在巴拿馬市設立珍珠奶茶舖 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 sit. y. Nat. 在巴拿馬市設立珍珠奶茶舖 n. al. er. io. Crea8tive Tea: A Bubble Tea shop in Panama. Ch. engchi. i n U. v. Student: Robert Loo Advisor: Professor Carol Lin. 中華民國一○六年六月 June 2017.

(2) 在巴拿馬市設立珍珠奶茶舖 Crea8tive Tea: A Bubble Tea shop in Panama 研究生：羅道基. Student: Robert Loo. 指導教授：林月雲. Advisor: Carol Lin. 立. 政治大國立政治大學. 學. ‧ 國. 商學院國際經營管理英語碩士學位學程碩士論文. ‧ y. Nat. A Thesis. io. sit. Submitted to International MBA Program. er. National Chengchi University. n. a. v. in partiall fulfillment of the Requirements ni C. i U. h. g c hof for e thendegree Master in. Business Administration. 中華民國一○六年六月 June 2017.

(3) Acknowledgements First of all I would like to thank God for being able to achieve one of my most important goals in life. Throughout this journey He has been able to provide me with the opportunities, tools and resources that have helped me get to where I am now today.. Thanks to ICDF for providing me an opportunity to study and experience a unique culture in Taiwan. This opportunity has helped me gain a deeper understanding on how business works. 治政 with a different perspective in Taiwan. 大立 ‧ 國. 學. Finally, I am grateful for my family, especially my parents who are always supportive on what I. ‧. want to achieve both professionally and personally. Thanks to my IMBA family that I have made unforgettable memories and will always cherish them.. n. er. io. sit. y. Nat. al. Ch. engchi. i. i n U. v.

(4) Abstract Crea8tive Tea in Panama By Robert A. Loo Crea8tive Tea LLC is a startup business Panama, Panama City. The main objective of Crea8tive Tea is to serve the freshest Bubble Tea and desserts using the finest possible ingredients in the. 政治大. market by providing different flavors targeted towards the Asian and non-Asian Panamanian. 立. market. We will provide products that are natural and of high quality to cater the segment of the. ‧ 國. 學. population that seeks a gastronomical journey.. ‧. The Bubble Tea beverage & dessert industry is currently booming and there is an opportunity to leverage this moment and maximize our profits. Fortunately, Bubble Tea is not that known yet,. y. Nat. er. io. sit. especially for the non-Asian population. Most of the Bubble Tea Shops prepare their drinks with additives and non-natural ingredients that are harmful to our health and Crea8tive wants to. al. n. target this market.. Ch. engchi. i n U. v. An initial investment of $28,000 is required to start the business and our initial capital investment is of $50,000 funded by two business partners. Based on the financial section, starting from year 2 we will start to see our Return on Investment (ROI).. It is important to keep in mind that there is still a risk that Bubble Tea might not be a drink that can be quickly accepted by the non-Asian segment because it is a niche market. On the other hand, our marketing know-how and assorted flavors targeted to the non-Asian Panamanians will be a solution to this challenge and become leaders in the industry.. ii.

(5) TABLE OF CONTENTS 1. COMPANY OVERVIEW: CREA8 TIVE SHOP ........................................................................ 1. 1.1. HISTORY AND BACKGROUND ................................................................................... 1. 1.2. M ISSION .................................................................................................................. 2. 1.3. VISION .................................................................................................................... 2. 立. 政治大. 1.4. OBJECTIVES ............................................................................................................ 2. ‧ 國. 學. 1.5. LONG TERM OBJECTIVES ......................................................................................... 3. ‧. 1.6. M ISSION S TATEMENT ............................................................................................... 3. sit. y. Nat. io. n. al. er. 1.7. KEY SUCCESS FACTORS ........................................................................................... 3. i n U. v. 1.8. BRAND AND PRODUCT OVERVIEW ............................................................................ 4. Ch. engchi. 1.8.1. LOGO .............................................................................................................. 5. 1.9. COMPANY OWNERSHIP ............................................................................................ 5. 2. BUSINESS ENVIRONMENT ............................................................................................... 7. 2.1. INDUSTRY OVERVIEW .............................................................................................. 7. 2.2. TEA CONSUMPTION IN PANAMA ............................................................................... 8. iii.

(6) 3. SITUATION ANALYSIS ................................................................................................... 10. 3.1. PANAMANIAN M ARKET .......................................................................................... 10. 3.2. ECONOMY ............................................................................................................. 10. 3.3. SOCIO-DEMOGRAPHICS ......................................................................................... 11. 政治大. 3.4. COMPETITORS ....................................................................................................... 11. 立. 3.5. BUSINESS OPPORTUNITY ........................................................................................ 12. ‧ 國. 學. 4. BUSINESS MODEL ........................................................................................................ 14. ‧. 4.1. VALUE PROPOSITION ............................................................................................. 14. sit. y. Nat. n. al. er. io. 4.2. CUSTOMER SEGMENTS .......................................................................................... 14. Ch. i n U. v. 4.3. CHANNELS ............................................................................................................ 15. engchi. 4.4. CUSTOMER RELATIONSHIPS ................................................................................... 15. 4.5. REVENUE S TREAMS ............................................................................................... 16. 4.6. KEY PARTNERS ...................................................................................................... 16. 4.7. KEY ACTIVITIES .................................................................................................... 16. 4.8. FOOD HANDLING ................................................................................................... 17. iv.

(7) 4.9. KEY RESOURCES ................................................................................................... 17. 4.10. COST S TRUCTURE ................................................................................................ 18. 5. MARKETING P LAN ....................................................................................................... 20. 5.1. SELLING PROPOSITION ........................................................................................... 20. 政治大. 5.2. TARGET MARKET .................................................................................................. 20. 立. 5.3. CONSUMER BEHAVIOR ........................................................................................... 21. ‧ 國. 學. 5.4. PRODUCT .............................................................................................................. 23. ‧. 5.5. PACKAGING ........................................................................................................... 25. sit. y. Nat. n. al. er. io. 5.6. COMPETITIVE ADVANTAGE .................................................................................... 28. Ch. i n U. v. 5.7. PRICING AND POSITIONING S TRATEGY ................................................................... 28. engchi. 5.8. POSITIONING MAP ................................................................................................. 29. 5.9. LOCATION ............................................................................................................. 31. 5.10. PROMOTION S TRATEGY ........................................................................................ 33 5.10.1.. PULL MARKETING ..................................................................................... 33. 5.10.2.. PUSH MARKETING ..................................................................................... 34. v.

(8) 5.11. ONLINE MARKETING S TRATEGY ........................................................................... 34 5.11.1.. CONTENT M ARKETING ............................................................................... 34. 5.11.2.. EMAIL MARKETING ................................................................................... 34. 5.11.3.. SOCIAL MEDIA MARKETING ....................................................................... 35. 5.11.4.. ADVERTISING & SMALL SPONSORING EVENTS ........................................... 36. 5.11.5.. SOCIAL MEDIA S TRATEGIES ....................................................................... 37. 立. 政治大. ‧ 國. 學. 6. STRATEGIC P LANNING .................................................................................................. 38. 6.1.1. EXTERNAL ANALYSIS .................................................................................... 38. ‧. sit. y. Nat. 6.1.2. PORTER’S FIVE FORCES ANALYSIS ................................................................. 38. n. al. er. io. 6.1.3. THREAT OF ENTRY BY P OTENTIAL COMPETITORS ........................................... 39. Ch. i n U. v. 6.1.4. RIVALRY AMONG ESTABLISHED COMPANIES ................................................... 39. engchi. 6.1.5. BARGAINING POWER OF BUYERS ................................................................... 39 6.1.6. BARGAINING POWER OF SUPPLIES ................................................................. 40 6.1.7. SUBSTITUTE PRODUCTS ................................................................................. 40. 6.2. INTERNAL ANALYSIS (COMPETENCIES AND COMPETITIVE ADVANTAGE) .................. 40. 6.3. SWOT MAP .......................................................................................................... 41. 6.4. BUSINESS LEVEL S TRATEGY .................................................................................. 42. vi.

