Target Market Project: Itsbobatime Sharetea Simplici-Tea
Target Market Project: Itsbobatime Sharetea Simplici-Tea
Jon Field
BUSN 231
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Table of Contents
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1. Industry Potential
Boba finds its roots in 1980’s Taiwan, when a small tea stand owner created created the
tiny tapioca balls which would ubiquitously become known as Boba (Web. #5). Boba’s
expansion to the west coast began just before the turn of the millennia in 1999, and entered into
Asian communities in the San Fransisco Bay Area (Web. #8). Franchises like Quickly and
Lollicup entered the market running in the early 2000’s, and have continued to grow since then.
Quickly has grown to over 76 locations in Northern California since it’s arrival (Web. #11). The
competition is still growing, as more than 75 other Boba shops have opened up in the Bay Area
(Web. #11).
The Bay Area has been the gateway for Boba into the U.S. market. With its Asian roots,
Boba has grown predominantly in Asian communities throughout the west coast (Web. #8). On
the east coast, which lacks the more concentrated Asian communities of the west coast, Boba has
entered the market in a much slower and more strategic manner (Web. #8). Smaller franchises
are beginning to plant their roots and grow. However this growth is limited to the larger cities on
the east coast, such as: New York City, Boston, Miami, etc. The foundations for the industry that
has been laid by larger franchises like Lollicup, Boba Loca, and Quickly, has allowed for smaller
micro-chains to enter the industry (Web. #8). Micro-chains such as Tastea, It’sBobaTime, and
BobaGuys have come into the scene in wake of the opportunity to offer something different than
the large chains (Web. #1, 10, 14).
In the last 25 years, sales of wholesale tea have grown considerably. In 1990, 1.84 Billion
U.S. dollars of wholesale tea was sold, and in 2014 10.84 Billion U.S. dollars of wholesale tea
was sold (Web. #9). This significant growth is one indicator of the growth of the tea industry in
the United States (Web. #9). Consumption of tea from the year 2000 to 2013 has showed a trend
towards position growth (Web. #9). U.S. per capita tea consumption grew from 7.8 gallons in
2000 to 9.3 in 2011, although it fell to 8.4 gallons in 2013 (Web. #9).
Implications: After a period of relative stagnancy throughout the late 2000’s, the emergence of
new competition is igniting more growth in the industry. However there is still room for more
competitors to join the conversation. High competition from franchises and established Boba
shops will require that a new business entering the industry must aim to differentiate itself and
meet the needs of its target market. While the industry is showing signs of growth, the
established Brands will make the success of a new Boba Shop difficult to obtain.
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2. Current Trends in the industry.
The current trends in the Boba industry can be attributed to two distinct groups of people.
The first group want convenience and speed, while the second group want quality with a
comfortable atmosphere. While the beverage industry has always been about these wants,
technology is accelerating the demand.
Mobile ordering and payment processes are beginning to make a presence in the food
industry. Advances in technology are begging the question of when services like mobile ordering
will enter the Boba industry. Several boba shops have already begun rolling out these systems in
their businesses (Web. #7, 10). This technology has been met with both praise and contempt
from both professionals and consumers. Some people in the industry believe that these systems
will put unnecessary strain on the employees (P.I #2, 3, 4, 6). Although, many customers and
employees see the potential benefits for consumers (C.I #2, 3, 4, P.I #1). The pro-mobile-
ordering customers are concerned with the long lines and wait period after ordering that can add
frustration to the experience. These consumers tend to focus on the drinks themselves over the
atmosphere. Competitor #1 and #2 both offer phone-in orders; however the implementation of
mobile ordering via an app or website would make it much more accessible to customers (P.I
#10). Implementation of a mobile app is something that is springing up around different Boba
shops (Web. #7). Some shops have already implemented it, and some are looking into
implementing it. Although some shops remain very opposed to the idea (P.I #2-3).
Another trend within the industry are rewards programs. There programs reward
customers who buy Boba often with points that can usually be exchanged for free drinks (Web.
#7, 10). These programs encourage customers to come back more often so that they can unlock
their reward (C.I #1, 2, 19). These program come in different forms, varying from loyalty cards
to accounts that can be set up online to track progress. For example, both Competitors 1 and 2
use stamp cards that can be redeemed for a free drink after ten purchases.
Toppings are gaining traction in the Boba world as well. Besides the standard tapioca
pearls that makeup Boba, different toppings such as popping boba, jelly, aloe egg pudding, and
crema among others are growing in popularity (Art. #11). Customers like the variety and they
like being able to customize their drinks in order to get it just right (Web. #2, P.I #6, 8, 10).
An atmosphere that is hospitable and comfortable so that people can relax and lounge is
increasingly popular in the industry. People see Boba stores as places where they can go not only
to get a drink but socialize and relax (P.I #7, C.I#2, 6, 7, 8, 11, 12, 16). Therefore, the atmosphere
of a store has a huge impact on whether people will decided to go there or to another place.
Important elements of atmosphere include but are not limited to: lighting, available seating,
music, and decorations (P.I #1, 10). For example, ItsBobaTime has plenty of seating with the
option of sitting outside on a patio or inside and tables and benches. People enjoy the variety in
seating as it accommodates differing personalities and group sizes (C.I #7, 8). Although
competitor ShareTea may offer slightly different seating accommodations, most costumers who
choose either store recognize the significance of good seating and the atmosphere that comes
with that.
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Implications: In order for any entering Boba establishment to enter and be on par with the rest
of the industry, some form of rewards program is essential. Customers expect to be rewarded for
their patronage. Rewards programs are fairly simple to implement and maintain, so they should
be expected. Mobile ordering systems are a bit more complex and may require more
infrastructure to properly and consistently be relied upon. Because of the extra cost and lack of
across-the-board adoption from competition, mobile systems may not be necessary to a new
business. Good store atmosphere is very important and is a necessary requirement for many
patrons; it should be carefully considered by new Boba stores.
The primary direct competitors in this industry include: ItsBobaTime, ShareTea, Tastea,
Boba Loca, and Lollicup. These shops are known for delivering consistent and convenient
products as well as innovating the way that those factors are received by customers (Art. #3,
Web. #7). ItsBobaTime and ShareTea, which are the two main competitors in this project, are
depicted as convenient and trendy Boba shops. They both have a strong following based on
several factors, with location and quality being among them (C.I #1, 3, 6, 8, 9, 11, 14, 16, 17).
Boba is still a smaller market in America, completely shadowed over by more culturally familiar
coffee shops and traditional juice and smoothie bars. Behemoths like Starbucks or Jamba Juice
offer familiar and convenient options for many Americans who are not already familiar with
Boba. Many Boba shops are changing their atmospheres to be more similar to American
coffeeshops (Art. #5, 9).
Implications: People are very loyal to their Boba shops. Once they find one that is in a good
location they are unlikely to switch. Convenient location is very important for Boba shops to
gain a loyal following. Especially when the likes of Starbucks can offer incredible convenience
and often provide a more familiar environment for people unfamiliar with Boba. A new Boba
shop that wants to attract a new market must create some familiarity with the product.
Technology is growing at a faster than many industries can keep up. The Boba industry is
no exception. There is a balance to maintain between having the latest technology and providing
quality drinks and service (Art. #4, Web. #7). There are certain expectations that customers have
when it comes to technology. One of the most commonplace instances is the utilization of heat-
sealed lids on cups (C.I #7, 9). The heat sealing machines cost very little and thus are becoming
expected in any modern Boba shop. Heat-sealed lids are more than just practical, the pop from
pushing a straw through the lid adds to the experience of drinking Boba (C.I #7). Another use of
technology that is becoming more popular is the use of televised menu’s and social media feeds
in store, expectations for these vary from customer to customer (C.I #6, 9, 10). Televised menu’s
are not being seen as a necessity just yet, however the convince they offer the businesses are
making them ever more essential. They allow businesses to make quick and easy updates to the
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menu if a disruption in supply arises. They can also broadcast things such as most popular items
which can help customers decide their drinks.
A social media presence is important to many Boba businesses. It is another avenue for
them to connect to customers and offer promotions and updates about the product (Art. #4, 9).
Businesses can also receive information from customers about complaints or questions that they
might have (Art. #4). The use of Facebook and Yelp has given many businesses the opportunity
to listen to their customers on a public forum. Social Media is a financially viable resource that
any existing business can use for its own benefit.
Implications: Technology will be incredibly important for the efficiency, quality, and
presentation of Boba tea. However there is a fine line to follow between what is unnecessary and
what compliments the experience that Boba has to offer. A business wishing to enter the industry
must recognize the costs involved with implementing technology. Something like mobile
ordering may seem attractive but many people find it unnecessary and it may affect the quality of
service since employees and put under strain. Other things like heat-sealed lids are essential and
rather cheap to implement and should not be overlooked. Technology should make the
experience that Boba offers be more enjoyable, and should eliminate any stress from the
consumer. Flashy technology should not be the focus of the business, since customers may see
this as a cover for poor customer service and quality.
