Liquid tea bar san bernardino

Powerpoint

Company name: Liquid Tea Bar

Street address : 4414 University Pkwy #B

City, state, ZIP : San Bernardino, CA, 92407

Business phone: (909) 473-7879

Website URL: https://www.facebook.com/liquidteabar

Email address: info@Itea.club

Liquid Tea Bar SWOT Analysis

STRENGTHS

Great service – Liquid Tea Bar offers great service made possible by a team of dedicated staff. Many customers have given reviews commending the restaurant’s welcoming and friendly staff always ready to help. They also have an online platform where customers can place orders and have them delivered at no extra cost.

Great and unique products – The restaurant offers a variety of tasty and healthy tea available in different flavors. Other products include sea salt foam, milk shake, milk smoothies, milk tea, liquid yakult, flavored fruit tea, and many more.

Reasonable prices – The products offered at the restaurant are reasonably priced and relatively cheap compared to those of competitors. This is despite the fact that the products and services are highly ranked.

Great environment – Both the exterior and interior of their premises are well-designed, always clean and tidy. This makes a safe and attractive place not only for customers but also for employees to work in.

WEAKNESSES

New – Compared to many of its rivals, the restaurant is new in the industry and not well established (started in 2018).

Undercooked bubble tea - Occasionally, customers complain that the bubble tea is undercooked.

Limited funds – Given that the restaurant is a start up in its initial stages of expansion, it has access to limited finances and other resources.

OPPORTUNITIES

Expansion – The restaurant has the opportunity to expand around San Bernardino neighborhoods and into other towns and cities around California and the United States at large. The company also has an opportunity to add more products such as doughnuts, cakes, burgers, croissants, and other related products into its menu.

Improve dining experience – Liquid Tea Bar has the opportunity to win more customers by organizing dining events for people with children.

THREATS

Looming stiff competition – Although Liquid Tea Bar is a relatively new business concept, many other players are coming in, given the ease with which one can enter the industry. The company itself started as a small shop with only three workers.

Competitive Analysis Worksheet
FACTOR

The Business – Liquid Tea Bar

Competitor

A – Blue Tee

Competitor

B- The Ant Hub

Competitor

C - Chaca Tea Bar

Importance to Customer

Products

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Price

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Quality

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Selection

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Service

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Reliability

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Stability

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Expertise

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Company Reputation

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Location

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Appearance

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Sales Method

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Credit Policies

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Advertising

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Image

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Part 3

Customer Analysis (Shenhao)

· Total Market Size

· Currently, CSUSB has a total student population of approximately 20,311 (61% female and 39% male) (CSUSB, 2019). The university’s employee population is made up of 400 full-time faculty and 550 permanent staff (CSUSB, 2019).

· Target Market trends growth/shrinkage

· SCUSB is experiencing a relatively stable enrollment of students. Over the past five academic years, the enrollment rate has not changed much. In the academic year 2014-2015, the total enrollment was 19,991 while during the academic year 2018-2019, it was 20,963 (CSUSB, 2019). This shows that there is an overall slight increase in enrollment over time.

· Market Potential and realistic future forecast

· CSUSB has seen a relatively high number of student enrollment, thus there are more opportunities for taking tea at the Liquid Tea Bar within the institution.

· Barriers to entry such as technology, qualified employees, high startup costs

· Since the restaurant was started about two years ago, it has already gone past barriers to entry. Such barriers include developing a website where the customers can order the liquid tea online through easy steps and delivered to them at the specified place. They can also install Wifi and have a strong network, a marketing strategy for targeting the young group. Besides, there are fewer restrictions for the participants in the industry. Moreover, the startup cost for new individuals is not high. The facilities like tables, chairs and space are not very expensive. Staff in this industry do not require complex skills to work effectively. The skills can be quickly advanced through training, which is less costly and takes limited time.

Demographic Market Segments:

· Age – History

· Mean age for students: 22 for undergraduates and 32 for postgraduates

· 18-25 years – 46.7%

· 25-40 years – 26.7%

· Target market – 18-40 years

· Gender

· Males - 7,844 (39%)

· Females - 12,465 (61%)

· Marital Status – Family Life Cycle

· 60% are single while 40 percent are either married or in a domestic relationship (data from the survey conducted)

· Income – Low to middle income earners

· Education – College and university level

· Purchase behavior

· They like to visit websites such as yelp to search for information about products before making purchases. College and university students spend a considerable amount of time eating and drinking together with friends. Their foods and drinks preference is very influential and are easily swayed to try new options.

· Students also like to eat and drink in classy restaurants but with reasonable prices. Too high prices will turn them away and they may resort to trying other places.

· They spend their time in the bar, chatting with friends and listening to music.

· Communication Style

· Due to technological advancement, the target market's communication style is online and electronic rather than face-to-face communication.

· Since most customers are youths, the information on the latest bar with excellent services is easily communicated online through social media, web searches, and phone calls.

· Geographic

· The geographical location of Liquid Tea Bar is mainly CSUSB. It is located within San Bernardino city of California State.

