Posted at 11.26.2018
Thanks to the growing popularity for Korean pop and Korean dramas, these are the main affects lately. To benefit from the trend, Hollys Caffeine, being the greatest coffee chain in Korea will project into Singapore through get better at franchising to get market share in the Food and Beverage industry. Hollys Espresso will distinguish itself from all of those other coffee string in Singapore by delivering their uniqueness and culture to Singapore. Hollys Espresso will stress on its brand advertising and advertisement to allow Singaporeans to understand the brand.
This report will further add how Hollys Coffee arranged its global strategy, the opportunities and the issues faced.
Hollys Coffee is a niche coffee company brain headquartered in Korea. The business was set up in 1998 and exposed Korea's first espresso shop that year. Its shops offer espresso, espresso, tea, coffee- and tea-based chilly and hot specialty drinks, a variety of pastries and other goodies, and coffee resources. By 2008, there were more than 100 Hollys Coffee outlets in Korea, and the franchise possessed broadened with additional stores in Japan, China and Malaysia. It has a barista academy called the Hollys Coffee Academy
South Korea has a market economy which ranks 15th on earth by nominal GDP and 12th by purchasing electricity parity (PPP), identifying it as one of the G-20 major economies. It really is a high-income developed country, with a developed market, and is an associate of OECD (Company for the Economic Co-operation and Development). In addition, this can be a country filled with wealthy culture and history. Korea's people is one of the most ethnically and linguistically homogenous on the planet. Practically all Koreans share a common cultural and linguistic heritage. With 48. 7 million people inhabiting an area roughly the size of Indiana, South Korea has one of the world's highest human population densities.
Other financial organizations like the globe Bank describe Korea as one of the fastest-growing major economies of another generation along with BRIC and Indonesia. South Korea was mostly of the developed countries which were able to avoid a recession through the global financial meltdown and its economical development rate will reach 6. 1% this year 2010, a sharp recovery from economical expansion rates of 2. 3% in 2008 and 0. 2% in '09 2009 when the global financial meltdown hit.
Hollys Caffeine will enter in Singapore through 'professional franchising' method that allows individuals or firms to buy the rights to sub-franchise within some specific countries. This is to minimize risk when it enters the country where its brand is hardly ever familiar to the local community as well as it is difficult to entice investments.
It is essential to stimulate franchisee to serve more folks. Franchising can provide high drive to franchisees as they simply need to pay fixed royalty. This means that more customers they provide customers, the greater profit they can get.
The most popular franchises are those with widely recognized brands. Actually, the brand or trademark of any company is generally the solitary important item desired by the franchisee. Having K-pop influences all around the round, the Korean lovers must have heard of Hollys coffee since it's the largest coffee string in Korea and on top of that, there have been dramas and variety implies that were screened in the cafes as well.
Franchising can be an entry mode that allows for fast geographic extension. Company often benefits competitive advantage when you are first in seizing a market opportunity. Franchisers can benefit from the ethnical knowledge and know-how of local mangers. This can help lower the chance of the business failure in unfamiliar marketplaces and can create a competitive benefits.
There are two entry strategies of Hollys Coffee - an example may be to introduce products which have Korean own feature, another is to identify with other espresso brands by focusing on side menus like waffle or patisserie.
However, there are a great number of its own local coffee merchants in Singapore and Hollys Espresso continues to be not well-known to local people. Thus, it is very important to make Singaporeans alert to its brand and Hollys Espresso might come in contact with the financial risk associated with heavy marketing expenses such as brand advertising and advertisement throughout dispersing its brand.
Another key point of marketing approach would be unique selling point. There are a lot of coffee shop with varies goal groups with their own brand all over the world, however, only few big brands have gained most market stocks. Gaining public understanding by promoting a distinctive selling point as advertisement will be a good strategy.
A global online marketing strategy can also be successful if the company has were able to change local tastes. A new product entering a local market will usually change preferences to some extent, whether by new features, promotion, or price.
One of the nice selling tips to stand on the market share of cafe business in Singapore could be either theme, or products. At the end of the day, it will depend on whether the products or the theme of the cafe house draws in the clients, and subsequently the business enterprise sustains. To espresso lovers, they are looking for good coffee for certain; to non-coffee fans, perhaps they are looking out for a place to rest with a drink and at the same time to take pleasure from the ambient of the cafe house. "Uniqueness" of the products as mentioned above, whereby to bring in the sugary potato latte definitely attracts attention of the locals. By attracting local product to abroad stands chance in penetrating international market, eventually the overseas popularity will also be the significant factor whether it can help to improve up sales.
With Korean movements being so popular, Hollys espresso may consider to use with things that may relate to the Korean dramas or melody.
In Singapore, It really is quite challenging to stand for market show in Singapore for cafe Food & Beverage sector, especially there are a lot of its own home coffee stores or popular makes already popular on the market, i. e. BEANS, Starbucks which makes Hollys Coffee rarely known to residents. Thus, it is vital to make Singaporeans aware of its brand and draw out the uniqueness of the Korean cafe especially the lovely potato latte that that's not available in Singapore. By attracting Korea heroes as a theme of cafe could be a good feature and online marketing strategy. For business strategy, international strategy could be the appropriate strategy since it will maintain Korea theme cafe. Therefore, Hollys Caffeine might come in contact with the financial risk linked with heavy marketing costs such as brand promotion and advertisement throughout dispersing its brand.
It is important to come up with the marketing and marketing promotions to add to the local people about Holly's espresso, as it is not easy to change the preference and choice when they are being used to the existing brands. In addition, it is expensive to begin up a caf in Singapore, therefore it is important to have a detailed breakdown of the startup cost like enrollment and licensing, and other operating expenses as well.
All because of the affects of Korean pop to all around the world, there are more people getting more thinking about Korean culture and traditions. There is an average of 20, 000 Koreans surviving in Singapore. Many Koreans will begin to patronize Hollys espresso when it opens in Singapore.
Singapore has been a popular choice for international talents internationally, as mentioned above there are about 20, 000 Koreans in Singapore. It remains one of the popular places for relocation for its reputation as a safe and orderly country to informed children in. For the business, we should it to be setup in a politically safe developed country in assessment to a expanding country with bad politics situation. Government plans and legislation may differ from time to time based on political stability and poses a risk because of its foreign entities.