Executive Summary

• Chatime is a Taiwanese franchise that was created in

2005 and now has over 800 retail locations in Taiwan,
Malaysia, China, India, Macau, Vietnam, Singapore,
Hong Kong, Thailand, Korea, Philippines, Indonesia,
Australia, Dubai, Vietnam, Canada, UK, and the United
States. Chatime Malaysia, as one of the world's leading
beverage brands, aspires to be the most loved beverage
by transforming the country's tea drinking culture.
Malaysians were first introduced to the taste of freshly
brewed beverages in October 2010.
• Chatime Malaysia employs only the best imported tea
leaves and quality ingredients, free of preservatives, to
transform the tea-drinking scene. Chatime combines
concepts from leading Japanese tea makers and takes
cues from their quality control and design concepts to
keep customers coming back.
• In March 2014, after four years in the F&B retail market,
Chatime Malaysia was named the Largest Pearl Milk Tea
Beverage Chain in Malaysia, with 115 stores.
Chatime’s Key
Personnel

• Chatime Malaysia launched its famed bubble

tea in Malaysia in September 2010 with the
opening of the first outlet in Pavillion
shopping mall. LOOB Holding Sdn Bhd owns
Chatime Malaysia, and Bryan Loo is the
company's CEO.
• Chatime's main executives, Group Managing
Director Aliza Ali and Widayu Latiff as
Executive Director. Widayu, one of the
founding members of Chatime Malaysia,
serves as the brand's operational savoir faire.
Both are one of the pioneers of Chatime
Malaysia
Startup, Collaboration,
Competitors &
Development
• The company has set aside RM35 million to open 70 Chatime stores
by the middle of 2018.
• It is Taiwan's only publicly traded bubble tea firm. Malaysian
operations accounted for just about half of the company's revenue.
• In 2012, they also collaborated with AirAsia.
• The market is crowded with strong competition. Gong Cha, Ochado,
and CoolBlog are direct competitors, while Starbucks, Coffee Bean
& Tea Leaf, and McCafe are indirect competitors.
• Chatime intends to produce a two-in-one container called as “Nibble
Sip” in 2017 to deliver greater user satisfaction. Nibble Sip's concept
is unique, with characteristics such as heat retention, the ability to be
twisted into two cups, convenience, fashion, and washable.
Background
Taiwan, as the origin of pearl milk tea drinks, is designed to
revolutionize the tea beverage industry by drawing the attention of
trendy tea aficionados in a stylish, urban and sophisticated
lifestyle.With Chatime's action plan in merging over 30 years of tea
manufacturing experience and knowledge from a team of
professional researchers, the tea drinking culture is now
experiencing an exciting shift. Chatime Malaysia employs only the
best imported tea leaves and quality ingredients, free of additives
and preservatives, to transform the tea-drinking scene. Chatime
compiles concepts from leading Japanese tea makers and takes
cues from their quality control and design concepts to maintain
customer loyalty. Every cup of tea is now freshly prepared to order.
Also, Chatime Malaysia is expected to provide high-quality drinks
and promote a modern tea culture in Malaysia, in keeping with the
brand's promise and dedication.
Vision, • Vision: Chatime Malaysia aspires to transform the tea market by opening
high-quality, high-lifestyle designer tea boutiques across the country. By the

Mission & first quarter of 2013, the goal is to establish 100 flagship chain stores in
major shopping malls and high traffic regions. With a wider reach, Chatime
Malaysia aspires to one day become a household name and, eventually, the
Core leading lifestyle drink that everyone can enjoy at any time and in any place.
• Mission: Providing consumers with fresh, healthy, and high-quality
Competencies beverages Chatime prioritizes food safety, and we maintain strict quality and
safety controls on our ingredients.

& • Core Competencies & Sustainable competitive advantages: Chatime's

core mission is to serve consumers with fresh, healthy, and high-quality
beverages. Chatime has four competitive advantages: service, quality,
Sustainable innovation, and promotion. Chatime offers good benefits to clients, such as
online ordering and delivery, which other competitors do not offer. Quality is

