UNIVERSITI KUALA LUMPUR

BUSINESS SCHOOL

SEPTEMBER 2021 SEMESTER

__________________________________________________________________________________________
EEB20903
INNOVATION MANAGEMENT
__________________________________________________________________________________________

GROUP PROJECT
CHATIME BUSINESS PLAN

GROUP:
AC 20

PREPARED BY:
ARRINA NADHIRAH BINTI MUSTAFA KAMAL (62216120512)
FARISYA ADRIANA EMYLDA BINTI MOHD FADHIL (62215120514)
MARSYA ATHIRA BINTI MIFTAHUDDIN (62215120511)
MUHAMMAD ARIEF FARHAN BIN MOHAD FAIRUZ (62215120480)
NURUL NABILAH BINTI SAAD (62215120513)

PREPARED FOR:
PROF. DR. SULAIMAN SAJILAN

SUBMISSION DATE:
22ND DECEMBER 2021
___________________________________________________________________
Table of Contents
GENERICO INC BUSINESS PLAN ................................................................................... 1

IMPROVEMENT OF BUSINESS PLAN .............................................................................. 3

SECTION 2: BUSINESS DESCRIPTION .............................................................................. 3

SECTION 3: MARKETING ................................................................................................. 5

SECTION 4: OPERATION ................................................................................................. 6

SECTION 5: MANAGEMENT ............................................................................................. 9

SECTION 6: FINANCIAL.................................................................................................. 11

SECTION 7: CRITICAL RISK ............................................................................................ 20

SECTION 8: HARVEST STRATEGY ................................................................................... 21

APPENDICES ................................................................................................................. 22
 ITEM IN BUSINESS PLAN OF GENERICO INC Complete Incomplete Missing
SECTION 1 Executive summary X

SECTION 2 Business description

A General description of business X

B Industry background X
C Goals and potential of the business and milestones. (If any) X

D Uniqueness of product or services X

SECTION 3 Marketing

A Research and analysis X

1 Target market (customer) identified X
2 Market size and trends X
3 Competition X
4 Estimated market share X
B Marketing plan X
1 Marketing strategy – sales and distribution X
2 Pricing X
3 Advertising and promotion X
SECTION 4 Operation

A Identify location X
1 Advantages X
2 Zoning X
3 Taxes X
B Approximately to suppliers X
C Access to transportation X
SECTION 5 Management

A Management team- key personnel X

B Legal structure – stock and employment agreements and X
ownership

1
C Board of director, advisors, and consultant X

SECTION 6 Financial

A Financial forecast
1 Profit and loss X
2 Cash flow X
3 Breakeven analysis X
4 Cost control X
5 Budgeting plans X
SECTION 7 Critical Risk

A Potential problems X
B Obstacles and risk X
C Alternative courses of action X
SECTION 8 Harvest strategy

A Transfer of asset X

2
IMPROVEMENT OF BUSINESS PLAN

SECTION 2: BUSINESS DESCRIPTION

B. INDUSTRY BACKGROUND

Name of the Chatime

business

Jalan Stesen Sentral 3, Kuala Lumpur Sentral, 50470

Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur
Business address

Correspondence Jalan Stesen Sentral 3, Kuala Lumpur Sentral, 50470

address Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur

Telephone number 03 - 55114825

Fax number 06-3512575
E – mail address Chatime@gmail.com

Form of business Private limited company

Main activity (s) Manufacturer and supplier
Date of registration 10 November 2021
No of Company 202105126981
Initial (own)
RM 100,000
Capital
Name of bank Maybank
Bank account
557236523369
number

3
D. UNIQUENESS OF PRODUCT

Chatime is destined to transform the tea brewing industry by attracting the attention of
fashionable tea lovers in a stylish and modern style as the origin of pearl milk tea products. The
tea drinking culture is now experiencing an exciting shift, thanks to Chatime's initiative in
combining over 30 years of tea manufacturing experience with expertise from a team of
professional researchers. Chatime gathers ideas from leading Japanese tea makers and takes
inspiration from their quality control and design concepts to keep customers coming back.
Chatime Malaysia has kept its promise and dedication to the brand. Bubble tea is usually made
with iced tea and milk, as well as little tapioca balls known as pearls. We are a brand that appeals
to everyone. We do not want to exclude anyone but instead, we want to welcome everyone and
urge them to visit Chatime to discover their own unique flavor.

Our product benefits:

• Consumers are no longer content with teas laden with artificial ingredients and flavors
which they want something real and flavorful.
• Chatime Malaysia employs only the best imported tea leaves and high-quality ingredients,
free of additives and preservatives.
• Every cup of tea is now freshly made when you want it.
• Comes with variety of flavors, and cheese foam has recently been added as a topping.
• Customers can find a milk-based tea, a classic tea, or a fruit-based tea with a unique
topping.
• There are also refreshing smoothies, delicious chocolate mixes, sour yoghurt
combinations, scented coffees, and extra exceptional creamy mousse fusions

4
SECTION 3: MARKETING

A.2. MARKET SIZE AND TRENDS

Chatime is in the food industry that diverse and complex in businesses. Chatime participate in
nowadays food trend which is offering variation of bubble tea. Chatime’s market size has increase
since it has been founded in 2005 which contribute to bubble tea market industry. As for the
bubble tea food industry, the market size in 2020 is 2.3 billion and for the Chatime itself, Chatime’s
market size has expanded to many countries in Asia, Australia, Unites States, Canada, and Europe.
As the market size has increase, the brand market share also increase that also puts the brand
at competitive advantage. the market size also will determine the growth of the brand and target
sales to be achieved.

Chatime offer products that are very trendy especially in this millennial era. As the market size is
increase and the range group of customers is in mid 20s and 30s, the bubble tea is one of the
trendy beverages nowadays. Chatime also offers menu that has needs and demands by the
customer. For instance, their best-selling beverages is pearl milk tea that always has demands.
Other than that, Chatime has made a collaboration with Nilofa company as the banana milk is
trending nowadays. Thus, Chatime market trend is in good and stable condition as bubble tea is
still relevant in market industry.

A.4. ESTIMATED MARKET SHARE

In general, the market share of bubble tea is expected to grow from 2019 to 2026 with 6.9% in
Malaysia. As for the Chatime, if the momentum of business is in good condition and the marketing
plan is working very well, the market share is estimated to be increase.

5
SECTION 4: OPERATION

A. IDENTIFY LOCATION
The location of Chatime outlets can be found in 14 states in Malaysia, which is Kuala Lumpur,
Selangor, Putrajaya, Pulau Pinang, Kedah, Perak, Pahang, Negeri Sembilan, Melaka, Johor,
Terengganu, Kelantan, Sabah and Sarawak. The total of outlets for these states are 77 outlets
excluding the upcoming outlets. The location chosen of Chatime are mostly easy access and
convenient especially for the on-the-go customers and take away customers.

A.1 ADVANTAGE

The crazy demand of bubble tea shops trends is very popular among Malaysian especially in social
media where they create an aesthetic drink on their story and feed which this gain a lot of
attention and viral create an advantage for Chatime. Besides, the strategic location and growing
markets of Malaysia gives advantages for Chatime to growth further and to gain attractions from
the customers.

Besides, Malaysia food and beverages industry is a fast-growing industry with the gross output
value 82.8 billion in 2017. Malaysia has created a large market in the food and beverages which
it is an advantage for Chatime to growth for a long run business. There are many well-known
restaurants chain in Malaysia, as Malaysian love to eats and tries other culture cuisines. Therefore,
it will give an advantage for Chatime to gain more attraction from the customers.

Since the location chosen by Chatime is accessible and convenient for all customers, so the
customers can easily get their drinks even though the customers are far away from the kiosk.
Since it accessible, the customer can easily order through delivery platforms such as Foodpanda,
Grab Food, Air Asia Food, Shopee Foods and others.

Finally, Chatime chose Malaysia because the growth of the bubble tea value market in Malaysia
and the demand of customer loyalty in Malaysia. Besides, the food and industry in Malaysia also
has strong GDP forecast which is food and beverages which is advantage for Chatime to operate.

A.2 ZONING

Chatime is targeting urban areas which it accessible for school kids, university students, young
adults to grab their drinks. Besides, the advantage of urban area where it is accessible and high

6
transportation facilities which will make everyone can easy access to buy Chatime drinks. Besides,
in urban area there are more educational place where students, college students are there to buy
Chatime drinks. Other than that, the high internet connection in urban area will help to promote
Chatime so everyone can easily reach with distinct position.

Chatime also focuses on four type of outlets, which is Chatime Lite, Chatime Kiosk, Chatime
Outlets and Chatime Galleria. All these outlets are located at the urban area, where the zone is
strategic and accessible for everyone.

A.3 TAXES

The common corporate tax rate in Malaysia is 25%. In general, the corporations are taxed on
income derived from Malaysia with the exceptions for banking, insurance, air transport or shipping
sectors. Taxable income comprises all earnings derived from Malaysia, including gains or profit
from dividend, interest and land trading business or other earnings. While tax incentives for SME
are companies with income not exceeding RM2500000 per year are considered to be SME and
eligible for the following incentives; 1. SME are tax at 20% on the first RM500,000 and 25% on
subsequent balance. 2. Taxes are exempt for newly established companies in the first five years.

Besides, there are two major types of consumption taxes in Malaysia which is Sales tax and
Service tax. The rate of Sales Tax range from 5% to 10%. (Except for food preparation with non
alcoholic compound preparations), while the rate of Dervice Tax is a flat rate of 5%.

B. APPROXIMATELY TO SUPPLIERS

The main supplier of Chatime is La Kaffa International Co., LTD. La Kaffa International Co., LTD
was established in 2004 and based in Taiwan. La Kaffa is the main exporter for ASIA, Canada,
Europe, France, Metropolitan, Ocenia, and United States. The main product that La Kaffa exports
is Bubble Tea. Chatime has a professional management team where there are professional
logistics distribution to maintain the product quality, ensure the store adequate raw materials,
fresh and timely delivery everyday.

