1.
0 Introduction
This case study will discuss market segmentation, targeting, and positioning to market
their products and services. Market segmentation involves dividing a market into distinct
group of buyers who have different needs, characteristics, or behavior and who might
require separate marketing strategies or mixes. Next, market targeting consists of
evaluating each market segment’s attractiveness and selecting one or more market
segments to serve. Lastly, positioning is often framed as the “battle for the mind of the
consumer” – the quest for a market offering to occupy a clear, distinctive, and desirable
place in the minds of target consumers. Through this case study, we gain a lot of
information about Tealive’s company.
2.0 Company Background
Tealive is a lifestyle tea brand that was introduced on February 17, 2017, by Bryan
Loo, who was Loob’s Chief Executive Officer. Bryan Loo was born and raised in Perlis. He
graduated with a degree in Biochemistry from Monash University, Melbourne, Australia.
After his graduation, he worked at a biotech company for two years as a salesman before
becoming a Chatime master franchisor for Malaysia.
The brand was launched at the Pavilion Kuala Lumpur store near the exact spot where
he introduced the brewed tea six years ago before opening 165 branches by the end of 2016.
Tealive was previously known as Chatime. However, in early 2017, La Kaffa International,
the parent company of Chatime decided to terminate its deal with Loob Holding, Bryan Loo
Company. Two months after losing his Chatime franchise, Bryan Loo started his own brand
which is Tealive. Today, Tealive is Southeast Asia’s largest lifestyle tea brand with over 800
outlets around the world.
Tealive’s vision and mission are what have helped them to pull through and succeed.
Their mission is to expand and grow their brand within Malaysia across five countries which
include Australia, China, United Kingdom, Japan, and Thailand. Their vision is to make their
brand renowned to embrace modern technology and product innovations as the future focus
of the bubble tea market.
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3.0 Market Segmentation
Demographic segmentation
From age range, Tealive caters to customers aged 15 to 60. This broad age range
allows them to both younger and older individuals. They recognize that preferences very
across different age group. For instance, younger people tend to prefer sweeter beverages,
while older customer may option for less sweet option. By being inclusive, they ensure that
everyone can enjoy their drink regardless of gender. Furthermore, Tealive segments its
customer based on their life stages and occupations. This approach helps them tailor their
offering. They have different beverages options for students, employees, professionals, and
other groups.
Psychographic segmentation
Tealive further segments its customer based on behaviour, attitudes, lifestyle, and
personality traits. Tealive could target consumers who prioritize sustainability and eco-
friendliness by offering environmentally-friendly packaging options or sourcing ingredient
ethically. They might also appeal to consumers who value convenience by offering online
ordering and delivery services. For example, eco straw less cup from Tealive is the first in
Malaysia. An innovative cup design that holds toppings on top of the drink, each sip is now a
smooth flow from cup to mouth, thus eliminating the need for a straw. By using this cup, no
topping wastage, eco-friendly and reusable, easy to drink from, fits Tealive drinks and mad
made from food-grade materials.
Behavioural segmentation
From the lifestyle and preferences, which is trend followers will influence by popular
trends and seek out trendy drinks on Instagram, TikTok and Twitter. Next, health-conscious
consumers will prioritize healthier drink options, such as low-sugar or non-dairy alternatives.
Geographic segmentation
Tealive’s geographic segmentation divide its customers based on region criteria. It
consists of China, Vietnam, Australia, United Kingdom, Brunei, India, and Malaysia
segments so far. It targets each of the segments by releasing beverages based on the local
culture and the local population’s preferences into different countries. Tealive can segment
customers based on their preferences for different type of bubble tea products. This might
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include segments for customers who prefer traditional milk teas, fruit teas, or specialty drinks
like brown sugar milk tea or cheese foam teas.
4.0 Market Targeting
Undifferentiated
Undifferentiated seems like a concept where Tealive store lacks uniqueness or
distinguishing features, possibly blending into a sea of other similar coffee shops. Tealive
brand might lose its individuality and fail to stand out among competitors. This could be a
concern for the company, as differentiation often plays a significant role in attracting
customers and building brand loyalty. Creating a unique atmosphere, offering exclusive
products or services, or tailoring the experience to the local community could help prevent
this "undifferentiated" state and maintain Tealive competitive edge.
Differentiated
Tealive uses a differentiated marketing strategy to target different market segments
with different beverages of drink such as milk, boba, matcha, juices and else. Differentiated
important in markets where a product has a number of competitors such as Starbucks and
Zeus. Tealive also introduce their new eco straw less cup first in Malaysia and get positive
response from the customers. Eco straw less initiatives aim to reduce single-use plastic
consumption by promoting alternatives like reusable straws, contributing to a healthier planet
and marine life.
Niche Marketing
Tealive is the go-to destination for those craving a diverse range of flavourful
beverages including milk tea, bang bang drink, coco, smoothies, and a plethora of other
options. In addition, customer can also customize their drinks according to what are they
preferred more in terms of sugar levels, options of toppings and others. From that, all age
levels from children to parents can buy drinks at Tealive and customize following their own
tastes. Tealive niche marketing strategy revolves around catering to the premium beverages
experience, emphasizing quality, ambiance, and customer experience. Additionally, Tealive
has also embraced digital innovation, leveraging mobile ordering, loyalty programs, and
social media to engage with customers and enhance their experience further.
