Bubble tea market opportunity identification

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Opportunity Identification

In order to determine the best market to enter, it is necessary to operate a screening process on a global scale. This multi stage screening process will be based upon relevant criteria according to our international objectives for the export of the Bubble Tea.

1st screening

As a preliminary screening, we picked 5 criteria to cream off the countries on which wewill focus our attention. The objective is to eliminate the countries in which the product implementation is either unprofitable or unfeasible.

The 5 criteria are the following: Urbanization level, GDP, HDI, Happiness level and percentage of young population. The relevance of each criterion will be explained further in the exercise.

1st criterion: urbanization level

The choice of thiscriterion is justified by the mode of consumption of Bubble Tea. As a matter of fact, the average consumer is a city dweller, who buys his drink next to school/company, during shopping time or on his way to work. Therefore, in order to reach the largest percentage of the country population possible, we must aim at urbanized countries. Moreover, since Bubble Tea is an inessential feature, we need toeliminate the developing countries, and urbanization level is a valuable indicator of a country’s development. We decided to select the country with a percentage of people living in urban area above or equal to 60.


Countries remaining: 92

2nd criterion: GDP

We rationed that only high income countries, with a relative good standard of living would spend money in a soft drink,which is a “luxury” purchase. Taiwan’s GDP per capita is $28010. We decided to select the countries which GDP per capita is at least half of Taiwan’s (countries with a GDP per capita >= $14005). Lower income countries are not optimum target market to enter since the Bubble Tea would just interest wealthy elite.


Countries remaining: 33

3rd criterion: HDI

Next, we assumed that the HDI,the standard means of measuring human development combining health, education and standard of living was an appropriate indicator. Indeed the country to which we will export our Bubble Tea needs to have a significant way of life. People should have no serious concern (Bubble Tea is not a product responding to a primary need), and should be able to afford that drink. Taiwan HDI is 0.932,therefore, we decided to select the countries with an HDI more or less equivalent (or superior) to Taiwan. Thus, we selected the countries with an HDI >=0.9


Countries remaining: 24

4th criterion: Happiness level

Bubble tea, with its eye catching packaging and innovative concept, is a product positioned as being fun. Chewing the tapioca pearls and swallowing the drink at the same time isa unique experience and we assumed that the happiness level would be a good indicator of how the product would be received by a given population. Indeed, unhappy people may not have the same consideration as happy people, who would be more disposed to buy a drink like the Bubble tea. The range selected is a Happiness level > 50%.


Countries remaining: 22

5th criterion: percentage ofyoung population

This criterion is in relation with our target. Regarding our positioning strategy, we aim at capturing the young population market. As a matter of fact, the major part of Bubble Tea consumers is composed of young people, especially teenagers and young adults. The larger the young population, the better. The range of population we selected is people from 15 to 29, the agebracket that we assume is the more respondent to our marketing effort to promote Bubble Tea. The average of the already selected countries is 19% of people between 15 and 29 in the national population. In order to select the youngest countries, we eliminated the countries with a 15-29 population percentage below 18%.

Countries remaining: 17

⇨ After our first screening, we have 17 countries...