(9) 6.5. PRODUCT DEVELOPMENT ...................................................................................... 42. 6.6. MARKET DEVELOPMENT ........................................................................................ 43. 7. FINANCIAL P LAN ......................................................................................................... 44. 7.1. START-UP BUDGET ................................................................................................ 45. 政治大. 7.2. PROJECTED INITIAL BALANCE SHEET ..................................................................... 47. 立. 7.3. INCOME S TATEMENT .............................................................................................. 48. ‧ 國. 學. 7.4. CASH FLOW .......................................................................................................... 49. ‧. 7.5. PROFITABILITY ANALYSIS ...................................................................................... 50. sit. y. Nat. er. io. 7.6. BREAK EVEN ANALYSIS ......................................................................................... 51. al. n. v i n Ch 8. CONCLUSION ............................................................................................................... 52 engchi U 9. BIBLIOGRAPHY ............................................................................................................ 54. 10. APPENDIX .................................................................................................................. 55. 10.1. STARTUP COSTS DETAILS ..................................................................................... 55. 10.2. UNIT SALES FORECAST ........................................................................................ 57. vii.

(10) LIST OF FIGURES AND TABLES FIGURE 1 CREA8 TIVE C OMPANY LOGO ............................................................................... 5 FIGURE 2 MODIFIED CONSUMER DECISION MODEL .......................................................... 22. 政治大. FIGURE 3 ASSORTMENT OF BUBBLE TEA FLAVORS ............................................................ 24. 立. FIGURE 4 HONG KONG WAFFLE ....................................................................................... 25. ‧ 國. 學. FIGURE 5 HONG KONG WAFFLE SERVED ON A P LATE ......................................................... 25. ‧. FIGURE 6 PRODUCT SERVING EXAMPLE ............................................................................ 26. Nat. io. sit. y. FIGURE 7 PRODUCT SERVING EXAMPLE ............................................................................ 27. er. FIGURE 8 HONG KONG WAFFLE SERVING EXAMPLE .......................................................... 27. al. n. v i n FIGURE 9 P ICTURE OF Y O & TEAC ZONE BUBBLE TEA SU h e n g c h i HOP ............................................... 30 FIGURE 10 PERCEPTUAL POSITIONING MAP ...................................................................... 31 FIGURE 11 MAP LOCATION OF ALTA P LAZA MALL BUBBLE TEA STORE .............................. 32 FIGURE 12 PORTER’S FIVE FORCES ANALYSIS .................................................................. 38 FIGURE 13 CREA8TIVE TEA SWOT MAP .......................................................................... 41. TABLE 1 TEA IMPORTS IN PANAMA 2008-2012 (ACTUALITIX, 2013) .................................... 8. viii.

(11) TABLE 2 PANAMA’S GROSS DOMESTIC PRODUCT 2012 – 2017 (WORLD BANK, 2017) ........ 10 TABLE 3 COMPETITOR ’S PRICES ....................................................................................... 28 TABLE 4 INITIAL CAPITAL INVESTMENT TABLE ................................................................. 45 TABLE 5 INITIAL INVESTMENT SUMMARY ......................................................................... 45 TABLE 6 CREA 8TIVE TEA LLC INITIAL BALANCE SHEET .................................................. 47. 政治大. TABLE 7 YEARLY ESTIMATED INCOME S TATEMENT ........................................................... 48. 立. TABLE 8 ESTIMATED CASH FLOWS ................................................................................... 49. ‧ 國. 學. TABLE 9 CREA 8TIVE TEA NET PRESENT VALUE AND INTERNAL RATE OF R ETURN .............. 50. ‧. TABLE 10 BREAK-EVEN ANALYSIS ................................................................................... 51. n. er. io. sit. y. Nat. al. Ch. engchi. ix. i n U. v.

(12) `. Company Overview: Crea8tive Shop 1.1. History and Background In the Panamanian market, there is currently a trend where dining out has become more popular than before leading to an increased competition of restaurants. However, there is a small amount of specialized drink and dessert stores that satisfies customer’s cravings. Since 2014, many drink and dessert shops have opened with much success introducing products like frozen. 政治大 new things giving us an opportunity to bring a new product to the market. 立. yogurt drinks and nitrogen ice cream. This clearly shows that Panamanians are willing to try. ‧ 國. 學. Before arriving to Taiwan I already had the experience of trying out bubble tea when I was. ‧. pursuing my bachelor’s degree back in the United States. Once I started studying my MBA in Taiwan, I finally had the opportunity of savoring the authentic bubble tea and got to know a. y. Nat. io. sit. delicious dessert known as the Hong Kong Waffle. I eventually realized there was an. n. al. er. opportunity to bring this product back to Panama since there is a big Asian community. After. Ch. i n U. v. some analysis, I found out that besides the Asian community, the local Panamanians were yet. engchi. not aware of this beverage and dessert. This provides a window of opportunity for introducing a product with flavors that are catered to the local market bringing innovation to the beverage & dessert industry in Panama.. Currently in Panama, there is a Chinese community (about 5% of the population) that we can cater. The three current bubble tea shops in Panama are only targeting this segment giving an opportunity of becoming the first movers in an untapped market and target the local Panamanians (Non-Asian).. 1.

(13) `. The main idea is to open a stand-alone retail store in the most popular malls in Panama with a unique approach making our brand different. In order to make our brand stand out from the competition and make Bubble Tea more popular among consumers is to offer a variety of flavors that caters to different customer segments. Choices will range from different kinds of teas, fruit juices, and coffee. To make it more interesting we also plan to offer a fusion of tea and coffee flavor bringing a distinct flavor in the Panamanian beverage and dessert industry.. 立. 1.2. Mission. 政治大. ‧ 國. 學. Crea8tive Tea offers delicious and unique beverages in Panama with a focus on bubble tea,. ‧. fusion drinks mixed with coffee, and desserts while at the same time creating job opportunities contributing to a steady market growth and market penetration in the region through. n. al. er. io. sit. y. Nat. franchising.. 1.3. Vision. Ch. engchi. i n U. v. Become the leader in the Bubble Tea beverage industry in Panama by providing unique high quality drinks and desserts to the consumer.. 1.4. Objectives . Serve the freshest Bubble Tea using only the finest ingredients in the market.. . Position ourselves as the number one Bubble Tea business in the beverage industry in Panama.. 2.

(14) `. . Build a strong brand image in the early stage of the company in order to create customer loyalty and expand to other areas of the city.. . Achieve profitability in 3 years including the investment recovery period.. 1.5. Long Term Objectives. 治政 Objective 1: By year two, expand the initial market (Panama) 大 to two other cities and areas 立 Chorrera and El Dorado. ‧ 國. 學. Objective 2: Ensure that the market have awareness of our products so we can become. ‧. attractive to investors who could be highly interested in franchising.. Objective 3: Creation of sustainable job opportunities for franchisees.. io. sit. y. Nat. n. al. er. 1.6. Mission Statement. Ch. i n U. v. To promote in Panama a new kind of drink that is unique based on tea, coffee, and fruits that. engchi. brings a whole new experience to our consumers.. 1.7. Key Success Factors Customer Relationship. In Crea8tive Tea, Customer Relationships is important for developing a brand image and making our customers become loyal to our products. That way in the future if another competitor tries to innovate or someone enters the market; it would be more challenging for them to take over our market share.. 3.

(15) `. Location. For Crea8tive Tea, a stand-alone store in a mall is highly important because it has a high traffic of people allowing us to get more exposure and build brand awareness.. Products / Beverage. We believe that product offering is what will make our brand different from our competitors. By developing products that are especially tailored to the market will create a strong brand image allowing us to expand into different markets.. 治政大 through the use of social media Marketing / Social Media. Creating a strong brand image 立 will enable us to promote our products, increase brand awareness and build strong customer ‧ 國. 學. relationships. In order to keep costs low, promoting our products via social media will decrease. ‧. our costs and maximize our revenues.. y. Nat. er. io. sit. Quality Oriented Crea8tive Tea compared to other current competitors will be using high quality ingredients positioning our products in the premium segment influencing the perception. n. al. Ch. of our products as superior quality.. engchi. i n U. v. 1.8. Brand and Product Overview Crea8tive Tea is a phrase that redefines the word tea. When we think about creativity the first word that comes into our mind is innovation. When we think about innovation we believe that introducing a new idea or product will makes us unique. That is how we want to be known in the mind of the consumer. We are going to have a stand-alone store that when customers come in they are greeted with a. 4.

