PRINCIPALS OF

MARKETING
COMMUNICATION
INDIVIDUAL REPORT -
Sharetea

Nah Min Ning

Class : T107
Student ID : S10172472A
 Name of Student Nah Min Ning
Student ID S10172472A
Class T107
Brand/Product Sharetea

Principles of Marketing Communication

Individual Report (20%)
Your report must identify how each of the 5 key market forces (Social, Economical,
Technological, Competitive and Regulatory) has affected either 1) the demand for, or
perception of bubble tea, or 2) the way it is marketed.

You must utilise recent statistic (tables, charts or graphs) or relevant and updated research to
support your points.

Do make use of footnotes and a reference list to indicate the sources used for your report.

Word count: 1000 (approximate guide)

1
1.1 Social
Diets

In 2016, two surveys were conducted by Nielsen group, and it was found that consumers are
increasingly health conscious, with a growing trend where consumers tried to steer clear or reduce
their intake of a myriad of substances, namely: sugar (both artificial and real), artificial
preservatives, flavour and colours.1

Bubble tea contains the aforementioned additives that consumers aim to avoid.2 Also, a study by
scientists from the University Hospital Aachen found tapioca balls in bubble tea to contain
potentially cancer-causing preservatives. 3

Furthermore, a health scare was raised in 2013, when the Agri-Food & Veterinary Authority
(AVA) requested samples of tapioca balls from Sharetea after some Tapioca Balls found in bubble
teas were discovered to contain maleic acid. Sharetea cleared the test. 4

Therefore, as people are increasingly health conscious, the abovementioned could decrease
Shareteas demand, making it harder to market the product.

Illnesses

In 2015, in a survey done by the International Diabetes Foundation, it was found that 10.75% of
Singaporeans had diabetes, ranking her the country with the second highest proportion of
diabetics.5 With a positive co-relation proven between high sugar intake6 and type 2 diabetes. By
2050, it is expected that 19% or 1 in 5 Singaporeans will be diabetic.5

In 2016, it is reported that there is a rising obesity rate in Singapore, with 11.3% of Singaporeans
between 18-69 obese according to the last National Health Survey in 2010.7 Obesity could
transcend into more serious issues like diabetes and heart disease.7

This has affected Sharetea in its marketing campaign as it has collaborated with the Health
Promotion Board to market its drinks more healthily and by allowing consumers to select their
sugar level, increasing demand for its product.

2
 Population

From 2010-2016, there is a general steady decrease in population aged between 15-40.8
This ageing population trend is likely to be sustained in following years, with a greater decrease in
the specified age group and a larger ageing population expected by 2030.9

Since Sharetea targets 15-40-year-olds, this shrinking demographic population would be

disadvantageous to the marketing of Sharetea as the market competition for this age demographic
would be fiercer.

Hence, Sharetea has to implement more enthralling campaigns to increase the demand for their
product by creating the perception that its brand is the epitome of bubble tea.

3
1.2 Economical

Consumer Confidence

Singapores consumer confidence plummeted to pessimistic by 10.7% to a seven-year10 low at

33.6%, in the early quarter of 2016 according to MasterCard Intelligence.11

In the second quarter. According to Nielson Holdings, consumer confidence remained

unchanged while concerns regarding job security, prospects and debt have risen to 35% from
32%, 62% from 59% and 14% from 9% respectively.12

This would negatively impact the demand for bubble tea as people would perceive it as an
indulgence rather than a necessity.

Gross Domestic Product (GDP)

Singapores GDP contracted by 4.1% in the third quarter of 2016 despite it outperforming
economists expectations last quarter.13

With financial analysts from companies like BMI Research and OCBC all agreeing that a GDP
growth is unlikely in 2017, they have all reduced their forecast for Singapores GDP growth
from 2.2%-1.9% and 2%-1.5% respectively. 14 This suggests that Singaporeans have a decreased
purchasing power which will likely continue in 2017.

Hence, fewer Singaporeans might see the value of purchasing Sharetea (or turn to more
affordable competitors), negatively affecting the demand for the product, making it harder to
market.