Psychographic Consumer Behavior:

· Personal activities

· Some of the everyday personal activities they engage in are watching movies, doing assignments and homework, attending classes, and reading. The majority of them consume their product as they use their social media platforms.

· Group activities

· In groups, the college students engage in activities like games, parties, clubs, student government activities, volunteer work, professional, and academic organizations.

· How time is spent

· They spend most of the day attending classes, doing presentations, group discussions, meetings with lectures, having lunch, and dinner.

· How they think (decision process)

· University students have flexible minds and adjust to new products depending on the additional features and their taste and preferences. They think analytically and are very loyal to the products they like. They are often interested in the quality of the product and can easily change their mind if the quality drops. The college students rely on the information from the social media groups and their college experience on the product. Therefore, a few satisfied individuals can easily influence others, increasing the sales of a business.

Strategic and Tactical Recommendations (Valeria)

Liquid Tea Bar is a newer small business in the San Bernardino area, where there are multiple competitors nearby. It is important for us to create a strong business plan with strategic and tactical goals that will ensure that Liquid Tea Bar will stand out from its competitors, reach financial success, and satisfy its customers.

· Strategy to accomplish goals:

o The tactics to meet the strategic goals

· Increase customer traffic/ build customer loyalty

o We will begin to offer special BOGO free drink specials every Thursday in order to increase customer traffic.

o We will monitor traffic levels and sales daily to ensure we are meeting our daily goals for our efforts to increase traffic. If goals are failing, we will evaluate our efforts and determine if we want to offer specials through social media platforms.

· Increase customer satisfaction

o In order to increase our customer satisfaction, we will train all employees on excellent customer service skills, as well as in ensuring that customers are always happy.

o Make efforts to read online reviews and determine what we are doing wrong/ what we are doing right.

o Encourage our customers to leave a yelp review online and tell us how we are doing.

· Ensure quality and efficiency of drinks

o We want each drink to satisfy each customer and if a customer is unhappy with the quality, we will offer to make a new drink.

o To ensure drinks are being made quickly and efficiently, we will train employees on how to make drinks quickly and correctly.

Secondary Research

· Review of published databases, journal articles, trade magazines, newspapers

News publications: Obtained from CSUSB Library,

PRESS RELEASE: OutRank by Rogers' Small Business Customers See 60% Rise in Web Traffic From Mobile Devices. (2013). Dow Jones Institutional News, pp. Dow Jones Institutional News, 2013-02-06.

o News publication highlights the rise in media usage through mobile phones. Small businesses are able to grow their customer traffic quickly through the use of social media alone.

Journal Article: Obtained from CSUSB library

Mobile coupons drive loyalty, customer engagement. (2019). MobilePaymentsToday.com, 2019-02-22.

o Journal highlights how customer engagement through the use of mobile coupons builds customer loyalty for businesses.

Magazines: Obtained from Google

“ Michigan Daily; Community discusses significance of bubble

tea as the number of bubble tea stores in Ann Arbor doubles.”

Ruprecht, M. (2019).

O This magazine article mentions the importance of quality boba drinks due

to “A lot of people post on social media about it,” Gao said.

· Justify Market and Goals

o By focusing on the goals such as increasing customer loyalty, ensuring customer satisfaction, and ensuring the quality of drinks, we are able to create a positive reputation for the Liquid Tea Bar. This will ensure that we are able to increase customer traffic and stand out from competitors.

Primary Research Results

· Personal interviews

The following link is the results to our personal interview survey https://docs.google.com/forms/d/1kOF7VVwpPrJKPTwRCHLJccRlBOAK8K76vbqGmor00uw/edit#responses , where we interviewed 15 of Liquid Tea Bar’s customers.

o Survey data collection and analysis

From the Data recorded from the survey results, the age group 18-25 is the majority at 46.7%, and 60% of customers are female. 60% of customers consider themselves single. 40% of customers drink boba drinks every week. 64.3% of customers say that they check Yelp reviews of a boba shop before trying a new place. 46.7% of customers say that their favorite type of drinks are fruity sweet drinks. 60% of customers like to add toppings to their order. 93.3% of customers like to listen to music at Liquid Tea Bar. 40% of customers rate the comfortability and ambiance of Liquid Tea Bar a “3”. As well as 33.3% of customers prefer Instagram

.Forms response chart. Question title: What is your age group?. Number of responses: 15 responses.

Forms response chart. Question title: How often do you drink boba tea?. Number of responses: 15 responses.

Forms response chart. Question title: What is your current marital status?. Number of responses: 15 responses.

Forms response chart. Question title: Do you look at yelp before trying a new boba shop?. Number of responses: 14 responses.

Forms response chart. Question title: What is your gender identity?. Number of responses: 15 responses. Forms response chart. Question title: What kind of drinks do you prefer?. Number of responses: 15 responses.

Forms response chart. Question title: Do you add toppings to your boba order. Number of responses: 15 responses.

Forms response chart. Question title: Do you enjoy listening to music when at Liquid Tea Bar. Number of responses: 15 responses.

