Bubble tea market opportunity identification
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Opportunity IdentificationIn 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 we will 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 this criterion 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 to eliminate 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.
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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.
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Countries remaining: 33
3rd criterion: HDI
Next, we assumed that the HDI,