Besides, the on site counsellor knows from time to time on weekly basis, interacts with the store
owner, and keeps track on the store condition in ordoe to avoid from stock shortage. There are

7
also weekly business meeting with immediate response and prompt response in case there are
any problem happens at the store regarding the stock.

C. ACCESS TO TRANSPORTATION

Chatime have four types of store which is Chatime Lite, Chatime Kiosk, Chatime Outlet and
Chatime Galleria. Chatime is successful in Malaysia because Chatime are easily accessible for
everyone to grab it. The easy access of Chatime where he customer can easily order to drink on
the spot or to takeaway. Chatime also located at the huge pedestrian traffic where people can
only walk by to grab the drinks and Chatime also offer drive thru where transportation can easily
access. The strategically situated within the busy locations makes it more accessible for
transportation to stop by or even for the supplier to drop the stock. Other than that, Chatime
location also are very strategic as it is easy access to public transport where the kiosk can get
more demand especially on the peak hour.

8
SECTION 5: MANAGEMENT

A. MANAGEMENT TEAM

Accountants and Bookkeepers.

Chatime is extremely conscientious about their financial management. In order to keep track of
the company's financial situation, they have hired a brilliant professional. This position is critical
in the analysis of financial data, the creation of reports, the handling of day-to-day transactions,
the implementation of security controls, and the handling of the company's taxes. Chatime
essentially has its own financial team that oversees managing the company's money flow on a
consistent basis.

Human resources professionals.

Human Resources are important in the Chatime organization. They are welcoming to new
employees and provide numerous benefits, such as training and allowance. The hiring process
will be managed by the top managers in each location, with human resources professionals
assisting with recruitment, training, performance management, employee relations issues,
compensation, and employee policies, among other things.

Marketing professionals.
Customer attention is extremely important to the marketing team at Chatime in order to gain
more attention from the customers who have been identified as their target customers. They will
devise strategies to attract customers, such as promotions and other initiatives. When a company
decides to offer a product or service, these professionals are the ones who come up with ideas
for how to make the product or service appealing to customers, as well as ideas for advertising
methods and pricing strategies.

IT professionals.
IT teams with a high level of expertise are essential to Chatime businesses, whether they are
responsible for keeping the company's systems running, protecting confidential data, managing
the company's website, or ensuring that company networks perform optimally. They are also in
charge of managing intellectual property, trademarks, design, and business programs to ensure
that the company can operate smoothly and without interruption.

9
Creative teams.
Chatime has its own content creation team, which includes writers and video producers. This
position is responsible for visually communicating important information about the company in an
appealing manner, whereas graphic designers are responsible for the visuals seen in advertising
materials and on the internet. This professional team has assisted the marketing teams in creating
excellent content for use on social media platforms such as Facebook and Instagram in order to
reach a larger number of customers.

B. LEGAL STRUCTURE

Chatime franchisor La Kaffa International Co Ltd has appointed Will Group Sdn. Bhd. as the master
licensor of Chatime Malaysia. Will Group Sdn. Bhd. owns the property in Malaysia, which is used
for the operation of the Chatime business. The announcement alludes to a shift in La Kaffa's
business model away from franchising and toward direct sales. In business models, licensing is
the sale of licenses to other companies, granting them the right to use intellectual property (IP),
trademarks, designs, or business programs that have been developed by the licensing company.
These agreements are typically non-exclusive, which means that licenses can be sold to several
competing companies that serve the same market at the same time. In this arrangement, the
licensing company may exercise control over how its intellectual property is used, but it does not
exercise control over the licensee's business operations. They also extend a warm welcome to
new business owners who wish to become a part of their franchising program, which will help
them to expand their operations. Among other things, they will assist in managing the new
Chatime franchise, which will include training and business classes, as well as various other
activities.

10
C. BOARD OF DIRECTOR.

Will Group Sdn. Bhd.

Aliza Ali Widayu Latiff

Founder and Group Managing Director Group Executive Director

11
SECTION 6: FINANCIAL

6.1 Financial Forecast

A financial forecast is an essential step in developing a business plan. The financial forecast or
budget is an estimated projection of revenue, expenses, and resources of a company during a
particular period of time in the future. Managers predict their budget with all the funds that had
allocated to their departments. They have to make sure that the budget has a positive balance.
Generally, managers used the budget to set the amount of money that could be spent and how
it would be spent on each activity to prevent going over budget. Even if the operation is difficult
at times, every company must have a financial forecast. Furthermore, the budget relates to the
level of financial planning in managers’ responsibility to keep market product sales stable. Indeed,
it enables you to create quantifiable goals that, if rigorously tracked, will enable you to grow your
firm in favourable conditions. Financial forecast would need to include profit and loss statement,
cash flow statement, breakeven analysis, cost control and budgeting plans in order to draw a
bigger picture of the business plan and its operational action.

Unit Sales/Year 2019 2020 2021

Brown Sugar Series 1,787,303 2,580,030 2,501,423
Signature Milk Tea 934,020 944,430 977,010
Chocolate Series 789,110 828,900 1,232,890
Coffee Specialtea 567,657 650,989 723,546
Modern Milk Tea 361,090 387,921 411,321
Healtea Fresh Brew 139,930 141,200 165,020
Iced Fruitea 129,080 111,230 121,790
Smooteas Coolers 115,520 118,870 136,700
Tropical QQ Juice 111,990 134,030 289,450
TOTAL UNIT SALES 4,935,700 5,897,600 6,559,150
Unit Prices Year 1 Year 2 Year 3
Brown Sugar Series RM7.90 RM8.90 RM9.10
Signature Milk Tea RM5.90 RM6.90 RM9.10
Chocolate Series RM6.90 RM7.90 RM9.10
Coffee Specialtea RM7.90 RM8.90 RM9.10

12
 Modern Milk Tea RM6.90 RM7.90 RM9.10
Healtea Fresh Brew RM5.90 RM6.90 RM9.10
Iced Fruitea RM5.90 RM6.90 RM9.10
Smooteas Coolers RM7.90 RM8.90 RM9.10
Tropical QQ Juice RM6.90 RM7.90 RM9.10
Sales - - -
Brown Sugar Series RM14,119,693.70 RM22,962,267.00 RM22,762,949.30
Signature Milk Tea RM5,510,718.00 RM6,516,567.00 RM8,890,791.00
Chocolate Series RM5,444,859.00 RM6,548,310.00 RM11,219,299.00
Coffee Specialtea RM4,484,490.30 RM5,793,802.10 RM6,584,268.60
Modern Milk Tea RM2,491,521.00 RM3,064,575.90 RM3,743,021.10
Healtea Fresh Brew RM825,587.00 RM974,280.00 RM1,501,682.00
Iced Fruitea RM761,572.00 RM767,487.00 RM1,108,289.00
Smooteas Coolers RM912,608.00 RM1,057,943.00 RM1,243,970.00
Tropical QQ Juice RM772,731.00 RM1,058,837.00 RM2,633,995.00
TOTAL SALES RM31,323,780.00 RM48,744,068.90 RM59,688,265.00

Sales Forecast
General Assumptions for costs of start-up.
2019 2020 2021

Plan Month 1 2 3

Current Interest 10.00% 11.00% 12.00%

Rate
Long-term 10.00% 10.00% 10.00%
Interest Rate
Tax Rate 26.42% 27.76% 28.12%

Other 0 0 0

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A.1 Profit and loss

A profit and loss statement (P&L), also known as an income statement or a statement of
operations, is a financial report that summarizes a company's sales, expenses, and profits/losses
for a specific time. The profit and loss statement demonstrates a company's capacity to produce
sales, control expenses, and earn profits. P&L is one of the three fundamental budget summaries
alongside the Balance Sheet and the Cash Flow Statement. However, it differs from the cash flow
statement in that it is prepared using accounting concepts such as revenue recognition, matching,
and accruals.

Below is the Chatime’s projected P&L statement for the year ended December 31 for 2019, 2020
and 2021 respectively.

Pro Forma Profit and Loss for Chatime

2019 2020 2021
Sales RM31,323,780.00 RM48,744,068.90 RM59,688,265.00

Beginning Inventory
Add: Direct Cost
Direct Labour RM680,000.00 RM780,000.00 RM880,000.00
Purchase of Raw Materials RM120,000.00 RM135,000.00 RM150,000.00
Production/Manufacturing RM628,000.00 RM728,000.00 RM828,000.00
Cost
Selling Cost RM850.00 RM950.00 RM1000.00
Transportation/Logistics RM38,000.00 RM40,000.00 RM42,000.00
Cost
Electricity RM25,700.00 RM27,900.00 RM30,000.00
Water RM15,000.00 RM25,000.00 RM28,050.00
Misc RM4249.00 RM4500.00 RM5000.00
Total Direct Cost RM1,511,799.00 RM1,741,350.00 RM1,964,050.00
Less: Ending Inventory 0 0 0
COST OF GOODS SOLD RM1,511,799.00 RM1,741,350.00 RM1,964,050.00

14
 Gross Margin RM29,811,981.00 RM47,002,718.00 RM57,724,215.00
Gross Margin % 95.17% 96.43% 96.71%
Operating Expenses
Payroll RM552,144.00 RM651,592.00 RM751,040.00
Sales and Marketing and RM7400.00 RM8000.00 RM8600.00
Other Expenses
Depreciation RM8280.00 RM8280.00 RM8280.00
Leased Equipment 0 0 0
Utilities RM16,000.00 RM17,000.00 RM18,000.00
Insurance RM7200.00 RM7200.00 RM7200.00
Rent RM26,000.00 RM28,000.00 RM30,000.00
Payroll Taxes RM138,040.00 RM162,904.00 RM187,768.00
Other 0 0 0
Total Operating RM755,064.00 RM882,976.00 RM983,888.00
Expenses
Profit Before Interest and RM26,500,360.00 RM43,780,400.00 RM54,540,555.00
Taxes
EBITDA RM30,508,316.00 RM47,784,480.00 RM58,584,553.00
Interest Expense 0 0 0
Taxes Incurred RM107,352.00 RM149,260.00 RM191,168.00
Net Profit After Taxes RM30,400,964.00 RM47,635,220.00 RM58,393,385.00
Earnings RM30,400,964.00 RM47,635,220.00 RM58,393,385.00
Net Profit/Sales 97.05% 97.73% 97.83%

A.2 Cash flow

A cash flow statement is one of the financial statements published by a company that describes
the cash flows into and out of the company. Its primary focus is on cash-generating and cash-
using activities, such as operations, investments, and finance. The cash flow statement can be
used to identify trends in business performance that are not easily visible in the other financial
statements. It is especially important when there is a discrepancy between the reported profits

15
and the net cash flow generated by operations. The cash flows in the statement are separated
into three categories which are:
1. Operational activities. These are the actions that generate money for a company.