Forms response chart. Question title: How would you rate the ambiance or comfortability at Liquid Tea Bar. Number of responses: 15 responses.

Forms response chart. Question title: What social media do you prefer?. Number of responses: 15 responses.

· Focus group

https://docs.google.com/forms/d/189xx_GP-LPGvSFvYIytdvAVytby0SX9FPf2KjCTBwJM/edit#responses ,is the link that provides the data collected from our focus group.

The focus group was a group of 9 students from CSUSB picked randomly to volunteer to interview via Zoom. They were asked questions about their demographics, lifestyle, and their familiarity to boba shops.

· Information and notes collected

o Since the focus group was conducted through Zoom, participants were asked to fill out the survey before joining the zoom call, each question was multiple choice. On the call we covered the questions and why the respondent chose those answers, and discussed mostly through the chat option on Zoom.

· Survey data collection and analysis

Forms response chart. Question title: What is your gender?. Number of responses: 9 responses.

Forms response chart. Question title: What is your age. Number of responses: 9 responses.

Forms response chart. Question title: What is your marital status?. Number of responses: 9 responses.

Forms response chart. Question title: Have you ever tried boba teas?. Number of responses: 9 responses.

Forms response chart. Question title: How often do you go out to buy drinks such as coffee, tea, or smoothies?. Number of responses: 9 responses.

Forms response chart. Question title: When buying boba or smoothies, do you prefer to buy food there also?. Number of responses: 9 responses.

Forms response chart. Question title: Does cost affect you from visiting businesses like a boba shop?. Number of responses: 9 responses.

Forms response chart. Question title: Is customer service important to you at a "grab and go" type of business like a cafe or Starbucks?. Number of responses: 9 responses.

Forms response chart. Question title: What social media do you prefer?. Number of responses: 9 responses.

Forms response chart. Question title: Do you follow businesses on social media?. Number of responses: 9 responses.

· Analysis

O Some highlights from the focus group had to do with our focus groups use of social media where the majority prefers Instagram and follow businesses on the platform. Another highlight had to do with the importance of customer service even when visiting a “grab and go” type of business like Liquid Tea Bar. These highlights are important for us because they offer support for our strategic recommendations.

Group Members Contribution:

· Member 1 0-33%

· Member 2 0-33%

· Member 3 0-34%

100%

Kyla Coles:

Media and Communications used

· Traditional

· Formal letters, reports, notes, proposals, brochures, memos

· Nontraditional

· Social media platforms such as Facebook, Instagram, and Twitter. They also use email to communicate to customers, suppliers, and employees.

· Social

· Messages and other forms of information is passed down the organization chain through communication via meetings, memos, and emails.

· Search engines

· Allmenus, Grubhub, Ubereat, Singleplatform, and Yelp.

· On many of these search engines you can find pictures of the interior, exterior and products that are sold.

Marketing Objectives and Goals

· Expected results

· Marketing objective is to bring in many customers in to enjoy Liquid Tea Bar food and drinks. Within the current time frame, they are trying to create more brand awareness because of the current virus outbreak. To do this they are posting on their social media platforms with videos and pictures of specialty items and in a clean environment.

· Increasing customer engagement on social media and other forms of non-traditional and traditional communication

· Another objective is the use of outside dining, they have planned on setting some tables outside in order to allow customers to hang out and relax at the store. This is a really necessary step right now in marketing because only outdoor dining is aloud. With the increase of social media posts, they hope to influence people to try their store out and let others know about it by word of mouth. Some future goals consist of achieving better customer service and creating a strong bond within the workforce. They are also trying to set a sales goal for the next calendar year. By doing this they can also plan to be part of many festivals if they open back up by next year.

Measurement

· How will we measure the success

· Benchmark and success measurement

· Sales - Sales have an impact on various key metrics including gross profit and break-even point. The break-even is the point at which all the costs and revenues are equal. Many businesses start making profits after they have passed the break-even point. Break-even is a vital measure in measuring the amount of sales needed before the business starts making profits. The gross profit measures how much the business is making after the cost of sales is subtracted.

· Historical sales – this will help track the performance of the business over time. Comparing weekly, monthly, and yearly sales help identify the days of the week, month, and seasons when the restaurant is busiest.

· Cost of labor – this include wages, discounts, taxes, and employee benefits. These costs form a significant proportion of a restaurant’s total revenue, hence they need to be measured.

· Cost of sales – these are the direct costs associated with the production done in the business. They are a good metric for measuring key aspects of the business such as the cost of goods produced and profit.

References CSUSB. (2019). Human Resources - Employment . Retrieved from CSUSB: https://www.csusb.edu/human-resources/employment#:~:text=The%20area%20offers%20a%20wide,of%20more%20than%20%24100%20million. CSUSB. (2019). Office of Institutional Research & Analytics. Retrieved from CSUSB: https://www.csusb.edu/institutional-research#:~:text=As%20of%20fall%202019%2C%20CSUSB,at%20the%20Palm%20Desert%20Campus. CSUSB. (2019). Recent Trends in Enrollment and FTES. Retrieved from CSUS