My shoot for this assignment is to study the achievements of Chatime and what else they are able to do to come to be better, the brand Chatime is becoming sort of the Starbucks and BEANS & Tea Leaf. My research question is therefore what’s their brand advertising strategy?
Lately in Malaysia, when we walk in a retail center and see a long queue line before a beverage stall, persons waiting to get their cup of tea served in plastic cup, very high chance that it is Chatime. Chatime is a bubble tea the parable of the sadhu franchise from Taiwan (tea-time.com.tw), it appears to be the latest hot issue and sweep the united states with sales of 1 millions cups of tea regular monthly! They have around 50 outlets in simply a short period of 1 1.5years. (facebook.com/chatimemalaysia, 2012)
How can a glass of iced tea with simply just an additional of tapioca ‘pearls’, normally can be found in the pasar malam (nighttime market), suddenly become hence famous and everyone is craze about it? Moreover they are selling at double/triple the purchase price compares to night market! Bubble tea already exists in Malaysia in the early 2000′s, late in that case it faded off because of health concerns over the chemicals contamination. Last year, the Malaysia government has got verified a contaminated bubble tea product offered in Klang Valley, with a dangerous plasticizer (DEHP, diethylhexyl phthalate) which might result in cancer if over consume (Lee Yee Mun, 2011). It is necessary to know very well what the branding strategy is certainly behind Chatime to overcome such discourage news. There are a lot more than 30 brands of bubble tea company in Taiwan. Today with the success of Chatime, many other brands are trying to capture the marketplace and talk about the pie. I was approached by my friend when planning on taking up franchise of another brand. They simply had their first outlet available at Sunway Pyramid SHOPPING MALL. They provide waiver on franchising charges for the first 10 outlets in the initial two years of business. It is a very attractive deal and I wish to know the probability of success because of this new brand by studying the marketplace leader, Chatime.
Advertising Brands Internationally
With nowadays comprehensive globalization, brand advertising is currently carried on in depends upon which crosses country, country, and cultural barrier. Businesses are attracted to standardizing the brand advertising and marketing strategy across the whole world due to the possible cost reducing and control over the brand graphic. However, it is very challenging communicating to several cultures. (Hackley, 2005)
Advertisers must be very delicate to the customs of the target market, such as for good essay examples example uses of gestures and tendencies of particular targeting audience. Gestures, for example, manufactured a circle with thumb and index finger and the other three fingertips up means “Fine” in most of the country, but it means profit Japan. Behavior, for example, in China gift-giving donate to significant component of their method of trading building culture nonetheless it is certainly uncommon in western country in the context of method of trading. Sex and nudity portrayed in advertising is not a problem in extra open-minded Europe country but not the circumstance of Muslim countries. The advertising has to follow a standard of dress code of conduct.
One very significant decision an organization has to make is to what extent they have to standardize/localize their manufacturer advertising across the world. According to a study by Taylor & Johnson (2002), after exploration and evaluated a substantial collection of the international advertising and marketing literature of the 90′s, they concluded:
This suggested an organization should not act to the polar area of standardized/localize but move along in between. Localize the terminology and models but simultaneously standardize their selling proposition is merely an example.
On the other palm, Onkvisit and Shaw (2002) have illustrated weather it really is “Universal or unique” with regards to the marketing/advertising concepts and principles in the foreign context. Their study is best summarized in Figure 1. Organization should follow general marketing self-discipline and applying unique marketing mix strategies in several country.
In the same study, they have done a thorough comparison of the selectivity on advertising media (radio, television set, newspaper, magazines and internet) in the intercontinental context as well (Onkvisit & Shaw, 2002). The advertiser must study the mark market very well on the potency of media chose before launching their advertisement.
Another research has displayed that international advertising is greatly damaged by the technological revolution and digital divide, wide distribution of facts and communications technology in the middle of socio-economical imbalance across and within region (Hill & Dhanda, 2002). It suggests that marketers shall identify the opportunities and treats, and their duties in used of the Internet to market their brand worldwide.
A study on internet marketing effectiveness by Brettel & Attig (2010) also proven that culture of distinct country comes with an effect on how advertising on the internet drive the tendencies of consumers. They discovered that in between on-demand channels and push-channels, the aforementioned have a greater effect on ephemeral success.
Market Context: Malaysia – Tea market environment.
Malaysia established fact of its multi-ethnic and multi-culture. Malaysia population as of recorded by indexmundi.com/Malaysia (2012), has already reached about 28.7 million people. The three primary ethnic groupings are Malay/bumiputra (62%), Chinese (24%), Indian (7%). GDP per capita is about USD $14,700 (indexmundi.com/Malaysia, 2012). Malaysia’s Internet users are estimated to get 17.5 million. It really is interesting to know that Facebook has 12 million users in Malaysia, about 70% penetration charge. (Lim Yung Hui, 2011)
It is vital that you know that Malaysia is usually a Muslim majority country and there are benchmarks to follow when advertising using the main stream media. A halal signal is always placed in the advertisement to stress and anxiety that it did not go against the Muslim guidelines on food & beverage utilization. (Hackley, 2005)
Traditional tea drinking tradition of Malaysian is certainly ‘teh tarik’ at ‘mamak stall’ (Gregory Rogers, 2012). Malaysian only has this program in the old days before first Starbucks store open up in year 1998, which now give them a different choice of coffee and tea drinking encounter (starbucks.com.my, 2012).
Company Factors: Chatime
“Cha” in Chinese means tea. “Good Tea Good Time” may be the tagline of Chatime. Here’s their brand story:-
Translated from (tea-time.com.tw, 2012)
By employing the high-tech tea producing basic principle, through the mechanization of a single setting, Chatime try to serve standardized same quality pearl milk tea – Taiwan national drink, around the world, since it is serve refreshing from Taiwan.
In an interview with who owns Chatime brand Mr. Henry Wang, he has shared the storyline of building the Eastern Starbucks in the Pearl Milk Tea sector with shortest timeframe. (ourawesomeplanet.com, 2012)