The food industry is laden with laws, regulations, and permits that a new shop must
comply with before opening. Various factors must be considered by the owner, such as but not
limited to: zoning laws, food preparation safety, and health permits (Web. #11). More legal issues
arise in opening a Boba shop when considering issues with insurance and liabilities. The risks
involved with operating a Boba shop require insurance to cover a multitude of different
possibilities (Web. #12).
Many Boba shops serve hot drinks as well as cold drinks which opens up the possibility
of burning accidents. Fresh fruit used in some Boba drinks increases the possibility of food born
illness (Web. #12). The food industry in particular can be heavily affected by illness caused by
food, or indication of any food born illness from the food. In Fall 2012, German researchers
conducted a study on tapioca balls, a major component of Boba, and found ingredients that may
cause cancer. The carcinogens found in the tapioca balls are the same found in industrial rubber,
and where leaked in by Taiwanese wholesale suppliers (Art. #1). The concerns have been eased
and should not have an affect on the industry currently. The FDA has increased its inspection of
food products from Taiwan and has reported no problems since July 2013 (Art. #1).
The trend of using organic products in Boba is growing quickly among smaller new
shops (Web# 14). To get that organic certification in their product or the products that they use, a
certification form the United States department of agriculture is required (Web. #13). This
certification is proof that the product is in compliance with regulations that make it organic, such
as requirements for prohibited substances, handling of animals, and preparation standards (Web.
#13).
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Implications: A business entering this industry should be aware of, and take initiative to
responsibly meet the standards and requirements set by the law. Having the correct insurance to
cover liabilities will be expensive but absolutely necessary for a new business. The costs of
covering an inevitable court case could be much higher than the insurance premiums. Although
the Boba industry has faced scrutiny in the past about carcinogens those issues are gone and
should not be a problem any more. However the normal worries that a restaurant or shop will
have are still there, they should be accounted for, especially in such a lawsuit heavy society.
American society has an interesting influence on the Boba industry that comes by having
very little direct influence on it at all. Asian-american influences control the many different
facets of the industry. One example of this is the extended operating hours the many Boba shops
enjoy compared to the many American cafes (Art. #2). The strong Asian influence on Boba is
also the reason that Boba shops are usually on found in areas with a high Asian population (Art.
#5, 8, Web. #8, P.I #7). The cultural bond that Boba stores share with the Asian communities they
set up in make it difficult for many non-Asian people to discover Boba. For example, two non-
Asian customers said that they would never of gone to a Boba place unless they were introduced
to it by a friend (C.I #1, 9). Some stores have noticed this and have made efforts to change the
atmosphere to be more comfortable to non-Asian patrons (Art. #5, 9).
For many Asian-Americans, Boba shops can be a symbol of cultural shift in the United
States. Where traditionally, American’s have had the presence of cafes as a social hub, Asian-
americans have been left out in this regard. Not until recently when the Boba industry arrived,
have Asian-americans had a place where they can relax and chat with other people in a
comfortable environment (Art. #10). Boba shops carry far greater importance than a place for
good food and drink. For example, they have become places to spend hours studying or a place
to meet up with friends and chat (C.I #8, 11).
These cultural factors make it difficult to grow the industry. Boba shops are so ubiquitous
in Asian culture that whenever a one place opens, everyone already knows about it (Art. #10).
People outside of the culture are generally wary to go to one, unless they are accompanied by
someone who is familiar with Boba (C.I #1, 9). Tastea is one Boba shop that has tried to bridge
the cultural gap by opening another location on the campus of California State University,
Fullerton (Art. #9). Tastea opened a Boba truck that could be moved around campus if necessary.
The success of this location indicates that there is a possible market outside of the traditional
Asian demographic.
Implications: Someone opening a Boba store must be aware of the heavily influence that Asian
culture has on the industry. They must also be aware that the significance of a Boba store to the
Asian community is greater than just being a place to get drinks from. There is an expectation
that Boba stores offer a comfortable environment to act as a social hub for many people. It
should also be understood that it will be difficult to people who are not Asian. Many non-Asian
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people are not familiar with Boba stores and they must be slightly altered to cater to an American
audience.
1. Convenience of ability to order, get drink, and leave (C.I #4, 6, 9, 10, 11, 12, 15, 17, 18,
23, 24).
2. The atmosphere of the store (such as noises, music, lighting, and decorations) (P.I #10,
C.I #1, 6, 7, 8, 11, 12, 13, 16, 18, 19, 21).
3. Quality of drinks and boba pearls (P.I #3, 6, C.I #2, 3, 4, 5, 6, 23, 24 ).
4. Price (C.I #9, 14, 15, 16, 17, 18, 19, 20, 21, 23)
5. A variety of drinks to choose from (P.I #2, C.I #2, 5, 13, 14, 15, 22, 24, ).
6. Good customer service (where employees are helpful with choosing drinks) (Art. #3, C.I
#6, 13, 16, 17, 18, 19).
7. Time it takes to get drink (C.I #3, 14, 15, 16, 17, 18, 19, 24).
8. Available seating (and amount of seating during busiest times) (C.I #1, 2, 7, 8, 12, 13).
9. Location relative to where the consumer lives (C.I #3, 4, 8, 9, 10, 11).
10. Location in proximity to other stores and restaurants (P.I #7, C.I #8, 14, 17, 18,).
11. Easy access to store and good amounts of parking (P.I #3, C.I #7, 9, 15, 18, 19, 21).
12. Good customer service where employees are welcoming and friendly (C.I #1, 2, 5, 16,
17, 21).
13. Consistency in product (C.I #1, 6, 11, 12).
14. Presence on social media (Art. #4, Web. #10, C.I #9, 10, 13).
15. Hours open (Art. #2, C.I #1, 2).
Implications:
A business entering the industry should note that the location is the most important factor
that drives a majority of customers to any specific Boba store. It would take a very large gap in
quality to drive someone to a Boba store that is significantly farther away, even then most people
won’t change the one they frequent. Good atmosphere in all areas is great to have, but will not
likely drive any consumers away from their local Boba store on it own. However there may be
the chance that an exceptional atmosphere could create a repeat customer.
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1. Positioning Map
Positioning Map 1:
Comfortable
atmosphere
ItsBobaTime
Difficult to go
Easy to get to
Easy to get to
Boba Loca
to
Lollicup
ShareTea
Why: ItsBobaTime strives to be a comfortable place where people can sit down and enjoy their
Boba (P.I #1). While ShareTea also tries to be a comfortable place for people to stay the loud
music and generally noisier atmosphere appeal to people who enjoy the fun aspect of that type of
ambiance (C.I #11,12). Both competitors are located in fairly easy places to get to, although both
have their own set backs. ItsBobaTime is located in a busy strip mall that is easy to access,
however the severe lack of parking causes many people to have to park far away (C.I #9, 16.17).
ShareTea is also located in a strip mall but it has very good parking. Customers have complained
that a set of bushes make it difficult and awkward to actually get from the car park to the front
door (C.I #14,15).
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Positioning Map 2:
Higher quality
drinks
ShareTea
friendly serivce
serivce
Excep&onally
Exceptionally
employees
Impatient
friendly
Boba Loca
Lollicup
ItsBobaTime
Quality is not
main concern
Why: Although ItsBobaTime will claim to produce the highest quality drinks the emphasis is
obviously on a large variety of options, which is why it is below competitor #2 (Web. #1).
ShareTea is mostly concerned with the quality of their drinks (Web. #2). While they do not offer
as wide of a selection as ItsBobaTime the quality of their drinks is a big concern and their
customers take note of that (C.I#6). ItsBobaTime has not been praised too often for their
customer service, and when it comes to rush hours they get a lot of flak from customers (C.I
#3,8). Although this may be due to a lack of employees who often feel overworked when these
rushes come along (P.I #1). ShareTea has not received significantly much more praise about their
customer service. Many people feel that they get the job done but are not exceptional
(C.I#6,10,12,14).
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2. Primary Target Market Analysis
1. Geographic
Ranking: Geographic is ranked first because many customers who go to ItsBobaTime go
because it is in a convenient location. The convenience factor is very important and
customers take that into account when they decide to go get Boba. Often times customers
will not stray from their usually store because of convenience and closeness to their home
or work.
1. Asian-communities
2. Developed areas
3. Located on two busy streets.
4. Plenty of available parking.
2. Benefits
Ranking: Ranked second because although geographic factors constitute the main target
market, unique benefits of a Boba store set it apart from close competitors. ItsBobaTime
understands this, and they offer different services to ensure that they can provide a unique
experience to the customer.