(16) `. welcoming atmosphere where they can relax, enjoy their drink and dessert while having a chat with your friends. We will be offering bubble tea drinks based on tea, coffee, or fruit juices. Also, we plan to introduce a popular dessert in Asia known as Hong Kong Waffles which is different, but delicious that will make consumers want to come back again for more.. 1.8.1. Logo. 治政 potential consumers to obtain their feedback. 大立. Currently this is our proposed logo, but before it becomes official we will do a survey with. ‧. ‧ 國. 學. n. al. er. io. sit. y. Nat. Figure 1 Crea8tive Company Logo. 1.9. Company Ownership. Ch. engchi. i n U. v. The Company will be a Limited Liability Company (LLC) because of the tax flexibility, limited liability, and less paperwork that this kind of ownership offers.. Robert Loo. MBA graduate from a top Asian business school with a bachelor of Finance and Marketing, and over 4 years of experience in the area of sales, marketing, and customer service in different industries.. 5.

(17) `. Frank Malca. MBA graduate from Florida International University with a Bachelor of International Affairs and Foreign Policy from Florida State University (FSU). With over 5 years of experience in Supply Chain, Procurement, Contract Negotiation and Multiple Category Sourcing in the Oil & Gas Industry with a leading company in the sector. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 6. i n U. v.

(18) `. Business Environment 2.1. Industry Overview Panama as one of the fastest growing economies in Latin America has increased the development of many industries and attracted foreign investment in the region. A flourishing economy also gives people higher purchasing power and at the same time developing new buying habits. In this case, the most notable industries that are currently going through fierce. 政治大. competition are the restaurant and the dessert industry.. 立. ‧ 國. 學. Since recent years, Panamanians have been earning more income developing sophisticated habits like dining out. This trend has led to the opening of more new restaurants including. ‧. dessert stores. However, there are only few specialty dessert shops that can satisfy the needs of. sit. y. Nat. the consumers. That being said, from recent years there has been increase in the establishment. io. er. of dessert start-ups and franchises that have become very successful. One of the reasons that. al. v i n C hout what is trending trying new kinds of foods and trying e n g c h i U out there. The middle and the high n. can directly attribute to the success of this franchise is because Panamanians are very keen on. class normally follow popular trends in developed countries such as the United States. Therefore in Panama the trend for dining out and eating desserts has become the norm for socializing and to a certain extent it has also become a luxury.. With this trend it has caught the attention of many entrepreneurs and investors to innovate and bring new kinds of desserts and ways of experiencing a beverage leading to the introduction of frozen desserts. In Panama there are currently frozen yogurts, artisan popsicles, and now. 7.

(19) `. nitrogen ice cream, which is the current trend. This is an important trend to follow because it shows that there is a potential business opportunity in the beverage & dessert market.. 2.2. Tea Consumption in Panama. Table 1 Tea Imports in Panama 2008-2012 (Actualitix, 2013) Year. 3,068,000 $. 350,000. 2011. 2.495.000 $. 543,000. 2010. 1.952.000 $. 593,000. 1.725.000 $. 366,000. 1.359.000 $. n. al. Ch. y. sit. io. 2008. er. 2009. ‧. Nat. 2012. 學. ‧ 國. 立. USD (Millions) Growth 治政大. n U engchi. iv. -. Panama is known to be a country where people on average consume coffee. According to Panama America, Panamanian’s on average spent 5% of their income to purchase coffee1. Coffee is also one of the most important agricultural products that is exported in the whole region. In Panama we are known for the Geisha Coffee, which is one of the most expensive coffees sold in the world that has a price of $100 USD per pound.2. 1. Source: http://www.panamaamerica.com.pa/tema-del-dia/panamenos-destinan-el-5-de-sus-gastos-para-el-cafe. 2. Source: https://www.javalush.com/worlds-15-expensive-coffees-taste-like/. 8.

(20) `. On the positive side, Panama as one of the fastest growing economies in the Latin American region has led many industries to grow and at local level the habits of the consumers are becoming more sophisticated. In this case we are talking about the taste for tea, which is generating business opportunities. Based on an article from Central America Data business information, there is a growing opportunity in the premium segment for promoting tea drinks. 治政 And the customer segment 大 ranges from young adults to. because in Panama there are currently many businesses who are offering cup of teas that are ranging from 3$ to 18$ USD.. 3. 立. seniors.. ‧ 國. 學 ‧. In addition, Panama’s Importation on tea has been increasing steadily which is a sign that the consumption of tea is becoming more popular (refer to table 1 above). Since 2014, the culture. y. Nat. er. io. sit. of drinking tea is becoming more prevalent because in Panama many entrepreneurs are opening high-end tea shops, cafeterias and even franchises such as The Coffee Bean and Tea Leaf. All. n. al. Ch. i n U. v. these tea stores offer different kinds of teas sold at a premium price that consumers are willing. engchi. to pay for it. This could be a potential opportunity in the market where we could introduce bubble tea.. 3 Source: http://www.centralamericadata.com/en/article/home/Teatime_in_Panama. 9.

(21) `. Situation Analysis 3.1. Panamanian Market The Republic of Panama is an S-shaped isthmus located in Central America connecting the Pacific Ocean and the Caribbean Sea. Panama is bordered between Costa Rica and Colombia. The total size is comprised of 74,177 km2 which is two times the size of Taiwan. Thanks to the location, it gives a geographic advantage leading to the construction of the Panama Canal.. 立. 3.2. Economy. 政治大. ‧ 國. 學. Panama has been recognized around the world as one of the countries in Central America as an attractive location for many foreign investors because of its sustained growth as a result of a. ‧. fully dollarized economy and incentives to start a business such as tax benefits, low labor costs,. sit. y. Nat. and world-class banking system that provides a competitive edge in the region. Based on a. io. er. report from Focus Economics, the GDP growth of Panama during 2016 grew by 6% and in 2016. al. by 6.0 percent and by 2017 it is forecasted that it will increase by 5.8%.4 Table 2 below shows. n. v i n C h improving yearUby year. that the Panamanian economy has been engchi. Table 2 Panama’s Gross Domestic Product 2012 – 2017 (World Bank, 2017) 2012. 2013. 2014. 2015. 2016. 2017. GDP (Billions of US$ ). 39.95. 44.86. 49.17. 52.13. 58.04. 59.3. GDP Growth. 9.20%. 6.6%. 6.1%. 5.8%. 6%. 5.8%. GDP Per Capita (US$). 9,433. 9,894. 10,325. 10,750. 11,220. 14,228. Year by year we can see that there is a sustained growth which means that the standard of living. 4. Source: http://www.focus-economics.com/countries/panama. 10.

(22) `. is becoming higher and wages are rising indicating an increase of purchasing capacity for consumers.. 3.3. Socio-Demographics Panama has an estimated population of 4.1 million people, which is about 1/5th of the population of Taiwan (WorldoMeters, 2017). In terms of demographics, 65% of the population is Mestizo, while 12.3% are Native Panamanians; the remainder is 6.8% Mulato and 6.7% white (Wikipedia, 2017).. 立. 政治大. In Panama City, the capital, almost half of the population lives there while the remaining. ‧ 國. 學. population spread around each province. While it is not shown in previous information, there is. ‧. a significant Chinese population that represents 5% or 205,000 people of the total population.5 Thanks to the big presence of the Chinese community has created a business opportunity. y. Nat. n. al. er. io. sit. potential of developing services and products that are focused on this marketing.. 3.4. Competitors. Ch. engchi. i n U. v. Currently there are 3 competitors in Panama who are offering Bubble tea. However, besides the Asian community, they do not have that much brand awareness among the consumers. In addition to bubble tea, we will be including an assortment of flavors plus desserts such as the Hong Kong waffle. Therefore we will consider these 3 companies as our main competitors in this market:. 5. Source: http://impresa.prensa.com/opinion/Panama-Itzel-Karina-Chen-Chan_0_4177832230.html. 11.

