85'C Analysis

Topics: Marketing, Coffee, Singapore Pages: 18 (3002 words) Published: September 14, 2014


Executive Summary – 85’C
In little over a decade since Mr. Wu Cheng-Hsueh envisioned his café, 85’C has established itself as a premier bakery brand with an affordable price tag. Beyond the ideal temperature to preserve the flavor of coffee, the brand identity now establishes the benchmark for quality for a wide array of bakery products like cakes, breads, savory edibles, gourmet desserts and healthy beverages like tea. At 85’C, perfection blends seamlessly with ambition. As a result, the company has reached out rapidly beyond the boundaries of Taiwan, breaking new ground in China, Australia and U.S.A. With expansion came larger operations, new marketing strategies suited to demographics and local trade regulations, and success. All the while, the core business values at 85’C have been preserved with care – allowing patrons and customers to enjoy beverages and bakery products without flinching at the price tag. Quality, as they have proven, does not need to brandish the price tag to make its way. With the new horizons opening up, 85’C now stand at the cusp of yet another milestone. Their foray into the South-East Asian market starts with their upcoming marketing ambitions in the Singapore. The challenges are manifold. Despite popular perception as a ‘tea-drinking nation’ the region has seen rapid drop in tea sales, with the nation swapping the traditional drink for a quick cappuccino. It pits any new entrant against formidable entities like Starbucks and Dunkin, besides popular instant coffee brands like Nescafe and Boncafe in supermarkets. Familiarity with Asian food habits and oriental markets, in form of Taiwan, China and Hong Kong does give 85’C some valuable market insights and experience to build on. Singapore is passionate about their beverages, evidenced by the recent success of Tea and Coffee World Cup Expo 2013. Compared to oriental markets like China, or generally favorable weather of Australia and the U.S.A, their new is a heavily populated, but a small geographical region which ensures higher competition among brands for market share.

85’C has thus far won over markets globally with their impressive standards, prices which are easy on the purse and amicable customer service staff. They would certainly need to carry that vision of their founder, while they introduce contemporary marketing strategies through social media campaigns, periodic discounts and smart locations to get their foothold. The marketing strategies (described in the following sections) are well suited for their latest endeavor. Barring unforeseen roadblocks, it promises to be yet another feather in the cap for 85’C as long as they can stick to their timeline and meet their promotional targets as expected. Table of Contents

1. Introduction
Introducing a food and beverage brand in any geographical region has some thumb rules. Catering to local taste using local ingredients ranks high on that list, and 85’C has repeatedly seen value in this strategy. Keeping that in view, the marketing strategy for Singapore has been broadly divided into three step process Leveraging existing brand identity

Pre-launch promotions
Resource allocation and setting post-launch sales targets
1.1. Leveraging existing brand identity:
Consumers, when equipped with pre-existing knowledge of a brand’s level of quality and performance in other markets, consistently relate that information to new retail outlets and product launches (Giddens and Hoffman, 2010). In addition to their wildly popular status in Taiwan, Hong Kong and China, the company employs personnel who have won decorative cakes and bread competitions in Singapore in the past decade. 1.2. Pre-launch promotions:

Creating the buzz about an incoming brand in a new market involves personal invitation to specific consumer demographics. 85’C aims to leverage the fact that Asian population form a major chunk of demographics (Wong Wee Kim, 2013), a customer base likely to be familiar and...

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Taiwan 's 85C Bakery Café expands in California, Taiwan Insights, December 23, 2013. Available at: http://www.taiwaninsights.com/tag/85c-bakery-cafe/. [Accessed: 17 April]
Giddens, Nancy, & Hoffman, Amanda (2010)
Wong Wee Kim (2013). Population Trends 2013, ISSN 1793-2424, Department of Statistics, Ministry of Trade & Industry, Republic of Singapore, 3-5.
Bauer M (2010). Hallo coke, Journey of Cola brands in Romania, 22(1), 22-29.
85C Bakery Café, US. Available at: http://www.85cafe.us/ [Accessed: 18 April]
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Financial Times | Taiwan’s coffee chain challenger. 2011. Financial Times | [ONLINE] Available at: http://www.ft.com/cms/s/f8fc482e-a61f-11e0-8eef-00144feabdc0 [Accessed 20 April 2014].
SBUX Income Statement | Starbucks Corporation Stock - Yahoo! Singapore Finance. 2014. [ONLINE] Available at: http://sg.finance.yahoo.com/q/is?s=SBUX. [Accessed 20 April 2014].
Sea Salt Latte: Is 85C The Next Coffee Craze? : NPR. 2014. NPR. [ONLINE] Available at: http://www.npr.org/templates/transcript/transcript.php?storyId=1274 [Accessed: 20 Jan 2014]
Sustainable Table | Local & Regional Food Systems
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Young, J.L. 85℃: Wu Cheng-hsueh Takes the Temperature of Success|Economy|People|WantChinaTimes.com . 2014. [ONLINE] Available at: http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20101209000001&cid=1602. [Accessed 20 April 2014].
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