1. Large variety of drinks.
2. Comfortable environment.
3. Quick service of drinks.
4. Loyalty card.
3. Demographic
Ranking: Ranked third because the cultural influences that surround Boba tend to make
the market more focuses on Asian people. Younger Asian people who have had exposure
to Boba for a longer time are the primary demographic of ItsBobaTime.
1. Ages 20-late 30’s (C.I #1, 2, 8, 11, 13).
2. Primarily Asian background (Art. #6, 10.).
3. Middle Class and above ( Art. #5).
4. Psychographic
Ranking: Ranked fourth because those who chose to go to Boba tend to not have too
many, if any, beliefs about Boba that encourage them to chose Boba over another drink.
1. People who see Boba stores as social hubs.
2. Prefer tea to coffee.
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3. Customer Experience/ Product Objectives, Analysis and Strategies Examples
Strengths
1. Large variety of drinks offered (C.I #1, 7, 8, 9, 17).
2. Availability and comfort of seats which makes ItsBobaTime an ideal place to spend time
(C.I #2, 7, 8, 9, 16, 17).
3. Speed of order is quick (C.I #1, 2, 7, 16, 21).
4. Decoration and music contribute to the overall comfort of the store (P.I #8, C.I #2, 7, 8).
Weaknesses
1. Large number of products can be overwhelming on menu (C.I #3, 9, 16).
2. Customers can feel rushed by employees when trying to order during busy hours (C.I #1,
2, 3, 9).
3. People may become frustrated when they are unfamiliar with the more exotic drinks and
do not have a visual cue or description about that flavor (C.I #1, 2, 7).
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4. Pricing Objective, Analysis & Strategies
Price Analysis & Strategies: ItsBobaTime boasts very reasonable prices that satisfy the
customers demands for variety and convenience. Their prices appeal to their target market, by
charging reasonable prices that coincide with the quality of the drink. Their very large variety of
drinks attract a larger amount of people with different tastes, so you will never find ItsBobaTime
completely empty (P.I #8). Customer’s are happy with the price they charge, however an increase
in price would be negatively received (C.I #17, 21). Some customers believe that ItsBobaTime
would have to increase the quality of the drinks noticeably to charge even a dollar higher (C.I
#16, 17). Many Boba shops use powder flavorings to reduce the cost of having to make
ingredients flesh (Web. #5). Places that do make an effort to make the drinks with organic
products and non-powdered ingredients charge a premium, ItsBobaTime is saving money per cup
by not following that route (Web. #14).
Strengths:
1. Reasonable Prices for what people expect (C.I #9, 16, 17, 21).
2. Large variety of drinks (C.I #1, 8, 9).
3. Slightly lower than the competitors (P.I #11, C.I #9).
Weaknesses:
1. Quality suffers because of the price (C.I 1, 16, 17).
2. Price is elastic since people will just leave if it goes up (C.I 9, 16, 21).
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5. Placing Objective, Analysis & Strategies
Place Objective: ItsBobaTime is located at the cross-section of Beach blvd. and La Mirada/
Malvern in Buena Park. It is located in a popular strip mall with various different places to get a
meal, this make ItsBobaTime a good place for dessert afterwards (P.I #5).
Place Analysis & Strategies: ItsBobaTime is strategically located at the intersection of two very
busy streets in a small Asian community. Location in these Asian communities is vital to have a
steady flow of customers (Art. #6, 10, P.I #8, 9, 10). The Boba stores feel they have to follow
where the concentrated Asian populations are in order to be relevant (Art. #9, Web. #10, P.I #10).
ItsBobaTime is no different. Their location within an Asian-community is vital, if they were to
move a mile down the road they would risk cutting off the convenience factor from their target
market. Employees feel that their location in a strip mall, and next to other Asian restaurants,
further helps their business (P.I #10). For example, there are two restaurants on either side of
ItsBobaTime and even more in that same building. The location on the corner of Beach and
Malvern, two large streets, is very important. This factor in particular makes it very convenient
for customers to reach (C.I #1, 8, 9). However the severe lack of parking makes it difficult for
customers to get to ItsBobaTime. One of the biggest complaints that customers have is that the
parking is very lackluster (C.I #9, 16, 17).
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Strengths:
1. Located in an Asian-community where they are accessible to their target market (P.I #1, 8,
C.I#2, 7, 8, 17).
2. Located at a busy strip mall near many other restaurants (P.I. #10).
3. Their location at the intersection of two major roads makes it convenient to access (C.I #1, 8,
9).
Weaknesses:
1. Lack of parking makes it difficult to get to sometimes (C.I #9, 16, 17).
2. Lack of seating during rush hours can be annoying (C.I #9, 11).
Promotion Analysis & Strategies: ItsBobaTime relies heavily on word of mouth and their
presence on social media for promotion. Many people initially heard of ItsBobaTime because a
friend invited them to go or recommended it personally (C.I #1, 8, 9). Yelp is another popular
avenue through which people discover ItsBobaTime (Web. #3). Some customer think it is very
important for business like ItsBobaTime to be active on yelp for both criticism and praise (C.I
#2, 7,9). ItsBobaTime does not spend money on print or online advertisements. Rather they do
most of their promotion through social media (Web. #1). They are active on Facebook, Twitter,
and Instagram; and they encourage customers to interact with them on social media (P.I #11).
ItsBobaTime have had photo contests and raffles to encourage people to start talking about
ItsBobaTime online with their friends.
Strengths:
1. Customers like that they are involved with social media (C.I #2, 7, 9).
2. Since word of mouth is the main avenue of promotion they save money on advertising (C.I
#1, 9).
Weaknesses:
1. Some people would have never of heard of ItsBobaTime unless they were told by
someone(C.I #1, 9).
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7. Website Objectives, Analysis & Strategies
Website Analysis & Strategies: The main page of the website show pictures of new drinks and
a link to the menu. All of the drinks have a picture next to them, although these pictures do no
reflect the look of the actual product. Some drinks might be in a glass with a piece of fruit next to
them, probably with the intention to make it more attractive. Once a drink is clicked on, there is a
little description next to the picture. However this description is fairly unnecessary since it does
not describe the taste in any depth, or what is in the drink in most cases. The online menu also
does not include pricing which would be very nice to have. As discussed in the Price Analysis,
most drinks fall within the $3-5 range; however that information is only available in store. The
gallery section of the website show pictures of the different locations, this is helpful if you’re
trying to find the store for the first time. The gallery section also includes photos from a photo
contest, where the winners’ pictures are displayed. Lastly the website is definitely geared towards
franchise owners. Most of the information on the website that pertains to customers can be found
in store, or on social media. The focus on franchises on the website in particular is evident. They
provide information about how to start franchising as well as a login screen for franchisees (P.I
#11).
Strengths:
1. The website is well designed and easy to navigate.
2. Lots of pictures which present the product very well.
Weaknesses:
1. Drink are lacking a useful description.
2. No pricing information.
3. Very few people have used the website and cannot make any judgement on it.
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The Competitive Analysis:
ShareTea
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1. Positioning Map
Positioning Map 1:
Comfortable
atmosphere
ItsBobaTime
Difficult to go
Easy to get to
Easy to get to
Boba Loca
to
Lollicup
ShareTea
Why: ShareTea does not have the same quiet and comfortable atmosphere that ItsBobaTime has.
ShareTea is much louder, although still that appeals to a certain type of person (C.I #6, 10, 12).
The noise of the blenders and other instruments used to make the drinks are very loud on their
own, although most people just ignore that noise (C.I #14). The music played over speakers is
loud, however that comes a matter of opinion as to whether it s enjoyable or not (P.I #11, C.I #11,
12, 13). There are mixed reactions as to how easy it is for people to get to ShareTea. Some
people are satisfied with the location because it is convenient and there is decent parking (C.I
#14, 15). There are some issues with the ease of getting to the location, namely that parking can
be difficult at times and that several sets of bushes block the parking lot from the store front (P.I
#11, C.I #15, 16).
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Positioning Map 2:
Higher quality
drinks
ShareTea
friendly serivce
serivce
Excep&onally
Exceptionally
employees
Impatient
friendly
Boba Loca
Lollicup
ItsBobaTime
Quality is not
main concern
Why: ShareTea definitely emphasizes quality with their drinks, which is why it is placed above
the rest of the competition (Web. #2). ShareTea does not have as large of a selection of drinks as
ItsBobaTime has since their focus is primarily on customization and quality (Web. #2). In lieu of
a larger menu, they offer the ability to customize different aspects of the drink, such as
sweetness, amount of ice, and toppings. ShareTea employees believe that this gives them a
cutting edge (P.I #2). One customer choses to go to ShareTea solely because they can make her
favorite drink just the way she wants (C.I #6). Opinion on ShareTea’s customer service is overall
good, but not excellent. Many customers are happy with the service, but they do not think that
the employees are exceptional (C.I #6, 10, 14, 15).