2. Investing activities. These include both payments paid to buy long-term assets and cash gained
from their sale.

3. Financing activities. These are operations that will affect a company's equity or borrowings.
Pro Forma Cash Flow Statement for The Year Ending
Pro Forma Cash Flow Note 2019 2020 2021
Cash Received %/RM
Cash from Operations
Sales RM31,323,780.00 RM48,744,068.90 RM59,688,265.00
From Receivables
Subtotal Cash from RM31,323,780.00 RM48,744,068.90 RM59,688,265.00
Operations
Additional Cash Received 0 0 0
Sales Tax/GST Received RM46,620.00 RM50,668.00 RM54,768.00
New Current Borrowing 0 0 0
New Other Liabilities 0 0 0
(interest-free)
New Long-term Liabilities 0 0 0
Sales of Other Current 0 0 0
Assets
Sales of Long-term Assets 0 0 0
New Investment Received 0 0 0
SUBTOTAL RM31,370,400.00 RM48,794,736.90 RM59,743,033.00
CASH RECEIVED
Expenditures
Cash Spending RM174,400.00 RM224,000.00 RM254,000.00
Bill Payments RM266,544.00 RM337,660.00 RM360,532.00
EPF – Government 11.00 RM178,200.00 RM178,200.00 RM178,200.00
Mandatory

16
 SOCSO – Government 1.50% RM24,300.00 RM24,300.00 RM24,300.00
Mandatory
Subtotal Spent on RM643,444.00 RM764,160.00 RM817,032.00
Operations
Additional Cash Spent
Sales Tax/GST Paid Out RM46,620.00 RM50,668.00 RM54,768.00
Principal Repayment of 0 0 0
Current Borrowing
Other Liabilities Principal 0 0 0
Repayment
Long-term Liabilities RM35,752.00 RM35,752.00 RM35,752.00
Principal Repayment
Purchase Other Current 0 0 0
Assets
Purchase Long-term 0 0 0
Assets
Dividends 0 0 0
SUBTOTAL CASH SPENT RM725,816.00 RM850,580.00 RM907,552.00
Net Cash Flow RM30,644,584.00 RM47,944,156.90 RM58,835,481.00
Cash Balance RM30,644,584.00 RM47,944,156.90 RM58,835,481.00

A.3 Breakeven analysis

Based on the company’s fixed expenses, variable costs, and selling price, a breakeven analysis
calculates the sales volume required for the business to begin making a profit. It is frequently
used in conjunction with a sales estimate when designing a price strategy as part of a marketing
or business plan. Our break-even analysis is based on our cost and price structure for the first
year. As we grow, the fixed costs will grow in proportion to the number of employees. We should
surpass our Break-even point early on. The breakeven analysis formula is as follows:
Fixed costs/ (Revenue per unit-Variable costs per unit)

17
CHATIME MALAYSIA SDN. BHD.
SALES
SALES PRICE PER UNIT RM 9.10
SALES VOLUME PER YEAR (UNITS) 6,559,150
TOTAL SALES RM 59,688,265.00

VARIABLE COSTS
PRODUCTION COST PER UNIT RM 0.12
DIRECT MATERIAL PER UNIT RM 0.02
TRANSPORTATION PER UNIT RM 6.40
SELLING PER UNIT RM 1.52
OTHER VARIABLE COSTS PER UNIT RM -
VARIABLE COSTS PER UNIT RM 8.06
TOTAL VARIABLE COSTS RM 52,866,749.00

UNIT CONTRIBUTION MARGIN RM 1.04

GROSS MARGIN RM 6,821,516.00

FIXED COST PER YEAR

SALARY RM 880,000.00
EPF & SOCSO RM 202,500.00
RENTAL (FACTORY, OFFICE)
OTHER FIXED COSTS
TOTAL FIXED COST PER YEAR RM 1,082,500.00
NET PROFIT (LOSS) RM 5,739,016.00

RESULTS
BREAKEVEN POINT (UNITS) 1,040,865

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A.4 Cost control

Cost control is the process of identifying and managing business expenses and financial data in
order to analyse and reduce them when possible. Collecting costs in a consolidated format enables
firms to make more accurate and informed estimates, uncover cost-cutting opportunities, and
identify areas of overspending.
Budget (RM) Actual (RM)
Revenue 50,000,000.00 59,688,265.00
(-) Expenses
Direct Labour RM890,000.00 RM880,000.00
Raw Material RM170,000.00 RM150,000.00
Manufacturing Cost RM830,000.00 RM828,000.00
Selling Cost RM1200.00 RM1000.00
Transportation Cost RM45,000.00 RM42,000.00
Electricity RM35,000.00 RM30,000.00
Water RM30,000.00 RM28,050.00
Misc. RM5,500.00 RM5000.00
Advertising RM9,000.00 RM8600.00
Net Profit RM47,984,300.00 RM57,715,615.00

A.5 Budgeting plans

Budgeting is the process of making a plan for how the business will spend its money. A budget
is a name given to this spending plan. Making this spending plan allows the business to know
ahead of time if it will have enough money to do the things they need or want to do. Because
budgeting helps the business to construct a spending plan for its money, it assures that it will
always have enough money for the things the business needs and values. Following a budget or
spending plan will also help the business stay out of debt or work your way out of debt if you are
already in debt.
Following table is the variance for Budget versus Actual Variance for year ended December 31,
2021.
Budget (RM) Actual (RM) Variance (RM)
Revenue RM50,000,000.00 RM59,688,265.00 (RM9,688,265.00)

19
(-) Expenses
Direct Labour RM890,000.00 RM880,000.00 RM10,000.00
Raw Material RM170,000.00 RM150,000.00 RM20,000.00
Manufacturing Cost RM830,000.00 RM828,000.00 RM2000.00
Selling Cost RM1200.00 RM1000.00 RM200.00
Transportation Cost RM45,000.00 RM42,000.00 RM3000.00
Electricity RM35,000.00 RM30,000.00 RM5000.00
Water RM30,000.00 RM28,050.00 RM1950.00
Misc. RM5,500.00 RM5000.00 RM500.00
Advertising RM9,000.00 RM8600.00 RM400.00
Net Profit RM47,984,300.00 RM57,715,615.00 RM9,731,315.00

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SECTION 7: CRITICAL RISK

A. POTENTIAL PROBLEMS

KEEPING UP WITH THE CURRENT TRENDS

As the time passes, the bubble tea is not already relevant to market. The potential problems is
the Chatime company can’t sustain in market in the future. Chatime has to analyse and plan the
business to generate more profit and create new products in order to have a stable foundation
of business to sustain in market.

INFLUENCER CONTROVERSY
Chatime has done a collaboration with Nilofa company which is the founder of the Nilofa Group
is Neelofa, a controversy celebrity and influencer. Neelofa has involved herself into many
controversy issues such as legal issues, ethical and morality issues as herself is being claimed as
hijabs and modest influencer, in which she has to show good attitude and image.

B. OBSTACLES AND RISK

Chatime like other company and business will likely has to face challenges and risk as time goes
by. Chatime will face with political, economy, social and technology challenges in the market. As
for the political risk, Chatime has penetrated an unstable country like Malaysia. Malaysia has
changed their Prime Minister thrice in two years. As for the economy, Chatime has to follow the
minimum wages in Malaysia which is RM 1200. This is considered low minimum wages as the
living cost in Malaysia is quite high. Social factor will also become a risk to Chatime as customer
lifestyle will affects the consumption of bubble tea in Malaysia. Malaysian nowadays are shifting
into a healthy lifestyle such as reducing sugar intake and having exercise thrice a week. Lastly,
technology factor. Chatime will having risk in payment method as online and card payment
method still not available in mostly Chatime stores.

21
SECTION 8: HARVEST STRATEGY

A. TRANSFER OF ASSET

A harvest strategy is a marketing and business plan that involves discontinuing investments in a
product, product line, or line of business in order for those involved to harvest or reap the most
profits. A harvest approach is typically employed near the end of a product's life cycle when it is
clear that more spending would not raise income.

Malaysians are familiar with Chatime, the country's most well-known beverage brand. In that
case, we have chosen AirAsia to merge with us. This time, the company has made it their only
mission to ensure that Malaysians have access to their favorite delectable signature beverages
even while they are 30,000 feet in the air because Chatime is now flying with AirAsia, Asia's
largest low-cost airline group. Chatime is constantly improvising and innovating to suit the tastes
of the millions of guests. Customer’s family, friends and their loved ones will be able to enjoy
delicious Chatime drinks while high in the clouds. It may be said that it will take their Chatime
experience to new heights.

Plus, we are honored to be collaborating with AirAsia on such a great project. We see many
similarities between us and AirAsia, since both brands are lively, energetic, bold, and adventurous,
always daring to be different and constantly pushing the impossible boundaries. Chatime and
AirAsia have made it their life's purpose to continue to exceed our customers' expectations.
Chatime will begin on a journey that will permanently change the airline experience for everyone.
The beverage will be pre-packaged and sold on AirAsia flights and deliver its loyalty program to
its customers. With that said, Chatime can now bring the world's best beverage into the sky for
millions of customers to enjoy with AirAsia, the world's best low-cost airline.