(23) `. . Mr. Boba Tea is a family owned business that has been running since 2015. In addition to bubble tea they offer Asian food and snacks. They recently added a delivery service because their location was not convenient. During year 2017 they decided to move their store at a small plaza with higher traffic and recently opened a new store.. . 888 iBakery & Cafe A bakery that offers drinks and bubble tea. They began. 治政 goods, but not their drinks. 大立 Yo & Tea Zone a bubble tea store that offers frozen yogurt and light snacks. They. operations early this year. 888 iBakery & Café is best known for their bread and baked. 學. ‧ 國. . currently have two stores in the city.. ‧ sit. y. Nat. 3.5. Business Opportunity. io. al. er. Based on the analysis of the latest trends of what Panamanians like, there is a potential. v. n. business opportunity in the beverage and dessert market. These are the following. Ch. engchi. reasons that were taken into consideration:. i n U. In Panama from the middle to the upper class more often than not are keen to follow popular trends from many countries especially from the United States. For example, American chain stores such as The Coffee Bean & Tea Leaf and Starbucks recently opened in the capital city and many locals would just wait several hours before their grand opening in the line. This clearly shows how the local consumer is acquiring more sophisticated habits of dining out, hanging out at coffeehouses and the growing. 12.

(24) `. trend of drinking tea.. There is also a significant Chinese population in the country and it is considered to be the largest one in Central America that represents about 5% of the population. So catering to this market by offering bubble tea and desserts that are popular in Asia is an opportunity to become leaders in this segment.. 治政 In Panama, there are currently a few bubble大 tea stores in the market and to our 立 advantage; they do not have much brand awareness because of their location and their ‧ 國. 學. strategy of only catering to the Asian community. That being said, this provides an. ‧. opportunity to promote towards the non-Asian consumer by giving us the freedom of positioning our products into the premium segment.. er. io. sit. y. Nat. We also have a great opportunity because recently Panamanian consumers are. n. al. Ch. i n U. v. becoming more health conscious influencing many locals to look for healthier options. engchi. such as drinks like tea. Panamanians also have more purchasing power, which contributes them to develop more sophisticated habits like dining out and have new gastronomical experiences. One last factor that gives us more confidence that our business will succeed is Panama’s weather. Due to the hot weather this makes customers want to go to drink shops and with that in mind, while the consumers are at the drink shop they can sit and relax. More often than not Panamanians during a hot day enjoy spending time with their friends and families in popular beverage and dessert stores.. 13.

(25) `. Business Model 4.1. Value Proposition We offer unique drinks and desserts in Panama by promoting innovation without sacrificing superior quality.. 4.2. Customer Segments. 政治大 and profession (Age, gender, location, 立. We are going to focus on different consumers based on their social class, ethnic background,. ‧ 國. . 學. education, and others).. income level, occupation,. Foodies. A foodie or food aficionado is a kind of person who wants to break off from. ‧. their “comfort food” and try out new things. Often, they are connoisseurs of food and. y. sit. The Chinese – Given the fact that bubble tea and the desserts are mainly from Asia, it. io. al. v i n C h segment (non-Asian): Upper class This is one of the largest engchi U. n. will have a higher level of acceptance. . The Middle to. er. . Nat. are very knowledgeable when it comes to eating and dining out.. segments that we are going to be targeting. Since the middle and upper class do not have much awareness of what bubble tea is can become an opportunity for us to position ourselves as unique compared to other competitors.\ . The Health Conscious: In Panama, there is a growing trend where people are becoming more health conscious. Many salad bar restaurants, gyms, and healthy drink stores are opening each year.. 14.

(26) `. . Young Females. We will be targeting the young female population ranging from 16 to 30 years old – the reason is because more often than not they bring their female friends or their partner and as a result, they end up bringing more potential customers.. 4.3. Channels . Shopping Malls in Panama the five biggest malls are the following: Dorado Mall, Multi Centro, MultiPlaza, Albrook Mall, and Alta Plaza.. 政治大. 立. 4.4. Customer Relationships. ‧ 國. 學. Since the nature of our business is having direct contact with customers, we want to strive to provide the greatest customer service from the time they arrive at the store and. ‧. after they leave. That will let us gain higher customer retention and brand loyalty. Nat. sit. n. al. er. Customer Engagement. By interacting with the customer using incentives such as. io. . y. which can turn into increased revenues.. i n U. v. coupons, loyal customer cards, and birthday reminders increases the amount of repeat. Ch. engchi. customers and customer retention. Once they become loyal customers they can become our best ambassador for the brand. . Community Engagement. Engaging with the community through social media will enable us a two-way communication with our customers allowing the exchange of useful feedback and receive recommendations of what new products we could introduce in our portfolio.. . Email Marketing. We will utilize this method to increase brand awareness. A marketing strategy will be implemented with the objective of increasing sales, spread. 15.

(27) `. the word, and leave them with a call to action message. This will reduce overall operation costs compared to other forms of marketing. (See Online Marketing Strategy for a complete description).. 4.5. Revenue Streams Retail sales. Our revenue stream is going to be mainly from our first store coming from the. 政治大. direct sales of beverages and desserts. Eventually when we open new store locations we will be. 立. getting additional revenue streams from them.. ‧ 國. 學. 4.6. Key Partners. Suppliers The majority of our ingredients for producing the drinks and desserts will have local. ‧. suppliers. In case of specific ingredients such as tea and tapioca could be imported directly from. Nat. n. al. 4.7. Key Activities . Ch. engchi. er. io. local supplier that also provides these ingredients.. sit. y. Taiwan. Currently in Panama there is a China Town so we could also reduce costs by finding a. i n U. v. Preparation. The main activity that the company will do is to make Bubble Tea and Hong Kong waffles.. . Training. Training our staff members is important to ensure our customers that we are delivering the best experience and the most personalized service as much as possible.. 16.

(28) `. . Marketing. Executing activities such as promotion, creating buzz, building customer relationships, and leveraging our community are important if we want to stand out among the competition.. . Management. Having a thorough understanding of how the business works from how much ingredients we have to order, managing labor costs, and assuring that we can deliver our unique experience will motivate our consumers to come over again is key for success.. 立. 4.8. Food Handling. 政治大. ‧ 國. 學. We will build trust with our customers by complying with food safety and regulatory quality requirements. Through our management we will guarantee that the food that we handle will. ‧. y. sit. n. al. er. io. consumer.. Nat. complies with the local standard and obtain a certification that will bring peace of mind to the. 4.9. Key Resources . Ch. engchi. i n U. v. Human Capital. This is our most valuable resource as they are the ones that will make assure that our products are prepared with the best quality and engage with our customers.. . Raw materials. The ingredients that will be used for preparing our products is important in order to provide the best flavor and quality out there. We will ensure that premium quality materials are used to meet the expectations of our clients.. 17.

(29) `. . Brand. One of our most important assets. Every time they think about consuming bubble tea and our Hong Kong waffles, customers will think about our brand.. . Know-how. The way how we prepare our drinks and desserts is what will make us stand out from the competition.. 4.10. Cost Structure . Relevant fixed costs.. . Wages. In the beginning we will be hiring one person that will be in charge of assisting. 政治大 on the preparation of drinks and desserts. In addition, training will be provided to 立. ‧ 國. . 學. make sure that the proper service is delivered. This includes administrative wages. Rent. A stand-stand-alone retail store will be set up. Our inventory and administrative. ‧. office will be located there.. Utilities. Expenses such as electricity, internet, and water will be taken into account.. . Advertising. An estimated fixed amount will be used to promote our business. al. v i n processing. C Bank used as an alternative for U h echarges h icommissions n g cand n. throughout social media and other ways. . Payment. er. io. sit. y. Nat. . payment. . Relevant variable costs.. . Inventory. Based on the sales volume we will keep an adequate level of inventory.. . Economies of scale. By purchasing materials in large quantities such as tea, cups, and ingredients will reduce costs.. 18.

