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Situation Analysis Research Report For Utopia Brand Communication 272 Date: Friday 26th August 2011 Tutor: Blair Mc???


group members: 1. Stirling Caiulo

#123456

2. Alice Kang

#123456

3. Zeng Zhao

#15103062

4. Stephanie Vitalich

#123456

5. Christina Stamm

#13398235

6. Rezza Jiwana

#14547478

& Thanks To 1. Alice (Utopia Owner) 2. Jason (Translator)

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table of contents: 1. Client/ Background.........................................................................................................................P3 2. Product/ Service.............................................................................................................................P3 3. Brand..............................................................................................................................................P3 4. Market............................................................................................................................................P3 5. Audience/ Consumer......................................................................................................................P3 6. Media/ Advertising.........................................................................................................................P3 7. SWOT Analysis................................................................................................................................P3 8. Conclusions.....................................................................................................................................P3 9. Advertising Brief..............................................................................................................................P3 10. References....................................................................................................................................P3

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1. client/ background: - Established in 2001. First started as a corner shop in Old Shanghai, Northbridge. - Started selling drinks, freshly squeezed juices and bubble tea. - Originally bubble tea comes from Taiwan and powder is used to create this drink. However, UTOPIA understood that the Australian market think highly of natural products and instead began to brew their own teas and source local fresh fruits to make their bubble teas. No powder is used. - This produces a better quality tea. This also offers a point of difference from other bubble tea stores found thoughout WA. - Now in it’s tenth year UTOPIA has expanded to eight stores found throughout Perth.

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1.1 product info: -Bubble tea is a cool, refreshing, and sweet drink with tapioca pearls sitting on the bottom of a cup. - Sometimes the drink is made with fresh fruits, milk, and crushed ice to create a healthy milkshake. - You can also find drinks that are made of powdered flavouring, creamer, water, and crushed ice. - If you like it like the Asians do, the cool drink usually includes a healthy tea, infused by a flavoring. “If you visit Taiwan or Hong Kong you can’t help but notice the unique bubble teashops on every corner. Bubble Tea to Taiwan is what coffee or soda is to the U.S. One would think Bubble Tea is the national drink by its popularity.”

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1.2 store locations: 1.

Utopia Square

14, 109 James St. Northbridge WA 6003

2.

Utopia Barrack

71 Barrack St. Perth WA 600

3.

Utopia Myaree

50 Hulme Crt. Myaree WA 6154

4.

Utopia Victoria Park

859 Albany Highway, Victoria Park WA 6100

5.

Utopia Garden City Booragoon

K07, 125 Riseley St. Booragoon WA 6154

6.

Utopia Southlands Willetton

4, 41 Burrendah Blvd, Willetton WA 6155

7.

Utopia Westfield Whitfords City

231A, Cnr Marmion & Whitfords Ave, Hillarys WA 6025

8.

Utopia Carousel

1019B, 1382 Albany Hwy, Cannington WA 6107

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1.3 EXAMPLE STORE:

7.

Utopia Westfield Whitfords City

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1.4t store photographs:

OBSERVATIONS:

OBSERVATIONS:

- Predominant use of the colour orange throughout store - Warm and inviting - Wooden textures - Clean and modern

-Vibe is vibrant and young! - Places to sit with friends - Music is Asain pop tunes - Interiors consistent throughout all eight stores

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2. product range: - UTOPIA offer four products to their customers: - The first and most popular product is bubble tea.

utopia:

- They also sell baked Asain goods made in store distributed to all stores throughout WA. - Karaoke is available at UTOPIA Mayree and UTOPIA Square. - The vegetarian restaurant is also located at UTOPIA Square.

Bt

Bubble Tea

bk

Bakery

k

Karaoke

r

Vegetarian Restaurant

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2.1 products in stores: 1.

Utopia Square

Bt

bk

2.

Utopia Barrack

Bt

bk

3.

Utopia Myaree

Bt

bk

4.

Utopia Victoria Park

Bt

bk

5.

Utopia Garden City Booragoon

Bt

bk

6.

Utopia Southlands Willetton

Bt

bk

7.

Utopia Westfield Whitfords City

Bt

bk

8.

Utopia Carousel

Bt

bk

k

r

k

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2.3 horizontal diversification: Horizontal Diversification: “Occurs when the company acquires or develops new products that could appeal to its current customer groups even though those new products may be technologically unrealated to the existing product line”. (p.89) - UTOPIA, although originally a bubble tea store have employed horizontal diversification to their product range to expand and grow their target market. - This is an important part of UTOPIA’s marketing strategy and increases their product differenciation.

