Case Study

Franchise Proposal for Tapioca Beverage Chain Establishment in Hong Kong

Abstract

We assisted our client in obtaining a franchise license of an international tapioca beverage brand. Through developing an extensive business plan catered to the specific characteristics of the beverage industry in Hong Kong, our client has successfully become a franchisee of the Tapioca brand.

CLIENT BACKGROUND

Our client is a local food and beverage company that operates its own restaurants and overseas franchises in Hong Kong.

BUSINESS ISSUE

Our client noticed the popularity of a chained tapioca beverage brand that originated in the USA, and sought to become a franchisee of the brand. The milk tea brand is one of the biggest tapioca beverage franchises in the world, with over 2000 locations in Asia, Europe, North America and Africa. The brand carved out a niche for itself as a new generation of Asian fusion-style cafés, as opposed to a traditional tapioca drink shop. Our client intended to inquire about a potential relationship with the tapioca beverage brand and wished to further expand the business in Hong Kong in the future.

HOW WE DID IT

We utilized a four-stage approach to understand the market dynamics and consumer buying behavior in Hong Kong’s tapioca beverage industry, finding and addressing the market gap between our client and the franchiser.

Below provides a summary of our project approach and an overview of the project scope:

  • Evaluated the potential and defining characteristics of the brand in relation to the local tapioca beverage market
  • Gathered information on market trends, consumer demand and behavior, and other aspects that may affect the market environment
  • Generated consumer and market insights from compiled quantitative and qualitative data
  • Compared competitor performance to identify potential opportunities
  • Identified driving sales factors through evaluating competitors’ sales performance data
  • Developed an STP plan focusing on selected demographic segments optimal for market penetration
  • Outlined various digital marketing channels for brand promotion and management
  • Provided recommendations on the execution process and timeline
  • Outlined relevant expenditures, project-required capital, and sales performance to forecast and present potential returns to the franchisor
  • Presented key success factors and exit strategies for the business initiative

KEY RESULTS

With the developed business plan, our client has successfully obtained a franchise license from the franchiser and has gained in-depth insights into how to penetrate the Hong Kong tapioca beverage industry. With the advise that we provided, our client has moved on to establishing the business, and has been experiencing blooming sales revenue since the opening of the store.