UNIVERSITI SELANGOR

SELANGOR BUSINESS SCHOOL

(Academic Year: 2/19/67)
Semester: August 2019

Course details

Subject Code : GCM6223

Subject title : MARKETING MANAGEMENT

Year/semester of study: 2019 / JUNE 2019 (1/18/67)

Lecturer’s Name : ASSOC PROF DR JAMAL NASSIR BIN SHAARI

Assignment Details

Project Paper Title : MARKETING PLAN

Due Date : 13/08/2019 (SUNDAY)

Student’s Detail

Name Student ID. Program

Siti Zafirah binti Khairudin 6181000151 MBA
Siti Nabilah binti Khairudin 6181000131 MBA
Muhamad Khairi bini Khairudin 6181000121 MBA
Mazrishammin bin Mohd Salamin 6191000091 MBA

Assignment Overall Marks : ____________ Marks.

 EXECUTIVE SUMMARY

The goal of this marketing plan is to outline the strategies, tactics, and programs that will
make the sales goals outlined in the Tealive. In 2017, La Kaffa International (parent
company of Chatime) decided to terminate its agreement with Loob Holdings (founder
Bryan Loo). However, Loob Holdings bounce back within six weeks and announce its
new brand called Tealive.

Tealive, not focusing on a bubble tea alone, because only 9% of its drinks came with
bubbles which makes Tealive unique. Tealive vision is to cultivate a modern drinking
culture rather than limit to the bubble tea alone so, it is also come with variety types of
tea base. That must be the answer to an increasing demand of Tealive nowadays. About
165 Tealive outlets and it had direct control 80% of its outlets because over the years
Tealive didn’t follow the franchising model. The remaining control handle by close-knit
such as cousins, relative, in-laws, childhood friends and university friends. In 2019,
there are over 250 Tealives outlets in Malaysia.

Marketing has play a vital role in the success of Tealive. Currently, Tealive have built a
brand around the services it offers by heavily promoting itself through social media such
as Facebook, Instagram, Youtube, etc. Marketing efforts also used to attract potential
customer to enters Tealive as well as to sustain customer with intention of repeat
purchase. A strong emphasis will be put on keeping customers and building brand
loyalty through programs focused on staffing, experience, and customer satisfaction.

Tealive mission is totally different compare to other bubble tea drinks as it wants to be
the brand that protects the weak and isn’t afraid of the strong but also the brand that
embraces changes. In the future it’s going to be a lot of innovation in terms of products
in Tealive as it keeps expand and move to other regions.
 TABLE OF CONTENTS

SITUATION ANALYSIS ........................................................................................................ 1

1.1 ............................................................................................................................... Introduction
............................................................................................................................................ 1
1.2 ...................................................................................................................... Market Summary
............................................................................................................................................ 1
MARKETING STRATEGY .................................................................................................. 11
MARKETING TACTICS ...................................................................................................... 11
FINANCIAL PROJECTIONS ............................................................................................... 12
4.1 Introduction ................................................................................................................ 12
CONCLUSIONS .................................................................................................................... 13
BIBLIOGRAPHY .................................................................................................................. 13

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 SITUATION ANALYSIS

1.1 Introduction

Recently, Tealive has makes its debut in the United Kingdom (UK). Business becoming
good day by day and at the same time customers became impressed with Tealive
offerings. However, Tealive need to focus its efforts on implementing the strategies,
programs, and tactics for continuous improvement. It explains the importance of
marketing efforts is essential to its success and future profitability

Differentiating Tealive from other more bubble tea drinks such as Chatime, Xin Fu
Tang, Gong Cha, etc., Tealive has the ability to effectively compete on uniqueness of its
drinks with the already entrenched competition. Sales are brisk and in-line with
projections. Tealive products have received massive demand from customers.

1.2 Market Summary

Tealive faced exciting opportunity nowadays because it’s base at the strategic location

with a massive demand. The consistent popularity of Tealive combined with the growing

interest in the bubble tea, has been proven to be a winning concept in other markets and

will produce the same results here.