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2.4 bubble tea BREAKDOWN: - We have decided to focus our research on bubble tea as this is main selling point for UTOPIA. PRODUCT:

Bubble Tea

PRICE:

$3-5

PLACE:

Purchase In-Store

PROMOTION:

Word of Mouth

Sponsorship

Temporary Advertisments

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2.5 product menu: - This is the UTOPIA bubble tea menu. - They offer over 40 different types of bubble tea! You can also choose to have your tea with or without milk. FEATURES: - In-house brewed teas used instead of powder. - Local fresh fruits - Packaging is 100% recyclable - Preservative free sago

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3. brand : characteristics: - Colours of UTOPIA logo and bubble tea cup packaging is orange. - “When you’re on the street and you see an orange cup you’re more likely to pay attention to it”- Alice (Owner) - The colour orange respresents xxxxxxxxx - Typography xxxxxxx - Use of graphic elements including a microphone, bubble tea cup, loaf of bread, piece of cake and noodle bowl each represent the four different product lines the consumer can purchase from UTOPIA.

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3.1 brand: values: WARM

FRIENDLY

ECO-FRIENDLY

- Use natural products over non-natural products. - All food and drinks products are vegetarian - Eco-concious: Example promotional advertising recyclable carry bags - Use of papper cups over plastic cups. “The plastic cups were hard to recycle. So with the paper cups there’s a focus on being environmentally friendly.”- Alice (Owner)

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3.2 brand P.E.S.T ANAYLSIS: POLITICAL: - Student Visas: Uncertainty over student visas remains a concern as changing policy can lead to hesition when prospective international students consider Australia against other countries such as Canada and the US for their education. - Immigration Laws - Occupational Health & Safety Act 1984 (WA) - Employment Laws - Trade Practices Act 1974 - GST (Taxation Policy) - Real Estate - State & Local Environmental Laws

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3.2 brand P.E.S.T ANAYLSIS: ECONOMIC: - Strong Australian Dollar: This can be a deterant for international students as it becomes more expensive to both study and live in Australia. - Fast economic growth of Australia is attracting many young people to study in here. Especially in WA. They would like the oppertunity to get a better job and income after they finish university. - The price of a UTOPIA bubble tea is also cheaper than other beverages in the Australian beverages market. For example a bubble tea cost $3.50 while a coffee is $4.00 freshly squizzed juices $5.00+.

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3.2 brand P.E.S.T ANAYLSIS: SOCIAL: - Popularity amoung south-east asains. A place to meet with friends and family. An asain coffee house. - Kareoke Competitions bring many different ethnicities together. - Location: Stores found within shopping complexes attract consumers who are out at the shops and are purchasing products or want to meet up for a break in bewteen shopping. - Eating Habits: Vegetarians - Atmosphere of the stores: try to make everyone that comes into the store feel welcome. Vibrant and fun! A great place to catch up socially with friends.

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3.2 brand P.E.S.T ANAYLSIS: TECHNOLOGICAL: - Equipement: Bubble tea machine, kitchen ovens, projectors and stereo system for karaoke. - Under-developed technology such as the UTOPIA website. This is online but did not meet Alice’s expectations and is going to be upgraded shortly. - The launch of the ‘offical’ UTOPIA facebook page is the best use of technology to develop a new target market. This is also the cheapest way to expand the market. - Oppertunity to increase website search engine optimisation. Website is currently difficult to find online unless the exact web address is known. Google keyword search such as “bubble tea perth” come up with UTOPIA.

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4. market: FOOD & DRINKS:

BEVERAGES: BUBBLE TEA:

- Food - Drinks

- Coffee - Tea - Bubble Tea - Soft Drinks - Juices - Alcholic - Water

- Utopia - Easyway - TeaFusion - IceBubble - HiTea - IceyIce - Fromosa - New Zealand Natural - T2

Bubble tea is a heterogoeneous product competeing in the Australian beverage market.

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4.1 market segmentation: Market Segmentation: “The process of subdividing a market into distinct subsets of customers that behave in the same way or have similar needs”. (p.165 Dictionary) - UTOPIA is in direct competition with many other bubble tea stores in WA. - Need to look at:

- Who is the competition?

- Similarities

- Differences

- What can UTOPIA offer it’s consumer that they can’t get anywhere else?

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4.2 Competition anaylsis: Who is UTOPIA’s competition:

primary:

SECONDAY:

THIRD:

- EasyWay Tea

- TeaFusion - IceBubble - HiTea - IceyIce - Fromosa - New Zealand Natural - T2

- Takeaway Coffee - Non-Bubble Tea Cafes - Kareoke Bars - Vegetarian Resturants

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4.3 primary Competition: - The primary competition for UTOPIA is EasyWay Tea. - In an interview with the owner Alice, it was clear she percieved her main competition to be EasyWay Tea. - “The strongest is in the bubble tea area and would definatley be EasyWay.� Alice (Owner) - Survey results also back up this perception with X% having purchased products from both UTOPIA and EasyWay. A very high percentage.

