, supermarkets and roadside locations. Behind the success of
every ZAGU store is our professional management team and dedicated employees committed to putting the
customer first and achieving excellence in everything. Zagu is one of the leading brands in providing refreshing drinks
in the country. They have offered different flavors of Pearl Shakes since April 1999 and were established in the
Philippines.

B. Industry Analysis

In 2020, the economy shrank by 7.3 percent after years of stable economic growth of around 6.4 percent. However,
the country's economy should rebound next year. The Philippine drinks industry is currently facing a number of
challenges, including the current economic climate, the new tax on sugary drinks that was introduced in 2018 and
the Coronavirus pandemic that has spread throughout the country. Water consumption is increasing as are non-
CSDs, albeit smaller. In 2018, the industry reacted to the introduction of the sugar tax by developing new products
and varieties of taste, as well as shrinking product content to minimize the impact of the tax. It also used different
ingredients and produced healthier drinks which created markets in nearly every area. And they are literally catching
on with customers. Consumer trends favor online shopping, and the building of online retail channels such as
modern supermarkets, convenience stores and shops outside cities. This ensures ever-increasing outreach to the
general population.

C. Marketing Mix (7Ps

1. Product
ZAGU is famous for its quality pearl shakes. It has different flavors- ZAGU Classics; Chocolate Indulgence;
Coffee and Tea Blends; Fruit Selection; and Filipino Favorites. In addition, ZAGU offers add-ons to their
customers to make their experience with the product more delightful. Those are crystals, corn kernels, rice
krispies, fruit bits, and pearls. show the product below.

2. Price
ZAGU’s pricing strategy depends on the target market/ customers who patronize the product. It offers
quality products but is affordable. The products range from 55-128 pesos. With just 55 pesos, customers
can enjoy their drinks.
 3. Promotion
ZAGU's promotion is designed to increase customer loyalty and bring new customers to the business. It
provides discounts, free gifts, and other incentives to customers who purchase products or services from
the company. This type of promotion helps to boost sales and attract more customers.

4. Place
ZAGU’s place can be found inside and outside of the mall. It has become a popular destination for shoppers
looking for a convenient way to buy cold drinks. ZAGU offers pearl shakes. The store is known for its wide
selection of flavors and affordable prices. Customers can also customize their drinks with a variety of
toppings. Zagu also offers food delivery services like Grab and Food Panda.

5. People
ZAGU's people are dedicated, hardworking, competent and customer oriented. ZAGU always strives to
deliver the best service possible. Their commitment to excellence makes them stand out from the
competition. They are passionate about what they do and it shows in their quality work.

6. Packaging
ZAGU's packaging is made of 100% recycled materials, making them environmentally friendly. The
packaging is designed to be durable and reusable, making it a great option for sustainable consumers.
Additionally, the bright colors and sleek design make it an attractive choice for customers.

7. Process
In ZAGU's process, they make sure they provide the quality service that the customers expect. They ensure
that their products are of the highest quality and meet the needs of their customers. They also focus on
customer satisfaction by providing reliable and friendly customer service. ZAGU is committed to delivering
an exceptional customer experience.

D. Target Market
Zagu's business caters to customers in malls. We believe Zagu is an ideal drink for shopping customers. It is ideal for
settling business affairs with other people inside the mall or any other matter that would vanish their boredom while
inside the mall. The Zagu serves a variety of refreshments and is very suitable for our country's summer season.
Additionally, Zagu's business can be found inside malls, providing convenience to customers. Its friendly team and
excellent customer service make Zagu one of the best choices for customers. Its affordable prices make it even more
appealing to customers.

E. Target Segmentation

Demographic

PRIMARY SECONDARY

Age 13-45 46 and above

Gender Male and Female

Race/Ethnicity Filipinos

Location Nationwide - Philippines, Cities, Urban areas

Occupation Students, Professors, Office Workers Contractual to professionals entry-level,

middle-level to top occupational
positions (Almost all occupations)

Socio-economic class C, D, monthly income of PHP 5,000 and A, B, and E

above

Education Elementary, High School, College, Graduate

School, Post Graduate School

Generation Gen Y (Millennial), Gen Z (iGen/Centennials), Boomers-Gen X

Gen Alpha

Geographic

Country/Region Philippines - Nationwide

City Size Has more than 446 stores strategically located throughout the Philippines

Climate Tropical

Population Density Populated urban areas

Cultural Factors Any culture, religion, marital status, and educational attainment are accepted

Psychographic

Lifestyle Practical, Supports local, Simple, and Shopaholic

Personality Mindful, Adventurous and Multitasker

Activities Indoor and Outdoor Activities

Behavioral

● Excited in trying out new flavors of Zagu.

● Choosing Zagu as their choice of drink because of familiar taste (local flavors).
● Comfortable in buying Zagu as it is not expensive compared to popular milk tea drinks.
 ● Brings back childhood memories.