Target markets for the Tealive are growing at a relatively fast pace as it faced with a

large number of potential customers, and it had offered a splendid service.

Target Market Growth:

1. Office workers
2. University students
3. Seniors
4. Teens

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1.3 Market Needs

There are many factors, such as addiction, which may ensure that the high demand for
Tealive will keep rose up continuously. The potential growth of the Tealive entered the
market is enormous despite being a latecomer can be seen when Tealive invested
aggressively and even announced it would open 100 stores within the next three years.

Beginning in 2010, the first Tealive (previously operating as a Chatime franchise) outlet
was opened in the award-winning shopping centre in the Bukit Bintang district. The
outlet served 100 cups of bubble tea daily and was manned by only two workers, Bryan
Loo, LOOB’s current CEO, as the cashier and social media manager, and a tearista, who
prepared all the orders.

Through the limited manpower, the business had managed to take off and was ready for
the second outlet in just six months since its first operating outlet. After receiving
positive feedback for its introduction of the modern tea-drinking culture to the locals, the
number of bubble tea orders had risen from 100 cups per day to 300 cups daily.

In 2011, Bryan Loo, with his determination to look outside of the box, and driven by his
life’s motto to “think big, start small, scale fast”, had submitted a business proposal to
98 shopping malls all over the country. The idea of scaling up the number of outlets had
become his focus at that time, as the two outlets were handed over to friends to manage
the operations.

Within a year, the bubble tea craze in Malaysia had witnessed the revolutionary
expansion of the quick-service tea outlets, which had grown to 40 outlets and with each
outlet serving 500 cups daily. As one of the efforts to constantly challenge its status quo,
LOOB had made the decision to rebrand all its Chatime licensees to the current Tealive
in 2017, following its dispute with the Taiwanese franchisor.

With differing business principles, as well as no longer sharing the same vision in
running the business, Tealive was conceived to continue the journey in taking the
modern tea-drinking culture to the next level, especially to its customer base of 2.5
million tea drinkers monthly. Currently, Tealive operating with over 1,000 employees. It

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is the exponential growth in the making for the leading local teahouse chain which aims
to increase its number of outlets to 250 and its customer base to five million monthly in
2018.

As of today, emotional needs of Tealive consumers can be categorize as per below:

Selection: a creative choice of drink and a well-constructed structured conversation

system.

Accessibility: With a modern technology and trends, such as delivery/take away apps
customer able to access easily and receive the drinks anytime, anywhere.

Customer service: the customer is always right.

Competitive pricing: all products will be competitively priced relative to the

competition.

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1.4 Market Trends

The market trend for Tealive is headed toward a more sophisticated customer. The

uniqueness of bubble tea drinks nowadays are more sophisticated in a number of

different ways:

Drinks quality: the preference for higher-quality ingredients is being reinforced as

customers are being subjected to an increasing number of options.

Drinks varieties: Not focus on bubble tea alone but offer varieties type of drinks such

Smoothies, Matcha, Coco, Coffee, Sparkling juice, Fruit tea, Crafted tea and Milk Tea.

Healthier drinks: Healthy drinks such as antioxidants to boost your immunity, collagen

to keep your skin radiant, protein to enhance your active lifestyle and energy to recharge

your body.

Economic performance contributes to rising demand of healthier drinks

Malaysia’s economic performance in has risen from previous years, with higher GDP

growth and lower inflation. Consumer habits changed, including shifting to more health

and wellness products to stay healthy (Euromonitor, 2013). As an example, consumers

preferred to purchase reduced fat milk or shifted towards naturally healthy

fruit/vegetable juice to maintain good health, instead of purchasing standard products at

lower price. Rising awareness of the risk of coronary disease and diabetes also drove

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demand (Euromonitor, 2013). Hence, consumers are willing to spend slightly more

money on products that they trust are healthier.

Chatime offers a wide range of healthy bubble tea, supported by strong

advertising activity. Marketing events helped to sustain awareness among consumers of

Chatime healthy drinks. In order to maintain their image of serving healthy bubble tea,

Chatime should invest in good quality products, such as their best seller, the “white

pearls”, which are made from seaweed extract and are low in sugar and calories, and

high in fibre, in order to target health conscious consumers (Wong, 2012).