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4.4 store locations: 1.

EasyWay Carillon City

Shop 19, Carillon City, 207 Murray St, WA 6000

2.

EasyWay Centro Victoria Park

Kiosk 5, Centro Victoria Park, Shepperton Rd, WA 6010

3.

EasyWay James St

109B James St, WA 6003

4.

EasyWay One40 William St

Shop 10, 140 William St, WA 6006

5.

EasyWay Piccadilly Arcade

Shop 28, Piccadilly Arcade, 700-704 Hay St, WA 6000

6.

EasyWay Plaza Arcade

Shop 32, Plaza Arcade, 650 Hay St, WA 6000

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4.5 store photographs:

OBSERVATIONS:

OBSERVATIONS:

- Predominant use of the colour blue throughout store - On the go order and pick-up - Little to no setting available - Hole-in-the-wall street frontage

-Vibe is vibrant and young! - Interiors consistent throughout all six stores - Blue makes it feel cool and refreshing

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4.6 product range: - EasyWay Tea offer one product to their customers: - They offer bubble tea. There are four varietys: 1. Milk Tea

EASYWAy tea: Bt

Bubble Tea

2. Relish Tea 3. Blended Ice 4. Shakes - EasyWay teas are made with powder.

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4.7 product menu:

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5. customer survey: Please select your age group:

34%

Percentage of customers who are aged 21 - 23 years old.

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5.1 customer survey: Please select your gender:

58% Percentage of females customers compared to male customers.

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5.2 customer survey: ck what income bracket you earn annually:

52% Percentage of customers whose annual income bracket is below $30K

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5.3 customer survey: Are you an interna onal student?

35%

Percenta onal students who visited UTOPIA in the evening.

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5.4 customer survey: Please select how you ďŹ rst heard about UTOPIA?

88% Percentage of customers who know UTOPIA through their friends.

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5.5 customer survey: mes you visited UTOPIA last month?

61% Percentage of customers who visited UTOPIA 1-3 mes last month.

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5.6 customer survey: Please select the reason you have visited UTOPIA today?

62% Percentage of customers who visits UTOPIA for their bubble tea.

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5.7 customer survey: If you are an intern onal student, which ins t you currently studying at?

on are

47% Percentage of customers who ar n University students.

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5.8 customer survey: me of the day it is?

61%

Percentage of customers who comes to UTOPIA with the ll 8pm.

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5.9 customer survey: Have you ever purchased bubble tea from another bubble tea brand?

57% Percentage of customers who purchase bubble tea from other bubble tea brands but s ll consider UTOPIA.

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5.10 n0n- customer survey: Have you tried UTOPIA bubble tea before?

58% Percentage of non-customers who had tried UTOPIA bubble tea.

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5.1 1 non- customer survey: Please select your age:

43% Percentage of non-customers who are aged 18 - 20 years old.

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5.12 non- customer survey: Please select your gender:

50% Percentage of male and female non-customers who did our surveys.

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5.13 non- customer survey: Are you an interna onal student?

49%

Percenta onal students who did the survey.

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5.14 non- customer survey: Have you heard about bubble tea?

97% Percentage of non-customers who heard about bubble tea.

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5.15 non- customer survey: How much money per week do you spend on entertainment?

31%

Percentage of non-customers who spend $21 - $40 on entertainment.

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6. utopia media /advertising: - In an interview with the owner Alice she indicated that UTOPIA do not actively pursue marketing activies. There main marketing strategy is word of mouth. Alice believed this was more important and effective. - UTOPIA also sponsor events. Ie. Buddha Week and student clubs at West Australian universities including the A.S.I.A (Asian Students in Australia). - In the past they have held calligraphy and painting competitions and have sponsored bands coming from Indonesia.

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6.1 karaoke competition poster: COMPETITIONS: - “The types of advertising that you see that we use are usually temporary. They are used to compliment our promotions. Like if we have a karaoke competition we will have advertising to compliment that.� - Alice (Owner) - This is a poster for this years UTOPIA Karaoke Competition. The poster can be found in store or their website. It is fun and vibrant aimed at a younger target market.

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6.2 promotional poster: PROMOTIONAL POSTER: - his is a promotional poster for $2 Bubble Tea Day! This is found in store and on their website. It is part of their 10th anniversary celebrations. - The poster is clean and simple. The main graphic element is the bubble tea cup and focus is placed on the $2 sign which indicates that buble tea is a cheap refreshing beverage!