22
APPENDICES

CHATIME ACTUAL BUSINESS PLAN

Executive Summar y

Chatime is a Taiwan-based franchise company which offers a variety of flavoured

drinks and snacks worldwide. The mission statement of Chatime is to provide
consumer with fresh, healthy, and quality drink. To provide more satisfaction for the
consumer, Chatime is planning to launch two in one container, known as “Nibble Sip”
in 2017. There are many strong competitors in the market. The direct competitor such
as Gong Cha, Ochado and CoolBlog as well as the indirect competitor such as
Starbucks, Coffee Bean & Tea Leaf and McCafe. Nevertheless, Chatime has many
advantages over the other competitors by having Nibble Sip. It is very convenient to
use and allow the customers to hold the drink and snacks together with one hand
without cumbersome. The design of Nibble Sip is special with the special features
such as preserve heat, can be twisted into two cups, convenience, fashionable and
washable and is targeted at young adults aged 15-24 who are the teenagers and the
young adults. Market penetration pricing will be implemented whereby it will be sold
at RM 19.90 in all the outlets of Chatime. Not only that, advertising to create
awareness and knowledge towards the product’s existence will be done primarily via
social media such like television, print and radio. Sales promotion will be used to
promote Nibble Sip and to attract more customers to purchase the drink and snack of
Chatime frequently. The marketing objective for the first year of launch is to build
awareness and product insignia to consumer around the world and aim to achieve
5,200,000 units with the sales revenue RM 104,848,960.80. After that, the second
objective is to generate more sales by product Nibble Sip and plans to increase the
retail sales at 5,300,000 units with sales revenue RM 105,727,663.80 by 2018.
Besides, the monthly sales tracking will be conducted to check the progress of the
product. Consumer’s opinion and suggestion on Chatime’s Facebook page and other
social media will be taken into consideration

1
23
2.0 Company Description

Chatime is an international beverage company first launched in Taiwan in

2005. Chatime is Taiwan-based franchise which operates worldwide with over 800
retail outlets in 25 countries. These include Malaysia, China, United States, Dubai,
Singapore, Hong Kong, Thailand, Korea and Australia. Chatime Malaysia started with
its popular bubble tea in Malaysia by operating the first outlet in Pavillion shopping
mall in September 2010. Chatime Malaysia is owned by the LOOB Holding Sdn Bhd
and the CEO of this company is Bryan Loo.

The founder, Henry Wang Yao-Hui, unique combination of fresh flavours and
toppings made his iced teas famous and an instant hit. Chatime grow to over 1,000
locations within seven years. He invented tea machines to make the quality of fresh
teas consistent. Chatime has a variety of flavours, and fruit toppings. The flavours
come under different categories such as milk tea, fresh tea, fruit tea, oriental pop tea,
mousse, juices, smoothies and dark chocolate. It has between 30 to over 90 flavours.
The best-selling drink is bubble milk tea. Meanwhile, the variety of toppings such as
pearls and QQ jelly which is a mixture of pearls and nata de coco. This made Chatime
having a more competitive edge to compete with its many other competitors in the
market.

Chatime uses a range of high quality teas that are brewed every 4 hours.
Freshly brewed tea is prepared on site. Each drink is individually prepared by over
800 trained tearistas nationwide. It is prepared with less sugar in mind for health
benefits. Chatime also uses the best imported tea leaves and quality ingredients, minus
additives and preservatives. In addition, Chatime uses sophisticated tea machines to
produce the highest quality drinks to suit all levels of society.

24
3.0 Strategy Focus and Plan

3.1 Vision

Chatime consisted of two words which are Cha meaning that “Tea” in Chinese
word and “Time” in English word. The goal of Chatime is to yield customers with
“Good Tea, Good Time” around the world. Chatime is launching a new product which
is “Nibble Sip” and wants their consumers to always remember their product by using
this container. For the “Nibble Sip”, the vision is to change the way people snack
forever. “Nibble Sip” is the all-in-one container. The design makes consumers can
hold their snack and favourite drink all in one hand. It is good for snacking in
anywhere, such as in the car or sitting on the couch at home. The “Nibble Sip” has the
perfect portion size for snack. The product of Chatime “Nibble Sip” which is the best
container to support any active and healthy lifestyle. The customers can enjoy the
drink and snack of Chatime in an easier way with this product.

3.2 Mission & Goals

Our company goal is to revolutionize the tea industry with our very own brand
of high-lifestyle, designer tea outlets. Whereas our marketing plan aims to cultivate a
modern tea drinking culture within the Malaysia community by providing a very
convenient way for consumers to get our various types of high quality tea and also to .
To achieve this, we improve our packaging by introducing our ‘Nibble Sip’ tumbler to
bring convenience to the customers and also we provide various types of snacks to go
along with our tea.

A whole new experience of enjoying our pearl milk tea and snacks by using
our new tumbler will be brought to our customer by introducing our ‘Nibble Sip’
tumbler. It has the capability to hold both snacks and milk tea together in a cup. A lid
was designed with a spot for a straw and seals perfectly to prevent spills and also to

25
keep food fresh. ‘Nibble Sip’ tumbler is also washable which makes it
environmentally friendly.

3.2 Core Competencies & Sustainable competitive advantages

The mission statement of Chatime is to provide consumer with fresh, health, and
quality drink. There are 4 competitive advantages of Chatime which are the service,
quality, innovation and promotion. Chatime provides good services to customers,
which are online ordering and delivering where others competitor don’t have. The
second competitive advantages of Chatime is quality. Chatime is always used
sophisticated tea and coffee machines to produce only the highest quality drinks in
order to serve a beverage liked by all. Besides that, Chatime also uses only the best
imported tea leaves and quality ingredients, minus additives and preservatives. The
third competitive advantages of Chatime which is innovation. Chatime uses secret
ingredient in their product such like “white pearl”. There are made from seaweed
extract and are low in sugar and calories, and high in fibre. So, the drinks of Chatime
always have their own unique taste. Lastly, Chatime will provides attractive
promotion on their beverage such like launching the Chatime X BROS bottle and for
those customers who purchase the beverage by using this bottle at any outlet will get
extra 10% discount of the drink. This is a special promotion that cannot find in others
bubble tea company.

4.0 Situation Analysis

4.1 SWOT Analysis of Nibble Sip

SWOT analysis consists of four aspects, which consist of the strengths (S),
weaknesses (W), opportunities (O) and threats (T).

Strengths Weaknesses

● Convenient to use ● High cost

26
 ● The snack can be kept warm
● Transparent from one side to let the
user know the amount of milk tea left
● A lid provided to prevent the snack
from falling out

Opportunities Threats

● Promote this product using social ● Strong competitors

media
● Not patented so it can easily be
● Follow fashion trend with time copied by other business
competitors.
● Health conscious benefits to consumer

Internal Analysis

Strengths

The product is very convenient to use, especially when someone wants to

selfie. This product is a two in one container whereby snack and pearl milk tea can be
put together into one packaging. The upper level which contains the snack can be kept
warm by using double wall insulation design. Meanwhile, a fat straw is provided to
suck the pearl milk tea from the lower level through the upper level. The product is
also transparent from one side to let the user know the amount of milk tea left. On top
of that, there is a lid to cover up the snack to prevent falling out from the container.

Weaknesses

The cost of the manufacturing the product is rather high as it needs to be

insulated with double wall made from 100% Bisphenol-A free (BPA) plastic which
add up to the cost.

External Analysis

Opportunities

Nowadays, Information and Communication Technology (ICT) has brought a

wealth of information on the internet. At a click of the mouse, a lot of information
appears within seconds. Everyone has a mobile phone or a computer to access the

27
Internet. Therefore, it is a golden opportunity to promote this product across the
globe. Hence, many people will know the existence of the product.

Moreover, the product is trendy. As everyone is chasing after fashion and

keeping up to date in today’s world, people will buy and upload the photo of the
product to share in the social media at anytime and anywhere. Unconditionally, this
phenomena will help to promote the product worldwide. This is also an extensive
advertising strategy, especially it is a colourful and unique product.

In health conscious societies today, consumers want to buy healthy product.

Thus, they are more concern about their health and would consume milk tea to
improve their healthy lifestyle. Chatime has offered a health-tea series with a selection
of nutritious and healthy option. Chatime is providing natural Taiwanese fresh tea, of
the highest-quality ingredients and using unique methods of infusing and blending the
tea.

Threats

There are many strong competitors selling different types of cups in the
market. As a result, the product has many competitions among the other products.
Furthermore, the product is not patented so it can easily be copied by other business
competitors.

4.2 Industry Analysis

Chatime started its first outlet in California in 2006, and it has since expanded
to Australia, and Malaysia in 2010, Philippines, Canada, Cambodia, Thailand, New
Zealand, India, Dubai, China, Japan and Korea. Its operations in Malaysia accounted
almost 50% of its global revenue. In July 2015, Chatime emerge in 25 countries and
territories. Chatime has achieved its remarkable 100th outlet in Malaysia by 2013,
with aim to increase the number of outlets by 150% which is 250 outlets within a
three to five year span. Chatime in Malaysia makes hand-made beverages with freshly
brewed tea prepared on the spot. Each drink is specially prepared by over 800 well-
trained tearistas across 116 outlets nationwide.

28
 However, Chatime also have a massive amount of competitors nationwide and
even worldwide, there is plenty of other bubble milk tea merchandise in the market
which triggers the rivalry in the industry. Chatime’s competitor is divided into two
sections, direct competitors and also indirect competitors. Its direct competitors
consist of Gong Cha, Ochado and also CoolBLog. Gong Cha competes against
Chatime with its healthy and freshly brewed tea and also with their variety of drinks,
which is juice and coffee besides from tea. Whereas, Ochado competes against
Chatime with its green tea and matcha flavour tea, and also they are famous with their
signature Japanese mille crepe which perfectly matched the flavour of their tea.
CoolBlog adds new flavour into their menu constantly within 3-4 month, this attracts
new customers with a variety of flavours. All these competitor’s product is a threat
against Chatime because they share similarities of functions and has the ability to
substitutes to meet the same needs of customers’.