(30) `. Economies of scope. We will maximize our business relationship with suppliers by purchasing different ingredients, utensils, and packaging, which will help us reduce overall costs.. 立. 政治大. 學 ‧. ‧ 國 io. sit. y. Nat. n. al. er. . Ch. engchi. 19. i n U. v.

(31) `. Marketing Plan 5.1. Selling Proposition To offer the best Bubble Tea and Hong Kong waffles you will ever taste with the finest ingredients that exceed customer satisfaction.. 5.2. Target Market. 政治大 has over 2 million people which represent half of the country’s population giving us an 立. Our first target market will be focusing on Panama City, Panama. Panama’s metropolitan area. ‧ 國. 學. opportunity to expand into different locations according to our expansion plan. Our first stage of the project is to set a stand-alone retail store in the food court area in one of the newest malls. ‧. in Panama known as Alta Plaza. This is an upscale mall where most of the stores are known. er. io. sit. y. Nat. worldwide such as Zara, Tommy Hilfiger, and Crocs just to name a few.. al. v i n C Rey. This area is known neighborhood called Condado del h e n g c h i U for a large Chinese community n. This mall is a high traffic mall that has nearby a middle-high to high class residential. giving us an opportunity to capitalize on this market. In addition, most of the people who live in this neighborhood are educated and have relatively high purchasing power meaning that they could purchase our products. Since they have a high level of education, this segment is more concerned about their health, eating habits, and quality of food that they consume. Therefore, we consider them as potential customers. In the second stage of the project, we will expand to other high-end malls in the capital based on the popularity of our brand.. 20.

(32) `. 5.3. Consumer Behavior Buying a drink or a dessert is seen as habitual because of the low perceived brand difference and low involvement. By using the right marketing strategy, we want to make the purchase of our Bubble Tea and Hong Kong waffle become a variety seeking behavior increasing the consumer’ interest and involvement.. 治政大 product category so they can Normally, consumers put a new brand in an established 立 know what the differences from other already existing brands. Crea8tive Tea will stand out ‧ 國. 學. from the drink and dessert category by providing natural high quality Bubble Tea drinks with an. ‧. assortment of flavors catered to the local market, premium “bulb” shaped glassware, and Hong Kong waffles that is not currently available in the market. Please refer to figure 2 below as a. y. Nat. n. er. io. al. sit. simplified explanation of the Consumer Decision Model.. Ch. engchi. 21. i n U. v.

(33) `. 政治大 Figure 2 Modified Consumer Decision Model 立. 6. ‧. ‧ 國. 學. Information –More often than not, in order for consumers to create a new product category in. sit. y. Nat. their mind more information is required. We plan to provide this information through the. io. er. execution of our marketing strategy promoting the benefits of drinking tea and disadvantages of. al. v i n C h through ourUadvertising campaigns. their mind, we will offer more information engchi n. consuming other regular soft drinks. Once we have helped the consumer create a category in. Brand recognition – This is our image in the mind of our consumers. We want to create a top of mind awareness by exposing consumers as much as possible with our brand logo in our packaging, products, and social media,. Attitude – Promoting a positive attitude to our brand is highly essential. Especially in the 6. Source: https://www.consumerpsychologist.com/cb_Decision_Making.html. 22.

(34) `. beginning we must identify what the consumer’s needs and preferences are so we can create a product that stimulates a positive attitude with our products. Confidence – This is what determines whether the product is going to be purchased or not. It can be really affected by the feedback of other consumers (word of mouth) or even recommendation. In this case once the innovators come and try our products, they could spread the word to others and recommend our products.. 治政大is going to buy the product or not. Intention - this is what determines whether the consumer 立 The intention plus the other previous factors mentioned will influence the consumer and if we ‧ 國. 學. leverage the previous factors we increase the chances of our consumers to purchase our. er. io. sit. y. Nat. 5.4. Product. ‧. products.. Crea8tive Tea offers Bubble Tea with an assortment of base flavors such as tea, fresh local fruits,. n. al. Ch. i n U. v. coffee, and milk. We will also provide a new combination of a fusion drink with tea and coffee.. engchi. Besides drinks we will be also offering Hong Kong Waffles (雞蛋仔).including toppings such as tapioca pearls and ice cream. Below will be our following offerings:. . Bubble Tea. The ingredients from the bubble tea will be mixed with natural ingredients such as imported Tea, local fresh fruit, milk, and coffee. We will be dividing bubble tea into 5 categories: –. Milk: Will include local natural milk with green tea or black tea.. –. Ice Tea: Straight fruit flavors without milk. 23.

(35) `. –. Fruit Milky Drink: A drink with milk and fruit flavors (Does not include tea).. –. Coffee & Tea Fusion: A mixture of both coffee and tea leaves plus crushed ice to give daring flavor. –. Coffee: Premium local coffee will be used for those who love coffee.. To have more of an idea on how our products would look like by using natural ingredients please see Figure 3.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 3 Assortment of Bubble Tea Flavors . Hong Kong Ice Cream Waffle. The ingredients of the Hong Kong waffle are eggs, sugar, flour, and evaporated milk. Our dessert will include tapioca pearls, cookie straws and ice cream. We will be also offering additional toppings such as Oreos, star cookies, different ice cream flavors just to name a few. As for Figure 4 and 5 Hong Kong Waffles will have two different kind of presentations. On a plate when a client orders for dining in or in a recyclable cardboard holder for take-out.. 24.

(36) `. 政治大. 立 Figure 4 Hong Kong Waffle ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 5 Hong Kong Waffle served on a Plate. 5.5. Packaging While our current three competitors offer plastic bottles. We will differentiate ourselves when they want to dine in; we will serve bubble tea with an 8oz “light bulb” shaped glass portraying a more upscale feeling. Figure 6 shows how our bubble tea light bulbs will be – the base of the. 25.

(37) `. bulb will be flat so it can stay firm like a regular glass cup and will have the logo of our company.. 立. 政治大. ‧ 國. 學 Figure 6 Product Serving Example. ‧ y. Nat. sit. When the customer decides for take-out we will be Bisphenol A (BPA) free cups with our logo. n. al. er. io. included. BPA is an industrial chemical that is commonly found in plastic that with prolonged. i n U. v. use can have cancerogenous effects to our health.7 Figure 7 shows BPA free plastic cups that. Ch. engchi. will be used to serve our bubble tea including an assortment of straws with different colors.. 7. Source: http://www.medicalnewstoday.com/articles/221205.php. 26.

(38) `. 政治大. Figure 7 Product Serving Example. 立. ‧. ‧ 國. 學. For our Hong Kong Waffle we will be offering a premium recycled-based holder. The base of. y. sit. io. n. al. er. below).. Nat. the holder will be flat so it can stand still when placed on the table (Please refer to Figure 8. Ch. engchi. i n U. v. Figure 8 Hong Kong Waffle Serving Example. 27.

(39) `. 5.6. Competitive Advantage The main competitive advantage that Crea8tive Tea offers is that our products will be of high quality, natural, and innovative. In comparison, other bubble tea shops do not offer Hong Kong waffles and use powders to prepare their drinks. There are not any products with these characteristics and the desserts we will offer give us an advantage. Since we will be the first one’s targeting the non-Asian market we can become first mover because other bubble tea. 政治大. shops only target Asians. This will allow us to obtain more market share and create customer loyalty.. 學. ‧ 國. 立. 5.7. Pricing and Positioning Strategy. ‧. In order to establish an appropriate pricing strategy, it is important to keep into consideration. sit. y. Nat. our costs. For most businesses in the food and dessert industry, the main costs are the following:. io Brand Size. al. n. our competitors:. er. raw materials, operating costs, and managing inventory. Also we have to compare the prices of. v i n C h 3 Competitor’sUPrices Table e n g c h i Price Regular size 500cc. Large size 700cc. Mr. Boba Tea. US$3.25. US$3.75.. Yo & Tea Zone. US$3.50. US$4.25. Bakery & Café 888. US$3.00. US$3.75. Since we want to position ourselves as a premium product, our regular size 500cc will be priced at US$ 4.50 and our large size 700cc at US$ 5.00. The price is about 50% to 65% higher from the lowest price offered in the market, which is US$ 3.00 for the regular size 500cc offered by. 28.