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2. Primary Target Market Analysis:
1. Benefits
Ranking: Benefits is ranked first because many people go to ShareTea because they can
offer better quality and price. The prices ShareTea offer are competitive with other stores in the
area which makes their positive gap in quality stand out even more. People like the quality they
know that ShareTea is going to offer them. Customers will go a little out of their way so that they
can have a better quality drink at a fair price. ShareTea offers the ability to customize certain
aspects of each drink. Customers can make the drink suit their specific tastes. Because ShareTea
can consistently provide great quality, they do not have to be in the immediate location of their
target market (P.I #2).
1. High quality drinks.
2. Lower prices than some of the competitors.
3. Customization of drinks.
4. Fun atmosphere.
2. Geographic
Ranking: Ranked second because while ShareTea’s primary focus are the benefits of
their product, their location in regards to their target market is very important. Customers
generally don’t tend to go very far in their pursuit of Boba. Although people may go a little out
of their way to go to ShareTea, a fair amount still go because of the location. The popularity of
Boba shops in urban environments means that convenience plays a major role in people’s
decision making factors. A Boba shop’s location and ease of getting to will contribute to the
shop’s target market.
1. Asian-communities.
2. Lots of available parking.
3. Developed residential areas.
3. Demographic
Ranking: Demographic is third because the demographic of people who tend to go to
Boba is slanted towards Asian people. Since Boba has Asian origins the culture surrounding
Boba tends to be more Asian-centric. There also tends to be younger people who enjoy Boba,
although that is not always the case.
1. Primarily Asian background (Art. #6, 10, C.I #6, 10, 11, 12, 13, 14).
2. Ages: Late teens to 30’s (C.I# 6, 10, 11, 12, 13, 14, 15).
3. Educated (C.I #10, 11).
!22
4. Psychographic
Ranking: Ranked fourth because people tend to not have many beliefs about Boba.
However they may have a preference towards quality, which is something that has been
discussed about and something that ShareTea focuses on specifically. Customers may alway
enjoy the social aspects that ShareTea can offer, especially as a place to hang out with friends.
1. People who are concerned with quality.
2. Social aspect of Boba.
Analysis/Strategies: Quality is the main concern at ShareTea; both the employees and customers
know it as well. Customers are driven to ShareTea because they know they will get a quality
drink (C.I #6, 23). Employees are careful to follow the recipes so that the quality of the drinks is
consistently high (P.I #12). Unlike competitor #1, who strive to offer a larger variety, ShareTea
prefer to focus on the quality of the drinks themselves. However, the menu does often change
with new limited time drinks which give customers a variety to choose from (P.I #2, 11). For
example, there are special drinks (typically lighter teas) to choose from during the summer are
only offered then (Web. #2, P.I #11). ShareTea also provides the option for customers to slightly
customize their drinks by changing ice, sweetness, or toppings on a drink. For example,
employees will ask you if you want to change anything in the drink before you finish ordering
(P.I #11). Customers value customization and they like being able to make their drink just the
way they like it (C.I #6, 22, 23, 24). The atmosphere of the location is very important to
ShareTea and their customers as well. Because of the cultural influences, Boba shops are seen as
places where one can socialize, relax, or even study (Art. #6, P.I #10, C.I #11, 12). The
atmosphere of ShareTea is rather noisy. The music is played loudly, and the sound of the blenders
is also quite loud (P.I #11). Some customers have noted that while the loud music is not a big
issue, the noise of the blenders can be annoying (C.I #10, 11). The decorations inside ShareTea
are minimal although there are potted plants and artwork on the walls to make it feel more
comfortable. The seating is alright, some people have had issues finding seats (C.I #6, 10, 13).
ShareTea values their customer service highly, although some customers do not always feel that
they are being helped to the best of the employees ability; consensus on quality of customer
service is split (C.I #6, 10, 12, 13, 14, 15).
Strengths:
1. Notable quality that drives customers to the store (C.I #6, 23).
2. Good atmosphere to spend time in (C.I #11, 12).
3. Ability to customize drinks (C.I #6, 22, 23, 24).
!23
4. Decorations shows cultural identity of the store (C.I #13).
Weaknesses:
1. Inconsistent customer service (C.I #6, 10, 12, 13, 14, 15).
2. Noise of blenders can be annoying (C.I #10 ,11).
Pricing Objective: ShareTea’s pricing objective seems to be meeting competition. While the
prices might be a little higher than direct competitor ItsBobaTime, ShareTea is well within the
price range of most Boba drinks.
Price Analysis & Strategies: ShareTea’s commitment to making high quality drinks is one of
their greatest strengths. They are able to do this without charging extraordinary prices as well. In
fact, their prices are only slightly higher than competitor ItsBobaTime. Many other Boba shops
in the area, such as Lollicup or Boba Loca, also charge slightly lower but comparable prices (P.I
#2, 3). The demand for Boba is rather elastic, and people will avoid certain places if the price is
too high (C.I #21, 22). However, The quality that ShareTea boasts has been a good enough
driving factor for many people to consider paying the extra dollar or so (P.I #2). The price-
quality relationship here is evident. Some customers have expressed their willingness to spend
even more on a drink if the quality significantly increases (C.I #18, 19, 20, 23, 24). For example,
if the price of a Mango ice blended drink jumped up to the $5-5.50 range, then the drink should
taste phenomenal (C.I #20).
Strengths:
Great price for the quality of drink (C.I #6, 10, 11).
Slightly higher price is justified by the quality of the Boba drink (C.I #6, 11, 13).
Weaknesses:
Some customers do not think that the higher price is justified (C.I #10).
!24
5. Placing Objective, Analysis & Strategies
Place Objective: ShareTea is located off of South Street, near Pioneer Boulevard, in Cerritos. It
is located in a small strip mall complex which is in a part of cerritos that known for being a food
hotspot (P.I #11)
Place Analysis & Strategies: ShareTea is located on the border of Cerritos and Artesia, two
cities with a large Asian demographic. Their location within this predominately Asian
community is very important for ShareTea’s business (P.I #9, 10). A surrounding Asian
population is important since these Boba Stores, especially ShareTea, are then able to tap into a
market that is already familiar with the product because of the culture surrounding it (Art. #6,
10). Although there are other plazas with strong Asian influence in the area, ShareTea’s particular
location is important because of the restaurants surrounding it. The area is a known food hotspot,
with some of the best restaurants in the area neighboring ShareTea (P.I #11). Unlike competitor
#1, this particular plaza has a good amount of parking so customers rarely have to worry about
that (C.I #14, 15). However, there are bushes that separate the parking lot from the storefront
which make it awkward to actually get into the store (P.I #11, C.I #15). ShareTea is open most
days from 11:30a.m. until 10:30p.m., except on weekends when they stay open for an hour
longer (Web. #2). Although some competitors have longer hours, ShareTea still operates long
enough for people to enjoy a late night treat (Art. #2).
!25
Strengths:
1. Located in a predominately Asian area which is close to their target market (C.I #14, 15).
2. Located near popular restaurants (P.I #11).
3. Plenty of parking (C.I #14, 15).
Weaknesses:
1. Bushes make it awkward to actually get to store (P.I #11, C.I #15).
2. Hours of operation is shorter than competition (Web. #2, P.I #11).
Promotion Objective: ShareTea’s main promotion objective is to differentiate itself from the
competition by emphasizing their superior quality. They utilize word-of-mouth to advertise their
product to people from loyal customers (Web. #2, P.I #12).
Promotion Analysis & Strategies: Each ShareTea location does no advertising on its own, that
is entirely handled by corporate (P.I #12). However one of the main avenues for ShareTea to get
word out about their business is through word of mouth advertising. ShareTea does not spend
any money on advertising, rather they prefer to focus on the quality of their drinks and let that do
the talking (P.I #12). They offer three promotions that customers can take advantage of which
lower the price of the drink. There is a student discount, birthday discount for groups, and yelp
check-in discount (Web. #2, 4). Although the discounts are there, most people aren’t aware of
them because they don’t visit the website or yelp page (C.I #10, 11, 12). Most of their
promotional offers and news comes through their Facebook (Web. #2, P.I #12). ShareTea also
offers a rewards program through stamp cards. This seems to be their most popular promotional
program since they will usually run out of cards each week, and customers are regularly filling
out the stamps (P.I #12). Most of the efforts are not focused on promotion, ShareTea’s main
objective is to provide an excellent experience with high quality drinks. If they do that then the
drinks will promote themselves through happy customers.