Apart from that, Chatime gets its supply of tea from Nantou County, Taiwan.
Nantou is a tea-growing zone that supplies roughly 54 percent of Taiwan’s tea. This is
where Chatime’s logo is inspired by, a V shaped leaf formation they call “one heart,
two leaves”. Nantou County is a supplier with high bargaining power due to its
market in the tea industry. Therefore, Chatime overcome this threat by decreasing the
threat of bargaining power of distributors. Chatime adapts to franchising market
strategy which does not requires distributors to market their product.

Bubble milk tea has become one of the trendiest in food industry nowadays
among the middle upper income population. The high market growth rates and large
profit margins tend to attract new players into the industry. Since Chatime step into
the industry in 2006, there are more new entrants coming into this industry of
Malaysia every year such as Gong Cha, Wucha 18, Share tea and also Come Buy. The
food and beverage retail market in Malaysia is expected to grow by 10% per annum
with Malaysian households spending almost a quarter of their income on this industry.
The food and beverage industry in Malaysia also has strong GDP forecasts which
food and beverage sales foresee to rise in the coming three years to US$21.17 billion.
Chatime is currently in the process of obtaining the halal accreditation by the
Malaysian Islamic Development Department (Jakim). From this, Chatime would have
the opportunity to explore and holds the qualification to have more among local
Muslim consumers. Chatime is the leader of bubble tea industry in Malaysia,

29
solidifies their foothold with 100 stores in Malaysia by 2016 and has now achieved
1000 outlets across the globe.

Furthermore, social responsibility plays an important role that determines a

company’s future. To be a company in food and beverage industry, product packaging
is always related to environmental issues. As in today’s global market, every business
is putting more efforts in reducing the usage of plastic in order to achieve
sustainability. Hence, company must maintain its competence in order to maintain or
increase its market share in this competitive industry and understand thoroughly the
industry, identify the problems, develop a strategic plan which can adapt with latest
challenges.

Therefore, Nibble Sip is launched to satisfy consumers’ needs and as a first

step to practice sustainability in operating Chatime. By considering the environmental
awareness is popular among the consumer around the world, this environmentally
friendly innovation aims to maintain the market share that Chatime have already
achieved as the leader of the pearl milk tea company in Malaysia.

4.3 Competitor Analysis

Bubble tea is a drink that widely consumed by the Taiwanese. But nowadays this
drink phenomenon is spread from Taiwan to many Asian countries including
Malaysia. Taiwanese bubble tea seems like the modern and latest trend in Malaysia,
especially among the young people. Malaysian enjoy to drink it because it has various
flavour and reasonable prices. In recent years, many international franchise bubble tea
shop flourished oversea and had boomed the Malaysia beverage market. This created
a competitive environment in the bubble tea shop industry in Malaysia.

The direct competitor of Chatime is Gong Cha, Ochado and CoolBlog. These
brands are close substitutes and had similar quality and price. The biggest competitor
of Chatime in Malaysia is Gong Cha which also a franchise from Taiwan. Besides, the
indirect competitor also causes effect to the Chatime. Starbucks, Coffee Bean & Tea
Leaf and McCafe are the indirect competitors of Chatime.

Direct competitors:

30
1. Gong Cha

Gong Cha is a bubble tea franchise originally from Kaohsiung, Taiwan. It was the
fastest growing bubble tea franchise in Asia. It had over 600 stores in Taiwan,
Singapore, Malaysia, Hong Kong, China, Indonesia, Cambodia, Philippines, Korea
and USA. Gong Cha aimed to provide the best quality, healthy and freshly brewed tea
to their customers. Gong Cha divided the beverage into 3 main categories, there are
tea, juice and coffee.

2. Ochado

Ochado is a famous tea brand originates from Japan instead of Taiwan. It famous with
its Japanese green tea and matcha. Ochado uses Japanese art brewing and ingredient
from Japan to make their beverages. Ochado always bring the message to their
customer to drink healthy. People often like to order a slice of Japanese mille crepe
together with a cup of tea.

3. CoolBlog

In 2005, CoolBlog first launched in Singapore. Now, there are more than 150 outlets
in Singapore and Malaysia. It was being awarded as an outstanding SMEs at Golden
Bull Award 2012. CoolBlog has more than 25 flavour on the menu and constantly
adding new flavours within 3-4 month.

Indirect competitors:

1. Starbucks

Starbucks is an international coffee brand franchise in Malaysia. It dominated the

Malaysia’s coffee market for many years. The logo of Starbucks easily recognisable
and available at everywhere. It always launch cups, mugs and tumblers with different

31
design to attract customer. The new drive-thru concept store makes the customer more
easy and convenient to buy the coffee.

2. The Coffee Bean & Tea Leaf

The Coffee Bean & Tea Leaf is the oldest and largest coffee and tea retailer in United
Nation. It uses pre-ground medium roast 100% Columbia coffee to ensure the rich
taste of coffee. Coffee Bean divided the coffee into seven categories, there are light &
subtle, light & distinctive, dark & distinctive, medium & smooth, flavoured,
decaffeinated, and reserve.

3. McCafe

The first McCafe in Malaysia opened in 2012 at McDonald’s Kota Dmansara. The
coffee is brewed from 100% Arabica beans and customer can enjoy it in hot or cold,
smooth or creamy and blended. The size of coffee cups to takeaway are 8oz, 12oz and
16oz. Customer can enjoy the coffee together with the delicious muffin.

Because of the strong competition between all bubble tea shops in Malaysia,
Chatime has to do something that is creative and different with other bubble tea

32
shops. The launches of “Nibble Sip”, a convenient container that allows customer
hold food and drink in one hand will be the new trend in consume food and drink in
the beverage market because Chatime is the first beverage franchise to launch it.
Chatime is confident that the launches of “Nibble Sip” will attract more customers
and increase the sales.

4.4 Company Analysis

Chatime’s jingle is “Good Tea, Good Time”. It is a distinctive tea concept that
is dedicated to making tea a healthy, refreshing and fun alternative to coffee. Chatime
is offering the world’s most genuine tea experience and is rapidly becoming known as
the fresh tea specialist. Chatime as a biggest international bubble milk tea brand
enterprise which founded in Taiwan in 2004 by Lakaffa International. The company’s
vision is to establish Chatime as the market leader of tea concept in the region. Today,
Chatime has over 1000 stores in 25 countries, including Malaysia, Singapore, China,
Taiwan, Hong Kong, Australia, Indonesia, Philippine and Los Angeles. Chatime
always uses the quality ingredient to produce only the highest quality drinks. For
example, sophisticated tea and coffee machines. At the same time, the mission
statement of Chatime is to give their customers the freshest tea value, where they can
find anywhere and providing the drinks, which are high quality, tasty, healthy,
friendliness, and delivers a sense of warm, creative and innovative in the region.
Chatime always take food safety as their top priority and control their ingredients in
very good condition and safety to produce higher quality drinks.

Besides that, Chatime is targeting on introducing Taiwanese Authentic food to

worldwide customers by becoming a “Global Brand with Local Flavour” and to be a
leader of bubble milk tea in the region which mean that every place will have
Chatime. Chatime is using a procedure of “High Tech Tea Making” to control the
different of international environment cultures and market. For example, humidity,
temperature, and barometric pressure. As a report proven that, Kamal Suria Asria Raja
who is a junior in LAS, said Chatime banana milk tea had the same taste and quality
as the teas he gets from the Chatime Malaysia which is his home country. Chatime is
always considering of local tasted when constructing of their menu. For instance,
Chatime Malaysia had an international halal recognition certificate approved which

33
means that the Muslim customers in Malaysia who can purchase the product of
Chatime. Hence, Chatime formalizes the bubble milk tea making standard procedures
in “precise timing, “precise quality” and “precise temperature” to guarantee the best
quality drinks to have the own local tasted for customers universally.

4.5 Customer Analysis

A customer analysis is a crucial unit of a company's marketing plan.

Customer’s needs can be discovered and learnt through the customer analysis.
Basically, it identifies target customers, and then specifies how the product satisfies
these needs. The outcome from the analysis will be the guideline for the company to
plan their marketing strategies in order to achieve the mission and also to meet the
customer’s demand and needs. Our team has done a survey on customer’s preference
towards a new product called a ‘Nibble Sip’ tumbler under the Chatime brand which
is going to be launched soon. Based on the results we got, our team understands the
need and preference of customers in a more detailed form. Our survey can be divided
into 3 sections, first section is about customer’s personal information, followed by
consumption of present products, third section is about the new product’s feature and
the last part is about the new product’s price.

Section 1: Customer’s Personal Information

Question 1: Age Group

34
 Age Group

6% 6%
20%
10%

58%

Below 15 15 - 24 25 - 34 35 - 44 Above 45

Age Group Number of respondents Percentage of respondents

(people) (%)
Below 15 10 20
15 – 24 29 58
25 – 34 5 10
35 – 44 3 6
Above 45 3 6

The questionnaire is distributed to 50 respondents from different age group.

There is a total amount of 50 respondents, which 58% of the respondents comes from
the age group of 15-24, 20% of the respondents comes from the age group of below
15, 10% of the respondents comes from the age group of 25-34, and 6% of the
respondents comes from the age group of 35-44 and above 45 respectively.

Section 2: Consumption of Present Products

Question 2: How often do you consume the Chatime pearl milk tea?