(40) `. Mr. Boba Tea. For our Ice Cream Hong Kong Waffle, we are going to sell each for US$ 5.75. For extra toppings it would be an additional US$ 0.50 Cents.. 5.8. Positioning Map Crea8tive Tea positioning strategy can be successful if it delivers the value promised to the. 治政 products. Through the right marketing strategy and promoting 大 brand awareness we can position 立 ourselves as a premium bubble tea and dessert brand in the mind of the consumers. Based on a. consumer. We only chose competitors that offer bubble tea that could become a substitute to our. ‧ 國. 學. local marketing survey, focusing on these three factors will make Crea8tive Tea stand out from. ‧. the competition, which is taste, quality, and location.. y. Nat. er. io. sit. On the following perceptual map, we decided to choose the high quality and price quadrant because we are looking for consumers that are looking for a variety seeking behavior when. n. al. Ch. i n U. v. trying out new kinds of beverages and desserts. As a matter of fact, our advertising campaigns. engchi. will be promoted in a way that will motivate other customers that already have a habitual behavior. On this map we see the following brands, Mr. Boba, Yo & Tea Zone, and iBakery 888 – in between medium-low quality of bubble tea. Out of those three, iBakery 888 has the lowest quality and price because their main business is actually their bakery and bubble tea is a complementary offering. In terms of quality, Mr.Boba offers a better bubble tea, but many of their ingredients are powdered based. Besides bubble tea they also offer side dishes including sushi and fried chicken.. 29.

(41) `. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 9 Picture of Yo & Tea Zone Bubble Tea Shop. Yo & Tea Zone offers the highest priced bubble tea, but their quality is about the same with Mr. Boba as they also use powders to prepare their drinks. Please refer to Figure 9 as reference.. 30.

(42) `. 立. 政治大. ‧. ‧ 國. 學 er. io. sit. y. Nat. al. n. Figure 10 Perceptual Positioning Map. Ch. engchi. i n U. v. Finally Crea8tive Tea is the only one that offers the highest quality with its natural, healthy, and unique flavor. Just the kind of product it would be positioned as a premium product in the mind of high-end customers. Since there is a gap between quality and price there is a market that is not yet served. Hence, we have an opportunity of attracting the demand of non-Asian customers by being the first player in the segment.. 5.9. Location In order to make this business successful, one of the most important factors is the location. The. 31.

(43) `. market segment, surrounding area, and businesses nearby will greatly affect the success and the image the brand will get. When opening a bubble tea shop it is important to choose a mall that has easy access to our target segment. The ideal location for the store is in Condado Del Rey, which is a residential area with a large Asian community, locals, and tourists. The Bubble Tea shop will have a stand-alone store in the food court of the newest mall called Alta Plaza. This mall is also known for having famous restaurants and retail stores. Figure 11 shows that the. 治政 neighborhood that attracts many consumers to stop at the大 mall. 立. location of the mall is found right next to most frequented highways and a high-end. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 11 Map location of Alta Plaza Mall Bubble Tea Store It is located in a strategic position because it has a high-traffic area that is next to the highway connecting the west and east side of Panama. This highway is used normally to travel to the. 32.

(44) `. beach and many locals and tourists normally stop at the gas station near the Alta Plaza mall so on their way, they also visit the mall. There are also plenty of residential areas, universities and other commercial malls nearby. In addition, this area is a middle-high to high class area with a Chinese and Panamanian community that have more sophisticated preferences for trying new kinds of foods. Also, the presence of other surrounding businesses increases the amount of potential customers.. 立. 5.10. Promotion Strategy. 政治大. ‧ 國. . 學. 5.10.1. Pull Marketing. Online Marketing. Our main focus for attracting customers is through the use of. ‧. internet. The following section will have a more detailed explanation. In Store Promotional Brochures. During the beginning we will advertise our. sit. y. Nat. . io. al. v i n C will recommend our products offer, consumers h e n g c h i U products by word of mouth. Since Word of mouth. Because of our unique high quality and natural features that our. n. . er. products with brochures offering promotions so customers can bring more friends.. Panama has an all year round hot climate people look for drinks to get hydrated. . Appealing Product Packaging. When a customer decides to consume our products at the store, our “light bulb” shaped cups will have a different impact influencing the perception of our brand as a company who stands out attracting more potential customer’s attention.. 33.

(45) `. . Public Relations. We plan to promote our brand through local TV talk shows. For example: morning news channel such as Telemetro, RPC and TV that are most widely watched.. 5.10.2. Push Marketing . Product Sampling. We will do product sampling in the food court during peak hours that is the time when most consumers come for lunch or dinner. This strategy will. 政治大. create awareness of our brand between consumers.. 立. Promotions. We will distribute coupons to users during the introduction of the. 學. ‧ 國. . business with promotion such as buy two drinks and get one additional free drink or dessert.. ‧. 5.11. Online Marketing Strategy. y. Nat. io. sit. 5.11.1. Content Marketing. n. al. er. Creating a webpage is one of the most important ways of giving an image to our business if we. Ch. i n U. v. want to position ourselves in the premium segment. In this webpage we will offer different. engchi. kinds of content such as product information, detailed nutritional information, rewards program, and social media marketing campaigns. This will help attract more traffic to the website and build reputation. Ultimately, we want to position ourselves as a product that offers the freshest Bubble Tea using only the finest ingredients positioning ourselves as a premium product promoting more e-mail sign ups.. 5.11.2. Email Marketing Consumers will be able to sign up to our weekly newsletter keeping them on the loop for. 34.

(46) `. information about the latest promotion, new product, and news. This will help us build more trust with the consumers and be present in their mind. Whenever we have new information we will send new product information and promotions to those who are in our customer database as our first priority. This in terms will create more expectations and anticipation to spread the word of mouth to others who have not signed up the newsletter.. 治政 Since the registration of most social networks are free 大we will use multiple social media 立 platforms such as Facebook, Twitter, and Instagram which are the most used social applications 5.11.3. Social Media Marketing. ‧. ‧ 國. 學. in Panama.. According to La Estrella Panama, a local newspaper, a survey conducted by DataAnalisis –. y. Nat. io. sit. Tendencias Digitales states that 79% of the Panamanian population access social media on a. n. al. er. regular basis.8 In addition, 74% of consumer’s decisions are based on social media. We could. Ch. i n U. v. say that traditional advertising is needed for creating a need, but social media has become an. engchi. important part of the stage of decision making and evaluation of the customer. Hence, it is important to increase our online presence as much as we can to promote our brand.. . Facebook. This is our main social platform that we will be using to promote our brand. We will be posting pictures of our bubble tea and desserts, and clients tasting our products. Furthermore, engaging with the community is another strategy that will be used through. 8. Source: http://www.datanalisis.com/tag/tendencias-digitales/. 35.

(47) `. different activities. Such as inviting different users to create new bubble tea flavors and the flavor with most likes would be used to introduce a new product and in exchange the participant would get free giveaways. Facebook will also allow customers to follow us, like our pictures, and contact us. . Twitter. Crea8tive Ice Twitter account will allow us to quickly connect with our customers. We can use this platform to promote our brand and products. In addition we will share. 治政 why consuming natural products are beneficial in the 大long run. 立 Instagram. Since this platform is based on pictures, this will allow us to promote our. news about the newest trends about bubble tea worldwide and educate the customers of. 學. ‧ 國. . brand with more visual content. We will be sharing posts of our products, customer’s posts,. followers.. ‧. and the winner of competitions, and information about products to further educate our. n. al. Ch. er. io. sit. y. Nat 5.11.4. Advertising & Small Sponsoring Events. i n U. v. During the introduction of the business we plan to heavily invest on ads to attract the attention. engchi. of potential customers through the use of flyers and public events to promote our brand and products. Advertising flyers will be given out in shopping malls during peak times promoting seasonal offers with discounts or limited time products to keep the consumer coming back for more. For public events we can have presence during school or different local activities providing our services with our products. In addition, for the health conscious segment our flyer will also contain information highlighting the benefits of our products showing what natural ingredients are used and how many calories each drink has.. 36.