F. SWOT Analysis

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

1. Leading pearl shake
industry in the
Philippines.
2. Accessible stall-outlets
nationwide.
3. Ready-to-go Pearl
Shakes.
4. Offers a variety of
flavors to choose from
(including monthly
flavor
5. Product Consistency:
Ensures that all their
supplies undergo
quality control.
6. Strong authorize
dealership features: No
Franchise Fee and
Royalty Fee.
1. Weak presence in 1. Q-commerce: shift 1. Milk Tea Craze: shift of
social media, pub to online delivery consumers to food
mats doesn’t reach according to trend.
its target customer’s 2. Strong social media
engagements. demand. e.g. Food presence of new
2. No walk-in physical Panda entrants.
stores available. 2. Summer Period: 3. During rainy seasons,
3. Understaffed: lack of March - May, many consumers opt for
stall workers to customers are warmer food (change of
accommodate looking for cold seasons equates to
customers. refreshments change of appetite).
4. #StandWithZaguWor during the summer 4. Competitors offer more
kers: Illegal heat. products other than
contractualization of 3. Milk Tea Fad, now drinks and refreshments.
its retail workers. that the food trend 5. Ever-changing climate of
5. Instances, retails is slowly dying - it’s consumer motivation;
stalls are running out Zagu’s pearl shake
of ingredients e.g., to innovate and
add-ons: Pearls/Sago step up their game.

G. TOWS Matrix

STRENGTHS - S OPPORTUNITIES - O STRENGTHS / OPPORTUNITIES (SO)

1. Leading pearl shake industry in
the Philippines.
2. Accessible stall-outlets
nationwide.
3. Ready-to-go Pearl Shakes.
4. Offers a variety of flavors to
choose from (including monthly
flavor) at an affordable price.
5. Product Consistency: Ensures
that all their supplies undergo
quality control.
6. Strong authorize dealership
features: No Franchise Fee and
1. Q-commerce: shift to online delivery
according to customer’s demand.
e.g., Food Panda
2. Summer Period: March - May, many
customers are looking for cold
refreshments during the summer
heat.
3. Milk Tea Fad, now that the food
trend is slowly dying - it’s Zagu’s
pearl shake to innovate and step up
their game.
S1O3- As a substitute, people resort to
purchasing milk teas nowadays. But,
since Zagu have long established their
reputation in the beverage industry, they
can make sales promotion strategies
such as an Online Contest to create a
buzz which can result in people
remembering them, continuing to
patronize their products.
S1O5 - The Philippines' pearl shake
industry is led by Zagu. The milk tea
trend will take advantage of the
 Royalty Fee.
WEAKNESSES - W
1. Weak presence in social media,
pub mats doesn’t reach its
target engagements.
2. No walk-in physical stores
available.
3. Understaffed: lack of stall
workers to accommodate
customers.
4. #StandWithZaguWorkers: Illegal
contractualization of its retail
workers.
5. Instances, retails stalls are
running out of ingredients e.g.
add-ons: Pearls/Sago
STRENGTHS - S
1. Leading pearl shake industry in
the Philippines.
2. Accessible stall-outlets
nationwide.
3. Ready-to-go Pearl Shakes.
4. Offers a variety of flavors to
choose from (including monthly
flavor
5. Product Consistency: Ensures
that all of their supplies
undergo quality control.
6. Strong authorize dealership
features: No Franchise Fee and
Royalty Fee.
OPPORTUNITIES - O
1. Q-commerce: shift to online delivery
according to customer’s demand.
e.g., Food Panda
2. Summer Period: March - May, many
customers are looking for cold
refreshments during the summer
heat.
3. Milk Tea Fad, now that the food
trend is slowly dying - it’s Zagu’s
pearl shake to innovate and step up
their game.
THREATS - T
1. Milk Tea Craze: shift of consumers to
food trend.
2. Strong social media presence of new
entrants.
3. During rainy seasons, consumers opt
for warmer food (change of seasons
equates to change of appetite).
4. Competitors offer more products
other than drinks and refreshments.
5. Ever-changing climate of consumer
motivation;
opportunity to introduce various flavors
to attract customers. By offering new
products and innovating pearl shakes,
Zagu will continue to remain the leading
pearl shake company.
WEAKNESSES / OPPORTUNITIES (WO)
W2O1 - Zagu also offers their products
through online delivery. Having no walk-
in physical stores will not hinder them in
having customers because they can
encourage people to make an online
purchase by including the information in
their social media contents.
W503 – Running out of supplies is a
common problem for a food business,
however having a backup is always the
best option. Zagu can consider launching
new add-ons as an alternative, e.g.,
white pearls, popping boba, egg pudding.
STRENGTHS / THREATS (ST)
S2T2 - The accessible stall-outlets of Zagu
can beat the social media presence of
new entrants. It is a big advantage to
have different branches around the
Philippines because all they have to do is
to strengthen their social media
engagement for a more powerful brand
awareness.
S5T4 -The product consistency of Zagu
will lead customers to seek out
competitors offering more products,
drinks, and refreshments. They need to
think of more products to offer.
 WEAKNESSES - W THREATS - T WEAKNESSES / THREATS (WT)

1. Weak presence in social media,
pubmats doesn’t reach its
target engagements.
2. No walk-in physical stores
available.
3. Understaffed: lack of stall
workers to accommodate
customers.
4. #StandWithZaguWorkers: Illegal
contractualization of its retail
workers.
5. Instances, retails stalls are
running out of ingredients e.g.,
add-ons: Pearls/Sago
1. Milk Tea Craze: shift of consumers to
food trend.
2. Strong social media presence of new
entrants.
3. During rainy seasons, consumers opt
for warmer food (change of seasons
equates to change of appetite).
4. Competitors offer more products
other than drinks and refreshments.
5. Ever-changing climate of consumer
motivation;
W1T2 - Zagu's social media engagement
isn't that strong, and Zagu's competitors
are active. Zagu needs to focus more on
its social media presence to compete with
its competitors. They need to create
content that is engaging and interesting
and interact with their followers to build
relationships and gain more followers.
W2T4 – It is known that places where
consumers can stay while consuming their
drinks are a thing nowadays. Having a
Zagu physical store can attract buyers not
only because of the drink they offer but
also because of the place they can stay
and chill. It is also a great opportunity to
widen their menu such as adding snacks
or pastries.

