Situation Analysis Chapter 9: Research Development

9.1  Marketplace Research

Gong Cha @ Subang Jaya SS15

I have visited all 3 outlets of Gong Cha in Malaysia to research on Gong Cha regarding its kiosk or outlet placement and product price. The 3 outlets are at Subang Jaya SS15, The Gardens Mall and KLCC.

 

Besides, I also purchased bubble tea from its competitors to for reviewing purpose.

9.2  Marketplace Observation

Besides observing the kiosk and outlet placement and the product price, I also observed the market of Gong Cha in the weekend during peak and off-peak hours. Following are the findings:

	Gong Cha Subang Jaya SS15	Gong Cha The Gardens Mall	Gong Cha KLCC
Off peak hour (3.00pm – 4.00pm)	26	42	37
Peak hour (7.00pm – 8.00pm)	73	104	98

9.3  Online Survey

The online survey was conducted from 14^th to 18^th of November 2011, with a total of 71 participants. The purpose of this survey is to investigate on the consumer perception on bubble tea and consumer perception towards Gong Cha.

Question 1 – What is your gender?

Male - 56%

Female - 44%

Question 2 – What is your age group?

12 - 16 years old - 3%
17 - 21 years old - 41%
22 - 26 years old - 49%
27 - 31 years old - 1%
32 and above - 6%

Question 3 – What is your income?

RM1 - RM1000 - 65%
RM1001 - RM2000 -  8%
RM2001 - RM3000 - 15%
RM3000 - RM4000 - 6%
RM4001 and above - 6%

Question 4 – What is your race?

Chinese - 79%
Malay - 9%
Indian - 6%
Others - 6%

Question 5 – Have you ever tried bubble tea?

Yes - 94%
No - 6%

This question investigates on how many people have tried bubble tea before. The result shows that 94% of the responder has tried bubble tea before and a mere 6% has not. Those who have not tried bubble tea are mostly in the age group of 32 and above.

Question 6 – How often do you drink bubble tea?

Daily - 1%
Several times a week - 3%
Once a week - 6%
Several times a month - 35%
Once a month - 41%
I don't like bubble tea - 14%

This question investigates on bubble tea consumption rate among the responders. It shows that 1% of the responders consumers bubble on a daily basis while 3% several times a week and 6% every once a week. The majority with 35% consume several times a month and 41% every once a month. There are a total of 14% who state that they don’t like bubble tea.

Question 7– How long have you been drinking bubble tea?

Less than a week - 8%

Less than a month - 8%

A month to 6 months - 28%

More than 6 months - 56%

This question investigates when do the responders start drinking bubble tea. A lot of these responders which is 55% have been drinking for more than 6 months which mean even before the bubble tea trend started. The other 45% which started to drink bubble tea for a month to 6 months, less than a month and less than a week. This shows that the latest bubble tea craze brought back more old bubble tea lover than attracting new customers.

Question 8– Why do you drink bubble tea?

As a dessert - 6%

For thirst or hunger -29%

You crave it - 10%

Because it's available - 31%

Others - 24%

This question studies the reason why responders drink bubble tea. 32% of the responders drink bubble tea because they crave for it and 30% take it as a dessert. The other 25% stated that they drink because it is available, 11% drink for thirst or hunger and 1% for other reasons.

Question 9– What is your favorite brand?

Gong Cha - 25%

Chatime - 59%

Dong Cha - 8%

Ochado - 7%

Others - 1%

This question is to analysis what the favorite brand of bubble tea among responders. As predicted, Chatime is the leading brand with most percentage which is 49% while Gong Cha has 21%. Other brands have 17% and latest brand to arrive in Malaysia which is Dong Cha and Ochado and 7% and 6% respectively..

Question 10– What do you consider while purchasing a bubble tea?
Brand - 1%
Taste - 6%
Accessibility - 63%
Quality - 20%
Quantity - 68%
Price - 25%
Advertising - 85%
Others - 30%

This question studies what are the factors that responders consider while purchasing bubble tea. Taste is what the responders care the most with 85% followed by quality with 68% and price with 63%. This shows that consumers take these 3 factors and their first priority while purchasing and doesn’t really care about brand, accessibility, quantity and advertising that much.

Question 11– How much would you pay for a cup of bubble tea?

