Global Marketing Planning and Strategy

Launching Bubble Universe into the UK market

Table of contents

Executive summary ....................................................................................... 3

Introduction ...................................................................................................... 3

Overview of the company ..................................................................................... 3

Opportunities to grow in the UK market .............................................................. 4
Domestic market and international revenue market ............................................... 5

Analysis UK bubble milk tea consumption market ........................ 5

Market size and growth performance .................................................................... 5

Competitive conditions ......................................................................................... 6

Consumer behavior in alternative bubble milk tea .......................... 7

consumption ......................................................................................................... 7
Market entry mode / Marketing strategy .............................................................. 8

Objectives .......................................................................................................... 9

Market segmentations .................................................................................. 9

Perceptual map .............................................................................................. 10

international marketing mix (4Ps) ........................................................ 10

Product ............................................................................................................... 10
Price ................................................................................................................... 13
Promotion .......................................................................................................... 13
Place .................................................................................................................. 15

Evaluation and measurements ................................................................ 16

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Conclusion ...................................................................................................... 16

Reference ......................................................................................................... 16

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 Executive summary
This report is primarily dedicated to introducing Bubble Universe's ready-to-eat
bubble milk tea bags into the British market. Bubble Universe innovatively presents
bubble milk tea in an attractive souvenir gift box, allowing individuals to indulge in
an authentic cup of this popular beverage anytime, anywhere. The ready-to-eat bubble
milk tea bags not only offer a convenient way to prepare this delightful drink at home
but also serve as an excellent choice for gifting. The forthcoming sections of this
report will analyze the British tea consumption market and bubble milk tea
consumption market, delve into the marketing strategies employed for the UK market
entry, articulate the brand's goals, and outline the anticipated future prospects for the
Bubble Universe brand.

Introduction
Overview of the company
The purpose of this report will launch instant bubble milk tea packages, shown in
figure 1, as an international product from Taiwan to the UK market. Established in
2019, Bubble Universe has quickly risen to prominence, throught the power of
crowdfunding platform called ZecZec in Taiwan. In an impressive feat, the brand
successfully raised two million Taiwan dollars in just two months. Bubble Universe
was founded with the noble intention of sharing Taiwan's traditional snack with
friends and family both at home and abroad. The brand aspires to transcend the
constraints of time and space, aiming to spread Taiwan's cultural touch to every
corner of the universe. The core of Bubble Universe's success is the iconic Taiwanese
bubble milk tea, it not just as a beverage but as a cultural ambassador representing the
spirit of Taiwan. The brand sees bubble milk tea as a symbol, carrying with it the
essence of Taiwanese hospitality, flavor, and tradition. Bubble Universe's innovative
approach of offering ready-to-eat packages for Taiwanese bubble milk tea packages it
apart from the current market, unlike the normal frozen bubble, ready-to eat bubble
bags can be eaten immediately after opening the package, allowing people to make a
proper Taiwanese bubble milk tea at home in less than five minutes. It provides a
quick and convenient solution for enthusiasts to enjoy an authentic experience at
home.

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Figure 1: Bubble milk tea bags of Bubble Universe
(Sources: https://www.bubblesuniverse.com/)

Opportunities to grow in the UK market

Tea holds a significant cultural presence in the United Kingdom, with traditions like
afternoon tea and high tea being closely associated with it. Tea regarded as a classic
British beverage. According to The Grocer an annual consumption of around 50
billion cups of tea in the UK. The United Kingdom ranks among the leading global
consumers of tea, with a tea market revenue reaching 1.7 billion GBP. According to
World Bank data, the UK boasts the third-highest per-capita tea consumption in the
world. As a tea product, bubble milk tea also has huge potential in the UK market.
According to FORTUNE Business Insights, the bubble milk tea market in the UK is
projected to exhibit a Compound Annual Growth Rate (CAGR) of 8.5% over the next
decade. This signifies a 50% expansion in market size within the next 5 years and an
impressive 225% growth over the decade. Bubble Universe has expanded to the
international market, like the Southeast Asia, Canada, and the United States. It is seen
that there is also an opportunity for Bubble Universe to sell its product to the United
Kingdom. Capitalizing on the British market's fondness for tea products, Taiwan's
bubble milk tea has emerged as a captivating and potentially lucrative offering for
consumers in the UK. This presents a good opportunity for the introduction of instant
bubble milk tea bags into the British market.

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Domestic market and international revenue market
Considering the trends in the global marketplace and the increasing influence of e-
commerce, Bubble Universe is strategically positioned to further expand its reach
beyond the borders of Taiwan. Bubble Universe uses social platforms such as
Facebook and Instagram to achieve broader visibility and accessibility. The current
focus of Bubble Universe is on the domestic market, especially through department
stores and airport duty-free shops.