Strengths:
1. ShareTea does not spend money on advertising since they rely on word-of-mouth (P.I #12)
2. People come because they know ShareTea focuses on quality (C.I #6, 23)
Weaknesses:
1. Many people aren’t aware of the available promotions (C.I #10, 11, 12).
!26
7. Website Objectives, Analysis & Strategies
Website Analysis & Strategies: The first thing you see on ShareTea’s website is a banner that
promotes their handmade drinks, implying better taste. This home page is brief and provides
little other information besides a picture of a milk tea. The menu page shows many of the drinks
available at ShareTea. However it does not show all of the drinks; for the drinks that it does
show, it shows them in the same form of posters that might be found in store. The entire page is
comprised of these poster pictures which makes gathering information about the available drinks
irritating. Unlike competitor number one, the menu is not interactive so whatever the picture
shows about a drink is all of the information there will be. The page on promotions shows the
two active promotions that ShareTea are running. This section is very brief and only displays
information pertaining to the promotions and an accompanying picture for each one. The website
as a whole seems out of tune with the ethos of the rest of business. The focus on quality that is
directed at their drinks does not correspond to the website at all.
Strengths:
1. Website presents relevant information about the product.
Weaknesses:
1. Disorganized menu tab.
2. No pricing information
!27
Time-Out
!28
1. Ethical Issue & Action Plan
A. Hypothetical Situation
My Boba shop has been running for about six months now. It got off to a rocky start the
first few months; however since then, it seems to be gaining momentum. My target market is
educated people aged 20-30 who do not necessarily come from an Asian background. We are
doing our best to make sure that our store is sticking to our values and provide the best quality
service and Boba possible. Recently, my shop was contacted by Planned Parenthood about the
possibility of providing around 500 drinks for an event that they were holding this coming
weekend. They knew that we were a new store in the area and thought that we could use the free
advertising. They thought that the event would be a huge help for us as this will be a large event
and many people who are active in the community would be attending. We have the resources to
make such a large order of drinks and my employees would be fine with the extra work.
However, catering for this event would be a public announcement of values that we support. If
we accept this request then we would enjoy the benefit of free advertising and our brand could
enjoy lots of talk from a particularly vocal group. If we don’t accept then we lose out on this
opportunity and could possibly receive negative reviews and press from this large group.
B. Personal Tension
The reality of many people choosing to not go to my store because of this issue is very
real and financially threatening. Not only do I miss out on a large sale right now, but many
potential future customers. Furthermore, the backlash that I could receive through negative
reviews and bad press could ruin my young business. This also allows for the possibility that
many people could draw untrue conclusions from our business if we say no. However, abortions
(which are the real source of personal tension) account for only a small amount of what Planned
Parenthood does. They provide a lot of other beneficial programs for women, some of which, I
don’t any issue.
C. Ethical Dilemmas
Perhaps the main ethical dilemma is that we have to choose whether or not to support
what Planned Parenthood does.
D. Biblical Principles
Referring back to scripture is important in trying to direct our thinking on the issue. God
clearly values our lives, and he created us meticulously even before we were conceived (Jer. 1:5).
Psalm 139:13-16 affirms this idea of God creating us carefully, even before we were born. In a
broader sense, the Incarnation also helps me see value in the body. From the moment of
conception, Christ was entering into the world with a plan. Similarly with us, God has a plan for
us and we look to Jesus to see that truth in that from the very beginning. Lastly, humans being
made in the image and likeness of God helps me see value in the body and see why it is so wrong
to abort an unborn baby.
!29
E. Plan of Action
My company will deny their request to cater for the event this coming weekend. We will
explain our situation and the reality of our conflicting interests. Although this opportunity would
have certainly helped our new business, we must remain true to our values.
F. Rationale
Integrity and having conviction, even for difficult situations, is at the core of what my
third product is trying to be. There are multiples reasons that I chose not to accept Planned
Parenthoods request, and they are very much colored by my faith. Unfortunately the high profile
nature of Planned Parenthood makes this decision much more heavy, even though the gravity of
the situation will not affect my conviction on the matter. My biggest worry is that social media
will exacerbate the situation and turn it into something that it is not. I want to remain
professional and dignified throughout the situation, hoping that it doesn’t spread. I would explain
to the group that at this early stage in our business we don’t find it wise to do business with any
sort of controversial group, and although this is a tough decision, it is one that has to be made.
2. S.W.O.T Analysis
Strengths:
• Consumption of tea has been on the rise over the last couple years.
• Since the industry is still growing in the U.S. a new business can form its own niche.
• There are untapped markets outside of the traditional Asian market.
• Factors like quality and convenience can easily differentiate a new product.
Weaknesses:
• This is a new brand that no one knows about yet.
• Other competitors already have loyal customers.
• Large amount of competition presents a challenge to differentiate.
• Location is important and the new product needs to enter a market that isn’t already
saturated.
Opportunities:
• Focus on a new demographic that has typically been ignored.
• Use new technologies to help consistency and efficiency of my product.
• Find a location that suits the atmosphere of the shop I want to create.
• The brand can become associated with quality or convenience if that is the focus early on.
Threats:
• Technology could accidentally become the focus instead of quality.
• Competition could lower the prices.
• Red-tape and other government regulations.
• People sue the shops if accidents happen to them.
!30
3. Competitive Advantages
Problem #1: The menu’s can be overwhelming because of the large amount of options available.
(C.I #2, 3, 5, 7, 9, 13, 16, 17, 21).
Solution: The menu will be organized into a multistep process. This allows for the drink
customization to stand out and for the stress of looking at a large menu to be reduced. This first
step is the type of drink you want (milk tea, smoothie, slushy, etc.), followed by the amount of
ice, sweetness, type of milk, and toppings. This process is fairly simple and people can make
their drink their own. There will also be a list of popular drinks so that people will have an idea
of what is popular on the menu. Customers who have opted into the rewards program, and have
cerated an account will have customized suggestion menus that are based on likes, dislikes, and
purchase history. Making the menu more simple to navigate and providing suggestions
ultimately decreases the stress that traditional menus cause.
Problem #2: Many customers will not try the more exotic items on the menu because they are
not familiar with the ingredients and flavor (P.I #6, C.I #1, 2, 5, 7, 9).
Solution: The employees of my third product will be able to help with any questions about the
menu from their own previous knowledge and extensive training about the menu. Because of the
uniqueness of some items, employees will be able to explain in detail the taste, texture, and other
important pieces of information about any product on the menu. Televised menus will have
rotating pictures of individual items, and the kiosks in the store will be able to provide pictures
and information as well. Because of the nature of the menu, different drinks will be grouped into
similar categories, making selection a bit easier. Furthermore, employees will be able to
recommend drinks based on desired taste and similarities. As mentioned earlier the app and
kiosks in store will also be able to do this for customers who have created an account.
Problem #3: Busy periods can make employees edgy; which in turn decreases quality while
increases the time to get the drinks (P.I #1, 5, 6, C.I #1, 2, 3, 5, 8, 15, 17, 18).
Solution: More employees must be working during these busier hours. While slower hours, such
as those early in the morning and late night on weekdays, require less employees; there needs to
be an adequate amount on staff. Especially with the addition of mobile ordering, which will
reduce line length, but increase volume of drinks ordered, the strain on employees must be
addressed. My third product will have at least four employees during the peak hours and 2-3
during the quieter hours.
!31
Problem #4: Not enough seating, which is frustrating if your reason for going is to hang out (C.I
#1, 2, 3, 9, 11, 13).
Solution: Crowded stores can be frustrating if a customer wants to enjoy their drink at the
location. My third product will have more floor space dedicated to ordering, waiting, furnishings.
There will be more space dedicated to ordering and waiting for drinks. For example, the space in
front of the registers will and won’t intrude on those using the kiosks to order. Those who have
already ordered and aren’t sitting down can wait in a designated clear space near the pick-up
section of the bar. A variety of chairs, couches, tables, and benches appeal to different groups of
people. More seating is necessary, especially since many people who come to Boba shops like
the option to stay and socialize.
Problem #5: Parking is important, and often times it is not ideal at Boba shops (C.I #16, 17, 19)
Solution: The location of my third product will be located where parking is not a reason that
people don’t want to go. Having a good location in a popular spot often means that parking
comes second. My third product will be in an area that has a good mix of both.
Concern #1: Use of cheap flavor and milk powders simulate taste at the cost of quality.
Solution #1: By brewing our own tea in house, we can avoid using flavor powders that
negatively affect quality. This method also allows us to experiment with different blends of tea to
make exciting new flavors. The milk will also be organic and locally made; not from a powder
jar. Although powders can create a consistent flavor, that flavor is usually of lower quality. We
will also offer different types of milk to meet all dietary needs and tastes.
Concern #2: The perishable nature of the Boba pearls means that shops usually only
make enough to last for most of the day. This usually means that they will run out of Boba before
closing.
Solution #2: Many Boba shops, especially those with smaller staffs, make their Boba all
of their Boba for the day in the early morning. My staff will also do that, but in a slightly smaller
quantity. They will also make another batch in the afternoon, during a quiet part, that will satisfy
the late night crowd. This will also ensure that the Boba is even more fresh for the customers
who come later at night.