H. Competitive Analysis

Brand Black Pearl Fruitas I Love Milktea Zagu

Product ● Pearl Shakes ● Shakes ● Milkteas ● Different Kinds

(categories) ● Dessert-flavored ● Smoothies ● Milkshakes of Pearl Shakes
Drinks ● Juices ● Frappes - Chocolate
● Fresh fruits ● Smoothies - Coffee and tea
drinks/shakes ● Hot Drinks - Fruits
● Fruit tea - Filipino
● Yogurt tea favorites

Price ₱49- ₱129 ₱59- ₱169 ₱60- ₱115 ₱55- ₱135

Promotion ● Social Media ● Social Media ● Social Media ● Social Media

● E-commerce ● E-commerce ● E-commerce ● E-commerce
● Discounts ● Brand ● UGC ● Word of mouth
● Online Contest Ambassadors ● UGC
● Public Relations ● Product
● Online Contest Bundling
● Product Bundling ● Discounts
● TV ● Online Contest
Place ● Physical stores
100+ Nationwide
● E-commerce:
Grab, Food Panda
● Physical Stores ● Physical Stores ● Physical stores
Nationwide 30+ Nationwide 400+
● E-commerce: ● E-commerce: Nationwide
Grab, FoodPanda, Grab, FoodPanda ● E-commerce:
Balai Mart Grab,
FoodPanda

I. PESTLE / Porter’s Five Forces

1. PESTLE

a) Political Factors
● The Philippines is slowly going back to its normalcy after battling the COVID-19 pandemic for more
than two years and it’s a good sign for Zagu because they can make marketing plans easier than in
times of lockdowns.
● The Ukraine-Russia war affects the prices of raw materials and food costs in the Philippines. This
political issue between the two countries may affect the production of Zagu even though it would
not directly affect the domestic economy of Philippines, the Philippine economy will likely be
collateral damage because of the food shortages and disruption of global trades.
● Due to pandemic, health protocols in different establishments especially in food businesses were
implemented to ensure the safety of consumers. Even though the Philippines is slowly going back
to its normalcy, Zagu must ensure to follow the health protocols to have healthy and safe
consumption.
● Policy and Guidelines on Healthy Food and Beverage Choices in Schools and in DepEd Offices.
Students are one of the target markets of Zagu, and it can greatly affect the establishment of kiosks
of Zagu that are near school premises and establishing Zagu stalls inside schools will be
complicated and more permits are needed.

b) Economic Factors
• In April 2023, the Philippines' annual inflation rate decreased to 6.6% from 7.6% the previous
month, falling short of market expectations of 7.0%. This inflation rate might affect the purchasing
power of consumers.
● For 2023, they predict that revenues will make up 15.2% of the GDP in 2023, which is less than
their earlier prediction of 15.4%. The three tax reform ideas already have revenue predictions for
the national government. The predicted excise tax rate for beverages with added sugar is P53.
Sugar is one of the most important ingredients of Zagu shakes and it greatly affects the quality and
taste of Zagu or the prices of Zagu shakes as well.

c) Social Factors
● Many Filipinos are more conscious about the food they eat because of lifestyle diseases and more
individuals are now aware of the negative impacts of high-calorie and high-sugar foods. It can also
influence the revenue of Zagu because Zagu shakes are sweet so that Zagu can think of a marketing
strategy that can solve this sociological factor.
● During the pandemic, people learned to make Do-It-Yourself foods that became popular in
different social media factors that would help them to start up a new business or just simply satisfy
 their cravings. It can influence the sales of Zagu because people in these times know how to make
alternatives.

d) Technological Factors
● Online platforms and deliveries became popular during the pandemic. With the use of Artificial
Intelligence, Zagu can promote their product easier if they prioritize their social engagement in
social media as Filipinos spend more times on the internet.
• Machines and equipment contribute a lot in manufacturing and in the packaging process that
enabled food companies to maintain product quality. Portable blenders became popular
nowadays and Zagu can make a marketing strategy from it.

e) Legal Factors
• Republic Act No. 7394 also known as the Consumer Act of the Philippines may affect Zagu's way of
production and Zagu must ensure to protect customers against risks to their health and safety, as
well as from dishonest, unfair, and unethical business activities.
● Republic Act No. 10611 also known as Food Safety act of 2013 enacted to strengthen the Food and
Safety Regulatory System in the country. As a part of the beverages industry, Zagu must be aware
of this law because it affects how Zagu manages their product to prevent, eliminate or reduce risks
to consumers.

f) Environmental Forces
• The use of plastic materials is one of the challenges that many companies are facing. Plastic cups,
straws, plastic bags, etc. can also contribute to the negative effect in our environment even though
many companies practice recycling. With this, Zagu can promote eco-friendly materials or
environment initiatives in their marketing strategy to reduce waste materials that can add to the
high volume of plastic materials that are produced every year.

