Situation Analysis Chapter 2: Project Profile

2.1 Product Name

Gong Cha Bubble Tea

2.2 Product Classification

Gong Cha is a bubble tea chain that was established in Kaohsiung, Taiwan in 2006 that only uses high-quality tea leaves that are brewed fresh on a daily basis.

2.3 Product Characteristic

Food and beverages

Name of products	Packaging	Retail Price	Unit of sale
House Special Tea	Sealed Plastic Cup	RM5.90	Per cup
Brewed Tea	Sealed Plastic Cup	RM3.90 – RM4.90	Per cup
Milk Tea	Sealed Plastic Cup	RM4.90 – RM6.90	Per cup
Health Tea	Sealed Plastic Cup	RM4.90 – RM 6.50	Per cup
Coffee	Sealed Plastic Cup	RM6.90	Per cup

2.4 Product Range

 2.5 Distribution

This product is distributed directly. Gong Cha has its own outlets where they are selling products by dealing directly with consumers rather than through intermediaries.

2.6 Product Life Cycle

2.7 The Brand

Gong Cha is a bubble tea chain from Taiwan that was introduced by Teafe(M) Sdn Bhd to Malaysia in 2010, targeting teenagers and young adults who loves bubble tea but at the same time are health conscious. Gong Cha has 5 different series of tea and coffee and a total of 35 flavors to choose from.

Gong Cha gives their customers the chance to select the sugar and ice options and also extra add-ons according to their liking making it more personal. What makes Gong Cha stands out from its competitors is instead of using flavor powders, they uses high quality tea leaves that are brewed fresh on a daily basis and changes it every 4 hours. Besides, Gong Cha has another specialty which is the White Pearl. White Pearl is made from seaweed extract and lower in calories compared to the black pearl made from tapioca so it is definitely a healthier alternative.

 2.8 Brand Image and Implication

The brand is still in its introduction stage so the brand awareness is relatively much lower than its major competitors. The brand image that Gong Cha is trying to portray is a more oriental and sophisticated feel that will separate them from the competitors.

2.9 Strength and Weakness

Strengths

·         Freshly brewed tea leaves.

·           High-grade ultraviolet filters.

·          Signature creamy layer of fresh milk foam.

·          Seaweed extracts white pearls.

·          Cheaper price compare to competitors.

·          Sugar and ice options.

Weaknesses

·         Fewer outlets in Malaysia.

·         Lack of variety in flavor.

·         Has not advertised extensively in Malaysia.

·         Indistinguishable packaging to other competitors, thus creating confusion among consumers.

2.10 Advantages and Disadvantages

Advantages

·         No artificial coloring and flavoring.

·         Free from harmful bacteria.

·         Creamier texture.

·         Lower in calorie.

·         Very affordable.

Disadvantages

·         Low accessibility

·         Consumers have less choice

·         Not as well known as its competitors

2.11 Unique Selling Proposition (USP)

Gong Cha Signature Tea with freshly brewed tea topped with generous, creamy layer of fresh milk foam which can be drink in 3 different ways.

2.12 Promotional History and Advertising Schedule 

·     December 2011 – Official Sponsor for the movie “Already Famous”.

·     November 2011 – The Gardens Mall’s “Swig & Swag Afternoon”.

·     July 2011 – My Fm, Mix Fm and Hitz Fm Sponsorship. These Radio Stations gave out vouchers through call-in and the cruisers team that appears in random places.

·     June 2011 – Sponsor of the “Lights On” street dance showdown 2011.

 

2.13 Positioning Statement 

Gong Cha is a bubble tea chain that offers a signature tea with freshly brewed tea topped with generous, creamy layer of fresh milk foam which can be drink in 3 different ways, targeting on adults at the age of 21-35 years old who have a refined taste.