Analysis UK tea/bubble milk tea consumption market

Market size and growth performance
According to IBISWorld (2023), tea industry revenue in the UK has grown at a
CAGR of 0.9% over the past five years. First of all, the awareness of health
consciousness has propelled the sales of tea. As consumers increasingly prioritize
low-fat and low-sugar options in their diets, there has been a rise in the demand for
teas, leading to advantages for tea producers. Secondly, there is a diminishing demand
for black tea. Consumers are shifting towards alternative beverages, contributing to a
decline in the consumption of black tea over the last decade. Introducing milk tea
based on Taiwan's unique Tie Guan Yin tea is a brilliant strategy to offer consumers a
fresh and distinctive alternative, especially for those seeking a departure from
traditional black tea. This presents a unique selling proposition for Bubble Universe.

In terms of bubble tea market, according to ZION market research, global bubble tea
market was valued at USD 3.12 billion in 2021 and is projected to reach USD 7.82
billion in 2030 shown in figure 2. Global bubble tea market is projected to grow at a
CAGR of 9.01% in the 2023-2030 period.

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Figure 2: Global bubble tea market size
(Sources: https://www.zionmarketresearch.com/)

Competitive conditions
The global bubble milk tea market is currently receiving considerable attention since
it become a trend worldwide. Some competitors have already successfully launched
bubble milk tea products in the international and UK, such as Chatime (figure 3) and
T4 (figure 4). Chatime is an international beverage brand from Taiwan. Their
products are sold to 6 continents, over 60 countries in total. Moreover, Chatime
already has a certain reputation in the UK, with thirty stores in whole country. T4 also
has gained significant popularity in the UK, boasting a substantial and devoted fan
base. While neither T4 nor Chatime has ventured into the area of ready-to-eat bubble
milk tea bags, both brands are competitive of bubble milk tea products. Therefore,
with a solid reputation and brand image, Chatime and T4 will be the main competitor
in ready-to-eat bubble milk tea bags to Bubble Universe.

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Figure 3: Chatime (Sources: https://www.chatime.com.tw/zh/)

Figure4: T4 (Sources: https://www.t4.com.tw/product.php)

Consumer behavior in alternative bubble milk tea

Consumption
Bubble milk tea, which originated in Taiwan in the 1980s, gained widespread
popularity globally. Once the trend caught on in the UK, it quickly became a
sensation.

The statistics from FORTUNE business insights bear this out, and the industry saw a
6.3% CAGR in the UK over the last 5 years. This equates to a 35% total growth over

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the period, which is an impressive display. The UK bubble tea market is growing due
to a rising demand for innovaiton flavored beverages among people.

Market entry mode / Marketing strategy

An entry strategy is a systematic approach that allows a company to introduce its
products, services, technology, personnel, management, or other resources into a
foreign nation (Shama, 2000).

Bubble Universe is set to embrace a direct export mode, recognizing that while it may
incur higher costs, this approach allows for the effective acquisition of benefits and
the retention of intangible assets like trademarks and goodwill associated with the
product. The brand's strategic emphasis will be on cross-industry collaborations,
aligning with established brands like Bao London or GRIND that already command a
significant market share in London. Through cooperate activities and pop-up events,
Bubble Universe aims to introduce its brand and products to a wider audience and
foster greater awareness and appreciation among consumers. Bubble Universe will
implement a market development strategy by introducing existing products to new
markets.

Recognizing the iconic status of bubble milk tea within contemporary youth culture,
Bubble Universe is going to focus on engaging the younger generation as its primary
target audience. The convenience of Bubble Universe's ready-to-eat bubble milk tea
bags empowers individuals to relish an authentic cup of Taiwanese bubble milk at
their convenience, regardless of location. Enabling a do-it-yourself approach,
consumers can personalize their bubble milk tea, adjusting sweetness levels and
temperatures to suit their individual preferences. Beyond the joy of crafting their own
beverage, this product offers the convenience of enjoying bubble milk tea without the
need to go outside. Enhanced by its elegant packaging, Bubble Universe's product
also stands out as an excellent choice for gift-giving occasions.

Objectives
l Raise consumer awareness of the Bubble Universe brand
l In five years, extended its presence beyond London, reaching major cities like
Manchester, Birmingham, and Edinburgh.
l Establish a specialty store of Bubble Universe within five years.

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Bubble Universe intends to initiate the promotion of co-branded products,
commencing in London, the United Kingdom's capital, with plans for subsequent
expansion into key cities like Manchester, Birmingham, and Edinburgh within a five-
year timeframe. The objective is to cultivate substantial brand recognition, paving the
way for the establishment of dedicated specialty stores for independent product
retailing.

Market segmentations
The primary objective of market segmentation is to discern distinct market segments,
employing a strategic approach that prioritizes understanding and addressing the
diverse needs and preferences of customers. Through market segmentation, Bubble
Universe can enhance its comprehension of the preferences and requirements of its
customer base. The table provided outlines a specific target customer for Bubble
Universe's entry into the UK market. This strategic approach aims to cultivate a
profound understanding of customer needs and desires, empowering Bubble Universe
to tailor its marketing activities with precision and responsibility to meet the
individual requirements of customers.

Demographic Young and enthusiastic demographic from 12 to 35 years old,

focus on young millennial people.
For all gender.
All socio-economic.
Geographic City center of London.

Behavioral Active on social media-TikTok, Instagram, Snapchat Follow

the trends.
Like to DIY drinks.
Psychological Be daring to explore novel experiences.
Interested in richness Taiwanese food culture.