2. Porter’s Five Forces

a) Competition In the Industry - High

• Zagu faces competition from both local and international brands in the Philippines.
• Different pearl shake brands like Farron, Star Frappe, Chillz, Bubble Frosty, Black Pearl, and Fruitas
intensifies the competition.

b) Threat Of New Entrant in The Industry – High

• Food business is very popular in the Philippines, which is why the beverage industry can potentially
attract new entrants in the future.
• Zagu needs a good marketing strategy to be still on top of its other competitors. Zagu must focus
on bringing back the hype of their product in this generation.

c) Power Of Suppliers – Medium

• Zagu depends on its supply from local and international providers of its ingredients.
• Zagu has alternative suppliers of ingredients, but their suppliers have a significant bargaining
power because the quality of their product depends on them. That is why they can demand higher
prices affecting the prices of Zagu shakes as well as the production cost.
 d) Power Of Customers - High
• Customers have a wide range of choice when it comes to beverages in the Philippines. Customers
can demand higher quality shakes.
• Zagu must focus on consistency of their product as well as their prices to satisfy their customer.
An excellent customer service can also help the sales of Zagu.

e) Threat Of Substitute Products - High

• Filipinos are very innovative in terms of alternatives or substitutes. The threat of substitutes for
Zagu comes from different brands offering different beverages such as milk teas, iced coffee, and
ice cream businesses.
• To mitigate this threat, Zagu must maintain its consistency and be more creative in terms of their
marketing strategy.

II. Creative Strategy

A. Target Persona

Name Samuel
Age 20
Occupation Working Student
Marital Status Single
Income 14,000php/month
Location Metro Manila
Interest Sports, e-games, Cycling
Paint Points Limited time to make smoothies because of work and study, needs an
affordable beverage to cope with the heat and stress.
Goals To relieve the heat after doing physical activities, save money on buying
beverages, for relaxation.
Objections Concerned about the consistency of the product, prefers real fruit smoothies,
concerned about the sugar level of Zagu shakes.
Communication Preferences Primarily uses social media and messaging apps for communication.

A Day in a Life (Monday, Thursday, Friday – Online Classes/F2F Classes, Friday & Saturday – Rest Days)

Time Activity
8:00 AM – 11:00 AM Wake up.
F2F/Online classes
10:00 AM – 11:00 AM Preparing lunch
11:00 AM – 12:00 PM Clean the house
12:00 PM – 1:00 PM Lunch
1:00 PM – 2:00 PM Preparing for gym and basketball training
2:00 PM – 3:00 PM Circuit Training
3:00 PM – 4:00 PM Basketball Training
4:00 PM – 6:00 PM Snack - Drinking Zagu product
6:00 PM – 7:00 PM Getting ready for online work
7:00 PM – 12:00 AM Duty on Part-time job
12:00 AM – 8:00 AM Sleep
 B. Consumer Insight

Consumer's Insight about Zagu (Responses)

Survey was disseminated through Google Forms with a target of 20 respondents. Questions were asked based on
the consumer’s personal perspective such as how they choose the right beverage to purchase and what are the
things they consider before buying it. Different angles were considered, consumer and brand perspective, before
formulating the survey to ensure that the initial consumer insight will be captured accordingly.

“I want a drink that is accessible to buy for refreshment yet affordable, flavorful and can help me get through the
day.”

Support
1. I want to buy a drink that I can buy easily and will quench my thirst.
2. I want a beverage that has a variety of flavors to offer but is still within my budget of 100-200.
3. I need to make sure that the beverage I am going to purchase can help me stay awake to finish my tasks.

C. Product Truth

Zagu continues to blend millions of pearl shakes that help Filipinos be refreshed amidst the country’s heat and
continues to incorporate various iconic local flavors to give every Pinoy the satisfaction and nostalgia in a cup- all at
a budget-friendly price.

Support:
1. Zagu now has more than 446 stores strategically located throughout the Philippines that offer chilly pearl
shakes which became famous among locals and has earned its reputation as a go-to affordable refreshment
in times of summer heat. Their products range from 55-135 pesos only.
2. They have the “Filipino favorites” section in their menu where 7 all-time favorite Filipino flavors such as
Halo-halo, Zagu’t Gulaman, Fruit Salad and the likes can be purchased. Their newest addition to it is the
“Taho” flavor which is a classic Pinoy soya treat that has long been part of Filipinos’ childhood.
3. In an effort to make sure that their customers are satisfied, Zagu trains their staff well, and strives to put
more stalls throughout the country by encouraging authorized dealerships with possible business partners.
In addition to this, they expanded their service by offering Party Packages, which allow their customers to
choose from a variety of budget-friendly options.

D. The Big Idea

1. Basic - With Zagu, I can keep myself refreshed anytime and anywhere as their pearl shakes
are wallet-friendly yet have a variety of flavors to choose from that will suit my cravings
while going through a long, tiring, and hot day.

2. Refined - Zagu’s budget-friendly pearl shakes make me feel refreshed after a long, tiring
day without having to worry how much it would cost me.

3. Polished - “Abot Kayang Zarap Kay Zagu!”

 Since one of Zagu's main assets is its affordability and most of the respondents are
students/workers, the usual pessimistic question of "Abot kaya?" that may refer to the
students/workers budget, and capability to meet the deadline(s) will be changed to an optimistic
view of "Abot, kaya!".

