3.

0 CURRENT BUSINESS AND OPERATIONS

3.1 BRAND STRATEGY FOR TEALIVE

Most recently, Tealive, a rookie from Malaysia, entered the market as if it were
saturated by opening two stores in just half a month. Despite being a latecomer, Tealive
still invested violently and even announced it would open 100 stores within the next 3 years.
Ambitious Tealive will rise to No. 3 in the list of milk tea brands that are most popular
among young people. Through an interview with the founder of Tealive - Mr. Bryan Loo was
confident about the potential of Tealive development in Vietnam. He also added about the
outstanding business results of Tealive in Malaysia.

“In Malaysia, Tealive now has 165 stores, of which 80% are directly managed and
20%
are franchised. In 2011, when we entered the market in Malaysia, we were pioneers.
After we achieved impressive results, nine months later, the market had 50 more brands
from Taiwan. But how many brands exist in this market now? Only we and Gong Cha.
Tealive currently has 165 stores and Gong Cha has only 12 shops, which is
a huge difference. Maintaining such growth rate, next year we will be among the top 3
favorite
brands in Vietnam and that is the goal that we are aiming for.”

“In Malaysia, Tealive now has 165 stores, of which 80% are directly managed and
20%are franchised. In 2011, when we entered the market in Malaysia, we were pioneers.
After we achieved impressive results, nine months later, the market had 50 more brands from
Taiwan. But how many brands exist in this market now? Only we and Gong Cha and Tealive
currently has 165 stores and Gong Cha has only 12 shops, which is a huge
difference. Maintaining such growth rate, next year we will be among the top 3 favourite
brands in Vietnam and that is the goal that we are aiming for.”

According to Mr. Loo, Vietnam has a culture of enjoying drinks, tea and coffee quite
close to Malaysia, so he believes that this is a potential market for Tealive to penetrate
and develop. When asked, "What makes you believe that Tealive will succeed in Vietnam - a
market that seems to be saturated with milk tea?" Do you think "fever" of milk tea will soon
"cool down" as many other imported trends (eg Korean spicy noodles). "
According to Mr. Loo, Vietnam has a culture of enjoying drinks, tea and coffee quite
close to Malaysia, so he believes that this is a potential market for Tealive to penetrate and
develop. When asked, "What makes you believe that Tealive will succeed in Vietnam - a
market that seems to be saturated with milk tea?" Do you think "fever" of milk tea will soon
"cool down" as many other imported trends (e.g. Korean spicy noodles). "

Mr. Loo is optimistic about the potential in the Vietnamese market and
takes the example of Taiwan - a country with a history of milk tea up to 60-70 years, with
nearly 500 brands but milk "fever" of tea not only does it not "cool down" but on the contrary
becomes a culture of the people of Taiwan. He also shared about Tealive's marketing
strategy:

“In Vietnam, in the first phase, we will focus on developing in big markets like TP.
Ho Chi Minh City, Hanoi and Da Nang. In addition, we are always researching to market
new products and we offer 5 new flavors especially suitable for Vietnamese
people, exclusively for Vietnam market. It is the understanding of consumers
'taste, quick response to changes and especially the trend of young consumers' consumption
of tea to help us achieve the goal of 100 stores within the next 3 year and will expand to 300
stores within 5 years.”

In order to compete with the available milk tea brands, Tealive chose a new direction
with the support of technology to reduce labor costs, increase productivity and product
quality. In order to compete with the available milk tea brands, Tealive chose a new direction
with the support of technology to reduce labor costs, increase productivity and product
quality.

“In the future we will have a vending machine instead of having to queue for a
purchase. We expect to open 2-3 to the auto shop. There customers can choose drinks by taste
and pay via bank card or cash. " Tealive claims to make a difference for itself with modern
and advanced technologies. Since then create your own "Blue Ocean" for yourself.

“We will bring more advanced technologies into Tealive stores, which will
make a difference between us and our competitors. We want to bring new
experiences to customers. And technology is a new trend, but is being supported
and strongly developed in Vietnam.”

Thanks to the advantage of the scale, Tealive has a competitive price compared to its
competitors. Not only that, the brand also provides Tealive card for customers
to conveniently pay. Thanks to the prepaid app or swipe card technology, customers do not
need to pay cash. With all these advantages, despite being a new brand, the Tealive is
confident to break out in a short time and lead the most favored milk tea brands.

3.2 PRODUCT OFFERINGS

A product offering means the product offered by the market for the market's use and can be
assembled from a reusable Product Specification With over 70 delicious Tealive drinks on
the menu and over 150 outlets in Malaysia, thus Tealive company are growing worldwide.
There are variety of drinks under the categories of Tea, Coco, 15 Coffee, Smoothies, Sea Salt
Cheese, Matcha, Fruit Tea, and Sparkling Juice. The signature products are Signature brown
sugar pearl milk tea, Roasted Milk Tea with Handmade Pearls (Sweet Potato), Signature
Passion Fruit Green Tea, and Grapefruit Chia Tea Booster. Nowadays yogurt has become
quite the trendy drinks as it is nutritious, delicious and best of all customizable. So, Tealive
has recommend a new product which is Yogurt Crunchy.