35
 Consumption of bubble milk tea
60%
50%
50%

40%

30% 24%
20%
20%

10% 6%

0%
N0e%
ver Once in a while Once in a week Twice in a week More than above
Number of respondents

Consumption of bubble Number of respondents Percentage of respondents

milk tea (people) (%)
Never 0 0
Once in a while 12 24
Once in a week 25 50
Twice a week 10 20
More than above 3 6

According to the survey’s result, 50% of the respondents drink bubble milk
once in a week, 24% and 20% of the respondents drink bubble milk tea once in a
while and twice in a week respectively. There are only 6% of the respondents who
drink bubble milk tea more than twice in a week and there is 0% of respondents that
never drink bubble milk tea before. The results indicated that a big portion of our
targeted market is already consuming bubble milk teas frequently, and this is a
positive starting point where our team can design strategic plans to approach the
targeted market. Apart from that, our new product – Nibble Sip which brings a lot of
convenience can attract and extend customer’s willingness to consume our bubble
milk tea more often.

Question 3: Do you prefer to consume our Chatime bubble milk tea with snacks
using the Nibble Sip?

36
 Preference to consume bubble milk tea with snacks using Nibble Sip

No; 8%

Yes; 92%

Yes No

Preference to consume Number of respondents Percentage of respondents

bubble milk tea with (people) (%)
snacks using Nibble Sip
Yes 46 92
No 4 8

The chart shows that 92% of the respondents do prefer to consume Chatime’s bubble
milk tea with snacks using Nibble Sip. Whereas only 8% of the respondents who
prefer to enjoy bubble milk tea individually without snacks. This outcome motivates
our team to supply and fulfil our customer’s needs and demands with our new product
– Nibble Sip. This is due to our product is specially designed to meet the needs of
customers who prefer to enjoy their bubble milk tea together while nibbling snacks
along.

Section 3: New Product’s Feature

37
Question 4: Based on the product description, how interested would you be in
buying this Nibble Sip if it is launched in the market?

Interest of Customers towards Nibble Sip

Very interested; 70%

70%

60%

50%

40%

30%
Somewhat interested; 14%
20%
Not interested at all; 8% Not sure; 8%
10%

0%
Not interested at all Not sure Somewhat interested Very interested
Interest of Customers towards Nibble Sip

Interest of customers Number of respondents Percentage of respondents

towards Nibble Sip (people) (%)
Not interested at all 4 8
Not sure 4 8
Somewhat interested 7 14
Very interested 35 70

The majority of the respondents shows interest in purchasing our new product –
Nibble Sip if it is launched in the market. Whereas only 8% of the respondents who
shows no interest at all towards our new product. Apart from that, there is also a
minority group of 8% who are not sure whether to purchase or not to purchase Nibble
Sip. These results indicate that Nibble Sip can be launched in the market.

Question 5: Below are the list of features that are part of the Nibble Sip. How
important each of this features to you?

38
 Chart Title

Washable

Design

Convenience

Can be twisted into 2 cups

Preserve heat

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Not important at all Slightly important Neutral
Important Extremely important

1 2 3 4 5
Features Not Slightly Neutral Important Extremely
Important At Important Important
All

Preserve Heat 0% 10% 14% 20% 56%

Can be twisted 2% 6% 8% 38% 46%

into two cups

Convenience 0% 0% 6% 14% 80%

Design 6% 40% 14% 30% 10%

Washable 2% 4% 14% 10% 70%

According to the outcome of our questionnaire, the feature of Nibble Sip which brings
convenience and also can be twisted into two cups is very important to our customers.
These two features have over 80% of the votes, which indicates that they meet most
of the needs and demands of our customers. Whereas the feature of preserving heat
and washable is the secondary features that carries weight to the customers. This two
features have over 70% of votes indicating that they are also one of the reason

39
customers shows their interest in purchasing this product. Apart from that, the feature
of the design is not that important compares to the other features that Nibble Sip
carries, there is only almost half of the respondents takes this feature into
consideration. The results will provide a clear guideline for our team to focus on the
development of the important features in Nibble Sip in order to satisfy our customer’s
needs and demands.

Section 4: Product’s Price

Question 6: Based on the product description, what is the price range of this
product that reasonable to you?

In this question, respondents are given a space to mention the ideal price range of this
product that is reasonable and affordable to them. The average of the range has been
calculated and the result is matched with our financial projections price range. The
price range is from RM18 to RM 25 per tumbler.

5.0 Market-Product Focus

5.1 Marketing and Product Objective

• Marketing Issues
Chatime will be facing some crucial issues during the launching of the new
product “Nibble Sip” in the market. One of the biggest issues is to attract people to try
the Nibble Sip when they drink in Chatime. Chatime needs to invest heavily in
advertising their new product “Nibble Sip” and chooses which type advertising
program is the best to promote their product. Therefore, our team would like to list
out a clear message to consumers through advertisement program. This plays a crucial
role in ensuring that Nibble Sip satisfies the customer’s needs and wants. The benefit
of advertisement which can create an impression in the consumer’s quickly. Hence,
how to attract the attention of consumers to purchase Nibble Sip is the main challenge
of Chatime.
Besides, the price of Nibble Sip is also an issue encountered by Chatime. The
cost of the materials is high which indirectly made the products to be expensive.
Aluminium foil which acts as the insulator is the contributing factor in the high cost.

40
Therefore, finding for substituting raw material is important to reduce the cost of
Nibble Sip. The price of the product should be affordable by the middle income
consumers because most our target consumers are students and those without
independent income.

• Marketing objective
There are several marketing objectives have been set by the Chatime in the coming 2
years in order to gain high returns on market share.
To build awareness and product insignia to consumer around the world
Chatime will start to introduce their new product which is Nibble Sip and lead the
market to purchase their drink and snack by using this product. Chatime needs to do
more campaign and promotion of their new product. For example, they can invite
famous artists to become ambassadors for their product. This will increase the product
awareness among people and attract them to buy this product. Chatime aims to
achieve 5,200,000 units with the sales revenue RM103, 480,000 in the first year
To generate more sales by product Nibble Sip
Chatime offers a healthy bubble milk tea series. They want to influence consumers to
purchase their drink at least once a week. This is because the drink in Chatime is good
for health with high nutrition content. To establish a healthy culture, Chatime provides
a very convenient way to consumer to enjoy the drink and snack in an easier way
which is the Nibble Sip. This product wants to change the way of people consuming
snack. The customer can hold their drink and snack all in one hand. Hence, the Nibble
Sip has higher benefit value and very convenient to the customer especially those who
are busy. Chatime plans to increase the retail sales at 5,300,000 units and sales
revenue RM 105,470,000 in the second year.

5.2 Target Market

Basically, the customers aged 15 - 24 year are the target consumers of the “Nibble
Sip”. They majority of them are students. They care about trendy, like to something
new through social media sites, enjoying a good lifestyle and sure have the ability to
purchase this product.
According to the survey, there are 50% of the respondents who drink bubble milk
tea once in a week. This result shows that people who aged 15 - 24 year is our target

41
market who willing to buy our milk tea with snack using Nibble Sip. Therefore, we
design and market the Nibble Sip based on their needs. The design of Nibble Sip is
special with the special features such as preserve heat, can be twisted into two cups,
convenience, fashionable and washable. This is an important point that customer will
consider before they purchase a product.
In conclusion, our product is a new designed which fulfil the needs of the
consumers when they have their meals. Hence, Nibble Sip will be a good choice of
them.

5.3 Points of Difference

5.3.1 Product differentiation
Product differentiation is the process of differentiate a product or service from
other competitors, to make it outstanding and more attractive to a particular target
market. This involves differentiating it from competitors' products as well as a firm's
own product.
Chatime has strong differentiation which is quality, taste and consistency. Chatime
will be the first company to have two in one container on the bubble tea market. The
other competitors do not have such container yet. Besides, Chatime has high quality
in taste and the popularity advantage among the people. It has a significantly much
milkier taste than other competitors. In addition, Chatime has also provided delivery
service for the consumers, especially during peak hours to make them more
convenient and fulfil the consumers’ satisfaction. On the other hand, CoolBlog do not
have delivery service like Chatime. Chatime is committed to deliver consistently good
quality tea with efficient and outstanding customer service.
Chatime is using a variety of product differentiation in the bubble tea industry
to attract more consumers to buy the products. It provides more consumers’ choice as
well as attracting more customers to consume. Chatime provides different types of
flavour and fragrance in their drinks. It can categorize into nine series, which are
Chatime jelly series, coffee series, energetic healthy series, fresh tea series, mellow
milk tea series, mousse series, oriented pop tea series Chatime special mix series and
smoothie or slush series. Chatime is still continuously reinventing new and innovative
drinks. Apart from that, Chatime has produced five types of snacks like crispy fried

42
chicken, golden chicken skin, and mini hash brown, popcorn chicken and classic
wedges as side orders in certain Chatime stores.

5.3.2 Target market differentiation

The target markets of the Chatime’s bubble tea is to provide different various
series of bubble tea to fulfil the different taste of consumers. It has an array of
different flavours to suit the consumers. The main target population for Chatime are
the teenagers and the young adults between the ages of 15 to 24.

5.3.3 Nibble Sip product enhancement

Chatime would be the first and only company that provides two in one container,
known as “Nibble Sip”. It is very convenient to use whereby snack and milk tea are
put into one packaging. The upper level contains the snack while the lower level
contains the bubble milk tea. The consumers can carry both items with one hand as it
is so convenient. On top of that, aluminium foil is used as an insulator to keep the
snack warm. Customers can consume the snack at their leisure without worries of it
getting cold. By using “Nibble Sip”, it is definitely the best choice for consumers.

5.4 Positioning
Chatime is a bubble tea franchise from Taiwan. Chatime’s customer consists
of adult, young people and kids. The tea is brewed with highest quality ingredient and
real tea leaves. It always launch a new series of beverages to create creative, delicious
and healthy beverages to meet customer’s needs. Apart from that, Chatime provides a
happy and comfortable environment to their customer. The environment is suitable for
young people to gather and suitable for adult to take a rest.
Positioning Map (Figure 1):

21

Low Price
 The Figure 1 shows a positioning map for the Malaysia bubble tea market. The
position of each point on the map indicates the brand perceived on two dimensions:
price and choices.
Thus, from the customer’s views, Chatime is a low price and more choices
beverage shop. The price of Chatime product is lower than its main competitor, Gong
Cha about RM1-RM3 and has more choices than Gong Cha. Other brands, such as
Ochado are positioned as highly priced and its product choices are less and CoolBlog
is positioned as low priced and also has less choices of products.