E. Key Visual
 III. Execution

A. Campaign Objectives

Through the years, Zagu has been the companion of Filipino people amidst the inevitable heat in the country. A lot
of people know them as the “OG”, because they are aware of the existence of the brand even before the entry of
other refreshments such as milk teas and smoothies. Zagu’s refreshing treats were patronized by Filipinos from
various social classes, but especially, the “masa” because of its affordability.

With that being said, Zagu’s ad campaign, “Abot Kayang Zarap Kay Zagu” will focus on young adults who are studying
and working at the same time. They belong to many Filipinos who strive hard in order to have a successful future.

The main goal of the campaign is for them to see Zagu as their companion as they try their best to juggle their
responsibilities as a student, and as an employee. With their efforts to live a double life, they surely deserve an
energizing break without having to worry how much it would cost them. With Zagu’s campaign, they’ll realize that
what seems to be a long, tiring day can be turned into a refreshing one, at a price they can afford. Hence, Abot
Kayang Zarap Kay Zagu!

In line with the campaign, the following objectives are set to be attained:

• Brand Recall

The campaign also aims for the brand to be recalled by people. Up until now, when people are asked about Zagu,
they automatically associate it with their childhood. So, the campaign will just help to make Zagu stand out more,
trying a different approach by focusing on working students. The campaign aspires to make consumers realize that
Zagu is still the same brand they used to love, making it at the top of their minds when choosing a drink to refresh
them. We believe that this is important, especially now that the threat of substitute products is high.

● Customer Loyalty

The campaign’s objectives also include establishing customer loyalty. Zagu has already established their name as
one of the leading brands in the beverage industry who serves quality yet affordable pearl shakes, and there are
people who still continue to patronize them despite the emergence of other refreshment products. So, the goal is
to make customers realize that each one of them are valued, just like how they value Zagu. Through the *insert big
idea* campaign, Zagu can connect to the consumers in a deeper way, establishing both loyalty and good relationship
between them and the consumers.

● Social Media Engagement

In the campaign, different types of social media content will be published. These publication
materials will help in achieving increased social media engagement. Since the campaign will focus
on people who are achieving their dreams, particularly students who also work, it will appeal to
people’s emotions which will hopefully lead many people to interact within Zagu’s online
community, being able to participate and engage in various contents of the brand.
 To obtain the campaign’s objective, different types of sales promotion would be implemented,
following a certain timeline:

Campaign Timeline: March – August 2023

● March – April: 1st Phase – Planning

In this phase, everything is still a plan. The campaign’s objectives would be organized and defined. Once the
objectives are established, various strategies will be gathered to attain them. The target market, allotted budget,
existence of competitors and feasibility of the strategies will also be outlined, together with the campaign’s concept.

● April – May: 2nd Phase – Execution

After planning all the essential aspects of the campaign, it’s time to execute them. In this phase, all the planned ideas
will be turned into reality, starting from making the publication materials for the advertising and sales promotion
strategies that have been finalized, to organizing the duration of each content. These materials and contents will be
continuously improved, considering their appeal to the target market.

● June: Final Phase – Campaign Kick-Off

This is the final phase and during this time, the campaign will finally begin. While the campaign is ongoing, the
strategies that will be distributed on different days from June until August will be constantly evaluated and
monitored.

1. Pop It with Zagu! TikTok Contest

Duration: June 5-August 7, 2023
Brief Information: This online contest named “Pop It With Zagu” with the theme of “Abot Kayang Zarap, Kasama
mo sa Pangarap” will officially start the campaign. It will be announced on June 5, while the grand winner, on the
other hand, will be announced on August 7. It is a contest where the participants are a group of working students,
who will be required to upload their video of popping their Zagu drinks on TikTok. This particular strategy will help
in boosting the social media engagement of the brand.

2. Alexa Ilacad for Zagu

Duration: June 7-August 2, 2023
Brief Information: Alexa Ilacad will be announced as Zagu’s brand ambassador. Aside from being the face of Zagu,
she will also be doing an interview namely, “Pag-abot ng Pangarap the Alexa Ilacad Way” where she will be asked
for 10 advice/practices as someone who experienced being a working student herself. Each advice will contain
stories and will be separated videos from each other. These 10 videos will be posted every Wednesday from June
7-August 2, except its first video, together with the announcement of Alexa Ilacad being the brand ambassador of
Zagu that will be posted on June 6., Tuesday.
 3. Social Media Contents (June – August 2023)

A. Motivational/Inspirational Content
Day of posting: June 13 and June 27
Brief Information: Posts on social media that contain motivational phrases/quotes for
working students who face the everyday struggle of balancing academics and work life.

B. User-Generated Content (UGC)

Day of posting: July 11
Brief Information: “Zip Zip Zaya!” UGC is a story shared from a loyal customer of Zagu
namely, Zaya Gutierrez, who also happens to be a student with a part-time job.

C. Community/Customer Appreciation
Day of Posting: July 25
Brief Information: Zagu’s appreciation to its consistent buyers who are working students
that rely on the brand’s refreshing products to keep going as they live their daily lives.

D. Trending/Current Events Content

Day of posting: August 1 – Start of the celebration of World Youth Day
Brief information: Acknowledging the week-long celebration of World Youth Day, the
content aims not only to greet the youth, but also to acknowledge the efforts of those
students who have to rely on getting a job at the same time in order to survive.

4. Product Bundling
Duration: June 15 – July 31, 2023
Brief Information: Customers can avail of 1 grande of Zagu Pearl Halo-halo, 1 regular size of selected Filipino
Favorites (Buko Pandan, Ube, Quezo Royale, Taro) for only P149.00. It will save them P20.00.