competitive Chatime's second competitive edge. Chatime always uses advanced tea
and coffee machines to manufacture only the finest quality drinks to fulfill a
drink that is enjoyed by everyone. Aside from that, Chatime employs only
advantages the best imported tea leaves and quality components, free of preservatives.
Business Strategy
Product Attribute &
Differentiation Strategy
• Chatime offers a regulated tea producing method that uses
sophisticated tea and coffee machines that only require basic
operation procedures to maintain the finest quality of drinks.
Each drink is freshly brewed and prepared on-site by over 700
trained Tearistas in hundreds of locations around the country.
Tea is always maintained at a temperature of 20-30°C for
safety reasons. Nevertheless, the workplaces and products
are kept to a high level of cleanliness.
• Chatime locations provide a variety of snack foods, Chatime
Galleria goes over and above to serve customers with
Taiwanese-style desserts. These stores enable consumers to
meet for social gatherings or casual business meetings in
areas where the shop's turnover is low.
• Chatime is always coming out with new drink variations in
order to establish a one-stop shop for people looking for
refreshments such as Coffee produced with a Teapresso
machine, chocolate drinks (partnership with Cadbury), FruiTea
summer crush, and even Durian SmooTea are among the
drinks available
Pricing strategies & Price displays
• Price has been included into Chatime's market plan and pricing strategy. Their regular size beverage costs between RM 6.90 and RM 10. They
simply charge RM1 per drink if you want to upgrade your drink. It demonstrates that their pricing strategy is quite relevant in the industry.
• The method in which prices display is part of the store ambience, and it influences buyers' perceptions of retail image. Chatime surpasses its
competition by prominently displaying their extensive menus in front of, and occasionally above, the ordering counter. The menu itself is extensive,
with clear price labels for Regular and Large drinks and easy classification of drink varieties. Actual-sized demo cups were available at the counter
to allow consumers to estimate how much a quantity they could consume.
Numbering System
• Chatime used an innovative digital numbering system across all stores, rather than calling out names like Starbucks. When the drinks are ready at
the claiming area, it displays the receipt number of the clients. According to the results of an online survey, 92 percent of respondents prefer
Chatime's numbering system since it reduces waits and eliminates confusion. It speeds up the store's operations, which supports the image of
quick service supplied by the people stated above.
• Chatime discovered that there is a tiny counter where customers waiting for takeout can sit to avoid table crowding. It improves the takeaway
procedure as well as the overall operation of the business.
Promotion
• Chatime has promoted its brand using a membership
card, a monthly program, collaboration, and
advertising.
• The membership card is their ideal strategy to promote
loyal customers; by collecting points, their customers
can enjoy free drinks and other perks.
• A loyalty program is an important part of Customer
Relationship Management. Chatime uses it in the form
of a loyalty card called the ThirsTea card.
• Thirstea cards are limited edition and designed by local
artists to assist young Malaysian talents. It enhances
Chatime's image as a company that caters to young
Malaysians as their market segment. The card's
privileges include free drinks, monthly promotions, and
other perks.
• Customers who do not want to use a loyalty card can
still take advantage of Chatime's numerous in-store
specials, such as Buy 1 Get 1 Free for a limited time.
Franchisee Advertising
& Grand Opening Plan
• Chatime penetrates international markets through
franchising; they have penetrated 30 countries, includes
Malaysia, where they have launched more than 161
locations since 2010. Chatime offered franchisee
opportunities on their website (https://chatime.com.my ).
Chatime published about the requirements and
advantages of being a Chatime partner on their website.
• Chatime always comes up with a variety of promotions
for the big opening plan. For example, Chatime ran an e-
wallet campaign in which customers could purchase a
normal beverage for RM2.50. Aside from that, Chatime
is running a buy one, get one free promotion during the
initial plan. During the big opening, Chatime will also
provide free membership cards to their consumers.
 • The process of making a product or service widely available for use
or consumption by a consumer is known as distribution. Given the
enormous demand for our product, Chatime vary the size and style
of our stores to allow us to position them in or near a variety of
settings, such as gas stations, airports, and off-highway sites. To
improve the accessibility of our goods, our organization has
adopted a franchising strategy. In Malaysia, there are four sorts of
stores that provide various pictures to customers:
• Chatime Lite, which has the lowest footprint of all Chatime models

Location and merely a service counter for takeaway orders. Chatime

beverages are designed specifically for takeaway orders, featuring
a laminated top and a thick straw to pierce only when clients are

Strategy ready to drink. All Chatime Lite outlets are strategically located in
densely populated areas with high pedestrian traffic. Not only is
there limited area for store construction, but most consumers are
usually on the go, therefore takeout is the best alternative.
• Chatime Kiosk, which has a small area and little seats. It is
generally located near popular retail centers. Their major goal is
likewise on-the-go clients, since they mostly cater to takeout orders
but also offer a limited number of tables and chairs for clients who
are tired from walking and need a pause for refreshments.
Location
Strategy
• Chatime Outlets are single retail outlets
that can be found in independent stores,
unplanned business districts, or planned
shopping malls. These establishments
offer a relaxing and comfortable setting for
gatherings of friends and family.
• Chatime Galleria is now only offered in
two locations. It is great for capturing
young Malaysia talents by giving them with
a forum to develop their artistic
inclinations. It is conceptually created to
stimulate community involvement. These
lounge-style establishments hope to evoke
a communal café atmosphere for youthful
and active customers.
Customer
Advertising

• Chatime set up social

media accounts, such as
Instagram, to stay
consistent with and
communicate with their
customers about the
campaign, and they also
placed their
advertisements on
Instagram.