The product at this point will be repositioned -- slightly -- from being a superior version of a new Asian-American favorite to being something that can appeal to all markets. By adopting a more global feel to the marketing, we believe that we will be able to develop new markets, increase our exposure among non-Asians and do this without compromising the core audience that we will have built to that point.
There are other strategies that could work as well. For example, we could enter the market with the assumption that the brand is strong and the product is familiar. Such a strategy would thus focus on positioning the shop, perhaps as a consistently superior bubble tea experience. Standards of cleanliness, quality and service would all be featured. The main drawback to this approach, however, is that it assumes too much of the audience. The New York audience is not as hip to trends coming from Asia as the West Coast audience is, so while bubble tea is known it is not nearly as big a phenomenon in New York. Thus why we feel the need to introduce the brand and the product. In addition, with so few competitors in New York there is little reason to focus on differentiating from them; we probably will not share a neighborhood anyway.
Another potential strategy is a low-cost, low-key approach. Tapioca Express is typically a low marketing overhead operation, and prefers that the quality of the experience is the main draw for customers to return. It is believed that the differences in the West Coast market allow for this tactic whereas in New York it cannot be taken for granted that a bubble tea shop will be inherently successful. Indeed, rents in New York are very high, which means that success must come quickly, and for that we need exposure, our chosen strategy.
Our competitors in bubble tea are small independent outlets and have very little in the way of marketing strategy. For the most part, their strategy is low-budget, ad hoc and focused mainly on building awareness. More general competitors like Starbucks represent a more significant threat, as they have strong marketing programs. A premium beverage is marketed, along with a "third place" experience. We believe that the "third place" concept is a good one in a crowded city where everybody lives in a small apartment. We will adopt this in some of our promotions as well, even though this could engender some response from the coffee giant. However, as we compete only indirectly, we believe such a response would be limited at best.
Action Plan
There will not need to be much adjustment to the core features of the product for the purposes of marketing. We may need to reduce the number of beverages if our high-rent spaces to smaller than the real estate to which we have become accustomed on the West Coast. However, we feel that the product we offer supports our premium positioning. The brand should be consistent with the currently established Tapioca Express. The company has been able to build brand value in its Western markets and there is no reason to believe that such brand strength would not materialize in New York given time.
At the core of the promotion plan will be print advertising -- lesser newspapers including smaller dailies, Chinese papers and community papers. This will allow us to focus our promotion on target communities. In addition, social media will be used to help spread the word of Tapioca Express' arrival in New York among the Asian community. We hope to achieve some public relations, perhaps by opening a very high profile location (Penn Station or Times Square) that will attract some media attention.
For the New York market, we will need to adjust our pricing strategy. This is a function of costs, however, rather than marketing concerns. New Yorkers are accustomed to paying extra for products, so our prices compared to those of our competitors will remain in line with comparisons in other parts of the U.S. We will price slightly above independent bubble tea shops, a reflection of our superior atmosphere and product. We have noted in the past that customers will pay more for our boba tea, but not much more, so we only charge a slight premium.
Distribution marks a challenge. Our logistics system is located in the west. Our supplies come primarily from China and Taiwan, sometimes through distributors based in Western Canada. To enter New York, we will need to ship our core ingredients to an area warehouse and from there to the stores. Currently products...
Notwithstanding the challenges involved, the stakes are high and there is little room for false starts or experimentation; therefore, identifying a general set of best practices that Gambian organizations can follow in developing their own set of sustainable productivity practices represents a valuable and timely undertaking, which relates to the purpose of the study which is discussed further below. Purpose of Study The overall purpose of this study was to study
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