3.3 PRICING STRATEGY

As Tealive is meant to cater to people of all ages, our pricing strategy will be very
competitive to suit the spending patterns in the market. The price for every product offered by
TeaLive was around the range of RMS.55 - RM10.90. However, Tealive new product-Yogurt
Crunchy only cost RM8. This shows that the price of Tealive is an affordable and high
quality of the beverage. Besides that, TeaLive must be able to make a balance between the
stakeholders to get a profitable income developed by the 16 prices of the products, the
government will put a select price for the tea applying such as price-fixing, price
discrimination, and minimum price. While consumers play an important role in this part
while pricing taking in count that they are the ones who are buying the products but will pay
a certain price and the way to know what price consumers can pay we must make sources and
campaigns to know a little bit more of the consumers.

3.4 OPERATION PLANNING

Tealive supervisors and employees must follow a strict dress code. The company's
operating hours must be followed by all employees. All employees must wash their hands
before beginning work. Both managers and employees must wear masks. Employees are not
permitted to smoke in the workplace or on the premises. Employees must have confidence
that the company's environmental hygiene policies are followed. The company has opted to
expand its territory by opening new locations in other Malaysian states in response to rising
demand for its sweet and intriguing beverages. The firm has demonstrated extraordinary
creativity by producing a new product that can compete with the competitors. One of the new
goods launched is yoghurt pop pop pearls of mango milk tea and mixed fruit.

Apart from that, the bubble tea industry in Malaysia has gone a long way, surviving a
slew of food and beverage fads. The tea beverage, which originated in Taiwan and is known
for its chewy seafloor tapioca pearls, has become a staple. There are already 45 bubble tea
shops in the United States. Chatime, Tealive, The Alley, Tiger Sugar, Gong Cha, and Koi
The are some of the most well-known brands. The "bubble tea mania" has expanded as more
businesses, both indigenous and branch outlets, have opened around Malaysia. Since its
inception two years ago, one brand has been steadily rising. Loo Holding Sdn Bhd owns
Tealive, following a dramatic commercial break with La Kaffa International Co Ltd, which
terminated Lob Holding's Chatime franchise agreement. Tealive has expanded to over 200
sites around the country since then. As a result, Loob Holding, which also owns Ko Ko Kai,
Gindaco, and Define Food, is expanding. In Manchester, the United Kingdom, the firm has
launched its first European Tealive factory. It plans to open a second site in London later this
year. In its first year of operation, the firm intends to open five sites around the nation.
 Besides from that, Lob Holding has announced intentions to hire 1,200 to 1,500 new
staff in Malaysia over the next two years in order to open 250 new Tealive locations by mid-
2020. In addition, the company has moved to China, where it wants to open ten corporate
stores to test its business model before contemplating franchising. Given China's massive
bubble tea business, this may be interesting to investigate. In both China and Taiwan, there
are more than 20 bubble tea shops. In the meanwhile, Loo Holding is considering an initial
public offering (IPO) in Malaysia, in addition to rapidly growing. Bryan Loo, the company's
chief military officer, confirmed the idea a few months ago, saying that the company plans to
go public in the first part of next year. He couldn't confirm the suggested valuation or the IPO
portion until he got the experts' final recommendations. The effort might fetch the group up
to RM300 million, according to a report quoting sources familiar with the matter. Loob
Holding, according to the sources, has recruited professionals to assist with the potential
stock sale.

According to them, the company wants to be valued at least RM1 billion. However,
they cautioned that the IPO idea is unlikely to succeed because it is still in its early phases of
development. If Loo Holding goes public next year, it will be compared to other publicly
traded Malaysian food and beverage firms like Berjaya Food Bhd, which operates Starbucks
and Kenny Rogers restaurants.

Though no details about Lob Holding's planned IPO have been confirmed, the
company's alleged valuation threshold of RM billion exceeds Berjaya Food's current market
value of RM641.58 million as of the national holiday. With a price-to-earnings ratio of 28.59,
Berjaya Food's stock has been moving sideways over the past year. On the other side, the
stock has risen by 28% this year, ending at RM1.79 on Friday. Loo Holding isn't the first
bubble spoon in the region to go public. La Kaffa International, which has a market valuation
of NTS4.71 billion, has been listed on the Taipei Exchange since 2012. (RM625.33 million).

It is Taiwan's only publicly listed bubble tea company. La Kaffa intends to list a
subsidiary on the Australian stock exchange in the third quarter of 2019, according to local
Taiwanese media. Last year, B&S International Holdings Ltd, the firm behind the famous
TenRen series, listed on the local exchange. It has a market value of HK$332 million as of
May 21. (about RM177.16 million). In the last year, La Kaffa's stock has increased by 47
percent, whereas B&S International's stock has decreased by 62 percent.

Bryan Loo used SWOT analysis to decide the business's path. SWOT stands for
strengths, weaknesses, opportunities, and threats. Tealive's strengths include its over 70
exquisite Tealive drinks and menu, as well as its 159 stores around Malaysia. As a result,
Bryan Loo launched "Tealive" as a brand that elevates tea consumption.