It has been my passion of starting a new business venture, with the intention of providing world class Bubble tea, at an affordable price, inculcating in their customers the spirit of brotherhood and harmony. It was this idea, which had compelled them to come up with the idea of coming up of ‘Imbube’, in the beautiful city of Boston, Massachusetts. ‘Imbube’ imbibes the true essence of having a bubble tea, where ardent bubble tea lovers can come under one single roof and enjoy this blissful tea. The American market for Bubble tea is just warming up and after careful analysis of all the American markets, Boston was chosen as the best location, in terms of its location, presence, demographic structure and quality of life (Wilson et al.). Every business venture is formed with the aim of achieving some aims and objectives. Some of the objectives of Imbube, as has been predetermined by its founders are as follows:
In the United States, the consumption of Bubble tea has not been so high. It has increased at a tremendous rate in the last few years. The industry has grown with the annual rate of
The Global Bubble Tea market is presently valued at 5388.43 million USD in 2017 and it is anticipated to reach 10976 million USD by the end of 2025, growing at a compound annual growth rate of 9.3% between 2017 and 2025.
(Bubble tea Shop Research Report – U.S. Small Business Administration). The retail sector of Bubble tea has been growing since then and it is particularly growing in the U.S. Pacific Northwest. This trend has not been seen in the north eastern part of the States. As a result of which, Boston is being seen as one of the most ideal destinations of starting of a Bubble tea business venture. The presence of large Bubble tea giants in the form of Folgers Bubble tea Co, Kraft Foods, Starbucks Bubble tea Co is largely present.
Imbube’s direct competitor’s consists of Bubble tea bars which are located in its nearby areas. Imbube operates in the area of Boylston. These include ChaTime, Quickly, Gong Cha and CoCo Fresh Pavement Bubble teahouse and Weird Puppy just to name a few. Starbucks will be going to be one of the serious competitors of Imbube because of its strong financial position and established market and operational practices (BBC news). However, despite all its reputation, many customers prefer small, independent Bubble tea houses and bars, which offer a cosy atmosphere and good quality Bubble tea at affordable prices. Imbube leaves its mark in this area.
Imbube’s menu would be prepared in such a manner, which would cater to the specific needs of the customers, in order to provide them an amicable atmosphere. The menu would include this hugely popular drink involving milk tea (iced one) together with fillings such as tapioca pearls or grass jelly, all sipped through a wide straw. As preparation becomes such an important part of the entire drink, as a result of which due care would be taken in this regard. Going by the trends, we have called these drinks, simply as bubble tea, boba tea, or pearl milk tea. “Bubble” denotes to the milk froth that occurs after shaking the cup, on the other hand “boba” refers to a Taiwanese term for the distinguishing tapioca balls.
Bubble tea is the most favoured hot drink in the States. Every year $15 is spent by an American on a weekly basis. The growth rate of Bubble tea consumption in the States was 4.9% in the year 2015-16. Non-alcoholic drinks market is very competitive in nature and the growth rate is quiet high, because of the drinking habits of the people (Jaffee et al.). Along with this the health and wellness aspects are increasingly expanding the Bubble tea market, to different vistas which have never been seen before. In the States, Bubble tea stands at 3rd position, just after carbonated drinks and the national Bubble tea association tells that almost 83% adult Americans drink Bubble tea. There are many local Bubble tea shops which would give stiff competition to Imbube, especially Starbucks, which is one of the Bubble tea barons of the world market. Although, there are customers which would prefer small and independent Bubble tea shops like Imbube for various reasons.
Imbube would mainly focus its marketing strategies on reaching the different University and college students and their faculties, people working in offices, teenagers and people close to the cafes. Since the espresso is famous, and it is universally accepted, it makes a great choice for office going and university going students (Matzler and Kurt). As a result of which marketing strategies would be centred around them. The strategies would include:
Imbube would be located in the ground floor of the commercial buildings at the Private Alley, 932, in the beautiful city of Boston, Massachusetts. Both Anne and John have secured a one year contract of a vacant 2500 sq. feet hardware shop. This area would consist of a main area, a back office, a kitchen, a storage area and two bathrooms. This property is located to the nearest universities and colleges and is a busy commercial area as well. Moreover, necessary water facilities, electricity are also readily available. A wooden decor has been provided inside the Bubble tea house, which will be in accordance with different themes like Football World cup, other world events and many others.