5. Advertisement Commercial/Online Video

Day of Posting: July 8, 2023
Brief Information: The video entitled, “Abot Kayang Zarap, Kasama mo sa Pangarap” tells the story of Zara, a girl
who finds comfort in Zagu as she struggles to live both her life as a student and as an employee.

6. Outdoor/Out-of-Home (OOH) Advertising

Duration: June – August 2023
Brief Information: This type of advertising in the form of posters will serve as directories for the Zagu stalls in
malls. This will help people save their time because Zagu’s exact location is already accessible. Aside from this,
the brand will also have more exposure to the public as the posters will be in effect through the whole campaign
duration.

B. Brand Personality
The Everyman

Zagu strives to be relatable and approachable with their consumers by creating deep connections
through their all-time Filipino favorite pearl shake drinks that everyone seems to love. There is a
core desire for community and belonging, Zagu ensures that their affordable and budget friendly
 wide selection of drinks knows no status consumption which everyone can have a taste of
whenever and wherever within their reach — the brand’s welcoming and pleasant personality
plays a huge part.

● Desire: Connection with Others

● Goal: Belonging
● Strategy: Down to Earth and trustworthy
● Traits: Dependable, Realistic, Pragmatic, Inclusive, Equality
● Fears: Exclusion, Hostility, Separation, Isolation

The Innocent

Zagu also has the core desire to provide happiness to its consumers with every sip of their
irresistibly different drinks, curated for the Filipino taste buds. With every classic flavor induced
with joyful memories that customers could relate to, they thrive on passing that feeling of joy
through every cup — prominent in its logo’s color palette, the color yellow is associated with
warmth and positivity which Zagu continues to uphold.

● Desire: Satisfaction for All

● Goal: Happiness
● Strategy: Down to Earth and Trustworthy
● Traits: Optimistic, Honest, Loyal, Simplistic
● Fears: Depravity, Deceit, Confusion

C. Tone and Mood of Messaging

Defining a brand’s tone of voice can be challenging for some who are yet to establish their relationship with
their consumers. However, for Zagu’s successfully earning their reputation as the leading pearl shake industry
in the Philippines — they ensure that their tone always goes back to their values, providing their customers with
all-time favorite Filipino classic drinks that these consumers can't get enough of.

Through maintaining this image, they were able to connect further to their loyal customers and earn their trust
in the process; furthermore, All of these could be found in the very content that they are posting online, that
consumers read and engage with as they talk about new product releases and even promos as it is the brand’s
desire to connect with one another — thus, a more approachable tone by ZAGU is used.

Approachable & Relatable Tone

“Naghabol ka din ba? At Zagu, hindi mo na kailangan habulin si Manong mag tataho. Pwede mo ma-enjoy
Ang Taho the whole day! #taho #zagu #irresistiblydifferent!”

For example, during their promotional online advertisement series for their pearl shake drink: Taho
— their marketing team decided to post a publication material with a caption detailing a brief
content that everyone could relate to as a child since many of us experienced excitedly running to
get the attention of taho vendors passing by.
With this, ZAGU immediately grabbed its consumers by establishing 'relatability' within their message and also had
the clever way of adding their service at the end; that by availing their on-the-go drink, customers would no longer
have to chase for it anymore as ZAGU wouldn't be going anywhere. As for the language, colloquialism is often used
by the marketing team, something that is used in informal conversations which would be very easy to understand
and digest for their target consumers since there is familiarity in every word, the message has always been direct to
the point.

As any marketing agency would do, we wish to continue using the brand’s tone and mood of message with our very
own advertising campaign — as we believe that this is vital in protecting what was established between the brand
and its loyal customers, we wouldn’t want them to feel as if they’re talking with a stranger; there should always be
a sense of familiarity and relatability in these texts, for us to protect their trust within the brand. Therefore, through
our proposed ad campaign entitled “Abot Kayang Zarap Kay Zagu”, we’ll be curating heartfelt content specifically
targeting consumers who are part-time students juggling both work and academics, making sure that these
messages are genuine and sincere, going back to the campaign’s message of having Zagu as their go-to companion
as they strive on to have successful future.

D. Promotion and Rationale (include mechanics, mockups, samples, storyboards, etc.)

(2) Advertising Strategies

I. Online Advertising | strengthening Zagu's online social media presence and ensuring that it reaches
its target audience.

Of course, we cannot deny that with the growing ecommerce, you can find almost anything on the
internet. People nowadays buy and sell goods on social media with just one tap away, the online world
has become a game-changer in establishing brand awareness for so many companies.

Good thing Zagu has already launched their Facebook Page 153k followers but unfortunately were not
able to compete with sponsored ads, getting lost in the ever-changing algorithm of the internet is
inevitable. Moreover, each of their publication materials has only an average of 50 likes per post which
just means that Zagu has failed to reach its target audiences. It would be a waste and make no sense
to produce these materials without first having an audience to view it.

Since Zagu had already established their target market on the internet and have no problems with their
online advertising material as they seem to have an up-to-date pub mat curated during events and
holidays including photos, video promotions, stories, and reels. We just must provide ways these posts
will get to the right people.

An effective online advertising would require:

• Choose Your Objective

• Select Your Audience
• Decide Where to Run Your Ad
• Set Your Budget
• Pick a format.
• Post Your Ad
• Measure and track your Ad.

