SWOT ANALYSIS

SWOT ANALYSIS

Strength:

• Low cost of goods with high profit
• Good quality tea and pearls with friendly customer service.
• High quality drinks for our entire menu
• Our house brand speciality: Ooh La La, Bo-Ba-Boo, Peachilicious, and Tropical Sunset.
• Results of effective management.
• Competitive pricing.

Weakness:

• Forecast demand
• Cash flow

Opportunity:

• The Bubble Tea’s fever is heating up in developed countries like the US and Japan including the third world countries like Vietnam and Indonesia. It is becoming a global trend
• Huge market: many target customers around the area
• Health property

Threat:

• Too high rental cost
• Seasonal demand: winter and summer are different
• Competition. Although there are not very many Boba shops around the area, there are many other restaurants and coffee shops that people can go to as an alternative

Target Market

The dominant target market for Bocha Tea Lounge is a regular stream of local residents. Personal and expedient customer service at a competitive price is key to maintaining the local market share of this target market.

Fullerton City’s Income Household 2006-2010

The graph above illustrates per capita money income in past 12 months and median household income from 2006 to 2010 of Fullerton city. It clearly shows that both incomes of Fullerton are higher than that of California State. Therefore, we have a strong base to believe that population of Fullerton has the higher disposable income than the average of California state population. In short, our Boba drinks should be affordable for Fullerton citizens.

Product Price

MISSION STATEMENT

Bocha Tea Lounge will offer a quality, tasty milk tea and boba. Since most of the boba tea shops serve milk teas made of powder, Bocha Tea Lounge will use tea leaves and milk to make a milk tea, so the milk teas will have a fragrance of actual tea, and taste richer and flavorful than these powder milk teas. Also, Bocha Tea Lounge has an original recipe for boba that makes boba more tender and smooth. In order to make Bocha Tea Lounge unique, we have four signature boba tea drinks. These four signature drinks have unique names and use special flavored tea leaves with colorful jelly and boba. The special flavored tea leaves are ordered from Lupicia Co., LTD. Lupicia company is located in Japan, carries very high quality flavored tea leaves. Even though, Bocha Tea Lounge offers a quality boba tea, the price range is average since the target is students. Also, Bocha Tea Lounge carries snacks, so students don’t need to go to another store to get food while they are enjoying our boba tea drinks. In order to avoid cost and time, the snacks are frozen products, so it is easy and less costly to prepare that its only need to fry. The inside of the shop has free Wi-Fi, so students can stay and study if they need to.

Location

Bocha Tea Lounge is within walking distance from CSU Fullerton campus. Since our target customers are young students, it is easy to access for students before and after class. Inside of the store will be made for students to study or relax after classes. The tenant is located in the first floor of an apartment complex, so we will have residents as our customers also. The seat will be made for individual study section and group meeting section, so students can hangout or study as they enjoy our boba drinks. Also, there is a free Wi-Fi.

This is Bocha Lounge's menu.

MILK TEA: ·         Jasmine Milk Tea ·         Green Milk Tea ·         Thai Milk Tea ·         Taro Milk Tea ·         Honey Milk Tea ·         Almond Milk Tea ·         Strawberry Milk Tea FRUIT TEA: Grape tea Grape Fruit tea Green Apple tea Honey Lemon tea Lychee tea Mango tea Passion Fruit tea Peach tea Raspberry tea Strawberry tea

HERBAL TEA: ·         Daisy Tea ·         Artichoke Tea ·         Citrus Peel Tea ·         Ginger Tea ·         Ginseng Tea ·         Japanese Green Tea ·         Oolong Tea HOUSE SPECIALTY: ·         Ooh La La: Guava green tea with monster energy drink, rainbow jelly, and mini boba ·         Bo-Ba-Boo: Strawberry tea with rainbow jelly and mini boba ·         Peachilicious: A mixture of peach green tea and mango bits infused with delicious boba ·         Tropical Sunset: the passion fruit green tea with the add-ons of chopped lychee, and dragon fruit

SNACKS: ·         Popcorn Chicken ·         French Fries (Original, Cajun, Garlic) ·         Sweet Potato Fries ·         Fried Tofu ·         Fish Ball OTHERS: ·         Coffee ·         Energy Drinks ·         Chips

Market segmentation

Our target customers are families, high school and college students. This is not only a good place to relax after school with affordable drinks and snacks but also a good idea to create a bonding time with your family members. Office workers are also our potential customers. There are a lot of business buildings surrounding our location. So, during lunch time, they could enjoy their short break at our place. Bocha Tea Lounge wants to establish a large regular customer base, ranging from 15 to 34. This will establish a healthy, consistent revenue base to ensure stability of the business.