Perceptual map
Launched in 2019, Bubble Universe is a high- end bubble milk tea brand known for
its emphasis on both value, fun, and innovation.

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 High price

Low quality High quality

Low price

International marketing mix (4Ps)

Product
At its essence, the core benefit represents the fundamental requirements or desires that
customers aim to fulfill when purchasing a product, often described as the value
proposition of the product (Kotler et al., 2021). Bubble universe will provide for UK
target segment consumers is a proper Taiwanese drink. Secondly, the product
packaging has some eye-catching features; for example, the calm dark blue color is
used to show the noble value of the product (figure 5). According to Gleason (1961),
languages function as both cultural products and symbolic representations of cultures
due to cultural influences. Hence, the label packaging of bubble milk tea bags should
be in English to ensure UK consumers can easily comprehend the product's
ingredients and nutritional information (figure 6,7,8). Moreover, Bubble Universe
offers customers convenient packaging options, including single-pack drinks and
unique bubble straws. Finally, Bubble Universe aspires to expand its offerings by

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introducing a diverse range of bubble milk tea flavors, each crafted from distinct
Taiwanese teas in the future.

Figure 5: The package of Bubble Universe

(Sources: https://www.bubblesuniverse.com/)

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Figure 6,7,8: Nutrition information in English
(Sources: https://www.bubblesuniverse.com/)

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Price
Strategic pricing involves establishing prices based on the characteristics of the target
segment. The potential customer of Bubble Universe is primarily young people;
therefore, Bubble Universe will embrace a penetration pricing strategy. This strategy
involves setting the product price lower than that of comparable products in the
market, aiming to attract a broad customer base (Blythe and Megicks, 2010).
Regarding Bubble Universe, there is currently no direct competitor offering an
identical product in the UK market. Therefore, Bubble Universe will use the pricing
of bubble milk tea available in beverage shops as a benchmark.

Promotion
First, Bubble Universe aims to introduce co-branded products in collaboration with
GRIND (figure 9), a renowned local coffee brand in London. GRIND, being a
popular coffee brand in the city, is known for its willingness to engage in partnerships
with artists and emerging brands to create unique co-branded offerings (figure 10).
Leveraging GRIND's established reputation, Bubble Universe stands to gain
recognition among consumers who appreciate GRIND, establishing a valuable
association that can prompt recognition and interest in Bubble Universe when
purchasing GRIND's products. Furthermore, Bubble Universe is strategically aligning
with BAO London (figure 11), a well-known Taiwanese restaurant in London, to
retail its products on consignment within BAO stores. This collaboration not only
provides customers intrigued by Taiwanese food culture with the opportunity to savor
authentic Taiwanese cuisine at BAO but also enables them to acquire genuine
Taiwanese bubble milk tea through the purchase of Bubble Universe products. Also,
Social media is an enhanced communication tool that connects with audiences
through both online and offline media. For example, Bubble Universe can build a
social media account for UK followers and create “bubble milk tea challenge”, which
is the trend among young people on social media. Utilizing the interactive dance with
products, Blessed Universe can leave a deeper impression on consumers.

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Figure 9: GRIND coffee
(Sources: https://grind.co.uk/)

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Figure 10: Grind x Shantell Martin Tin of Nespresso
(Sources: https://grind.co.uk/)

Figure 11: BAO London

(Sources: https://baolondon.com/)

Place
Musungwini and Zhou (2014) emphasize the critical importance of choosing the right
distribution channel, whether it be through physical retail outlets or online platforms,
to secure a competitive market position. Bubble Universe will use indirect channel
structure and selective distribution (Kotler et al.,2016). Since Bubble Universe work
as partnership with GRIND and BAO London, the bubble milk tea bags will be
display London, which is the place GRIND and BAO locate. As for online sales,
customers can place orders for delivery directly on the Bubble Universe official
website.

Evaluation and measurements

It is important for Bubble Universe to comprehend how their marketing strategy can
yield the best results for the UK market and enhance their partnerships. Bubble
Universe can employ both qualitative and quantitative methods to assess and quantify
the achievement of its objectives. For example, Bubble Universe can see sales
revenue reports within financial performance metrics, whereas qualitative analysis
would involve evaluating customer perspectives and reactions through methods such

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as public interviews or direct/participant observation, such as engaging with staff in
person during meetings.

Conclusion
The report extensively examines and analyzes the bubble milk tea consumption
market in the United Kingdom, presenting insights to assist Bubble Universe in
successfully introducing its products to this international market. Furthermore,
collaborative efforts with the coffee brand GRIND and the Taiwanese brand BAO in
the UK aim to broaden the reach and introduce bubble milk tea bag products to a
wider consumer base. The report incorporates a robust marketing strategy,
emphasizing the delivery of quality, enjoyable, and convenient products by utilizing
the 4Ps marketing mix tool to understand and address consumer needs. Lastly, the
report provides a thorough evaluation of the potential success metrics for Bubble
Universe in the UK market, offering a comprehensive guide for the implementation of
marketing strategies in the anticipated entry into the UK market.

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