RM3 - RM5 - 63%

RM6 - RM8 - 28%

RM9 - RM10 - 8%

RM10 and above -1%

This question studies how much would the responders pay for a cup of bubble tea. More than half of the responders which is 62% think RM3-RM5 is a reasonable  price while 28% would spend RM6-RM8 and 8% would spend RM8-RM10 and 1% would spend RM10 and above. This reflects the questions above showing cheaper bubble tea is the key of purchasing.

Question 12– Are you familiar with Gong Cha?

Yes - 46%

No - 54%

The question studies are the responders familiar with Gong Cha. 54% of the responders are not familiar while 46% are familiar with Gong Cha. This shows that Gong Cha does not have enough promotion and advertising to boost the brand’s popularity.

Question 13– How did you hear about it?

Newspaper, Magazine - 32%

Tv, Radio - 6%

Social network, Blog reviews and etc - 15%

Recommendation from friends & family - 47%

Others - 0%

This question analyzes how responders get to know about Gong Cha. Recommendation from friends and families occupied 46% showing the effectiveness of work-of-mouth while social network and blog reviews has 15%. Newspapers and magazines have a mere 6% while TV and radio has a surprising 0%. This shows that TV and radio wasn’t a suitable medium to promote Gong Cha. Word of mouth and social network and blog reviews are more effective and the company doesn’t even need to spend any money to get their product promoted so remaining good quality beverage to impress consumers is very important. The 32% left stated that they have not heard of Gong Cha before.

Question 14– From your own experience, rate the quality of Gong Cha?

Excellent - 14%

Good - 38%

Average - 47%

Poor - 5%

This question is only for those who had tried Gong Cha and a chance for them to rate the quality of Gong Cha. The majority of 34% thinks that Gong Cha is average and 30% thinks it is good. 11% of the responders think Gong Cha is excellent in quality while 4 % thinks it is poor. This shows that there are still room of improvement in the quality of beverages provided b Gong Cha.

Question 15– Why would you choose Gong Cha over its competitors?

Price - 49%

Variety - 53%

Accessibility - 33%

Lower calories - 36%

Authenticity - 16%

Sugar and ice options - 44%

Others - 7%

This question investigates why the responders would choose Gong Cha over its competitors. Variety has the highest which is 53% followed by price with 49% and sugar and ice options with 44%. Responders care less about the accessibility, the lower calories and authenticity of Gong Cha.

Question 16– Do you know that Gong Cha only uses high-quality tea leaves that are brewed fresh on a daily basis?

Yes - 20%

No - 80%

This question studies whether the responders know the use of high-quality tea leaves in Gong Cha bubble tea. 80% of the responders do not know and only 20% knows about it showing that the marketing and advertising of Gong Cha wasn’t effective.

Question 16– Does that makes you want to try Gong Cha?

Yes - 72%

No - 28%

This question is related to question 16 to see the willingness of responder to try out Gong Cha after knowing that Gong Cha uses high-quality tea leaves instead of powder. 72% of the responders show optimistic result stating that they will give it a try while 28% still does not feel interested. The use of high-quality tea leaves is a field that can be promoted because it really can attract customers.

Question 18– Which part of Gong Cha needs improvement?

Advertisement and promotion - 40%

More flavors - 11%

More strategic outlets - 31%

Packaging - 4%

Brand image - 14%

This question studies the parts of Gong Cha that wasn’t good enough and need improvement. 39% thinks that Gong Cha need to work out their advertising and promotion and 31% thinks Gong Cha need more strategic outlets. The brand image, variety in flavor and packaging receive less concern from the responders.

Question 19– Have you heard of a news where a Taiwanese product commonly used in bubble tea                    drinks has been confirmed by the Health Ministry to be contaminated with Carcinogen                  Diethylhexyl Phthalate (DEHP)?

Yes - 59%

No - 41%

This question studies the awareness of responders towards the news of bubble tea drinks been contaminated by chemical. 59% of the responders are well aware while 41% does not know about this news.

Question 20– After knowing the news, will you be worried while consuming bubble tea?

Yes - 76%

No - 24%

This question studies the reaction of responder after knowing the news, will they be worried while consuming bubble tea. The majority with 76% stated that they will be worried while 24% believes in the bubble tea outlet and says that they are not worried.

9.4  Interview

I have interviewed with the chairman of Teafe (M) Sdn Bhd, Mr. Billy Koh via email. He was too busy to reply my email very frequently so I decided to call the Gong Cha outlets to talk to the person in charge. The Gong Cha staffs gave me Mr. Billy Koh’s phone number and I called him and he thinks it is better for us to meet up. So I met him at the KLCC outlet and interviewed him and got the information that I needed.