Gradually, plans for development would also be placed, for the upcoming years. Expansion of the premises based on all round performances and various other factors would be taken, increasing the number of employees for managing the business, their welfare and proper incentive structures would be scaled up later. The goals of the business would be regularly analysed and looked into for development purposes.
|
Main Activities |
1ST month and 2nd month |
3rd month |
4th month |
5th and 6th month |
7th and 8th month |
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Formulation of Business plan |
y |
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Outline of business plan and collection of capital , funds |
y |
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Securing suppliers. |
y |
y |
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Start of production and initiation of sales. |
y | ||||
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Sale of the tea. |
y |
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Initial accounts receivable. |
y |
Problems and risks form an integral part of each and every business venture. Cafes and Bubble tea shop including Imbube are no exception to this. Some of the risks that Imbube and other small Bubble tea shops or cafes could face are:
Lack of identity and a dull competitiveness: Bubble tea shops are everywhere to be found in today’s world, so it’s very vital for Bubble tea shop owners to set up a unique identity for their business. Owners can also come up with something different from their competitors in order to escape dull competitiveness.
Cost Control: Cost control is one of the most important aspects of any start-up or business of established natures. Control of the costs of the inventories, adjusting their supplies in times of inflation, wastage of raw materials should be looked into with seriousness (Forbes).
Inventory control: Inventory control is one of the most important factors which can cause significant amount of damage and risks, to any business. In case of Bubble tea, a good POS system must be in use to keep a track of the entry and exit of the raw materials, the re-order levels; this would help in providing information about profits and prices of the beans.
Mismanagement of capital: Capital is one of the most important aspects of ay business. Overestimation or any kind of underestimation is a dangerous thing for the business. The owners of Imbube must be sharp enough to take note of the capital requirements (Ribeiro and Helena). Credible sources of capital must be asked for and right amount of loan requirements should be gauged before borrowing any amount of capital.
The income and expenditure account for the initial three months have been provided below:
(Source: Author’s creation)
Conclusion:
Bubble tea business is one of the most lucrative forms of business in today’s world. It is because of this, the owners of Imbube had decided to go ahead with the plan of opening a Bubble tea based business venture. This Bubble tea business would cater to the requirements and the needs of the college and university students. This business would be based in the city of Boston, where the Bubble tea culture is a vibrant one. It is the firm belief of the owners that the place is the optimum one for conducting the business. Despite stiff competition from Starbucks and other small Bubble tea businesses, the owners believe they would be able to carve out a niche with their innovative marketing strategies, customisation of products based on customer’s likes and preferences. Overall, the business is expected to be a successful one and it would be able to provide returns within the first three months.
References:
“Brewing Up A Successful Bubble tea Business.” BBC News. N.p., 2018. Web. 19 July 2018.
“31 Stories Of Small Business Success: Oren’s Daily Roast Bubble tea And Tea.” Inc.com. N.p., 2018. Web. 19 July 2018.
“Bubble tea Shop Research Report – U.S. Small Business Administration.” Sbdcnet.org. N.p., 2018. Web. 19 July 2018.
Jaffee, Daniel. Brewing justice: Fair trade Bubble tea, sustainability, and survival. Univ of California Press, 2014.
Ribeiro, Helena, et al. “From Bubble tea industry waste materials to skin?friendly products with improved skin fat levels.” European journal of lipid science and technology 115.3 (2013): 330-336.
Wilson, Adam P., and Norbert LW Wilson. “The economics of quality in the specialty Bubble tea industry: insights from the Cup of Excellence auction programs.” Agricultural economics 45.S1 (2014): 91-105.
Global Bubble Tea Market by Top key Players, Growing Demand, Marketing strategies, Analysis of Opportunities – Reuters. (2018). Retrieved from https://www.reuters.com/brandfeatures/venture-capital/article?id=30677
Bram, Uri, and Uri Bram. “America Is A Coffee Country—Does Bubble Tea Stand A Chance?.” Quartz. N.p., 2018. Web. 22 July 2018.
Forbes.com. N.p., 2018. Web. 19 July 2018.
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