!32
Employee Satisfaction & Training:
Concern #1: Employees may feel stressed and unprepared for larger rushes.
Solution #1: Rush hours are a regular part of the Boba industry, and employees need to
know how to properly handle them and maintain a positive attitude for the customers. Extensive
hands-on training will help employees become comfortable with making Boba and the different
drinks. Because of the high quality nature of our drinks, they need to be crafted perfectly and
cannot be rushed through. Preparation during the quiet periods will help with rushes. Employees
will be confident in their ability to prepare for stressful parts of the job, which in turn will help
their attitude when dealing with customers.
Concern #2: Combating employee laziness and slack during their shifts.
Solution #2: There are many small things that need to be done during the work day to
ensure that the store is running smoothly, and these tasks require the employees to be responsible
and complete them. Unappreciated employees may be less likely to be enthusiastic about doing
these tasks, and then they may not do them at all. Acknowledging goals and praising employees
for the hard work they do will increase morale and give them more reason to do their work well.
Concern #1: Employees will be knowledgeable about the menu and the many different
flavors and aspects of each drink.
Solution #1: I want my employees to be very knowledgable about the drinks that we
serve and I want customers to realize that we really are experts at what we do. Training will play
a big part in this, and training on the information about different drinks will come from seminars.
Employees will learn everything they need to know about the drinks, including different ways to
articulate taste, and suggestions based on customer likes and dislikes. Hands-on training where
employees learn how to make the drinks will be a good opportunity to reinforce the things that
they learned in the seminars.
!33
Research Systems:
5. Purpose Statement.
We are an innovative Boba store that is dedicated to their craft. We are committed to
making the best possible drinks by using certified organic and all natural ingredients. Although
high quality is our main focus, we care about your time and experience here. Our streamlined
order process, which is complimented by use of the technology, makes ordering easy and stress-
free. Highly-trained employees are able to assist you in the ordering process, and they aim to
make sure your drink is exactly what you want. We want to make sure that customers have
access to the best quality drinks and service; and that they leave feeling well served and happy
about their decision.
!34
Third Product:
!35
1. Positioning Map
Positioning Map 1:
Comfortable
Atmoshpere
ItsBobaTime
Simplici-Tea
Dificult to get
Easy to get to
Boba Loca
to
Lollicup
ShareTea
Quality
Loud butis fun
not
main
Atmosphere
concern
Why: Simplici-Tea is aiming to be in a very accessible location that customers can reach without
any difficulty. Customers have expressed desire for an easy to access location while driving, and
once they have parked (C.I #14, 15, 16, 17). Unlike competitor #1, Simplici-tea will not have the
same issues concerning lack of parking (C.I #16, 17). Availability of parking is directly affected
by the location, since Simplici-tea will be located in a strip mall or plaza that could mean that
parking is not always guaranteed. Although our goal is to make the store as accessible as
possible, parking is one factor that can only be controlled so far. Simplici-tea’s atmosphere will
reflect the efficient and inviting nature of the store. Simplici-tea will not attempt to have a loud
and fun atmosphere like competitor #2 (C.I #12, 13). Nor will it attempt to be a place that
simulates a lounge style like competitor #1 (P.I #10, C.I #2, 7, 8, 16, 17). Simplici-tea is located
between competitors 1 and 2 on the map since it aims to have an atmosphere to is inviting, but
does not beckon one to stay too long or too short.
!36
Positioning Map 2:
Higher quality
drinks
Simplici-Tea
ShareTea
friendly serivce
Exceptionally
employees
Impatient
Boba Loca
Lollicup
ItsBobaTime
Quality is not
main concern
Why: Simplici-Tea’s mission is to provide the best possible quality and compliment the high
quality of their drinks with their customer service. Although ItsBobaTime does not expressly
focus on quality as much as variety, the quality of their drinks is still a factor (P.I #8, 10, C.I #7,
16). Unlike ItsBobaTime, ShareTea focuses on the quality of their drinks much more which is
evident from customer praise (P.I #12, C.I #6, 23). Simplici-Tea aims to raise the bar by
integrating all natural and organic ingredients into their drinks, which is why it is placed above
competitors 1 and 2. Inconsistency in customer service is one of the main issues that plagues
competitors 1 and 2 (C.I #1, 2, 3, 5, 6, 9, 10, 12, 13, 14, 15). Many customers also complained
about unfriendly employees who would seem off-putting (C.I #1, 3, 5). Simplici-Tea, unlike the
other two competitors, will have enough highly trained employees so that rushes never strain the
employees; and they are prepared to take on heavy amounts of work without stress. Proper
training and eliminating those factors will increase the helpfulness and friendliness of Simplici-
Tea’s customer service (P.I #1, 3, C.I #5).
!37
2. Primary Target Market Analysis
1. Benefits
Why: Simplici-Tea will be able to provide its customers the highest quality drinks
through careful formulation and use of organic and in-house made ingredients. Customers care
about the quality of their drinks and they are willing to go out of their way to get the best quality
(C.I #1, 6, 7, 23). The main benefit is that Simplici-Tea brews their own tea and makes their own
syrups for their drinks instead of using powders. Customization is also another benefit that
customers clearly value (C.I #2, 6, 20, 22, 23). Simplici-Tea allows customers to modify certain
aspects of their drinks such as the amount of ice or sweetness of the drink. Efficiency is another
boon to the customers, many customers desire quick and friendly service that gets them their
drink quickly and without any problems (C.I #4, 6, 10, 11). Simplici-Tea makes getting a drink
fast and simple through the use of their app, in-store kiosks, and their well-trained staff. The
menu is simple, does not overwhelm, and identifies different drinks with short descriptions.
Simplici-Tea takes the stress out of ordering while maintaining a high level of quality and
satisfaction.
Ranking: Benefits is ranked first because the target market that Simplici-Tea is acquiring
values these benefits like quality, customization, and efficiency. These factors will satisfy our
customers the most and make them want to come to Simplici-Tea over the competition.
2. Geographic
Why: The geographic location plays an important role for Simplici-Tea since the store
needs to be in the same area as its target market. Many people go to Boba stores because it is
close to their home or because it is in a convenient location. This is important since convenience
is a factor that many customers value (C.I #4, 6, 8, 9). Simplici-tea will be located in the Cerritos
Promenade which is an easy location to access, has lots of available parking, and has many
popular restaurants in that plaza (P.I #11).
Ranking: This is ranked second because it is important that Simplici-Tea’s location be
relevant to where it’s target market is located. The customers Simplicity is trying to reach are in
specific area’s and it is important that they tap into the convenience factor that many people
value.
3. Demographic
Why: Simplici-Tea is targeting people who are more adaptable when it comes to the
implementation of new technologies and different cultures. The primary age group is younger
people in their mid-twenties to thirties; and people from a predominantly non-Asian background,
mostly Caucasian. Simplici-Tea is designed for people in the middle to upper-middle class.
These people are generally more willing to try relatively different and new experiences which
will be perfect for a foreign born drink, although there are some changes that still need to be
made for this demographic (Art. #2, 5, 9).
Ranking: Demographic is ranked third because Simplici-Tea is geared to serve a certain
type of person best. A customer’s demographic is an important factor as to why they might go
here, especially considering the unique nature of Boba and Simplici-Tea’s service.
!38
4. Psychographic
Why: People who genuinely value the quality of their drinks will enjoy what Simplici-
Tea has to offer. Organic and in-house made drinks contribute to the overall greater quality and
peace of mind that the product is healthy (Art. #1, Web. #14). Simplici-Tea aim is to be
accessible for customers who value ingredients that are hand-made and wholly organic.
Ranking: This psychographic is ranked fourth because it does not affect the company as
much as the other factors do. Customers will appreciate the commitment to better quality
ingredients although this wont be the most important factor in their decision.
Product Objectives: Simplici-Tea’s objective is to provide the best quality Boba experience
through their emphasis on good ingredients and efficiency. Simplici-Tea will focus on the needs
that are often overlooked by competitors. Convenience through efficient modes of ordering and
quickly made drinks are undervalued competitive advantages that Simplicity will focus on. The
drinks themselves will be hand-crafted by skilled employees using best ingredients ensuring
consistency and great taste.
Analysis/Strategies: The main focus of Simplici-Tea is the commitment to creating the best
drinks possible. This is done through the use of organic ingredients, and by avoiding powers and
other instant flavorings for the drinks. The tea is brewed in-house, as well as the syrups.
Customization contributes to the quality of the drink and allows people to make the drink their
own (C.I #2, 6, 20, 22, 23). Customers at Simplici-Tea are able to customize the amount of ice,
level of sweetness, types of toppings, and type of milk. For example, a customer could order a
standard milk tea with Boba but have no sweetness to better taste the black tea.
