CHAPTER I

INTRODUCTION

1.1 The Background

Bubble tea is a tea that is sweet and refreshing and that originated in the early 1980s
in Taiwan. There are different names by which bubble tea is known and they are pearl
milk tea, boba tea, and Zhen zhu nai cha. Bubble tea is so named because of bubbles
that were produced during the shaking process when the tea is being made; also,
another reason is its bottom cup which is shaped like a dome. This Asian drink usually
has little balls that are squishy – tapioca pearls – in nature and goes through the
drinker’s straw.

Going into the bubble tea business requires the entrepreneur to be innovative and
creative when mixing blends or thinking up base for the tea. However, as this is not a
popular business you will need the help of a business consultant to help you conduct a
market research on the viability of this business. It is from the findings of the consultant
that will help you determine if the business is worth starting up or if it should remain
just a business idea.

After getting positive feedback from your business consultant, you will need to write
a business plan for your bubble tea business. A business plan is very important pieces
of document that will help you critically know if the business is going to succeed or
fail.

The business plan takes into account factors how you intend to market and sell your
product, your financial analysis as well as what business structure you intend to have
for your company. It is for this reason that a sample bubble tea business plan has been
prepared below for you.
1.2 The Purpose

1.3 Business Vision and Mission

A. Business Vision

To be the preferred bubble tea store in Bandung, and also in all regions of
Indoneisa; and to also ensure that we never compromise on quality in the making of
our products.

B. Business Mission

To achieve our vision, we will make sure to always check on what ingredients are
used in our bubble teas, and also deal honestly and transparently with our customers.
 CHAPTER II

FEASIBILITY STUDY

1. SWOT Analysis

The bubble tea business is a great business concept that will see us creating a niche
and become recognized in the market. However, due to the fact that we pride ourselves
on professionalism, we have decided to hire a business consultant to critically look at
our business concept and let us know if we have any chances of survival in this
business.

The business consultant intends to use the SWOT (Strength, Weakness,

Opportunities and Threats) analysis to determine what we were likely to go through in
the course of starting and running the bubble tea business in Bandung. Below is the
result that was gotten from the analysis that was conducted on Bobalone;

A. Strengths

There are several strengths which we possess and which will be beneficial to our
bubble tea business. First off, we have a strong distribution channel which will ensure
that our bubble tea penetrates and is in reach of our customers who are far away.

Secondly, we have employed efficient and competent employees who understand

the beverage market and know what it will take to take us to the top. Also, our owners
who have the required experience needed to ensure that we become the brand we intend
to be.

B. Weaknesses

Our weaknesses stem from the fact that this is not a known segment and so there
will be more difficulty breaking into this market and attracting the needed customers
especially from the carbonated drinks share market. Also, we would be battling with
other healthy drinks in the market in order to create an identity and stand out.
 C. Opportunities

We have several opportunities that are available to us and they abound in the fact
that we intend to continually introduce new products and innovations. Also, we are
building a brand that we want to ensure is attractive to global investors and partners.

D. Threats

Due to the fact that every business experiences threats, we expect to experience
strong competition from new competition in same location or around us. Also, we also
expect issues such as people claiming to have health issues from taking our product.
Regardless of the threats we are going to face, we are optimistic that we would come
out tops as we have laid down strategies to ensure we are proactive to these issues.

2.2 MARKET ANALYSIS

A. Market Trends

More people are now health conscious and so there are less people going for
carbonated drinks and more people going for healthy alternatives such as smoothies,
milk and fresh fruit juices. This has caused more already established carbonated drink
companies to go into the production of these healthy alternatives so as to maintain a
share of the target market.

Even though this trend barely touches the bubble tea market but anyone in this
business will need to be proactive as regards researching new flavors and types that
will excite the existing customers while attracting new customers to patronize the
business.

Another trend in the bubble tea business is the fact that most bubble tea businesses
have gone beyond just making and selling bubble teas to customers, but they have also
come up with recipes and DIYs for customers who would want to make these bubble
teas for themselves at home.
 Also, to garner more publicity for bubble tea, most bubble tea stores have gone
beyond selling these tea in basic stores but have ensured that the tea is now sold via
van to people in the parks and in other public places, this has raised awareness for
bubble tea.