Chatime has the advantage of the market share and has a strong momentum in

terms of expansion. Chatime should also take care the quality of their drinks. Since

bubble tea is an easy substitute, consumers maybe try other brands of bubble tea such as

Gongcha if consumers are not satisfied with Chatime. Since Chatime has opened many

outlets, accessibility will ultimately drive the demand for tea in the Malaysian market.

In addition, in order to overcome emerging trends such as the café culture

amongst consumers such as Starbucks and Coffee Bean, Chatime is choosing to

emphasise a lifestyle concept. “The drinks are 100% healthy. Whatever is not healthy

won’t last in this day and age.” (Bryan Loo, 2012)

Bryan Loo, the CEO of Chatime Malaysia aims for Chatime is to create a need

for Malaysians to drink tea and then choosing Chatime to satisfy that need. Bryan Loo

included that his efforts might not result in replacing coffee culture with a tea culture,

but he at least aims to make tea the second choice amongst consumers (Bryan Loo,

2012).

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 3.2 Use of Issue Advertainment to Sell Food

The next emerging trend that Chatime has to respond to is the use of issue

advertainment to sell food. For example, by producing a video on YouTube,

communicating these issues in a highly engaging, authentic and entertaining way, a new

form of issue advertising has been created (Melissa Musiker, 2013). Advocacy

communication can be spread more widely and become stickier when they’re

“entertaining”. Chatime will have to first determine how to engage with consumers in a

way that is authentic with their brand, strikes and appropriate tone on the issue and

balances the message’s education and entertainment value. Failure to be effective could

result in significant backlash. But the potential benefit is significant to both the sales and

reputation of Chatime. (Melissa Musiker, 2013)

3.3 Epigenetics, nutrigenomics and social justice

Moreover, a latest trend amongst beverages is epigenetics, nutrigenomics and social

justice. There is an emerging understanding of the role of the environment on gene

expression, epigenetics and its impact on chronic disease and obesity. Furthermore,

emerging science in nutrigenomics leads some experts to argue that exposure to foods

that stimulate addictive behaviour in adults while in utero increases the susceptibility to

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 the potentially addictive beverages later in life (Melissa Musiker, 2013). This is a new

way for ethicists to examine the issue of beverages in relation to social justice. As

understanding of science evolves, some will argue that this gives greater credence to

calls for increased regulation around ingredients, processing and labeling because a case

can be made that highly processed and unhealthy beverages are creating cycles of

poverty and disease (Melissa Musiker, 2013). While this is an area of emerging science,

companies like Chatime should pay keen attention.

Strengths Weaknesses
 New innovative image  No Wi-Fi
 Affordable Price Range  Lack of brand recognition
 Excellent staff who are highly trained and  Little diversification in the products that we
customer attentive. offer (Only drinks)
 Excellent product mix including healthy
drinks.
 Provide nutrition information to customers
Opportunities Threats
 Marketing efforts to increase brand  Emerging local and global competitors
awareness  Slump economy which will decrease sales
 Collaborate with other company for product revenue
innovation.  Government presented a series of tax
 Expansion waiting area. changes

Strengths

Tealive had acquired its own strength including new innovative image, affordable price
range, excellent staff who are highly trained and customer attentive, excellent product
line including healthy drinks and provide nutrition information to customers. Since La
Kaffa took back Chatime franchise in 2017, Loob Holding founder Bryan Loo had
announced its new brand Tealive with a slogan “Tea is Life”. With new innovative
image, Tealive believe that this brand will make tea great again and the Bryan Loo was
confident of winning back its customers. Massive rebranding was the result of a shift in
the company franchise structure including the design, logo, slogan, etc. Among bubble

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tea brands, Tealive price range is under affordable rather than luxury which their product
could be offer to every level of income such as office workers, university students, teens
and senior citizen. In order to compete with various strong bubble tea brands, Tealive
staffs highly trained and customer attentive in order to provide excellence service in
order to win customer heart and create intention of customer to repeat purchase. Tealive
also offered excellent product mix including healthy drinks which can attract variety
type of customers. For example, healthy drinks such as fruit tea, antioxidants to boost
your immunity, collagen to keep your skin radiant, protein to enhance your active
lifestyle and energy to recharge your body. Besides that, Tealive pay attention to
customer concern especially senior citizen by providing nutrition information to
customers in the pamphlet so that, customer well known about the nutrition contain in
each drinks which is very helpful.

