FLOATEA company Essay
1. Executive Summary:
FLOATEA company was founded in Manila, Philippines in 2013 by Joseph Ventinilla, Shi Gerard, Grace Cervantes and Eddie Velizano, with the vision to educate the consumers about fine milk teas. FLOATEA is an organization that offers different variants of milk teas that will give you extraordinary experience. Separating it from the other pearl milk tea shops, FLOATEA (Float Ice Cream + Milk Tea) is an extraordinary kind of pearl milk tea because of its unusual delicious taste. A freshly brewed tea with the best ice cream topping mixed with your favorite flavors. It is a combination of creamy ice cream, sweet, and salty that will balance the right sweet spot.
We serve milk teas such as winter melon milk tea, caramel milk tea, strawberry milk tea, chocolate milk tea, and vanilla milk tea. These flavors of ours will give each individual a taste that will never be forgotten. We also cater the best ice cream flavors as a topping for the preferred milk tea. We provide HEALTHYLICIOUS and SWEETYLICIOUS ice cream flavors.
Our position in the market is based on the way our product is being defined by our consumers considering the important factors such as price, quality, product class, and application. FLOATEA also consider the relationship marketing that aims delight rather than satisfaction. FLOATEA targets kids (middle to college class) who had a great desire of thirst to purchase premium milk teas. It also targeted the ones who are often visiting to the place of Bonifacio High Street like family, couples that go there for dating.
2. Current Marketing Situation:
The global tea production growth rate in 2006 was more than 3% to reach an estimated 3.6 million. The expansion was mainly due to record crops in China, Viet Nam and India. Production in China increased 9.5% over the record in 2005, to 1.05 million. in 2006, through Government policies to increase rural household incomes. Expansion of 28 percent in Viet Nam gave an output of 133,000 as tea bushes reached optimum yields. India had a 3% increase in harvest output of 945,000 for the year. This growth offset other major countries, Kenya and Sri Lanka, where output declined by 6 and 1.6%, respectively.
The milk tea craze continues to grow in the Philippines, as a result of the rapid expansion of kiosks selling milk tea. These include brands such as Gong Cha and Cha Time. These outlets have reinvigorated the market and are capturing students and young professionals as their consumer base. Due to the introduction of these chained foodservice outlets, Filipino consumers are being exposed to more tea flavours and variants, further increasing the sophistication of the market. Unilever Philippines Inc had an overall value share of nearly 25% in 2012, and was the leading brand manufacturer in tea through its popular brand Lipton, one of the first tea brands in the country. Unilever Philippines Inc produces a wide variety of teas, covering black, fruit/herbal, green and instant tea. Its affordable prices and strong distribution make it a popular choice among consumers.
Milk tea is likely to grow even more over the forecast period. Instant tea, in particular, has minimal penetration in the market. It is priced on a par with instant coffee, giving it the potential to compete with instant coffee brands. With the right marketing and promotions, and improved distribution, it could take some market share from instant coffee.
3. Threats and Opportunities Analysis:
New services help FLOATEA to better meet their customer’s needs. These services can FLOATEA’s business and diversify their customer base. New technology helps FLOATEA to better meet their customer’s needs with new and improved products and services. Technology also builds competitive barriers against rivals. New products can help FLOATEA to expand their business and diversity their customer base.
They have a strong competitors and their threats are the Zen Teas, Infinitea, Chat time and other milk tea beverages. Infinitea serves a wide variety of tasty and refreshing authentic pearl milk tea drinks for all you fanatics out there. Guaranteed made from 100% freshly brewed loose-leaf teas of high quality for an overall healthier lifestyle. Chatime is the next trend in beverages. A unique Tea concept that is dedicated to make Tea a healthier, refreshing and fun alternative to Coffee. Unlike the traditional Tea houses in the Far East, Chatime is making great inroad in marketing tea to the mass populace. Chatime opened its first outlet in the year 2005 in Taiwan and also the number of stores which is approaching to 1000 in 80 cities in four continents worldwide. You can now find Chatime in the US, Canada, Australia, Taiwan, China, Malaysia, Indonesia, Philippines, Vietnam, Singapore, UK and India.
4. Objectives and Issues
•To offer consumer best health advantage through FLOATEA.
•To establish as market leader in herbal tea industry
•To enable FLOATEA to satisfy, fulfill the consumer’s personality & lifestyle
•To increase FLOATEA popularity as an icon in Tea product.
Main issues that should be addressed in the Action Plan:
•Company needs to gain experience in the market place
•Aggressive promotion efforts to establish brand name and gain market share
5. Marketing Strategy:
Separating it from the other pearl milk tea shops, FLOATEA (Float Ice Cream + Milk Tea) is an extraordinary kind of pearl milk tea because of its unusual delicious taste. A freshly brewed tea with the best ice cream topping mixed with your favorite flavors. It is a combination of creamy ice cream, sweet, and salty that will balance the right sweet spot.