Possible Value Proposition (Figure 2):

44
From the possible value proposition, Chatime provides good service to the customers
for the same price compared to other competitors, such as Gong Cha, Ochado and
CoolBlog. Chatime provides delivery service at Damansara, Petaling Jaya, Sunway,
Bangsar, KL City Centre and Mont Kiara from Monday to Friday at the minimum
purchases RM 20 and provides drive-thru service in several petrol stations. The new
product “Nibble Sip” will be the first to Chatime to create a convenient service to the
customers, especially the drive-thru customers because they can hold the food and
drink in one hand. From our survey, 70% of the customers are interested towards our
new product - Nibble Sip which can combine food and drink in one container to bring
convenience to the customers.
6.0 Marketing Strategy
6.1 Product Strategy
• Idea Generation
Based on the market survey that have been done by our group. We found that
the idea of “Nibble Sip” was conceived based on several reasons. There is a high
demand for pearl milk tea and consumers in Malaysia have a flavour to consume
beverage with snacks. Chatime has provided several types of snacks which is golden
chicken skin, crispy fried chicken, mini hash brown, popcorn chicken and classic
wedges as a side order in certain Chatime outlet. We discover that it’s not convenient
for customer to consume pearl milk tea with snacks when both hands holding drinks
and snacks. To satisfy customer’s needs, “Nibble Sip”, a convenient container that
allows customer hold food and drink with only one hand is introduced to bring new
trend and culture among the consumer in Malaysia. The name “Nibble Sip” means
bite and taste which reflect the function of this product.

6.1.2 Unique Product Quality

Nibble Sip has the following characteristic1:
I. A tumbler that can be twisted into 2 cups (the bottom cup has a volume that
can fit in 500ml of liquid and the upper cup have a volume that can fill in
250gm snacks)
II. Preserve heat (double wall insulation to keep food warm)
III. Washable (can be reused)

1 Refer appendix 11.2

45
IV. Easy to grip shape designed
V. Fat straw (the straw is designed large enough to suck the pearl and the length
is fit into the bottle)
VI. Transparent from one side to let the user know the amount of pearl milk tea
left (measurement scale is label on the transparent side)
VII. Made from 100% Bisphenol-A (BPA) free material which is safety to used

6.1.3 Packaging
The packaging component of a product refers to any container in which it is
offered for sale which can also provide a competitive advantage to a company.
Packaging often plays an important functional role, such as convenience and product
quality. Nibble Sip fulfils the convenience dimension with the tumbler designed that
can twist into 2 cup, cap to cover the cup for hygiene purpose and big straw to suck
the pearl milk tea.
The design of Nibble Sip aims to create a perception in the consumer’s mind.
Package and label shape and colour distinguish one brand from another, convey a
brand’s positioning. The colour of Nibble Sip is purple, which is the theme colour for
Chatime and the brand’s logo is labelled to uphold a brand’s image among the
consumer.

6.2 Pricing Strategy

6.2.1 Pricing Objective
Price is the money exchanged for the benefits of having or using the product
or service. Pricing is a critical decision because the price has a direct effect on a firm’s
profits. Chatime’s profit is high enough for it to remain in business. The pricing
objective of Nibble Sip is to increase sales revenue, which will in turn lead to increase
in market share and profit.

6.2.2 Pricing Strategies

For our newest product Nibble Sip, we choose market-skimming pricing
strategy. Chatime is a popular brand in the pearl milk tea market with its high quality
pearl milk tea that produced using 100% natural ingredients and minus preservatives
and additives. We believe that the customer is willing to pay RM19.90 to buy this new

46
product. We believe that Chatime customers weigh our new product’s price, quality,
and ability to satisfy their needs against the other pearl milk tea brands because
Chatime is the only brand in this industry that introduce this product. We will not set
the price too high to ensure the middle income population is able to afford the
product.
Furthermore, we used odd-even pricing strategy in setting the Nibble Sip’s
price. We set the price for Nibble Sip at RM19.90 rather than RM20.00 because
customers tend to perceive the price is cheaper based on the customer survey about
70% would pick the acceptable price range from RM18- RM25 for the new tumbler of
Chatime. Besides, most of the Malaysian’s household is from middle income families
and tend to gain more, but spend less lead to the setting prices a few cents under a
rounded number.

6.3 Promotion Strategy

To communicate with customers, our team chose to use 2 approaches in raising the
customer’s awareness of our new product Nibble Sip. Our team aims to achieve mass
selling to generate sales, therefore, our team has decided to approach our targeted
market with 2 alternatives which is advertising and sales promotion

6.3.1 Advertising
The targeted market of this new product is a group of consumers aged 15 – 24
years old. Where it is a generation that access electronic devices, social media and
also Internet daily. Therefore, our company would like to capture our customer’s
attention by advertising Nibble Sip through Facebook, Instagram, Youtube videos and
also through television. Facebook is now leading the market in social media, it was
the first social network to exceed 1 billion registered accounts and currently sits at
1.59 billion monthly active users. Whereas a photo-sharing app Instagram had over
400 million monthly active accounts. Advertising Nibble Sip through Internet will be
effective as they can cover a very large scope of the market and it is very accessible
from our targeted market. Our company will also advertise our new product through
newspaper as it can reach a larger extent of customers.
After Nibble Sip has been launched into the market, an awareness campaign
will be advertised again to the public through pomp and grand fanfare. Aggressive

47
advertisement will also be revised again through online media with the advantages
and benefits of Nibble Sip. Apart from that, Chatime’s brand ambassador a Taiwan
actress Ariel Lin and also Crystal Lee that has become the lifestyle tea provider's first
“Chatime Friend” will also be used to communicate with the public to raise their
awareness towards Nibble Sip’s launching.
Roadshows in big shopping malls will also be employed to make sure that our
customers fully understand the advantages and benefits of Nibble Sip through face-to-
face interaction as there will be hands on demo to be shown to the customers.

6.3.2 Sales Promotion

Before the launching of Nibble Sip, an introductory campaign will be
organised to raise the awareness of the public about our new product – Nibble Sip.
After the introductory campaign and during the launching of Nibble Sip, our sales
promotion will be done through all of our outlets across the country, which is 116
outlets in total countrywide. For the first 2 months of launching our new product
Nibble Sip, customers will only need to add about 50% of the original price of the
tumbler when they purchase any set of drinks together with snacks to get us Nibble
Sip. This is to attract customer’s attention to purchase our product for the new
launching of it. This promotion will urge customers to purchase it in the first two
months of its new launching and it will generate feedbacks to support the sales of
Nibble Sip after the first two months.
Besides that, Chatime has also already released membership card to our
customers. Therefore, membership card holders will benefit from buying Nibble Sip
using their member card. Customers who buy Nibble Sip using their member card will
be enjoying a free drink inside Nibble Sip as a reward for their loyalty towards
Chatime.
Apart from that, customers who purchase our drinks and snacks using Nibble
Sip will also get a 10% discount from every purchase. This is to urge customers who
consume our bubble milk tea frequently to purchase Nibble Sip and also to generate
sales of our snacks.
Lastly, our company will also be organising a photo contest whereby
customers can post their own photo posing together with Nibble Sip to our official
Facebook page and showing that how they use our product in the innovative and

48
creative way. Rewards will be given to the winners and his is also one of our
company’s approach to interact with our customers. Another promotion strategy that
our company will adapt is by giving out vouchers to customers who purchases our
product for more than RM100. The voucher can be used to redeem any Chatime’s
product.

6.4 Location Strategy (Distribution Strategy)

Distribution is the process of making a product or service available and
accessible for use or consumption by consumer. Considering there is strong demand
of our product, to extend our presence, we change the size and design of our stores,
which allows us to locate them in or near a variety of settings, including gas stations,
airports and off-highway locations. Our company adapt to franchising strategy to
increase the accessibility to our product. Therefore, we also match it with intensive
distribution which is to stock up Nibble Sip in every single franchised outlets in
Malaysia.

Intensive Distribution and Distribution Channel

Chatime will engage with intensive distribution where Nibble Sip will be
available countrywide through all the outlets in Malaysia. Chatime will only distribute
Nibble Sip through our very own outlets without retailers because we want the
customers to experience using Nibble Sip when consuming our bubble milk tea
together with snacks.

Producer Consumer

7.0 Financial Data & 2 Year Projections

Budget is an estimated projection of revenues, expenses and resources of a

company during a particular period of time in the future. Managers predict their budget
with all the funds that had allocated to their departments. They have to make sure that the
budget has a positive balance. Generally, managers used budget to decide the amount of
money that can be spend and how it will be spent on every activities to avoid over budget.

49
Besides, budget also refer to the scope of financial plan in the roles of managers in order
to maintain the product sales in the market. While in terms of budget that related to
company to produce product, projected sales growth and projected marketing expenses
are the two main of projected under budget.

7.1 Projected Sales Growth

Our targeted customers are 15-24 years old. From the data from Geoba.se, we
found that the population of 15-24 years old citizen of Malaysia will be increase and
reach 5,276,792 in 2017 and 5,325,762 in 2018. We estimated that each customer will
buy a “Nibble Sip” per year. A predicted sales growth budget for the Chatime new
product-Nibble Sip is calculated and shown as below.