We highly recommend that Zagu invest in Paid Facebook Ad as it gives them an opportunity to
revamp their online brand awareness and reach their loyal Zagu community once again, and of
course, target future customers as well. And with that Zagu’s Online Advertising is set to reach its
online consumers on Facebook, this in turn would create engagements within the online
community and with that, Zagu can seat back and relax as they let their very own loyal consumers
do the rest of the job in promoting their line of product through like, comments, and shares.
A. Ad Commercial/Online Video Content
Abot Kayang Zarap, Kasama Mo Sa Pangarap | AD Screenplay
B. Social media content with different content pillars (with captions)

1. Trending/Current Events Content

Caption:
There is a fountain of youth: it is your
mind, your talents, the creativity you
bring to your life and the lives of
people you love. When you learn to
tap this source, you will truly have
defeated age. - Sophia Loren

Zagu's celebrates World Youth Day to

recognize the resilience of working
students and their commitment to
their education. This is a day to
recognize their efforts and to remind
them of the importance of investing
in their future. This is a day to
celebrate their successes and remind
them of the challenges ahead. It
reminds them that their
perseverance, work and dedication
will pay off in the long run. We are
proud to stand in solidarity with
working students on World Youth
Day.

By the way, stay tuned for more!

Because on August 07, 2023, we will
announce the grand winner in “Pop It
With Zagu” TikTok contest.

#AbotKayangZarapKayZagu
#WorldYouthDay
 2. Inspirational/Motivational Content

Caption:

Chasing deadlines on both school and work?

Really frustrating! But you don’t have to frown this

early. Start your day with that beautiful smile of yours,
take a deep breath, relax, and let ZaGUD vibes in your
system.

#AbotKayangZarapKayZagu
#ZaGUDVibes

Caption:

Having an exam? Expecting another hectic day at work?

Put your worry to rest, and just have a ZaGUD faith that you
can nail it! You’re built irresistibly different, remember?

#AbotKayangZarapKayZagu
#IrresistiblyDifferent
3. User-Generated Content (UGC) | Zip Zip Zaya

Caption:

SINO RELATE? Here’s another Zip-Zip-Zaya story from our loyal Zagu customer, Zaya Gutierrez who’s a part-
time student! Talaga nga namang kasangga mo ang aming best-selling pearl milkshake sa ano mang dami
ng pending deliverables mo. Order one now and have yourself be motivated to finish these tasks with our
budget-friendly drinks!

Got a Zagu Story you want to be featured? Send one now at marketing@zagushakes.com

#Zagu #ZipZipZaya #AbotKayangZarapKayZagu

 4. Customer Appreciation

Caption: Aral sa umaga, trabaho sa gabi. Mahirap man ipagsabay pero kailangang maghanapbuhay.

Sa dinami-rami ng rason para tumigil at sa dinami-rami ng rason para umayaw- kinaya mo, kinakaya mo, at kakayanin
mo. Pagbati sayo at pasasalamat sa mga sumusuporta sayo nang solido.

Grab your Zagu and let's take a toast and sip kasama ang ating magigiting na working student.

#AbotKayangZarapKayZagu
 A. Collaboration/Influencer marketing

“Pag-abot ng Pangarap the Alexa Ilacad Way”

As Zagu tries a new approach, they will be collaborating with a celebrity/influencer for the campaign for the first
time. The celebrity would be Alexandra Madarang Ilacad, better known as Alexa Ilacad, who is a Filipino actress,
singer, dancer and model.

Just last year, she got her Marketing degree from Treston International College. She earned her diploma on time and
was named to the Dean's List with a grade point average of 1.0, which is the best possible grade a student at Treston
may receive. All that achievement was done while she was also working full-time in showbiz.

To make it short, she was once a girl who did all she could to balance academics and work life. This makes her the
best option for Zagu’s campaign which is dedicated to students who also need to work for different, but surely, valid
reasons.

During the campaign, she will be tasked to promote Zagu and will be the face of the brand. She’ll be participating in
an interview entitled, “Pag-abot ng Pangarap The Alexa Ilacad Way” where she will be asked for 10 advice/practices
she could give to those who are like her when she was studying and working at the same time, trying to build an
own path to success. Each of the pieces of advice would have a little story and will be posted on different days.

Rationale:

Influencer marketing is a form of social media marketing that utilizes endorsements and product mentions from
influencers — individuals with a dedicated social following and a reputation as experts in their respective area. This
type of marketing has been proven effective because social
influencers have developed a high level of trust with their followers, and their recommendations serve as social
justification for the brand's potential customers.
Zagu, up to this day, has continuous support from Filipinos, but they can still bring in more potential buyers. Through
collaborating with Alexa Ilacad who has millions of followers on Facebook, Instagram, and TikTok, they’ll be able to
make a new reputation which is a brand that can relate with and an ally of the youth. They will also be able to
increase social media engagement and publicity and will have a higher chance of being talked about. The louder the
brand, the higher the chance of it not being irreplaceable because it will stay in people’s hearts and minds.

II. Outdoor advertising/OOH (Out-of-home)

A. Posters in Malls

Rationale:

Given that every Zagu stall is small and placed on different floor levels inside each mall nationwide,
people might have difficulty locating it. Their time would be wasted on strolling in the mall, looking
for its exact location. For working students, time is everything. As much as possible, they will avoid
the hassle especially when all they want is a refreshing drink after a long day. Although there are
some small directories, sometimes, it doesn’t even work. There’s also the information section in
the mall but there are not the sociable type and people have anxiety to talk or to ask for directions
from strangers. To solve this and to also promote the brand more, we’ll use Outdoor
Advertising/OOH (Out-of-home) in the form of posters.