Weaknesses

Even though Loob Holding Tealive had operated more than two years, they are still in
their baby steps to achieve their goal to make the customers to experience the new and
unknown of Tealive and not just a drink. Thus, Tealive still have flaws such as no wifi,
lack of brand recognition and little diversification in the products that we offer (only
drinks). After undergone transformation into Tealive, Loob Holdings plan to expand
their outlets to keep growing. Nowadays, people frequently using wifi and it’s like it had
become needs in their daily life. And most of bubble tea brands rarely install Wifi at
their shop or kiosk including Tealive. In 2019, there are still customer did not recognize
Tealive which it may result to lack of brand recognition. And there are some customers
that are still confuse whether Chatime and Tealive are the same brand even though in
reality there are not the same. According to Bryan Loo, after Tealive was announced as a
new brand, Bryan Loo had shrewd business move when he was able to convince almost
162 bubble tea outlets and 95% existing Chatime outlets to abandon their existing
franchise agreements and join Tealive brand in a new and unproven venture. Tealive
growth at fast pace however, little diversification in the products that it could offer
which only focus on drinks. Tealive should consider to expand its product mix in the
near future as the rivalry in the market become more competitive every day.

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Opportunities

Tealive make continuous improvement day by day and there are few opportunities
which could help Tealive to boost up its market shares through marketing efforts to
increase brand awareness, collaborate with other company for product innovation,
expansion waiting area. Tealive need to heavily invest in marketing efforts in order to
increase brand awareness. It is because since Tealive offered other bubble outlets
including chatime franchise to join them it may be some confusion. Therefore, in order
to increase brand awareness could be done through paid review, social media, billboard,
etc. Tealive could also collaborate with other company for product innovation. As of
now, Tealive sold many varieties type of drinks but, Tealive haven’t try to collaborate
with other company products yet. It may be opportunity for Tealive to introduce product
innovation by collaborate with other company for example tinge (sparkling water)
products to produce fusion drinks. Every time customer visit Tealive store or kiosk, they
will line up in front of counter and they are not able to spend their leisure time in the
store or kiosk. The concept looks like grab-and-go. So, Tealive may want to consider
expansion of waiting area which not only help to reduce customer long queue but, help
the customer to feel comfortable while waiting their drinks to be serve.

Threats

Nowadays, there are many possible threats that may be harm to the company including
emerging local and global competitors, slump economy which will decrease sales
revenue and government presented a series of tax changes. Currently, in Malaysia we
have bubble tea brands which is about 18 official brands and unofficial brands such as
bubble tea sold by hawkers. It may due to massive trends or hipster that attract the
customers to purchase the drinks. Besides that, the slump economy will decrease sales
revenue. It is because customer may create intention to saving their money instead of
spending their money at bubble tea brands such as Tealive. Other than that, government
presented a series of tax changes such as GST and SST. So, it will be tough in stabilizing
the price of Tealive to remain at affordable price range.

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10
MARKETING STRATEGY

MARKETING TACTICS

11
 FINANCIAL PROJECTIONS

4.1 Introduction

12
 CONCLUSIONS

BIBLIOGRAPHY

References:
https://www.mplans.com/internet_coffee_shop_marketing_plan/situation_analysis_fc.ph
p

https://www.theedgemarkets.com/article/tealive-spotlight-aggressive-growth-ipo-plans

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Abdullah, D.N.M.A., and Rozario, F., (2009), “Influence of Service and Product Quality
towards Customer Satisfaction: A Case Study at the Cafeteria in the Hotel Industry”,
World Academy of Science, Engineering and Technology.
https://www.comparehero.my/investment/articles/chatime-tealive-bubble-tea-franchises

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