4
 Consumer Price Index

The consumer price index generally increased over the course of the year from 2015-2016 as
well as from September to October of 2016. This transcends into an inflation, across the board. 15

With an influx in prices, consumers value low prices when making a choice for a product, as
corroborated by Nielsen Holdings. 16

Therefore, as bubble tea is not seen as a necessity, it would decrease the demand for Sharetea
and make it harder to market the product. This is as customers may not see the value in Sharetea
since its median price is higher than its two stronger competitors, at $3.11 ( Koi and Gong Cha
at $2.63 and $2.98 respectively) . *calculated manually after visiting the stores

5
1.3 Technological
Adapting to technological trends

On 6 July 2016, Pokmon Go was released and by 16 July 2016, Forbes reported that the
game has 21 million daily active users. Since then, business locally and globally have been
capitalising on this trend.17

In Singapore, a cafs sales improved vastly by capitalising on the trend (customers stood to
win prizes if they showed sightings at the caf).18Even large retailers like Challenger reported
a boost in power bank sales by a 130% due to the trend.19

In 2015, 500 games were launched on IOS and 250 on Android daily.20

Hence, Sharetea can ride on the trend of virtual or new augmented reality to market their
products to younger audiences.

Social Media

By 2016, out of Singapores population, 82% are active media users.21 Singapore stands third,
with 64 % active on social media21 and Facebook being the leading networking site in 2015,
with 70% of Singapore owning an account.22

Therefore, Sharetea can increase the demand for its products by using social media to reach
out to customers on products and promotions.

6
 (4th) Singapore- 64%, Global Average 31%

Online Shopping

In January 2016, in a study by we are social Company, Singapore came in 2nd globally,
reporting an 82% penetration rate of mobile users, with 30% shopping online via mobile. 21

In 2015 Singaporeans are among the most active e-commerce shoppers with Generation X
and Millennials contributing the most to online shopping.22

Therefore, with the e-commerce site set to rise23, Sharetea could increase the demand for their
products by making available online purchasing and delivery.

(2nd) Singapore 85% unique mobile users

7
1.4 Competitive
Monopolistic Market

Since 2011, as many as ten chains and 500 outlets exist in Singapore with the bubble tea
craze resurfacing once again. 24

koi 25 happy lemon26 gong cha27 Sharetea28

With competitor brands named in customer review sites29, Sharetea needs to be able to market
their bubble teas as something that is unique to their brand and that will attract customers.

Promotions & Collaborations

Sharetea has collaborated with numerous companies such as UOB30 and Health Promotion
Board31. These collaborations suggest that Sharetea is a renowned bubble tea brand. This
together with promotions, serves to increase the appeal of Sharetea, giving it a competitive
boost in its marketing campaigns.

With this said, as Shareteas competitors like Gongcha has chosen to work with brands such
as LINE32, that are more popular among the youth, it could decrease the demand for Sharetea.

Hence, Sharetea should work harder in making sure its collaborations appeal towards its
target audience.

8
 Ambassadors

Singapores International Business Times reported in 2016, Lee Jong Suk will
promote Gong Cha 33.This, along with numerous search results and recent news
coverage34 on Gongchas ambassador Lee Jong Suk35 reflects the actors popularity and
hint towards a successful marketing campaign.

Meanwhile, Shareteas ambassador, Eric Tsang36 has received minimal news coverage
and has a significantly lower amount of search results.37

Therefore, with Gongchas ambassador being more popular globally, this could decrease
the demand of Sharetea, resulting in the perception that it is more inferior than GongCha.

Hence, Sharetea should market their products such that it provides a distinctive taste
experience that will distinguish it from its competitors.

Lee Jong Suk Poster & the large amount of Google Eric Tsangs endorsement for Sharetea and low search results
search results reflects the popularity of the actor & hints reflects the actor lower popularity.
towards successful marketing campaign.

9
1.5 Regulatory
Trademarks
Apart from its logo, Sharetea has a trademark mascot. These trademarks are protected under the
copyright law, preventing other brands from blatantly copying Shareteas innovative elements38
which customers relate it with. With Sharetea other competitors like Gong Cha and Koi not
having a mascot, it puts Sharetea at an edge, giving its customers something to identify Sharetea
with, making it easier to market.

Shareteas Mascot39

Grading by National Environmental Agency (NEA)

NEA licenses F&B stalls and grades them based on their cleanliness of premises and personal
and food hygiene. 40

If Sharetea obtains a good hygiene rating customers valuing cleanliness may frequent the store
more as compared to ones with low rating. In turn, increasing Shareteas demand and giving it
another point to market their product.