The fact that we are living in an internet age has a great impact on any business
particularly the bubble tea business. The website is a good place to advertise and
promote bubble tea, as well as social media platforms such as Instagram, Facebook,
and Twitter. Also, there are now mobile apps that will allow customers know when
there is a new recipe, and also provide tips and advice and even information regarding
bubble tea.

B. Our Target Market

As more people are getting increasingly aware of what they take in and are conscious
about their health, more people are shifting towards healthy drinks and bubble tea is
one of them. This means that there is a huge target market waiting to be grabbed.

This is not a drink that can be limited to just a certain age range, as it can be taken
by almost everyone. Our strategic location in Bandung has ensured that we are
favorably close to several of our target markets.

We however conducted a market research that would allow us make informed

marketing strategies when intending to get our share of the target market. The market
research would help us define our target market by demographics and psychographics.

Therefore, we are going to be selling our bubble tea and its allied products or
services to the following group of people;

 Students
 Young professionals
 Households
 Corporate Executives
  Business people
 Sports men and women
 Young adults
C. Our Competitive Advantage

Our aim of starting Bobalone is to ensure that we are the preferred bubble tea
business in Bandung and in all regions of Indonesia. We have our set strategies that
will ensure that we can not only make our intended profit but also that we can favorably
compete with our competitors.

It is for these reasons that we have drafted several competitive advantages that will
enable us remain unique and also set us apart from other bubble tea competitors.

Our first competitive advantage is to ensure that our bubble tea truck gets
customized with a vending machine as this will allow us have prepared bases in place
and also serve our customers in public places without wasting their time. Our truck will
also be well equipped with POS Machines for those who do not have cash on hand to
pay.

Another competitive advantage we have is the fact that we are constantly churning
out new recipes that will create different flavors and type of the bubble tea. We want
our customers to remain intrigued with the different flavors that we have to offer.
Asides, from the different flavors we intend to offer, we also intend to ensure that the
ingredients used in making our bubble tea are of top quality.

Another competitive advantage we have is our excellent customer service which

we offer to all our customers. We know how important having loyal customers are to
a business and so through our strategy, we intend to retain more than 80% of our
customers while also aiming to attract new ones through our publicity and advertising
strategies.
 Finally, we have the best employees that are not only experienced but competent
as well. We intend to make sure that our employees are not only paid adequately but
that they also undergo continuous training that will ensure that their skills are enhanced.

2.3 MARKETING MIX

A. Product

Bobalone is a bubble tea store that has been established to make different flavors
of bubble tea for our various customers and also to ensure that revenue is made and
profit maximized from the different products we intend to make for our customers.

Bobalone therefore intends to generate income by selling the following products

to its customers.Different flavors and types (blended, shaken, tea based, smoothie, milk
tea or juiced):

 Bobalatos
 Milktea
 Popba
 Bobathie
 Juiba
B. Sales Forecast

The fact that people are now being conscious about what they drink is a testament
to the fact that the demand for bubble tea is about to surge better than before.

This is why our offering of quality bubble tea, our different flavors as well as our
positioning in the market has made us quite optimistic that we would not only generate
enough revenue but that we would meet up with our target within a year of running our
bubble tea business.

Having looked critically at the beverage industry, we have seen that the bubble tea
is a great niche for us to go into and having analyzed our chances with the help of a
reputable business consultant here in Bandung, we are quite certain that we will not
only grow but thrive in this market.

C. Marketing Strategy and Sales Strategy

Deciding our marketing and sales strategy is very important to us as we understand

that without marketing we will be unable to sustain the business and grow it to the level
that we intend. Due to the importance of marketing and sales, we intend to conduct a
thorough marketing analysis that will enable us understand the market we intend going
into and the best way to penetrate.

Asides from helping us understand our target market, the marketing research
would also help us better structure our business so as to be able to be proactive whilst
dealing with our customers and their varying demands. Having the right marketing
strategy would also help set us apart from our competitors and also allow us to
favorably compete with them.