We believe that it will strengthen the presence of Zagu's physical stores inside the mall as it will
help customers, specifically, working students, to easily locate it. It can also notify possible
consumers there that are looking for refreshments amidst the summer heat, those who are not
aware that there is a Zagu stall in the mall.

Details:

The posters will be placed mainly at entrances of the mall, so people can see them immediately,
and in areas where there are always a lot of people passing by, such as floor levels that have
cinemas and arcade stores where there are a lot of children, teenagers, and students playing
games or watching cinema, who also happens to be the target consumers of Zagu.

In every mall, 2-3 posters will be placed, with a size of 40x60 cm (16x24 inches), which is a size
suitable for posters with big, bold typography and striking visuals to grab people’s attention, and
is typically used in events, advertisements, and promotional posters. Given that this is an
advertisement poster, the size suits its purpose. Meanwhile, the poster will mainly focus on giving
information about where the Zagu stall can be found- at what floor level and where it is near.

Reason for its suitability:

Since people hate wasting their time and of course, prefer convenience more, this type of advertising is
suitable for Zagu to make people immediately find them, creating less hassle. They have already established
their brand’s identity and this advertising strategy will only help them get more buyers than they usually
have.
According to Metro Print, a printing company also established in the Philippines, the price of printing
posters with the size of 40x60cm starts at 750 pesos. This can still be lower if Zagu will require a bulk of
posters because it will, for sure, be at a discounted price. With this affordable cost, it’s highly possible that
Zagu has the budget to avail and make this type of advertising strategy, proving its suitability with the brand.

Mockups/Example:
(2) Sales Promotions

I. Online Promotion- TikTok Contest

CONTEST TITLE: Pop It With Zagu!

THEME: Abot Kayang Zarap, Kasama mo sa Pangarap

Mechanics:

● The contest is open to all working students.

● TikTok will be the platform.
● To join the contest, form a group of 5-7 members. All members need to follow, subscribe, and
like all Zagu social media accounts.
● One member must upload their TikTok entry while popping their Zagu drink. Their entry must
contain a caption that tells their stories and struggles as a working student that will capture the
hearts of every Zagu customer. This caption must be combined with the title "Pop it with Zagu",
and the hashtag #AbotKayangZarapKasamaMoSaPangarap
 ● The group with the most touching story and the most likes and reactions wins a Xiaomi Pad 5
● The contest will run from June - July 30, 2023, and the winners will be announced on August 7,
the last day of World Youth Day.
● The winners will be chosen by Zagu's CEO and Board of Directors.

Rationale:

This online contest is very suitable for Zagu because it is aligned to the company's mission and vision - to
provide the best quality, most innovative and reasonably priced products in the beverage industry. This
contest, celebrating the hardworks of the working students is appropriate for Zagu as they offer products
that will help the working student to unwind after a long tiring day at low cost.

This promotion will help Zagu to have a larger audience on social media. Once they have reached their
highest online engagement, it will be a steppingstone to restart by being more active in all their social media
platforms, bringing back the quality and affordable shakes that they have. Tiktok will be their platform.
Many Filipinos are using TikTok, and all trends are now coming from this platform. Through this, Zagu may
possibly become popular again, bringing back the popularity that they had before.

Mock-Ups:
https://vt.tiktok.com/ZSLYwHVYR/
II. Product Bundling

Promo Mechanics:

• Customer can avail 1 Grande of Zagu Pearl Halo-halo, and 1 regular size of selected Filipino Favorites
(Buko Pandan, Ube, Quezo Royale, Taro) for only P149.00. Save P20.00
• Flavors cannot be changed.
• Available for in-store purchases only. Not valid for GrabFood and FoodPanda orders.
• Not valid in conjunction with any other promotions, offers and discounts.
• Only 1 customer per day can avail of the Promo.
• Promo will run from June 15-July 31, 2023, only.
• In the purchase of goods and services which are included in the promotional discounts, the senior citizen
can avail of the promotional discount, or the discount provided under the expanded senior citizen act of
2010, whichever is higher.
Rationale:

In the midst of the summer season, Zagu has been around for almost 23 years, and with Buy one get one promo, it
is certain to catch more customers' attention. The product has already had a positive response, and with the added
incentive of the product bundling promo, we anticipate increased sales for the summer months. We hope to see a
lasting increase in demand for Zagu as customers become more aware of our product. By providing Product bundling,
Zagu has not only shown its commitment to its customers but has also provided them with a great incentive to
purchase the product. In addition, the positive response so far indicates that this promotional strategy is working
and is sure to bring in more summer sales for the brand.

Reason for its Suitability:

Since people love to avail themselves of discounts when purchasing Zagu, product bundling is appropriate to increase
Zagu's popularity and it's very suitable for the summer we are experiencing. We can offer two Zagus for a lower
price, providing customers with excellent value. The cost of it is affordable, so students will be more likely to
purchase more, and we will be able to reach our sales goals more quickly. Moreover, this promotion will create a
buzz around our brand and help us reach more customers. By offering product bundling, we can provide value for
customers and increase our reach. This will create a positive sentiment around our brand and help us reach our sales
goals efficiently.
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