The atmosphere of Simplici-Tea will reflect the nature of the store by being comfortable
and inviting customers to stay as long as they please. Because atmosphere is incredibly important
in the Boba world, Simplici-Tea aims to give people the option of enjoying a comfortable place
to relax (Art. #5, C.I #2, 7, 8). For example, a variety of chairs, tables, and benches serves a
wider range of parties. People can relax in a more intimate setting at a table or enjoy the presence
of more people at a bench.
Efficiency will be introduced through the the implementation of new technologies and
systems. There will always enough staff on hand to handle rushes and create the drinks quickly.
There will be three methods of ordering at Simplici-Tea, through a traditional cashier, in-store
tablet kiosk, and through a mobile phone via an app. Each method has their own advantages. The
addition of a kiosk and mobile app allows for customers to beat lines and order drinks at their
own pace, something which customers of other stores have expressed frustration with (C.I #4, 6,
10, 11, 15). Customers who order on the kiosk or mobile app will be walked through the menu
step by step, or they can just swipe their rewards card to pull up their favorite drinks instantly. In
order to preserve freshness, drinks ordered away from Simplici-Tea’s location will use the GPS
function of the device to time the order until they are within the estimated time that the drink will
be made. This technology does not mean that the employees will not serve an important function.
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The employees are still there to help with any difficulties with the kiosks, and assist customers
who chose to order at a register. The friendliness and helpfulness of employees in competitors 1
and 2 has received some inconsistent responses from customers including both praise and
criticism (C.I #1, 2, 3, 5, 6, 9, 10, 12, 13, 14, 15). Unlike the competition, the employees at
Simplici-Tea will be able assist a customer any question and be willing to devote their full
attention to the problem at hand.
Why: Efficiency and quality are two of the main differentiating points at the core of
Simplici-Tea’s focus. These specific strategies have been chosen based of things that customers
have shown to value and the growing importance of technology in the modern business world
(Art. #4 ). Today’s fast-paced world is setting the stage for technology to increase efficiency. For
example, many customers have responded positively to the idea of mobile app (C.I #1, 2, 3, 4, 5,
6, 7, 9, 10, 11). The implementation of a mobile app allows customers to order from anywhere
while also building their rewards profile; this provides the benefit of a personalized system for
the customer while eliminating the frustration of waiting in long lines. Simplici-Tea’s larger staff
and extra training helps solve issues that customers at competitor 1 and 2 have had with
employees being helpful and friendly at some times but not at others (P.I #1, 3). Efficient
ordering systems and larger, and better trained, staff also help increase productivity and maintain
consistency in the quality of drinks. Since Simplici-Tea does not use powders the their drinks, it
requires more work from the employees to consistently create drink, more employees will help
life that strain (P.I #1).
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4. Pricing Objective, Analysis & Strategies
ItsBobaTime Price ShareTea Price Simplici-Tea Industry Average
Pricing Objective: The price objective of Simplici-Tea is to meet the competition. Although the
prices for Simplici-Tea’s products are slightly higher, they still sit within the industry average.
Simplici-Tea’s purpose of setting this price is to be able to provide customer’s with high quality
organic drinks at a fair price.
Pricing Analysis & Strategies: Simplici-Tea’s prices are higher than competitors 1 and 2,
however they offer unmatched quality. Slightly higher prices are necessary for the higher quality
ingredients that Simplici-Tea uses. There is a slight premium for the added benefit of having
hand-made tea and syrups. Customers are fine with paying a bit more if the quality is noticeably
better (C.I #16, 17, 18, 19, 20, 23, 24). While the prices are comparably high, they are fair for the
quality and effort that goes into making the drinks. If they were much cheaper then the quality
would come into question.
Simplici-Tea’s rewards program will be tied into the customers profile, which they can
make on the app, in-store, or online. For example, customers will get a free drink every ten
orders, as well as a free drink on their birthday. People who consistently go to Simplici-Tea (at
least 20 times per year), are eligible to receive special offers throughout the year. These offers
vary and are exclusive to those specific customers.
Why: Customers clearly value higher quality products, and they are willing to spend extra to get
them (C.I #16, 17, 18, 19, 20, 23, 24). The price-quality relationship for Boba is very strong, and
customers get what they pay for. By charging a little above the competition but remaining within
the industry average, Simplici-Tea can make drinks with much better quality ingredients.
Competitors 1 and 2 already offer rewards programs that are quite popular (P.I #12, C.I #19).
Simplici-Tea makes the rewards system better for the customer by adding more value to it.
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5. Placing Objective, Analysis & Strategies
Place Objective: Simplici-Tea is located in the Cerritos Promenade, a large plaza with many of
Cerritos’ popular restaurants. It is located on the corner of Gridley Rd. and South St, within the
promenade and across the street from the Cerritos mall. Popular restaurants like El Rocoto and
Kabuki are in the same building complex, and the nearest Boba shop is across the street; the next
closest, ShareTea, is .6 miles away.
Place Analysis & Strategies: Simplici-Tea is located in a popular area with lots of shopping and
restaurants. The area is purposefully not strictly limited to mostly Asian restaurants to better
reach the target market. Being that it is near a mall, and located within the promenade, the
location will attract more young people. One of the biggest complaints about competitor #1 was
the lack of parking (C.I #9, 16, 17). Unlike ItsBobaTime’s location, the promenade offers plenty
of parking. The location is easily accessible from the streets and there is little confusion about
how to get there.
Why: The convenience of this location was one of the driving factors of why it was chosen. It
also is where a lot of my target market can be found. Customers have said that they appreciate
convenient locations that are easy to access (C.I #14, 15, 16, 17). Parking was also another
contributing factor to this location. Competitor #1 in particular has received complaints about the
availability of parking near their shop (C.I #16, 17). The promenade provides a solution to this
problem by providing a sufficient amount of space to park.
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6. Promotion Objectives, Analysis & Strategies
Promotion Objective: Since Simplici-Tea is a new business in the market, its promotion object
is to increase awareness about the brand. Simplici-Tea will also promote by differentiating itself
from the competition.
Promotion Analysis & Strategies: Because Simplici-Tea is brand new and has no following,
early promotion attempts are aimed at gathering a following within the target market. Simplici-
Tea will offer free drinks to the first 250 customers on opening day, we expect that this is a
sufficient number to attract a large amount of people while not losing too much money. Simplici-
Tea will also operate a small “pop-up” stand at the Cerritos farmers market each Saturday
morning. People can try a small sample or buy a full drink at the pop-up. The type of people who
tend to go to farmers markets value quality and organic foods which is consistent with what our
objectives are. The popularity of the farmers market gives the store a lot of exposure to the
public eye. Promotion efforts at the farmers market serve to not only raise awareness about the
store, but differentiate Simplici-Tea from the competition by showing customers that Simplici-
Tea values quality ingredients and support for the local farms, which many other competitors
don’t.
Social media presence is a simple thing to do that goes a long way (Art. #4, C.I #10, 12,
13). Considering that a majority of the target market uses social media, it becomes essential that
Simplici-Tea has an online presence. Customers have shown to value Yelp as a social media
platform that businesses should be active on (C.I #10, 13). Facebook, Twitter, and Instagram are
all popular platforms that many businesses utilize in their promotion strategies. Simplici-Tea will
use all three to update customers about news regarding the store, specials, and general interaction
with customers. For example; photo-contests will be held weekly on Instagram, the winning
pictures will receive a free drink and get their photo shown in store. Customer’s using social
media to talk about the store helps with word of mouth promotion. One of the main ways people
will hear about Simplici-Tea is through personal recommendations from friends and family.
Therefore, social media is a platform for customers to talk about the store and promote it for free.
Why: This particular strategy was chosen because it allows Simplici-Tea to go to where the
target market is and reach out to them. Many people hear about Boba shops through word of
mouth, making it essential for promotion strategies (C.I #1, 8, 9). Setting up pop-ups in a farmers
market increases awareness and exposure to the public, and if people react positively to it then
the word of mouth advertising will increase. Customers also value the ability to interact with
companies on social media, and they believe it is a good tool for companies to get word out
about the brand (C.I#10, 12, 13). Websites like Yelp allow the company to see what customers
like and dislike and they can respond accordingly. Facebook, Twitter, and Instagram are all great
ways to interact with customers directly online.
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7. Website Objectives, Analysis & Strategies
Website Objective: Simplici-Tea’s website will be consistent with the values of the business.
The website’s main objective will be to inform customers about everything Simplici-Tea has to
offer from the menu to social media. The website serve’s as a portal for customers to learn about
the company and drinks, and even set up and view their accounts.
