Milktea

Case Study
Final round Minicase
Group 1
Debrief
With 1.5B VND, our client is looking forward to setting up a
milk tea store in Hanoi or Ho Chi Minh city. Their goal is to
meet the break-even point after 2 year operation at worst.

Which milk tea brand should they choose to franchise, and

which location should be ideal for launching?

2
Agenda
1. Market Overview
2. Target Customers
3. Chosen Brand
4. Chosen Location
5. Marketing Plan
6. P&L Statement

3
Market
overview
Milktea market in Ho Chi Minh
city has stronger potential
in comparison with that of Hanoi.

4
Ho Chi Minh city is enjoying a higher
size in terms of population.
3.6

Hanoi
3.2
8,054,000

81%
Centennials (15-23)
85%
Millennials (24-39)

name milk tea shops as their

favorite gathering place.

HCMC

8,993,000
Growth rate: 5,51% in 2020-2022
Source: World Population Review,
Nielsen Vietnam. 5
 0.67

0.59

This results in the

considerable difference
in demand for milk tea per day of
the ages group 15-39 between
the 2 cities.

Source: World Population Review/Kantar Worldpanel/Q&Me 6

 Ho Chi Minh city people have a tendency
to eat out more often, and also spend
more on their drinks.
% of Household spending on eating out % FMCG Product category market share

9 9

14 15

20
28
Milk, Products
11.7% 17
22 from milk
Drinks
8.1%
Package food
31 35 Self-care
Family care
HANOI HCMC
HANOI HCMC

Source: Kantar Worldpanel 7

Target
Customers
8
#1 The Funky They love being out of home with

the most famous food and drink

Youngsters trends, especially bubble tea craze.

They patronize milk tea because of

its taste, and refreshment value.

High school and college students,

aging around 15-22, living near schools They engage into social interaction,

or in densely populated areas . They mainly on online channel, usually

have small amount of budget from spend time with friends chatting,

allowances. studying and bonding together.

Friends are seen as the main channel

in raising awareness about milk tea.

Source: QnMeVN, Kantar Worldpanel 9
#2 The First Jobber
They have high preferences
for customized products and

Fresh graduates, who are personalized brand.

young professionals with

middle incomes. They are
well educated, tech-savvy,
open-minded and early
adopters of healthy lifestyle.

Source: World Population Review 10

In Ho Chi Minh City,
Bobapop is the
best choice for
mass segment.

11
 Bobapop is gradually stealing the spotlight
from its competitors in the same segment.
pop has successfully captured the attention

tomers with the highest awareness point,

ng 3 out of 10 strongest bubble tea brands,

behind Gongcha

te being a late comer, Bobapop is enjoying

ient advocacy from Saigonese youths.

Bobapop has successfully captured the attention of customers:

Despite being a late comer in HCM city, Bobapop is
getting the uppermost awareness point, ranking 3 out of 10
enjoying proficient advocacy from Saigonese youths.
strongest bubble tea brands, only behind Gongcha, KOI The.
12
Bobapop is best known for good price,
convenient for take away and fast service.
Shop evaluation Key attributes of Bobapop

Criteria

13
Bobapop is one of the most affordable franchise
brands, only after Tra Tien Huong.
Milk tea market has moved to a saturated state.
But with such moderate franchise fee, there are
promising opportunities for Bobapop to further
expand across other markets, thanks to the
efficiency of takeaway and delivery model.

This shows hints about the value chain of the

store that we will set-up if Bobapop is chosen.
There is no need to rent a 120m squared, 3-storey
building or even make it splendid. It is better to
find a place with minimal interior design, 40 -
60m squared building, maybe 1-2 storied. It's best
for take-away and delivery model.

14
Bobapop is arguably the brand with most ideal cooperation
terms for its partners, not only when compared to brands in the
same segment, but also to premium brands.

Regarding benefits for its franchisees, Bobapop achieved a score of 8 out of 10.
15
The neighborhood
around UEH is so far
the most promising
location for Bobapop
at the moment.

16
 Rivalries and Subtitutions by University
Among the most
densly-populated
universities in HCMC,
the competion in
UEH is quite mild,
though.

Universities with the highest number of students in HCMC

17
The estimated UEH has more than 20.000 students. Taking competitive factors into
Located near the centre of District 3, UEH consideration, Bobapop can attract roughly
number of enjoys the crowdedness here, also. 230 customers a day on average.

potential
customers is Estimated no. of customers per day by university

likely to shorten
the payback
period. Universities

No. of customers

18
Marketing
Plan
To strengthen Bobapop
“distinct and youthful” brand image
and ensure brand consistency.

19
#1 The Funky Youngsters #2 The First Jobber
High school and college students, Fresh graduates, well educated,
Love being out of home with tech-savvy, open-minded and
the most famous food and early adopters of healthy lifestyle.
drink trends, especially They have high preferences for
bubble tea craze, engage customized products and
into social interaction personalized brand.

TARGET CUSTOMERS
Source: QnmeVN, Kantar Worldpanel

20
 DEPLOYMENT PLAN
Short term Long term
Raising awareness Raising advocacy
3 months

Internet/ Social Media Ads Internet/ Social Media Ads

Content marketing (for Social Media posts)
Grand opening event
- Brochure (Flyer, Leaflet) around franchise
store area
- Photo booth/Mascot (in the 3 opening days)
Setup store on Food Delivery Apps: Now, Grab
Food, Baemin and other Food Discount Apps
Sales promotion
Content marketing (for Social Media posts)
Partnership with Food Delivery Apps
Sales promotion
Seasonal Events
Open hourly venue rental for clubs/organizations
Loyal membership card

21
 P&L STATEMENT
Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 Q1/2022 Q2/2022 Q3/2022
Breakdown
Total revenues (million VND) 940 794 794 889 794 794 794 889

Average price (in VND) 37,840 37,840 37,840 37,840 37,840 37,840 37,840 37,840

Unit of sales 24850 21000 21000 23520 21000 21000 21000 23520

COGS 235 198 198 222 198 198 198 222

Gross profit (million VND) 705 595 595 667 595 595 595 667

Expenses (million VND) 629 529 529 539 499 519 499 539
Promotion 180 80 80 90 70 70 50 90

Depreciation & Armotization 56.8 56.8 56.8 56.8 56.8 56.8 56.8 56.8

Rent 195 195 195 195 195 195 195 195

Salaries, benefits and wages 138 138 138 138 138 138 138 138

Quarterly staffs training 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7

Franchise management 21 21 21 21 21 21 21 21

Utilities 36 36 36 36 36 36 36 36

Net profits 75 66 66 127 96 76 96 128

Accumulated Profit 733

22
Sum-up
To sum up, our top milk tea brand along with set up
location option is

Bobapop - UEH - Ho Chi Minh City

We believe our strategic approach and detailed research
will help the clients meet their objective.

23
Thank you!