Strategic Group

We apply innovation and geographic scope two variables to analysis strategic group of instant drink industry.

Figure 7. Strategic group of Shih Chen Foods Company

(I).Competitors’ innovation and geographic scope A. OK Tea (歐可)

OK Tea was founded in 2010 by a steel factory worker. One time he got an

opportunity to see tea making process and he found that tea farmers made tea directly without washing tealeaves. Therefore, he made up his mind to make cleanest tea which is the meaning if their brand name- OK Tea.

Innovation:

With sufficient knowledge and experience of iron products, OK Tea create a package- bag stick tea (袋棒茶), made by special aluminum foil which can resist 121 degree.

There are 550 small holes in one tea bag, let concentration of tea evenly. Follow the

Generialists

Common

Dog

trend of health, they also designed sugar control package let consumers can adapt sweetness by themselves.

Geographic scope:

They were built for seven years and only focus on domestic. But now their business has ride high, they consider to expend oversea in the near future. (OK Tea)

B. Kugi Foods (廣吉食品-台灣茶品集)

Kugi Foods was set up in 1987. Kugi Foods was a professional food processing, manufacture and food agent.

Innovation:

Their objective is to make nature food, so they use milk powder to make tea bag mike tea. Using technology to keep food origin flavor.

Geographic scope:

Kugi Foods has exported their products to U.S., Canada, Hong Kong, Macao, Mainland China, England, Malaysia, Singapore, Australia, and Japan, etc. (Kugi Foods)

C. One Fresh Cup (鮮一杯)

Kenjohn Trading Co., Ltd reinvested and set up Lariat partners limited in 1999.

Promote drip bag coffee (濾掛式咖啡) to every department stores in Taiwan and U.S., Australia, New Zealand, and Hong Kong High consumption market. In 2011 they applied the brand name “ One Fresh Cup”.

Innovation:

Lariat is the first company that import drip bag coffee from UCC Japan. They also add dietary fiber- acacia(膳食纖維-阿拉伯膠) in their coffee powder. This kind of dietary fiber is natural and healthy which can also improve bowel movement.

Geographic scope:

Their markets include Taiwan, U.S., Australia, New Zealand, Hong Kong, Philippines, and Turkey. (One Fresh Cup)

D. GREENMAX (馬玉山)

Ma Yu Shan Foods Co., Ltd was established in 1965;From the early discovery, it is testified to say the remarkable contribution of cereal products to the health of human being can’t be easily detectable by their general outlook, therefore, Ma Yu Shan has being fully devoted herself in the area of natural cereal products for 30 years.

Innovation:

GREENMAX has rigorous and professional testing of raw materials, semi-finished products, finished product with advanced technical support. They have many kinds of goods such as flaxseed & Nuts cereal, nuts cereal, enzyme, organic foods, milk oatmeal, almond powder, multi grains porridge, mixed cereal powder, seeds &seeds powder, multi grains rice, rice powder& soy beans powder, milk tea, snack foods, tea, coffee, gift pack. And every series also have different taste.

Geographic Scope:

GREENMAX sold their products to more than 20 countries, including: Japan, China, Taiwan, Hong Kong, Macao, Malaysia, Indonesia, Singapore, Brunei, Australia, New Zealand, Canada, United States, South Africa, Germany, France Netherlands, United Kingdom… (GreenMax)

E. Mr. Brown (伯朗)

Kingcar company was founded in 1979. Then in 1982 the first jug of Mr. Brown coffee was launched in 1982. Then start to export to the world.

Innovation:

Their product is only one series. The main is Coffee. Then launched out different taste of instant coffee or beans. It is worth mentioning is their drip’ coffee which is different from the original powder.

Geographic Scope:

They already export to Asia, European, Middle East, Africa countries. About thirty countries. (Mr. Brown)

F. ZenQuo (真鍋)

ZenQuo company founded in 1991. Their main products and service are café shop, instant drink.

Innovation:

Their product include milk tea, coffee with different tastes.

Geographic Scope:

They mainly sold in Taiwan. There are some shops that located in Taipei, Taichung, Puli. (ZenQuo)

G. 3:15PM (三點一刻)

In 1990, Shih Chen Foods Company was launched 3:15PM milk tea. Mr. Justin Chu,

the general manager of Shih Chen Company, creates the brand “3:15PM” to spotlight Taiwan tea all over the world. He wishes hard working tea farmers and qualified Taiwan tea can find love in 3:15PM brand. Nowadays, 3:15PM has more than 15 kinds of tea bag flavors.

Innovation:

In 1990, Shih Chen Foods Company launched 3:15PM milk tea and the first company to use tea leaves in tea bag. In 1991, invent series of "GrainMaster" and "vitality 100", these products provide high fiber, high calcium, zero cholesterol, etc. In 2006, Shih Chen Foods Company proposed a concept of Chinese-Western fusion, and launched new product “Oolong Flower Tea" that a brand of Oolong Tea in the world.

Geographic Scope:

3:15PM tea bags promote to 18 countries, including Korea, USA, Canada, Australia, China etc. (3:15PM)

H. MOCCA (摩卡)

Founded in 1974, MOCCA brand has been registered in Taiwan for over 40 years.

MOCCA has become a professional coffee manufacturing company. "Loyal to the original flavor" is the company's consistent demand for coffee taste. It hopes to produce aromatic coffee to satisfy consumers' taste and thus be the leader in the professional field of Taiwan's coffee market.

Innovation:

In 1974, the first introduction of freeze-dried granulation made of granular coffee manufacturers in Taiwan, there is no commercially available condensed coke flavor thick coffee.

Geographic Scope:

Today MOCCA establish factory and Office building in China. (MOCCA)

(II).Cluster

Separated three parts, first cluster is dogs included ZenQuo, MOCCA and Gino.

The reason why they put here is they only stay in Taiwan without sell to the other countries. And they have few innovations. Second, Common included One Fresh Cup and Kugi Foods. Compared with other brands, they are put in middle in our strategic group. Among them, Kugi Foods said their innovation is keep food’s original taste but this means they didn’t do any innovation. The meaning is just be same as their cluster named “Common” nothing special. Third, Generalists included GreenMax and 3:15PM because they have bigger geographic scope and more innovations so that we

called them generalists means they can do everything. However, if Dogs want to grow up to Common Generalists, it need to put more money and cost to do their innovation and also need international marketing to sell to other countries. And some brands such as OK they don’t have lots ability of producing so that if they move to high

geographic scope they need to have more outputs. If the brand want to be generalists, it must need to have some sacrifices.