(48) `. 5.11.5. Social Media Strategies . Inviting local celebrities and bloggers. By inviting local celebrities that already have many followers to try our bubble tea and Hong Kong waffle can help promote our brand image through the use of their public profiles. Newspapers and magazines. By having local newspapers and magazines write articles about our innovative drinks and desserts will be able to reach out to more people who rely. 政治大. on other sources of reliable information before trying out a new product attracting their attention.. 立. 學 ‧. ‧ 國 io. sit. y. Nat. n. al. er. . Ch. engchi. 37. i n U. v.

(49) `. Strategic Planning 6.1.1. External Analysis The industry that Crea8tive Tea will be is in the beverage and dessert Industry. Currently there are three direct competitors that sell bubble tea. For our Hong Kong Waffles, there are no direct competitors who sell our products as they are new in the market. However frozen yogurt, ice cream, and dessert crêpes could be considered as competitors for Crea8tive Tea.. 立. 政治大. 6.1.2. Porter’s Five Forces Analysis. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 12 Porter’s Five Forces Analysis. 38.

(50) `. 6.1.3. Threat of Entry by Potential Competitors In the beverage and dessert industry, customer switching costs is not that predominant. They can easily switch to other brands easily unless they want to try another particular kind of dessert. Customers are also used to eat at the same places due to familiarity and their reputation. Since our specialty is selling bubble tea and unique desserts this would be difficult for new entrants to enter the market since we offer bubble tea and unique desserts targeting the non-Asian. 政治大. population increasing chances of building brand loyalty and maximizing our market share.. 立. ‧ 國. 學. 6.1.4. Rivalry among Established Companies. There are no big differences between the three competitors. One notable factor is that all the. ‧. competitors prepare their bubble tea drinks with artificial powders, additives and offer the same. sit. y. Nat. flavors .Crea8tive Tea main differentiation factor will its innovation, natural and unique flavors. io. er. that we will be highlighted with our marketing strategy. However, the main differences that Mr.. al. v i n C h their specialty isUproducing bread and pastries. iBakery 888 they have a bakery where engchi n. Boba offers are their side dishes such sushi, fried chicken, and French fries to name a few. For. 6.1.5. Bargaining Power of Buyers Due to the limited amount of consumers the level of risk that we have is moderately high. That is because if our customer’s do not like our products, they can choose another alternative / substitute.. 39.

(51) `. 6.1.6. Bargaining Power of Supplies The bargaining power of suppliers would be low because bubble tea ingredients such as tea can be acquired in Taiwan, China, or local suppliers due to the presence of a big Chinese community. Hence, the cost of switching to another supplier is mainly low. In addition, since Panama’s agriculture is one of the main economies other natural ingredients such as fruits, milk, and coffee beans can provide fresh and organic products so the bargaining power of suppliers and farmers is low.. 立. 政治大. 6.1.7. Substitute Products. ‧ 國. 學. Since bubble tea is a drink, our main substitute product would be soft drinks. We are going to be. ‧. offering drinks based with juice, tea, and coffee so the power of substitute products is moderate. On the aspect of desserts, people could switch to other recognized dessert brands like Hagen. y. Nat. er. io. sit. Das, Starbucks, or TCBY. Since we have many substitute products available, we are going to give a strong focus on our marketing efforts in terms of quality, innovation, and uniqueness so. n. al. customers can switch products.. Ch. engchi. i n U. v. 6.2. Internal Analysis (Competencies and Competitive Advantage) One of our main intangible assets that Crea8tive Tea has is the marketing experience that the founders possess. Thanks to this we will be able to maximize our marketing efforts to create a strong premium brand image, increase brand awareness, and obtain higher customer retention. Also, with this marketing expertise we are going to become the first movers in the premium bubble tea category and targeting a new customer segment, which is the non-Asian community giving us the freedom to set the prices and the industry standard.. 40.

(52) `. 6.3. SWOT Map. 立. 政治大. y. ‧. ‧ 國. 學 sit. io. n. al. er. Nat. Figure 13 Crea8tive Tea SWOT Map. i n U. v. Crea8tive Tea main weakness has to do with the particularities of introducing a new product. In. Ch. engchi. Panama besides the Asian community, many do not know about the bubble tea beverage. Also, the tea culture is currently growing due to health benefits, but it still has not got to the point where everybody still drinks coffee. Nonetheless, because of our Marketing Know-How we should not have any issues growing the brand and influencing customers to develop a new taste.. On the other hand, the high quality and natural ingredients that are used to make our products plus our premium packaging and presentation will help us position ourselves in the premium segment. We can also see how this new target segment that has not been focused on before. 41.

(53) `. reacts to this new kind of product. The bright side is that in Panama, the middle to high class consumer is keen on trying new things.. As many opportunities that we have introducing a new product, there are also threats that we must take into consideration in order to keep it at its minimum. Consumers might not get used to bubble tea in the beginning and might want to switch to other known drinks, but fortunately,. 治政 Panamanians we can position in the mind of the consumer 大立. with our marketing know-how and offering other flavors that are catered to non-Chinese. ‧ 國. 學. 6.4. Business Level Strategy. ‧. Cre8tive Tea will use a different focus strategy by offering unique characteristics that other competitors do not have. We focus on this strategy because our main market segments are:. y. Nat. er. io. sit. Asians and Non-Asians. All of them will range from medium to high class. Our customer service and engagement with the customer by executing different marketing efforts will be the. n. al. Ch. i n U. v. main differentiation factor. In the end, this will create a premium product with an exceptional service in the mind of the consumers.. engchi. 6.5. Product Development Depending on how the market receives our products we will do further modifications of our products based on the customer’s feedback. This in terms will gain customer confidence and credibility that we are always striving to make the best products out there.. 42.

(54) `. 6.6. Market Development Finally, as stated in the opportunities, once we have a well-positioned product and high brand awareness, we can enter other areas of the city and then expand to another province. If everything goes well we plan to expand to other neighboring countries and franchise our business.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 43. i n U. v.

(55) `. Financial Plan The following assumptions were made when creating the projected financial statements:  Owners Capital: US$ 50,000 will be used to cover working capital and a percentage of the Initial Investment. This will be split into two since the investment is going to be done by the owner and a business partner.  The capital will be used to buy equipment, raw material, rent, plant and equipment in. 政治大. order to start operations. This will be used to cover all expenses of the startup. 立. including operational permits, legal fees, and miscellaneous fees.. ‧ 國. 學.  Property, plant and equipment were depreciated using the straight line depreciation method. The useful life will depend of the nature of the equipment. Most equipment. ‧. will have 5 years as their useful life while the commercial blender, LED Screen,. y. Nat. sit. Commercial Tea Jug, and the POS system will have 2 years.. n. al. er. io.  During the first year of the operation, we will be hiring one person to help with the. i n U. v. preparation and a part time administrative assistant. Starting from year 2, we will hire. Ch. engchi. an additional administrative assistant..  The cost of goods sold is determined to be 27% of sales price which is US$ 1.43 per unit. Due to the economy and inflation for forecasting purposes, the cost per unit will increase each year by 3% and our selling price will increase by 4%.  Since our drinks and desserts has different ingredients and we project that the demand for some flavors the demand will be higher compared to others. However, for the purpose of creating the proforma we plan to have an average estimate cost for preparation.. 44.

(56) `.  The Government and authority of SME’s (PYME) in Panama encourages business owners by giving benefits such as tax exemption, preferential interest rates for rent and interest. Crea8tive Tea would fall into the SME category giving perks such as reducing the costs of taxes, interest rates, and others. In this case, according to the local SME’s laws if we earn less than US$250,000 per year we are tax exempt for 5 years.  In year 1, we forecasted that we will have 3,000 unit sales since we start operations. 治政 will be increasing each year by 10%. (See Unit 大 Sales and Sales Forecast in Appendix). 立 during November and during year 2 18,000 units. From year 2 we believe that our sales. ‧ 國. 學. 7.1. Start-Up Budget. The following is the summary of the start-up budget. A detail can be found in Appendix 1.. ‧. Table 4 Initial Capital Investment Table. y. Investment Per Partner. $25,000.00. al. 2. er. io. Number of Business Partners. sit. Nat. Initial Capital Investment. Total initial investment. $50,000.00. n. v ni. Ch. i U e h n c g Table 5 Initial Investment Summary Initial Expenses Summary Facility (6 months payment). $15,000.00. Inventory. $1,000.00. Equipment. $8,000.00. Utensils. $1,000.00. License and permit fees. $1,000.00. Furniture. $2,000.00. Total initial investment. $28,000.00. 45.

