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Part 3

Customer Analysis (Shenhao) 

·      Total Market Size 

·      Target Market trends growth/shrinkage 

·      Market Potential and realistic future forecast 

·      Barriers to entry such as technology, qualified employees, high startup costs

Demographic Market Segments:

·      Age - History

·      Gender 

·      Marital Status – Family Life Cycle

·      Income – Social Status

·      Education – Social Status

·      Purchase behavior

·      Communication Style 

·      Geographic

·      Other 

  Psychographic Consumer Behavior:

·      Personal activities

·      Group activities

·      How time is spent

·      How they think (decision process)

·      Other

Media and Communications used (Kyla)

·      Traditional

·      Nontraditional

·      Social

·      Search engines

Most restaurants or cafes in recent years have geared away from the traditional use of media; this is because it is more valuable now to use non traditional communication in order to attract consumers. Since Liquid Tea Bar is a newer business they use social media platforms such as instagram, facebook and twitter to communicate with its customers. Social media has been a platform within the last decade to be known as a place of information for new and upcoming business. Liquid tea bar can also be found on many search engines such as Allmenus, Grubhub, Ubereat, Singleplatform, and Yelp. On many of these search engines you can find pictures of the interior, exterior and products that are sold.  Liquid Tea Bar doesn't use any traditional communication but rather non traditional. 

Marketing Objectives and Goals 

·      Expected results

o   Within course time frame

o   Future

Marketing objective is to bring in many customers in to enjoy Liquid Tea Bars food and drinks. Within the current time frame, they are trying to create more brand awareness because of the current virus outbreak. To do this they are posting on their social media platforms with videos and pictures of specialty items and in a clean environment. Customers are highly engaged in technology and posting on social media is a useful tool. With the posts made on social media, it is clear to customers and potential customers that Liquid Tea Bar is still open and safe to go to. Another objective is the use of outside dining, they have planned on setting some tables outside in order to allow customers to hang out and relax at the store. This is a really necessary step right now in marketing because only outdoor dining is aloud. With the increase of social media posts, they hope to influence people to try their store out and let others know about it by word of mouth. Some future goals consist of achieving better customer service and creating a strong bond within the workforce. They are also trying to set a sales goal for the next calendar year. By doing this they can also plan to be part of many festivals if they open back up by next year. 

Strategic and Tactical Recommendations (Valeria)

Liquid Tea Bar is a newer small business in the San Bernardino area, where there are multiple competitors nearby. It is important for us to create a strong business plan with strategic and tactical goals that will ensure that Liquid Tea Bar will stand out from its competitors, reach financial success, and satisfy its customers.

·      Strategy to accomplish goals: 

o   The tactics to meet the strategic goals

·      Increase customer traffic/ build customer loyalty 

o   We will begin to offer special BOGO free drink specials every Thursday in order to increase customer traffic. 

o   We will monitor traffic levels and sales daily to ensure we are meeting our daily goals for our efforts to increase traffic. If goals are failing, we will evaluate our efforts and determine if we want to offer specials through social media platforms.

·     Increase customer satisfaction

o   In order to increase our customer satisfaction, we will train all employees on excellent customer service skills, as well as in ensuring that customers are always happy.

o   Make efforts to read online reviews and determine what we are doing wrong/ what we are doing right.

o   Encourage our customers to leave a yelp review online and tell us how we are doing.

·      Ensure quality and efficiency of drinks

o   We want each drink to satisfy each customer and if a customer is unhappy with the quality, we will offer to make a new drink.

o   To ensure drinks are being made quickly and efficiently, we will train employees on how to make drinks quickly and correctly.

Secondary Research

·      Review of published databases, journal articles, trade magazines, newspapers

     News publications: Obtained from CSUSB Library, 

PRESS RELEASE: OutRank by Rogers' Small Business Customers See 60% Rise in Web Traffic From Mobile Devices. (2013). Dow Jones Institutional News, pp. Dow Jones Institutional News, 2013-02-06.

o   News publication highlights the rise in media usage through mobile phones. Small businesses are able to grow their customer traffic quickly through the use of social media alone. 