Website Analysis & Strategies: Customer’s who use the website will find it very similar to the
experience they have in-store. The website will have all of the relevant information about the
menu. Unlike competitors 1 and 2, the website’s menu will have information about the drinks
nutrition, ingredients, taste, and price. Customers who have an account with Simplici-Tea, or are
looking to make one, can access that information on the website. They can view their rewards
process, update their favorite drinks, and look at suggests that the Simplici-Tea database has
made based on their tastes. The app makes suggestions based on frequently purchases drinks or
drinks that have been “liked” by the customer in the app. This personalized suggestion menu
allows the customer to try new things without being overwhelmed by large menu board. The
experience that customers have on the app is similar to that on the website.
Many customers who are not very familiar with Boba have difficultly with the more
exotic items on the menu (P.I #6, C.I #1, 2, 5, 7, 9). The website menu goes into detail about the
different tastes of each drink and what the ingredients are. For example, Taro is a popular flavor
but many people don’t realize that it is actually a root that tastes somewhat similar to a nutty
vanilla. The website fleshes this information out and provides similar suggestions based on
flavor. This information is available in store as well but in less detail.
The website also provides links to Simplici-Tea’s social media accounts. Here customers
can connect with Simplici-Tea on various social media platforms. Although not many people
check these social media accounts (C.I #10, 11), customers still think it is important that
businesses have some involvement with social media (Art. #4, C.I #12, 13). Customers using the
app will be able to view the social media feeds from within the app.
Why: Many customers don’t see a reason to visit the websites, and if they do go to the internet to
view the store it is usually Yelp or Facebook (C.I #10, 11, 12, 13). Simplici-Tea’s website will be
a tool for customers to not only learn more about the menu, but they can interact with their
profiles there as well. The addition of an app makes the experience for the customer much better
and gives them the freedom to connect with Simplici-Tea from anywhere. The app and website
are valuable tools for the customers to learn more about the company as well as connect with it
and explore more things that Simplici-Tea has to offer.
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List of Works Consulted
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Articles
Article #1:
Lam. “Tapioca Pearl Problems” Berkeley Wellness. 7/26/2013
Why Relevant: This article informs about the controversies the Boba has faced in recent times.
Namely the discovery of carcinogens in some tapioca pearls. This is valuable information about
any political or legal factors in the industry.
Article #2:
Esqueda. “Taiwanese-themed tea house preps for grand opening” The Business Journal.
6/26/2015
Why Relevant: This article talks about the changes that new tea house managers bring when
they first open. It talks about the fact that many people dislike the earlier closing hours in the US
compared to Asia and how this tea house is responding to that sentiment.
Article #3:
Wei. “Lollicup, the huge bubble tea company, has a boba school. Who knew?” Los Angeles
Times. 3/4/2015
Why Relevant: Article shows how popular franchise “Lollicup” trains its employees and what
lengths they go to do that. Their training school not only serves to teach new employees but they
also create new drinks there.
Article #4:
“Too many small businesses are not embracing technology” Thirteen Metrofocus. 8/15/2015
Why Relevant: This article details the importance of technology in order for small business to
get their foot in the door. The boba tea owner in the article simply updates his Facebook page and
checks yelp. He contributes doing that and having a point-of-sale system enough to give him the
edge in the New York City boroughs.
Article #5:
Laidman. Contra Costa Times “Bubble Tea arrives, not so quietly, in suburbia; the drink mixed
with tapioca balls hails from Taiwan. Now “Boba” stores are bubbling up in the east bay.” Pg.
C01, 10/15/2004
Why Relevant: Article explains the first shifts of Boba stores from Asian-centric communities to
other ethnic communities in the suburbs of the east bay. The also explains the necessary changes
that had to be made to the stores to make them feel more comfortable to attract a larger audience.
Article #6:
Vence. Marketing News “Marketers use cafes to target Asian youth” Pg. 17, 5/1/2006.
Why Relevant: The article identifies the cultural aspects that Boba stores have and their
influence on Asian culture in particular.
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Article #7:
Ebenkamp. Brandweek “One more hand and bubble tea straight up” 44.28 (2003): 32. July 28-
Aug 4, 2003.
Why Relevant: Article identifies attempts made by Boba shops to create an environment where
people want to spend extended amounts of time, though game nights.
Article #8:
Newman, Savastano. Art Culinaire “The Boba boom generation” .72 (Spring 2004): pg. 82.
Why Relevant: This article details the long history of tea and the events the have lead up to the
creation of Boba. It also talks about the importance of location for New York City boba shops in
the Chinatown.
Article #9:
Vuong. The Orange County Register “Excursions to Little Saigon; Boba Tea was just the
beginning; Tastea offers and east-meets-west menu to a diverse clientele.” 10/22/2015
Why Relevant: This article details the growth of the franchise Tastea. To expand from Little
Saigon, they needed to change the atmosphere of their stores to attract a more diverse range of
customers.
Article #10:
Lee. Voice of America News “It’s Hip to be Asian in the US” (2013). 6/5/2013
Why Relevant: This article identifies a cultural movement that is happening in southern
California among young Asian people centered around these Boba Stores.
Article #11:
Kauffman. “Bubble Tea: The fad that forgot to fade.” SF Gate. 9/12/2014
Why Relevant: This article provides quantitative data on the recent growth of new Boba shops.
Websites
Website #1:
http://itsbobatime.com, last viewed 10-18-15
Why Relevant: This is the website of competitor #1, ItsBobaTime in Buena Park.
Website #2:
http://www.shareteacerritos.com, last viewed 10-18-15
Why Relevant: This is the website of competitor #2, ShareTea in Cerritos.
Website #3:
http://www.yelp.com/biz/its-boba-time-buena-park?osq=boba, last viewed 10-18-15
Why Relevant: This is the yelp page for competitor number one. This is where most people will
leave complaints or praises and give recommendations based on their experience at the store.
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Website #4:
http://www.yelp.com/biz/sharetea-cerritos-3, last viewed 10-18-15
Why Relevant: This yelp page not only offers reviews, but you can get promotions directly from
the page. It showcases customer reactions as well and product promotions from competitor
number two.
Website #5:
https://www.bubbleteasupply.com, last viewed 10-18-15
Why Relevant: This website provides information about the history of bubble tea and hot it is
made. It also gives some insight on how companies receive their supply of tapioca pearls.
Website #6:
http://www.bubbletea.com, last viewed 10-18-15
Why Relevant: This website gives a brief description of boba tea and popular trends that
evolved as it hit the US market.
Website #7:
http://www.bubbleology.co.uk/drinks.php, last viewed 10-18-15
Why Relevant: Bubbleology is an indirect competitor which is serving a very large customer
base in the heart of London. They are employing different types of technology(such as delivery),
which is clearly emphasized by their website.
Website #8:
http://www.ebay.com/gds/Guide-to-Bubble-Tea-Boba-Tea-Pearl-Tea-Market-Trends-/
10000000000091403/g.html, last viewed 10-18-15
Why Relevant: The website address questions about the Boba industry with regards to
investments and whether this industry is just a passing fad. It also shows the costs involved with
starting a Boba business and insight into the east-coast/west-coast markets.
!48
Website #12: http://www.nolo.com/, Last viewed: 11-9-15
Why Relevant: This website provides information on the legal issues about insurance, liabilities,
and employees.
Professional Interviews
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Professional Interview #4:
Female, Barista at Boba Loca. This person has worked at Boba Loca for two months.
Interviewed on 10/19/15 at Boba Loca in La Habra.
Why relevant: This employee shared her thoughts on what she perceived to be poor treatment of
employees by customers. She thought that many of the issues that customers has are brought on
by themselves. One example was that customers get angry when they think they order the wrong
drink.
!50
Professional Interview #10:
Female, Barista at ItsBobaTime. This person has worked at ItsBobaTime for two years.
Interviewed on 11/4/15 at ItsBobaTime in Buena Park.
Why Relevant: Spoke to the importance of some cultural and social elements that Boba stores
have which are unique to this industry. Explained why the location and atmosphere are
particularly important.
Customer Interviews
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Customer Interview #4:
Male, 25, has been drinking boba for around nine years.
Interviewed on 10/21/15 at Lollicup.
Why Relevant: This customer was able to explain why convenience was so important to him,
and why location and speed are the three main reasons he visits that particular boba shop.
Because of those factors, he didn’t feel that customer service was as important.
!52
introduced it to him. He also talked about his frustrations with ordering, even though he tends to
get one type of drink, he believes the menu’s can be overwhelming.
!53
Why Relevant: He explained that He was satisfied with the service and menu, however long
lines would drive Him away from the store. He also thought that there was good parking but it
getting into the store was frustrating.
!54
Customer Interview #21:
Male, 25, has been drinking Boba for around five years.
Interviewed on 11/23/15 at ItsBobaTime.
Why Relevant: This customer said he enjoyed his experience at ItsBobaTime; the atmosphere
was comfortable, and the parking, speed of service, and friendliness of the employee’s was good.
He was very sensitive to the price, He already thought prices were a bit on the high side, and that
quality wasn’t important for him if the price is too high.
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