(57) `.  The total investment required is approximately $28,000 and the remaining US$ 22,000 will be used as a reserve capital for any contingencies.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 46. i n U. v.

(58) er. sit. y. ‧ 國. 8,000.00. 38,000.00. n. Shareholders' Equity. Equity. Liabilities and Equity. As of November 4, 2017. $. $. io. EQUITY. TOTAL LIABILITIES AND. Nat 46,000.00. engchi. `. ‧Tea, LLC Crea8tive 學Initial Balance Sheet. Table 6 Crea8tive Tea LLC Initial Balance Sheet. 7.2. Projected Initial Balance Sheet. Assets Current Assets. $22,000.00 $ 1,000.00 $15,000.00. $ 8,000.00. $. 47. v Ch. Cash Inventory Rent paid in advance Non-Current Assets Property, Plant, and Equipment. TOTAL ASSETS. 立. i n U. al. 政治大. $. $. 46,000.00. 46,000.00.

(59) sit. y. ‧. er Nat. 2019 113,503.10 30,008.31 83,494.79 10,800.00 2,438.00 31,500.00 4,000.00 6,000.00 1,000.00 2,111.11 25,645.68 7,693.70 17,951.98. Table 7 Yearly Estimated Income Statement. 學. 2,290.00 21,120.29 6,336.09 14,784.20. -. -. 2018 99,216.00 26,485.71 72,730.29 7,200.00 2,120.00 30,000.00 4,000.00 6,000.00. $ $ $ $ $ $ $ $ $ $ $ $ $ $. ‧ 國. `. 7.3. Income Statement. Crea8tive Tea, LLC. $ $ $ $ $ $ $ $. $ $. $ $ $ $. $ $ $ $ $ $ $ $ $ $ $ $ $ $. n. 2020 129,847.55 33,999.42 95,848.13 11,340.00 2,559.90 33,075.00 4,000.00 6,000.00 1,140.00 37,733.23 11,319.97 26,413.26. engchi. Yearly Estimated Income Statement from 2017 to 2022 2017 $ 15,900.00 $ 4,285.71 $ 11,614.29 $ 1,200.00 $ 176.67 $ 5,000.00 $ 666.67 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 356.22 $ 1,214.73 $ 364.42 $ 850.31. 48. v Ch. 7.4. Sales Cost of Goods Sold Gross profit Wages expense Utilities expense Rent expense Advertising Other Marketing Expenses Start-up Expenses Utensils Depreciation Income before income tax Income tax (30%) Net income. 立. i n U. io. al. 政治大. $ $ $ $ $ $ $ $ $ $ $ $ $ $. 2021 148,545.60 38,521.34 110,024.26 11,907.00 2,687.90 34,728.75 4,000.00 6,000.00 1,000.00 1,140.00 48,560.61 14,568.18 33,992.43. 2022 $ 169,936.16 $ 43,644.68 $ 126,291.48 $ 12,502.35 $ 2,822.29 $ 36,465.19 $ 4,000.00 $ 6,000.00 $ $ $ 962.67 $ 63,538.99 $ 19,061.70 $ 44,477.29.

(60) er. sit 99,216.00. $ $ $ $. $. (30,008.31) (55,738.00) (7,693.70) 20,063.09. 113,503.10. $ $ $ $. $. y. Table 8 Estimated Cash Flows. ‧. $. (26,485.71) (49,320.00) (6,336.09) 17,074.20. ‧ 國. `. Cash Flow. Crea8tive Tea, LLC. 學. Yearly Estimated Statement of Cash Flow from 2017 to 2021. 15,900.00. $ $ $ $. 2019. $. (1,000.00) (10,043.33) 4,856.67. 2018. $ $ $ $. $. $ $. -. i o-. n. 33,284.64 51,236.62. at N $. $ (2,111.11) $ (2,111.11) $. 18,500.44 33,284.64. -. $ (2,290.00) $ (2,290.00) $. $ $. $ $. (8,000.00) $ (356.22) $ (8,356.22) $. 22,000.00 18,500.44. 49. $ $. $ $. al. $. 169,936.16. 2022. 148,545.60. (43,644.68) (61,789.83) (19,061.70) 45,439.96. 2021 $. $ $ $ $. 2020 129,847.55. (38,521.34) (60,323.65) (14,568.18) 35,132.43. 111,642.31 156,119.60. -. (962.67) (962.67). $ $ $ $. $ $. -. $ $. $ $. $ (1,140.00) $ (1,140.00) $. (33,999.42) (56,974.90) (11,319.97) 27,553.26. 51,236.62 77,649.88. $ 77,649.88 $ 111,642.31. $ (1,140.00) $ (1,140.00) $. Ch. engchi. 2017. v i n U. $ $ $. $ $ $ $. 立. Cash Flow from operating activities Cash collected from customers Cash paid for Purchasing inventory Operating and admin expenses Tax Net cash from operating activities Cash flows from investing activities Cash paid for property, plant and equip Depreciation Expense Net cash from investing activities Cash flows from financing activities Increase (decrease) in short term loans Net cash from financing activities Cash and Equivalents, Beginning of Period Cash and Equivalents, End of Period. 政治大.

(61) er. sit. y. ‧. ‧ 國 50. Nat. v. n. Ch. engchi. i n U. io. al. `. 7.5. Profitability Analysis. 學. Table 9 Crea8tive Tea Net Present Value and Internal Rate of Return. Crea8tive Tea, LLC. 立. Profitability Analysis 2017 2018 2019 2020 2021 2022 Period 0 1 2 3 4 5 Cash and Equivalents, End of Period $ (28,000.00) $ 18,500.44 $ 33,284.64 $ 51,236.62 $ 77,649.88 $ 111,642.31 Present Value $ (28,000.00) $ 18,137.69 $ 31,992.16 $ 48,281.41 $ 71,736.49 $ 101,117.88 Discount Rate 2% Net Present Value $ 219,497.62 Internal Rate of Return 108%. 政治大.

(62) `. 7.6. Break Even Analysis. sit. y. A break even analysis is necessary in order to find the minimum amount of sales that we need for not losing money. In other words, it. ‧. er. is an equilibrium point where revenue equals the cost. Below is the following formula:. 學. 𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡𝑠 𝑈𝑛𝑖𝑡 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝑈𝑛𝑖𝑡 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡𝑠. v. i n U. We can see on the table below that fixed cost increases mainly due to an increase in wages and utilities. Also the unit selling price and. 𝑈𝑛𝑖𝑡 𝑏𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑣𝑜𝑙𝑢𝑚𝑒 =. 政治大. variable cost increases because of the influence of inflation and other economic factors. A 6 year breakeven forecast was made to. engchi. ‧ 國 2018 $ 49,320.00 $ 5.51 $ 1.65 12,783 $ 70,457.14. io. n. 2019 $ 54,738.00 $ 5.73 $ 1.72 13,641 $ 78,197.14. Nat. Table 10 Break-Even Analysis. 2017 $ 8,043.33 $ 5.30 $ 1.59 2,168 $ 11,490.48. 51. 2020 $ 56,974.90 $ 5.96 $ 1.79 13,652 $ 81,392.71. al. Ch. 2021 $ 59,323.65 $ 6.20 $ 1.86 13,668 $ 84,748.06. $ $ $. $. 2022 61,789.83 6.45 1.93 13,689 88,271.18. estimate how many units we need sell each year. The dollar break-even was obtained by multiplying the unit break-even by the unit price.. Crea8tive Tea, LLC Break-even Analysis Total Fixed Cost Unit Selling Price Unit Variable Cost Unit Break Even Dollar Break Even. 立.