Case Title: Declining Sales in a Local Milk Tea Shop in
Quezon City
Background:
“Sweet Sip,” a small milk tea shop located near a university in Quezon City, has been
experiencing a noticeable decline in sales over the last three months. The business owner,
Ana, wants to identify the cause and solve the issue using R. Medina’s eight-step decision-
making process.
Step-by-Step Application:
1. Diagnosing the Problem
Identify the difference between the actual and desired situation.
🔹 Application:
Ana notices that her daily sales dropped from ₱12,000 to ₱6,000. Her desired situation is to
return to her previous sales level or higher.
✅ Problem: Sales have significantly declined — there is a gap between expected and actual
revenue.
2. Analyzing the Environment
Examine internal and external factors affecting the situation.
🔹 Application:
Ana observes the following:
A new competitor (a Korean café) opened nearby.
Students are attending online classes again (less foot traffic).
Her prices are slightly higher than nearby shops.
Delivery platforms charge high commission fees.
3. Articulating the Problem or Opportunity
Clearly state the problem or opportunity.
🔹 Application:
Ana defines the problem:
“Sweet Sip’s sales are decreasing due to competition, fewer walk-in customers, and a lack of
effective delivery strategies.”
This clear problem statement will guide her next steps.
4. Developing Viable Alternatives
Generate multiple feasible solutions.
🔹 Application:
Ana and her team brainstorm and come up with the following:
Offer student discounts or combo promos.
Improve presence on food delivery apps (GrabFood, FoodPanda).
Introduce limited-edition flavors.
Launch a digital loyalty card system.
5. Evaluating the Alternatives
Weigh the pros and cons of each option.
🔹 Application:
Student discounts: May reduce profits slightly but increase volume.
Delivery app promotion: High fees, but wider reach.
New flavors: Requires R&D and marketing, but could excite regulars.
Loyalty card: Encourages repeat customers
6. Making a Choice
Choose the most suitable solution.
🔹 Application:
Ana chooses two key strategies:
1. Launch a student promo + loyalty program to bring back students.
2. Improve online delivery visibility using social media promotions and participating
in app-wide discounts.
7. Implementing the Decision
Execute the chosen plan.
🔹 Application:
Ana creates student ID-based discounts (10% off).
Designs a digital stamp card (buy 5, get 1 free) via Messenger chatbot.
Runs Facebook and TikTok ads targeting students.
Updates menu photos on GrabFood and offers ₱50 off on first orders.
8. Evaluating and Adopting Results
Monitor outcomes and adapt based on results.
🔹 Application:
After 1 month:
Daily sales increased from ₱6,000 to ₱9,000.
70% of customers used the loyalty program.
Social media page gained 1,200 new followers.
Positive feedback from students and better online visibility.
Ana decides to keep the loyalty program long-term and prepare for new flavor launches next
month.