Sales Growth Budget: Year 2017 2018

Total target customers 5,276,792 5,325,762
Quantity (n) 1 1
Total market size in 5,276,792 5,325,762
quantity
Expected selling price (RM) 19.90 19.90
Total budget sales (RM) 105,008,160.80 105,982,663.80

7.2 Projected Marketing Expenses

Advertising and Sales 2017 2018
Promotion Expenses Year
2017-2018
RM RM
Advertising
Social media 22,200 24,000
Newspaper 9,000 9,000
Radio 18,000 18,000
Television 34,500 48,000
Ambassadors activity 40,000 42,000
Awareness campaign 2,500
Total Advertising Cost 126,200 141,000
Sales Promotion RM RM
Price deal/ Price discount 24,000 42,000
Loyal reward programme 18,000
Roadshows 18,000
Games 12,000
Vouchers 24,000
Photography Contest 9,000

50
 Total Sales Promotion Cost 33,000 114,000
Total Advertising Cost and 159,200 255,000
Promotion Cost

7.3 Financial Overview

2017 2018
Sales 105,008,160.80 105,982,663.80
(-) Total Advertising Cost 159,200 255,000
and Promotion Cost
Revenue (RM) 104,848,960.80 105,727,663.80

8.0 Implementation Plan

The implementation plan is a way of listing a structured series of activities to
get a predictable result. The following are summaries of the implementation plan, we
will use for the year 2017 and 2018.
Once the Nibble Sip has been fully developed, it will be launched on 1st of
Mac 2017. Before launching Nibble Sip, an introductory campaign will also be
organised to create awareness and knowledge about the new product to the public.
Besides that, we will introduce the product to the public by having an advertisement
in the social media and television to attract the attention of consumers about the new
product of Chatime. Apart from that, we will be advertise new our product in the
newspapers such as The Star and News Straits Time.
After the Nibble Sip has been launched, we will build an awareness campaign
about our new product to customers. We will advertise Nibble Sip to the public again
with pomp and grand fanfare. There are many types of media that can promote for our
product such as print, radio, television and internet. We will do aggressive advertising
in Online Media like Facebook and Youtube to share the news with the targeted
customers. The advertisement will promote the advantages of Nibble Sip and show
how convenient it can be used. The advertisement will be ongoing continuously for
two years.
In addition, we will invite Chatime’s brand ambassador, Ariel Lin and Crystal
Lee to raise public awareness towards Nibble Sip’s launching. The ambassadors will
help to attract more people to attend our event. At the same time, the ambassadors will

51
communicate with their fans about the advantages and benefits of using Nibble Sip on
their social media site such like Facebook, Twitter and Instagram to attract them.
Besides advertising, we will do some special sales promotion event to promote
our new product. We will sell the product with an introductory discount of 50% of the
original price of the tumbler when they purchase any set of drinks together with the
snacks. This offer will be on for the first 2 months of launching. After that, we will
give a discount of 10% discount from July 2017 onwards for regular customers who
purchase the drinks and snacks using Nibble Sip at any outlet of Chatime. This
promotion will help to keep our loyal customers happy. On top of that, we will also be
giving price discounts during festive seasons to give publicity to our product.
After that, we will establish a photography contest in December 2017 whereby
customers post their own picture with Nibble Sip on our Website or Facebook. They
can show how they use our product in an innovative and creative way. The prizes will
be given to the winner with the most “likes”. The winner can enjoy a 6 days 5 nights
trip to Korea for free.
In 2018, we will focus on a variety of sale promotion throughout the year to
attract consumers. One of the sale, promotion will be Roadshows in big shopping
malls such as Pavillion Kuala Lumpur, Berjaya Times Square and Sunway Pyramid.
We will explain the advantages and benefits of our Nibble Sip to consumers.
Moreover, we will implement a loyalty rewards program to enable member of
Chatime using a membership card to enjoy a free drink. On top of that, we will also
organise games that highlight the convenience of Nibble Sip. This would let the
consumers realise the benefit of our product easily. In addition, we will give vouchers
for those who purchase more than RM100 of Nibble Sip products. The vouchers can
be used to redeem any product of Chatime. By doing so, our sales can be increased.

52
53
54
9.0 Evaluation and Control
The evaluation step in a marketing plan helps to detect deficiency and by there,
changes and to improve the performance and results. Control is essential in the
evaluation step, where it serves as a guideline for the marketing plan to achieve its
goals. Our company is suing both qualitative and quantitative methods to evaluate our
performance.

Qualitative Method
• Feedback from Customers
We will be providing customers with feedback forms to fill up while they are waiting
for their drinks and snacks to be prepared freshly. This is to evaluate customer’s
satisfaction towards Nibble Sip’s features and also the strategies that our company has
done to approach our valuable customers. Hence, our company can take action to
improve our product.

Quantitative Method
• Profit and Sales Performance
Profit and sales performances help to evaluate the level of satisfaction of our valued
customers towards Nibble Sip. It also indicates our position in the market, and by this
we can understand our ranking in the market. The higher the profit and sales
performance, the better our product and marketing plan is.
• Market Share
The portion of market share shows the position of Chatime in the bubble tea industry
and therefore, we can find out how our marketing plan is working. With the position
of our company in the industry, new plans can be planned and implemented to
improve our performance.

Controls
Controls are necessary in the evaluation stage. Controls provide a guideline to
assess how the plan should achieve its goal. There are few controls that our company
use to set path and serves as a target. Feedbacks can be collected in order to improve
our performance and also to develop a competitive advantage. Tight control is used to
measure and monitor the satisfactions of customers towards Nibble Sip. The usage of

55
tight control enable our company to react immediately and take actions against
problem that occur.

Factor and Control Method

I. Factor: Quality of Product.

Control: Our company will have a standard operating procedure to serve as a
guideline for the production of Nibble Sip. Hence, our product will be within the
requirements of standard. For example, products will be inspected and tested before it
is distributed to prevent external failure costs which is costs that occur after delivery
of defective products to the customers.

II. Factor: Response of Customer

Control: To encourage high responsiveness of customer, our company will advertise
and conduct on-going sales promotion to attract customers and also to build l good
long-term relationship with our customers. For example, customers who purchase
with membership card will get rewards, competition to have interaction with
customers and many more.

III. Factor: Economic Recession

Control: Within the period of economic recession, our sales will definitely be affected.
Therefore, our company will take control by reducing the cost of advertising and
focus on maintaining our product’s quality to build confidence of customers towards
our product. By then, our product can be the customers preference compared to other
brand during recession phase.

IV. Factor: New Entrants into the Industry

Control: Our company is adapting the differentiation strategy on our new product
Nibble Sip. Therefore, to prevent customers substitute our product with new entrant’s
product, our company will always improve our product according to customer’s
feedback to maximize their satisfaction towards our product. Thus, our company will
always prioritize customer’s feedback to improve and differentiate our products with
other company’s product.

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10.0 Bibliographic

Australian Food and Grocery Council. (2014). AFGC Market Insights: Malaysia.

BMI Research. (2016). Malaysia Food and Drink Report. The Fitch Group Company.

Candy Media. (n.d.). Population of Malaysia 2017. Retrieved from geoba.se:

http://www.geoba.se/country.php?cc=MY&year=2017
Canty Media. (n.d.). Population of Malaysia 2018. Retrieved from geoba.se:
http://www.geoba.se/country.php?cc=MY&year=2018

Chatime. (n.d.). About us: Brand Story. Retrieved from Chatime:

http://www.ichatime.com/webe/html/about/

Chatime. (n.d.). Chatime Background. Retrieved from Chatime:

http://www.chatime.com.my/main/story.php

Chatime. (n.d.). Product of Chatime. Retrieved from Chatime:

http://www.ichatime.com/webe/html/news/show.php?num=246

Chatime. (n.d.). The Chatime Global Movement. Retrieved from Chatime:

http://chatime.com.au/our-story

New Zealand Trade and Enterprise. (n.d.). Food and beverage market in Malaysia. Retrieved
from New Zealand Trade and Enterprise Website:
https://www.nzte.govt.nz/en/export/market-research/food-and-beverage/food-and-
beverage-market-in-malaysia/

Statista GmbH. (n.d.). Global social networks ranked by number of users 2016. Retrieved
from The Statistics Portal: http://www.statista.com/statistics/272014/global-social-
networks-ranked-by-number-of-users/

Vin, L. V. (2015, September 16). Copy of Learn Prezi Fast. Retrieved from Prezi:
https://prezi.com/hte7v7v3q9ff/copy-of-learn-prezi-fast/

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11.0 Appendices

11.1 Questionnaire
Instructions
This survey is to study consumer’s choice and preference towards a new product
called a ‘Nibble Sip’ tumbler under The Chatime brand which is going to be launched
soon. Please tick at the appropriate option in each question.

New Product Description - Nibble Sip Tumbler (Refer Picture 1)

Nibble Sip tumbler is a 2 in 1 container. It has the capability to hold both snacks and
pearl milk tea together in a cup. The upper level which contains the snack can be kept
warm by using aluminium foil as an insulator. A straw is provided to suck the pearl
milk tea from lower level through the upper level. This product is transparent from
one side to let the user know the amount of pearl milk tea left. A cap covering up the
snacks is attached to prevent it from falling out of the container

Picture 1 – Nibble Sip

1. What is your age group?

58
 Below 15

15-24

25-34

35-44

Over 45

2. How often do you consume the Chatime pearl milk tea?

Never

Once in awhile

Once in a week

Twice in a week

More than above

3. Do you prefer to consume the Chatime pearl milk tea with snacks using the
Nibble Sip?

YES

NO

4. Based on the product description, how interested would you be in buying this
Nibble Sip if it is launched in the market?

Not interested at all

Not sure

Somewhat interested

Very interested

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5. Below are the list of features that are part of the Nibble Sip. How important
each of this features to you?

1 2 3 4 5
Features Not Slightly Neutra Importan Extremely
Important Important l t Important
At All

Preserve Heat

Can be twisted
into two cups

Convenience

Design

Washable

6. Based on the product description, what is the price range of this product that
reasonable to you?

RM .

Thank you for your cooperation. Have a nice day

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 11.2 Dimensions of Product

Lid to
cover

Fat straw
(large
enough to
suck pearl
and the
Dippers
Sauce

Easy
to
grip Double
wall
insulation

Measure
ment
scale

Lid to
cover
bottom
cup
when

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11.3 Advertisement

62
11.4 Population of Malaysia

63