Not getting the marketing strategies right could lead to a lot of customers leaving
and potential ones not willing to come in and so we have engaged the services of a
reputable marketing consultant who not only understands the beverage market but is
also knowledgeable on what to do to enable us have the customers that we might need
for our bubble tea business. We also will not neglect the internet as a means to market
our products and services at Bobalone because we are aware of the wide reaching effect
the internet has.Therefore, the marketing and sales strategies that we intend to adopt
for Bobalone;

 Throw a grand launching party for Bobalone that will get us noticed
 Leverage on our social media platform – Facebook, Twitter, Instagram – to
ensure that we thoroughly advertise our products and services
 Encourage our customers through discounts and incentives to refer us to others
 CHAPTER III

BUDGETING

 Investation :

Equipment Price

Booth Rp. 1,781,500

Stove and gas cylinder Rp. 242,500

Large pot Rp. 232,500

Filter Rp. 22,000

Ice cube shaver Rp. 165,050

Bowl Rp. 24,000

Knife Rp. 11,500

Table Rp. 382,550

Chair Rp. 521,500

Blender machine Rp. 139,500

Glass Rp. 78,800

Spoon Rp. 26,500

Stirring drink Rp. 6,500

Jar Rp. 8,500

Napkin Rp. 7,500

Bucket Rp. 8,500

Tray Rp. 18,000

 Banner Rp. 42,500

Beverage sealing machine Rp. 1,258,000

Other additional equipment Rp. 23,000

Investment Amount Rp. 5,000,400

Fixed Cost Value:

Depreciation of the booth 1/62 x Rp. 1,781,500 = Rp. 28,734

Depreciation of the stove and gas cylinder 1/62 x Rp. 242,500 = Rp. 3,911

Depreciation of large pot 1/62 x Rp. 232,500 = Rp. 3,750

Shrinkage of filters 1/44 x Rp. 22,000= Rp. 500

Shrinkage of ice cubes / 1/44 x Rp. 165,050 = Rp. 3,751

Depreciation of the basin 1/44 x Rp. 24,000 = Rp. 387

Depreciation of the blade 1/44 x Rp. 11,500 = Rp. 261

Depreciation of the table 1/62 x Rp. 382,550 = Rp. 6,170

Depreciation of seats 1/62 x Rp. 521,500 = Rp. 8,411

Depreciation of the blender machine 1/62 x Rp. 139,500 = Rp. 2,250

Shrinkage of glass 1/44 x Rp. 78,800 = Rp. 1,791

Depreciation of spoons 1/44 x Rp. 26,500 = Rp. 602

Shrinkage of stirring drinks 1/44 x Rp. 6,500 = Rp. 148

Shrinkage of the jar 1/44 x Rp. 8,500 = Rp. 193

Shrinkage of napkins 1/44 x Rp. 7,500 = Rp. 170

Depreciation of the bucket 1/44 x Rp. 8,500 = Rp. 193

Depreciation of the tray 1/44 x Rp. 18,000 = Rp. 409

Depreciation of the banner 1/44 x Rp. 42,500 = Rp. 966

Depreciation of the beverage Rp. 20,290

sealing machine 1/62 x Rp. 1,258,000 =

Depreciation of other equipment 1/44 x Rp. 23,000 = Rp. 523

Employee salaries = Rp. 800,000

Total Fixed Cost = Rp. 883,412

 Variable Cost :

Tapioca flour Rp. 45,000 x 30 = Rp. 1,350,000

Ice cube Rp. 11,000 x 30 = Rp. 330,000

Granulated sugar Rp. 38,500 x 30 = Rp. 1,155,000

Taste of drinks Rp. 21,000 x 30 = Rp. 630,000

Milk Rp. 26,500 x 30 = Rp. 795,000

Tea Rp. 8,000 x 30 = Rp. 240,000

Chocolate Rp. 18,000 x 30 = Rp. 540,000

Other ingredients Rp. 11,000 x 30 = Rp. 330,000

Glass cup + straw Rp. 22,000 x 30 = Rp. 660,000

Packaging Rp. 7,000 x 30 = Rp. 210,000

Promotion Rp. 4,000 x 30 = Rp. 120,000

LPG gas Rp. 17,500 x 30 = Rp. 525,000

Rent place Rp. 17,000 x 30 = Rp. 510,000

Water and electricity Rp. 17,000 x 30 = Rp. 510,000

Total Variable Cost Rp. 7,905,000

 Total Operating Costs

Fixed costs + variable costs = Rp. 8,788,412

 Monthly income

75 cups x Rp. 5,000 = Rp. 375,000

Rp. 375,000 x 30 days = Rp. 11,250,000

 Profit per month

Profit = Total Revenue - Total Operating Costs

Rp. 11,250,000 - 8,788,412 = Rp. 2,461,588

 Old Return on Investment

Total Investment / Profit = Rp. 5,000,400: 2,461,588 = 2 mth