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Micromarketing
By localized Menus, Tealive adjusts its menu offerings based on regional preferences
and cultural norms. For example, they may offer unique drinks or food items that cater to
local tastes. In targeted Promotion, Tealive leverages customer data to create targeted
promotions and offers. For instance, they might send personalized discounts or
recommendations based on a customer's purchase history. Last but not least, Mobile App
Customization in Tealive mobile app allows customers to customize their orders, earn
rewards, and receive personalized recommendations based on their preferences and location.
5.0 Market Positioning
Market positioning refers to the ability to influence consumer perception regarding a
brand or product relative to competitors. The objective of market positioning is to establish
the image or identity of a brand or product so that consumers perceive it in a certain way.
Tealives competitive advantages is have excellent customer service. Tealive places
significant emphasis on providing on exceptional customer experience. For example, Tealive
teach their barista to serve their customer in a good way and friendly with customers. Tealive
also has a comfortable seating arrangement and free Wi-Fi. Customer will satisfy with the
facilities and services. Next, product diversification and innovation. Tealive continuously
innovates their menu. Such as their drinks and foods. For example, Tealive do a collaboration
with Wall’s company which is Tealive boba ice cream.
Price
Most people intend to compare the price before buying it even they want to have it
due to the economy crisis that happen right now. Tealive have solve the problem with sell
drinks with affordable price and cheaper than other drinks like Starbucks, Chatime, Coolblog
and so on. Tealive also provide a selection of excellent drink that are refreshing such as
sparkling red tea with chia seeds. The range of the drinks are between RM6 to RM10. So, this
brand is suitable for students and workers.
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Competitor
Tealive has become popular nowadays among young people and old people. Tealive
has become competitor with Starbucks, Chatime and Coolblog. Tealive use social media to
advertise their products like drinks and foods. This is because they need to tell people about
their products. For example, they use platform like Instagram, Facebook and Youtube. To
grow product appeal Tealive need to research for their new menu to make people try it and
increase their sale.
Brands
Tealive has provided best services to the customers. For example, they use premium
coffee and milk to make the drinks. This because they really care about their brand. If they
serve drinks or foods in a bad way they will receive bad rating from their customers. They
really need to take care of the quality of their product. Tealive also sell their products will
reasonable price better than other brands like Starbucks and Chatime. Tealive also introduce
their new eco straw less cup first in Malaysia and get positive response from the customers.
They sell the cup with affordable price and easy to carry anywhere they want better than
other brands.
Consumer perception
Consumer perception is the opinions, feelings, and beliefs customers have about your
brand. It plays an important role in building customer loyalty and retention as well as brand
reputation and awareness. Customers really satisfied with the service provided by the shop.
For example, Tealive customers service is excellent. The range of beverage are affordable
and not pricey than other brands as Zues and Starbucks.
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6.0 Recommendation and Conclusion
As we know Tea live has so many variations of drinks that are suitable for everyone
whether they’re young or old. For example, their famous drink is their signature brown sugar
pearl milk tea. Other than tea live also have smoothie, coffee, sparkling water, and others. We
also can choose to drink hot or cool water. Tealive also has junk foods like toastea and cheesy
popcorn chicken. People can grab both drinks and food at Tea Live.
In our opinion we would like to recommend Tealive to make instant coffee or tea for
their customers. This is because Tealive has so many customers who really love their drinks.
They want instant coffee or tea for their daily drinks. They don’t need to go to the outlet or to
the shop. For example, they can make tea bags or coffee bags so that can make their
customers easy to make the drinks at home or their work. Instant coffee and tea will also
satisfy them. These instant drinks will save time because they don’t need to use their energy
to go to the shop.
Secondly, we would like to suggest Tealive to make a variation of ice cream. We
know that Tealive already released their first ice cream collaboration with walls which is
known as Tealive boba ice cream milk tea. This ice cream received positive response from
everyone especially from young people like kids. They can get this ice cream from grocery
stores or from the branch. They should make another variation ice cream such as green tea ice
cream, smoothie ice cream and yoghurt ice cream. They can give their customer various
options to choose and not just stick with boba ice cream milk tea. As we know, Tealive have
so many fans from every age who will buy this ice cream based on what they prefer.
Our last suggestion is Tealive should make a drive-through in every branch. Drive
thru is very important because the customer can save their time. Especially for those who
don’t have enough time to go to the shop and for those who are lazy to queue.
In conclusion, Tealive company has grown to become the leading lifestyle tea brand
in Southeast Asia. It now has over 500 stores and serves over 500 million customers every
month throughout Malaysia, Vietnam, Brunei, Myanmar, Australia, the Philippines, and the
United Kingdom. A product brand is deemed vital since the name design help the buyer
identity and recognize the product.
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7.0 References
1. Alva Productions (Jul 27, 2022) How Tealive Started?
https://www.alvaproductions.com.my/post/how-tealive-started
2. Loob Integrated Sdn Bhd (February, 2024) Menu
https://www.tealive.com.my/menu
3. New Straits Times Press (M) Bhd (2024) tealive sets boba plant Selangor plans export
https://www.nst.com.my/amp/business/corporate/2023/11/979009/tealive-sets-rm10mil-boba-
plant-selangor-plans-export
4. Mohd Iskandar Ibrahim, (December 13, 2019) Tealive penuhi permintaan pengguna Muslim
https://www.bharian.com.my/amp/berita/nasional/2019/12/638152/tealive-penuhi-
permintaan-pengguna-muslim-halal
5. CFI Education Inc, (2015) Market Positioning
https://corporatefinanceinstitute.com/resources/management/market-positioning/