NEAs Grading system 40

A Grade Cleanliness at a
Sharetea outlet41

10
 Singapore Advertising Code of Practice

All businesses in Singapore are required to abide by the code of practice when advertising. The
code entails a comprehensive list of guidelines for advertisements.

For instance, Sharetea uses images and words like free in their advertisements 42 and there are
laws concerning accurate depiction of images and word choice.43

Therefore, this law will affect Sharetea as it has to market products while abiding by guidelines
to create the perception that it is a trustworthy brand. In turn increasing demand when
consumers trust them.

Some notes of the code which may be of

much relevance to Sharetea.43

Words : 1350 Words* (excluding captions & references)

11
 References

Social:

3
Bennett-Smith, Meredith . Bubble Tea Tapioca Pearls May Contain Cancer-Causing

Chemicals, German Study Claims. The Huffington Post, 21 Sep. 2012,

http://www.huffingtonpost.com/2012/09/05/bubble-tea-tapioca-pearls-may-cause-

cancer-study-claims_n_1856152.html . Accessed 12 Nov. 2016.

2
Bubble Tea: Healthy or Not? Healthxchange, n.d. , https://www.healthxchange.sg/food-

nutrition/food-tips/bubble-tea-healthy-or-not . Accessed 12 Nov. 2016.

9
Ministry of Trade and Industry . MTI Occasional Paper on Population and Economy. PP.10,

n.d., https://www.mti.gov.sg/MTIInsights/Documents/

MTI%20Occasional%20Paper%20on%20Population%20and%20Economy.pdf .

Accessed 13 Nov. 2016.

1
Nielsen. Whats In Our Food and On Our Mind Ingredients and Dining-Out Trends

around the World. pp. 10, 11 , Aug. 2016,http://www.nielsen.com/content/dam/

nielsenglobal/eu/docs/pdf/Global%20Ingredient%20and%20Out-of-

Home%20Dining%20Trends%20Report%20FINAL%20(1).pdf . Accessed 12 Nov.

2016.
6
Nordvqist, Joseph. High Sugar Consuption Linked To Type 2 Diabetes. , Medical News

Today, 1 Mar. 2013, http://www.medicalnewstoday.com/articles/257108.php .

Accessed 12 Nov. 2016.

5
Sugar High. It Figures, created by Channel NewsAsia, hosted by Justin Bratton , season 4,

episode 14, Channel News Asia, 2016 , http://www.channelnewsasia.com

/tv/tvshows/itfigures-s4/sugar-high/2503036.html . Accessed 12 Nov. 2016.

12
8
Table Customisation and Chart Plotting. Department of Statistics Singapore, 2016,

http://www.tablebuilder.singstat.gov.sg/publicfacing/calculateArithmetic.action .

Accessed 17 Nov. 2016.

4
Tan, Audrey and Theodora DCruz . Pearls free of harmful acid. TheNewPaper, 28 May

2013. Factiva, https://global.factiva.com/ha/default.aspx#./

!?&_suid=14793251208390982336744724519. Accessed 17 Nov. 2016.

7
Tan, Audrey. Obesity also rising in Singapore. TheStraitsTimes, 2 Apr. 2016,

http://www.straitstimes.com/singapore/obesity-also-rising-in-singapore. Accessed 12

Nov.2016.

1When Less is More: More than half of Singaporeans said that they followed diets that omit

certain ingredients. Nielsen, 22 Aug. 2016, http://www.nielsen.com/sg/en/

insights/news/2016/when-less-is-more-more-than-half-of-singaporeans-said-that-

they-followed-diets-that-omit-certain-ingredients.html . Accessed 12 Nov. 2016.

Economical:

14
Chia, Yan Min. Economists cut Singapore 2017 growth forecast to 1.8% from 2.1%, leave

2016 unchanged at 1.8%. TheStraitsTimes, 14 Oct. 2016,

http://www.straitstimes.com/business/economy/economists-slash-singapore-gdp-

forecasts-for-2016-2017-after-disappointing-q3-data. Accessed 13 Nov. 2016.

11
Consumer confidence stable in Asia-Pacific with emerging markets remaining the most

optimistic. Mastercard Intelligence, 11 Aug. 2016,

http://www.masterintelligence.com/content/intelligence/en/research/press-

release/2016/consumer-confidence-stable-ap.html . Accessed 13 Nov. 2016.