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6.3 website:

WEBSITE: UTOPIA’s website can be found at http://www.utopia-aust.com.au

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6.4 facebook:

FACEBOOK: - UTOPIA is online with an ‘official’ facebook page. This allows friends to ‘like’ the page and receieve updates of events and promotions.

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6.5 easyway media /advertising: PROMOTIONAL POSTER: - This is a seasonal promotional poster. Different promotional posters are released each season to attract existing and new customers to their stores. - The style of the poster does not change greatly from season to season. - This is an effective way of communicating new or seasonal products.

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6.7 SPONSORSHIP: SPONSORSHIP: - EasyWay Tea have recently sponsored xxx. She is an asain pop signer. - Through sponsorship of xxx EasyWay are targeting a young generation of south-east asains who live in Australia. - On this poster their logo colour blue also features in the graphic elements of her dress design. - Easyway compliment the signer.

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6.8 WEBSITE:

WEBSITE: EasyWay Tea’s website can be found at http://www.easywaytea.com.au

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6.9 facebook:

FACEBOOK: - UTOPIA is online with an ‘official’ facebook page. This allows friends to ‘like’ the page and receieve updates of events and promotions.

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7. s.w.o.t analysis: strengths: BRAND

PRODUCT

- Local WA Owned - Locations: Large number of stores - Customer Service - Production & Distribution - Reputation - Locality - Price - Ambience - Trading Hours - Eco-Conscious - Brand Image - Events - Customer Loyality

- Many different varieties of bubble tea - Asain taste fit with asain needs (especially bubble tea) - Packaging is 100% recycable - Ingredients: Use of fresh fruits: supporting local markets - Cheap: Not an expensive drink

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7. 1 s.w.o.t analysis: weaknesses: BRAND

PRODUCT

- Owner Alice’s attitude towards re-positioning the brand to atract ‘locals’. This may alignate the existing target market. - Don’t have a marketing campaign such as print advertisements. -

- Specific to Asain market: Taste is not very well recieved by western culture. - Create more brand personality in the packaging design

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7.2 s.w.o.t analysis: oppertunity: BRAND

PRODUCT

- To update logo design - Obtain a liquor licence for UTOPIA Sqaure and UTOPIA Mayree (karaoke venues). - Publish website to be the first page in google when entering “Bubble Tea in Perth� in the search engine website. - Create a campaign focusing on international students as the main target market. Ie. Placing posters on university campuses. - Make a in store promotion. Ie. Free bubble tea for visitors in coles. If you wanted to target an alternative market.

- To improve packaging of product so that not just bubble tea cups 100% recycable all bakert products too! - Update kareoke song list - Try to develop a product that fits with Australian taste.

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7.3 s.w.o.t analysis: threats: BRAND

PRODUCT

- Competition - Owner’s current attitute towards marketing strategy - Other karaoke places that offer acholic beverages and have a byo licence.

- Taste from other bubble tea stores. - UTOPIA use Australian made ingredients. Any increase in the market price for these ingredients, ie. fresh fruit, would increase the cost of production and make UTOPIA less profitable.

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8. conclusions: - We want to employ a concentrated targeting strategy. CONCENTRATED TARGETING STRATEGY: “ A strategy in which an organisation targets a single market segmet using one marketing mix�. - Focus on south-east asain international students who take temporary recidencey in Western Australia.

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9. advertising brief: CLIENT: Utopia PRODUCT: Bubble Tea, Bakery, Karaoke, Vegetarian Resturant BACKGROUND: Refer to research report BRAND VALUES: Warm, friendly, eco-concious, social lifestyle, high quality natural ingredients TARGET AUDIENCE: 18-25 South-East Asain International Students (Male and Females)

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9. advertising brief cont: COMPETITION: EasyWay Tea BUSINESS & ADVERTISING OBJECTIVES: 1. To position UTOPIA as the number one bubble tea store in WA 2. To position UTOPIA in the market with a distinct brand identity 3. To brand assosicate UTOPIA with social interactivity, catching up with friends a ‘third place’.

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MEDIA: A campaign consisting of: 1 x Adshel: Throughout Perth CBD and university bus route and station 1 x A4 Colour Advertisement: Placed in free student university magazines. Ie. Grock (Curtin), The Pelican (UWA) and The Metior (Murdoch) 1x UTOPIA Smart Phone App: Your own online UTOPIA. Can order pick-up bubble tea. Find nearest store. Check-in function for friends etc... PROPOSITION: Don’t rush...come in for a better tasting bubble tea with friends right here in your new

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10. references:

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Brand Communication - Utopia Presentation (Uni Project)