Our position in the market is based on the way our product is being defined by our consumers considering the important factors such as price, quality, product class, and application. FLOATEA also consider the relationship marketing that aims delight rather than satisfaction. Floatea target middle class (middle to college class), young professional (new graduates), and professional (working stage). And most especially those people who are near and often there at the place dating and visiting. Floatea also has targeted the people who are Milk Tea lovers who want to experience and try something new about Milk Tea. Also, Floatea has targeted people who love ice cream. Milk Tea and ice cream all in one.
Our strategy would be, were going to launch in our branch a mini-museum inside where in people who go there would be entertain and educate about milk teas and ice creams.We think of putting a creativity side where in people can put or post whatever they want to say. They can draw and write on the post it and post it on our walls with different kinds of colours of paper. We’re going to put entertainment side where there is a playstation and xbox Kinect wherein they can play for free when they buy FLOATEA from us.
Our pricing type is value-based pricing that is based on the customer’s perceived value of our product depending on the quality and service we could offer to them. We believe that our product is competent enough to be one of the best and delicious milk teas that they could ever experience.
Promotion in Bonifacio High Street (BHS)
We will promote our product in Bonifacio High Street by spreading the news in the social networking sites about our product. Also, for the first day, the first 30 customers will have the floatea for free. We will be giving out flyers starting in the malls Market Market and SM Aura, and from Serendra to the other buildings in Bonifacio High Street. Other than that, we will be posting short video of our product together with the other information about it in the social networking sites.We will also be having our own website for further information.
Floatea target middle class (middle to college class), young professional (new graduates), and professional (working stage) who had great desire of thirst to purchase premium milk teas. And most especially those people who are near and often there at the place dating and visiting.
On the basis of psychographic, Floatea has targeted the people who are Milk Tea lovers who wants to experience and try something new about Milk Tea. Also, Floatea has targeted people who loves ice cream. Milk Tea and ice cream all in one!
People who uses social-networking sites like Facebook, and Twitter.
We are positioning the floatea as the most catchy and unusual taste, and would provide the unforgettable experience to each and every customer. As we serve the unique teas that brazenly gets the creamiest ice cream on top of milk tea. But flexible to be adjusted the taste bt adding or to lessen its toppings by customers own choice.
Middle class ( middle to college) –consumer market
Unique drinking experience
Young professional ( new graduates) – Business Market
To remove stress in work
Unique drinking experience
Easy to take out
Professional ( working stage) – Business Market
To remove stress in work
Healthier than soft drinks
Healthier alternative to heavy sugar
6. Action Programs:
First week of January start of a New Year our first branch and product FLOATEA will be open to people on Bonifacio High Street on 7th street near Market Market, SM Aura and other restaurants there. Will be also giving free milk teas with any flavours they want for the first 30 costumers.
Our company would start providing advertisements for our consumers especially our target market to attract them of our product. Will be giving out flyers and promos away from us to advertise and let them know about us.
We launch in our branch a mini-museum inside where in people who go there would be entertain and educate about milk teas and ice creams.
We would be holding a bazaar convention that gives away prizes from raffle draws, special discounts for dealers, and partnerships to companies. An addition in advertisement will also be made where target market.
We will be having our own website for advertisement and will give out flyers and posters directly to our possible buyers and consumers.
We innovate our main branch and put entertainment side where there is a playstation and xbox Kinect wherein they can play for free when they buy FLOATEA from us.
Because many buyers and people go to our place we build a second floor for our customers to have more space to stay and chill in when they buy milk tea from us.
We think of putting a creativity side where in people can put or post whatever they want to say. They can draw and write on the post it and post it on our walls with different kinds of colours of paper.
We put a drive thru for people who are in a hurry and buy FLOATEA without leaving their cars
After innovation, we expand our FLOATEA business and build more branches to different places in Pasig, Mandaluyong, Makati and Manila. In different branches they have their own theme and marketing strategy.
We plan to have our own brand Ambassador which would be Kuya Kim, Matteo Guidicelli and Sarah Geronimo for their outstanding know about health, lifestyle and popularity. Because of this our product will be more known for people and we will be adverstide in tv and commercials.
December – January 2014
We prepare and countdown for our 1 year anniversary in our main branch and will be having a programs such as activities, games, education talk and teaching about milk teas and healthy living while having a free FLOATEA for everyone for the first 100 customers
Marketing managers of FLOATEA are encouraged to re-examine their goals and objectives on a bi-weekly basis and assess success and shortcomings. Based on their evaluation results, they are encouraged to make appropriate changes to drive the company forward. Each objective in this plan is smart, and should be evaluated monthly to see if the company and marketing program is on track to achieve it.