13
15
Republic of Singapore, Department of Statistics Singapore. Singapore consumer Price

Index, Sep. 2016, http://www.singstat.gov.sg/docs/default-source/default-document-

library/news/press_releases/cpisep2016.pdf. Accessed 13. Nov. 2016.

12
Singapore Consumer Confidence has held steady for Q2 2016. Nielsen, 02 Aug.

2016,http://www.nielsen.com/sg/en/insights/reports/2016/singapore-consumer-

confidence-held-steady-for-Q2-2016.html . Accessed 13 Nov. 2016.

13
Singapore GDP Growth Rate. Trading Economics, n.d.,

http://www.tradingeconomics.com/singapore/gdp-growth. Accessed 13 Nov. 2016.

10
Tay, Tiffany Fumiko. Consumer confidence at seven-year low: Survey.

TheStraitsTimes , 18 Aug. 2016, http://www.straitstimes.com/singapore/consumer-

confidence-at-seven-year-low-survey. Accessed 13 Nov. 2016.

16
Whats at the heart of the Singapore consumer in brands ? Nielsen, 16 May. 2016,

http://www.nielsen.com/sg/en/insights/reports/2016/whats-at-the-heart-for-the-

singapore-consumer-in-brands.html. Accessed 13 Nov. 2016.

Technological:

22
A shift in shopper dynamics provides new opportunites for Singapore retailers. Nielsen,

20 Aug. 2015,http://www.nielsen.com/sg/en/press-room/2015/shift-in-shopper-

dynamics-provides-new-opportunities.html . Accessed 14 Oct. 2016.

21
Deborahrosabel. Digital In 2016. wearesocial, 27 Jan. 2016,

http://wearesocial.com/sg/special-reports/digital-2016. Accessed 14 Aug. 2016.

23
E-Commerce in Singapore- Statistics and Trend. Go-Globe, 19 Jan. 2016, http://www.go-

globe.com/blog/e-commerce-singapore/. Accessed 14 Nov. 2016.

14
19
Foo, Jie Ying. Surge in powerbank sales thanks to Pokemon Go. TheNewPaper, 13 Aug.

2016, http://www.tnp.sg/news/singapore-news/surge-powerbank-sales-thanks-

pokemon-go. Accessed 13 Nov. 2016.

20
Graft, Kris. 500 Games launched per day on IOS last year (and other digital sales facts).

Gamesutra , 2 Mar. 2015, http://www.gamasutra.com/view/news/237811/

500_games_launched_per_day_on_iOS_last_year_and_other_digital_sales_facts.php .

Accessed 13 Nov. 2016.

18
Kajai, Iffah Durrah. Companies use Pokemon Go to boost sales. TheNewPaper, 7 Sep.

2016. Factiva, https://global.factiva.com/ha/default.aspx#./

!?&_suid=1479303390704024104906048309038. Accessed 13 Nov. 2016.

22
Social Media Singapore 2015 [Infographic]. hashmeta,n.d ,

http://www.hashmeta.com/social-media-singapore-infographic/ . Accessed 14 Nov.

2016.

17
Zhu, Yehong. 5 Brilliant Ways Restaurants Are Using Pokmon Go To Level Up Sales.

Forbes, 16 Jul. 2016, http://www.forbes.com/sites/yehongzhu/2016/07/16/5-brilliant-

ways-restaurants-are-using-pokemon-go-to-level-up-sales/#146ccba75243. Accessed

13 Nov. 2016.

Competitive:
29
Daniel. The Battle of the Bubble Teas Which Cup Is Worth Your Wait?

Danielfooddiary, 17 Oct. 2010, http://danielfooddiary.com/2010/10/17/battle-of-

bubble-teas/. Accessed 15 Nov. 2016.

37
Eric Tsang. Google Search, 15 Nov. 2016, https://www.google.com.sg/

webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=eric%20tsang .

Accessed 15 Nov. 2016.

15
30
One of our sweetest deals just yet! Found, Sharetea Facebook, 23 Aug. 2016,

https://www.facebook.com/ShareteaSingapore/photos/a.405999739413112.102456.35

2578071421946/1238077792871965/?type=3&theater . Accessed 17 Nov. 2016.

36
ShareTea @ Berjaya Times Square. Found, Chillout, Soulout & Freakout Blogspot , 9

Nov. 2011, http://chillout-soulout-freakout.blogspot.sg/2011/11/share-tea-berjaya-

times-square.html . Accessed 14 Nov. 2016.