      Journal Article: Obtained from CSUSB library

Mobile coupons drive loyalty, customer engagement. (2019).             MobilePaymentsToday.com, 2019-02-22.   

o  Journal highlights how customer engagement through the use of mobile coupons builds customer loyalty for businesses.

      Magazines: Obtained from Google 

                        “ Michigan Daily; Community discusses significance of bubble 

                          tea as the number of bubble tea stores in Ann Arbor doubles.”

                          Ruprecht, M.   (2019).

             O This magazine article mentions the importance of quality boba drinks due 

              to  “A lot of people post on social media about it,” Gao said. 

·     Justify Market and Goals

o   By focusing on the goals such as increasing customer loyalty, ensuring customer satisfaction, and ensuring the quality of drinks, we are able to create a positive reputation for the Liquid Tea Bar. This will ensure that we are able to increase customer traffic and stand out from competitors.

Primary Research Results

·      Personal interviews 

The following link is the results to our personal interview survey https://docs.google.com/forms/d/1kOF7VVwpPrJKPTwRCHLJccRlBOAK8K76vbqGmor00uw/edit#responses , where we interviewed 15 of Liquid Tea Bar’s customers.

o Survey data collection and analysis

                           From the Data recorded from the survey results, the age group 18-25 is the majority at 46.7%, and 60% of customers are female. 60% of customers consider themselves single. 40% of customers drink boba drinks every week. 64.3% of customers say that they check Yelp reviews of a boba shop before trying a new place. 46.7% of customers say that their favorite type of drinks are fruity sweet drinks. 60% of customers like to add toppings to their order. 93.3% of customers like to listen to music at Liquid Tea Bar. 40% of customers rate the comfortability and ambiance of Liquid Tea Bar a “3”. As well as 33.3% of customers prefer Instagram

                       .

·      Focus group

https://docs.google.com/forms/d/189xx_GP-LPGvSFvYIytdvAVytby0SX9FPf2KjCTBwJM/edit#responses ,is the link that provides the data collected from our focus group. 

The focus group was a group of 9 students from CSUSB picked randomly to volunteer to interview via Zoom. They were asked questions about their demographics, lifestyle, and their familiarity to boba shops.

·      Information and notes collected

o Since the focus group was conducted through Zoom, participants were asked to fill out the survey before joining the zoom call, each question was multiple choice. On the call we covered the questions and why the respondent chose those answers, and discussed mostly through the chat option on Zoom.

·      Survey data collection and analysis

·     Analysis

O Some highlights from the focus group had to do with our focus groups use of social media where the majority prefers Instagram and follow businesses on the platform. Another highlight had to do with the importance of customer service even when visiting a “grab and go” type of business like Liquid Tea Bar. These highlights are important for us because they offer support for our strategic recommendations. 

Group Members Contribution:

·      Member 1                   0-33%

·      Member 2                   0-33%

·      Member 3                   0-34%

                                                100%

Shenhao Sun:

Customer Analysis

The total market size for the Liquid Tea Bar is very dynamic, therefore not easy to determine. People of all ages consume the products; female and male, single and married. The primary target market of Liquid Tea Bar at CSUSB is the students and workers at the college because of its location. However, people living around and within the collage vicinity also consume the product. People in various estates within the city also order the product to be delivered. The customers quickly access the products by ordering online and delivered at their residence. The target market is expected to grow due to the benefits attached to the liquid tea. However, college students are from different places, through word of mouth, the market is expected to expand rapidly across the cities. Ordering is also made easy through the company website; therefore, customers can get their tea delivered at their preferred area. Online ordering and delivery are expected to increase the market size because the bar can reach many customers in a diverse area.

The industry's technology is not too sophisticated; therefore, it doesn't have many barriers to entry. The respective firms need to have a developed website where the customers can order the liquid tea online through easy steps and delivered to them at the specified place. They can also install Wifi and have a strong network, a marketing strategy for targeting the young group. Besides, there are fewer restrictions for the participants in the industry. Moreover, the startup cost for new individuals is not high. The facilities like tables, chairs and space are not very expensive. Staff in such an industry do not require complex skills to work effectively. The skills can be quickly advanced through training, which is less costly and takes limited time. Furthermore, because it's a less complicated job, employees continue to learn and improve their skills through observation and on daily basis. Since the Liquid Tea Bar is in operation, it has already faced barriers to entry like technology, workforce, and startup costs. 