24
The Straits Times, Singapore Management University. Bubble tea fad makes comeback. P.

15, 27 Mar. 2011, http://www.smu.edu.sg/sites/default/files/smu/

news_room/smu_in_the_news/2011/sources/ST_20110327_2.pdf . Accessed 14 Nov.

2016.
27
gongchasg. Have you gotten your Gong Cha Today? Gongcha Singapore Instagram, 28

Mar. 2014, https://www.instagram.com/p/mEfPztHoOt/?taken-by=gongchasg&hl=en .

Accessed 14 Nov. 2016.

32
Gong Cha is Now On LINE! Found, Gong Cha Singapore, 05 Jul. 2015,

https://www.gongcha.com.sg/ongoing-promotion-4/ . Accessed 14 Nov. 2016.

35
Gong Cha Korea. Black Milk Tea & Pearl. Found, (Gong Cha Korea)

Facebook , 10 Nov. 2016., https://www.facebook.com/GongCha.Korea/photos/

a.240892976001874.55131.160950467329459/1145983378826158/?type=3&theater.

Accessed 14 Nov. 2016.

25
hotmilktea. KOI Bubble Tea. Found , Tumblr, n.d , https://www.tumblr.com/search/

koi%20bubble%20tea . Accessed 14 Nov. 2016.

33
Kaur, Gungeet. Lee Jong Suk named tea expert, will promote tea caf brand Gong Cha.

International Business Times Singapore, 30 Sep. 2016. http://www.ibtimes.sg/ lee-

jong-suk-named-tea-expert-will-promote-tea-cafe-brand-gong-cha-3606 . Accessed

14 Nov. 2016.

16
28
Kirbie. Classic Pearl Milk Tea. Found, Kirbie Cravings , 17 Jun. 2015,

http://kirbiecravings.com/2015/06/sharetea.html. Accessed 14 Nov. 2016.

34
Lee Jong Suk.Google Search ,15 Nov. 2016, https://www.google.com.sg/

webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=lee%20jong%20suk .

Accessed 15 Nov. 2016.

26
Valencia, Maj. Happy Lemon Rocksalt & Cheese Green Tea . Found, Makeup in

Manila Blogspot , 11 Feb. 2014, http://www.makeupinmanila.com/2014/02/20-facts-

about-me.html . Accessed 14 Nov. 2016.

31
WIN when you drink Sharetea! Found Sharetea Facebook, 2 Oct. 2016,

https://www.facebook.com/ShareteaSingapore/photos/a.405999739413112.102456.35

2578071421946/1262190387127372/?type=3&theater . Accessed 17 Nov. 2016.

Regulatory:
43
Advertising Standards Authority of Singapore, Republic of Singapore. Singapore Code of

Advertising Practice. 3rd Edition , Feb. 2008, pp. 5,11,17,

https://asas.org.sg/Portals/0/Images/ASAS/docs/SCAP%202008.pdf?ver=2014-05-

16-093651-153 . Accessed 15 Nov. 2016.

40
Food Hygiene Standards in Singapore. National Environmental Agency (NEA) Singapore,

n.d , http://www.nea.gov.sg/public-health/food-hygiene . Accessed 15 Nov. 2016.

41
Share Tea . Found, Melicacy Blog, 2012 , http://melicacy.com/?p=4545.

Accessed 15 Nov. 2016.

Share Tea Singapore. Share Tea Mascot. Found, Share Tea Singapore Facebook , 30 Sep.
39

2015, https://www.facebook.com/ShareteaSingapore/photos/

17
 a.405999739413112.102456.352578071421946/1042254519120961/?type=3&theater

. Accessed 15 Nov. 2016.

Share Tea Singapore. OPENING SPECIAL: Enjoy a Buy 2 get 1 FREE. Found, Share
42

Tea Singapore Facebook, 12 Dec. 2014 , https://www.facebook.com/

ShareteaSingapore/photos/a.405999739413112.102456.352578071421946/88800513

7879234/?type=3&theater . Accessed 15 Nov. 2016.

38
Tan, Tee James SC and Ng-Loy Wee Loon . Commercial Law. Singapore Academy of

Law, 30 Apr. 2015, http://www.singaporelaw.sg/sglaw/laws-of-

singapore/commercial-law/chapter-12#section5 . Accessed 17 Nov. 2016.

18