Demographic Market Segments

Tea consumers come from across all ages, gender, and marital status. According to age, individuals aged 18 to 25 years, and 25-40 are the majority of Liquid Tea Bar consumers. They represent 46.7% and 26.7 % of the ages, respectively. Besides, based on gender, females consume more liquid tea as they represent 60% compared to 40% male. Most of the consumers are single individuals representing 60%. One of the reasons is because the main target customers are college students and other consumers within the college environment like employees. The Liquid Tea Bar target consumers with low to middle income. The main customers being students who have low and medium incomes. That's one reason behind the affordable prices ranging from 3.35 to $4.75 and toppings at an additional $0.50 each. Although the Liquid Tea Bar doesn't target any education qualification, the market at CSUSB consists of individuals with college and university qualifications. The Bar service is consumed by all groups of people regardless of the academic qualification, although its primary customers are college individuals with such qualifications. 

Since the Liquid Tea Bar is near colleges, the students consume the tea often. They spend their time in the bar, chatting with friends and listening to music. Affordable price also attract many customers. People have also realized the benefits of liquid tea; therefore, purchasing power increases through purchases and online orders. Due to technological advancement, the target market's communication style is online and electronic rather than face-to-face communication. Since most customers are youths, the information on the latest bar with excellent services is easily communicated online through social media, web searches, and phone calls. The geographical location of Liquid Tea Bar is mainly CSUSB; however, it's not restricted to this location as customers can order their products online and delivered to the respective places. It targets all customers from various areas within the city.

Psychographic Consumer Behavior

Focusing on the CSUSB college students, on a typical day, a student wakes up early and rushes to school without breakfast at home. They then attend the bars for liquid tea with colleagues and friends; they share stories, laugh, and chat most of the early morning hours. Besides, they spend most of the day attending classes, doing presentations, group discussions, meetings with lectures, having lunch, and dinner. Some of the everyday personal activities they engage in are watching movies, doing assignments and homework, attending classes, and reading. The majority of them consume their product as they use their social media platforms. In groups, the college students engage in activities like games, parties, clubs, student government activities, volunteer work, professional and academic organizations. Liquid tea is one of the products required during such group activities. University students have flexible minds and adjust to new products depending on the additional features and their taste and preferences. They think analytically and are very loyal to the products they like. They are often interested in the quality of the product and can easily change their mind if the quality drops. The college students rely on the information from the social media groups and their college experience on the product. Therefore, a few satisfied individuals can easily influence others, increasing the sales of a business.

Kyla Coles:

Media and Communication Used

Most restaurants or cafes in recent years have geared away from the traditional use of media; this is because it is more valuable now to use non traditional communication in order to attract consumers. Since Liquid Tea Bar is a newer business they use social media platforms such as instagram, facebook and twitter to communicate with its customers. Social media has been a platform within the last decade to be known as a place of information for new and upcoming business. Liquid tea bar can also be found on many search engines such as Allmenus, Grubhub, Ubereat, Singleplatform, and Yelp. On many of these search engines you can find pictures of the interior, exterior and products that are sold.  Liquid Tea Bar doesn't use any traditional communication but rather non traditional. 

Marketing Objective and Goals

Marketing objective is to bring in many customers in to enjoy Liquid Tea Bars food and drinks. Within the current time frame, they are trying to create more brand awareness because of the current virus outbreak. To do this they are posting on their social media platforms with videos and pictures of specialty items and in a clean environment. Customers are highly engaged in technology and posting on social media is a useful tool. With the posts made on social media, it is clear to customers and potential customers that Liquid Tea Bar is still open and safe to go to. Another objective is the use of outside dining, they have planned on setting some tables outside in order to allow customers to hang out and relax at the store. This is a really necessary step right now in marketing because only outdoor dining is aloud. With the increase of social media posts, they hope to influence people to try their store out and let others know about it by word of mouth. Some future goals consist of achieving better customer service and creating a strong bond within the workforce. They are also trying to set a sales goal for the next calendar year. By doing this they can also plan to be part of many festivals if they open back up by next year.