ECB30303

FRANCHISE BUSINESS MANAGEMENT

TITTLE
ASSIGNMENT 3
STUDY OF LOCAL COMPANY
(TEALIVE)

PREPARED BY:
STUDENT NAME SYUDENT ID
MUHAMMAD KHAIRIL IFWAN BIN 62212219355
MOHAMMAD MARZUKEE
MUHAMMAD SYAHMIE AIMAN BIN 62212219139
DZULKEFLI
ABDUL HAZIQ BIN NUHAIRI 62212219032
MUHAMMAD FARIDUDDIN BIN MD 62212219321
NAWAWI
ISMA ALIAH BINTI IZMAL HISHAM 62212118288

PREPARED FOR
PROF. BAHARU BIN KEMAT

GROUP
ME20
1.0 ABOUT COMPANY

FIGURE 1 First Tealive’s Shop at Pavilion KL.

Tealive was introduced on February 17, 2017, by Bryan Loo, who was the Loob's

Chief Executive Officer by introducing Tealive as his brand to take tea to a higher level.

Chief Executive Officer, Bryan Loo launched the brand at the Pavilion KL store near the

exact spotwhere he introduced the brewed tea before opening 165 branches by the end

of 2016. Tealive previously known as Chatime and Cha means tea in chinese. So Chatime

means tea time.

However, in early 2017, La Kaffa International, the parent company of Chatime

decided to terminate its deal with Loob Holdings, a Bryan Loo company. The agreement

between LaKaffa and Loob, was terminated due to Taiwan's disagreement over the

business direction of Chatime in Malaysia.Two months after losing his Chatime franchise,

Loob Holding CEO Bryan Loo started his own brand, Tealive, which opened its first

international outlet in Vietnam recently.

 FIGURE 2 Four Signature Drinks.

Therefore, today Chatime Malaysia has officially been replaced with Tealive and from

thecorporate divorce clutter to brand new in less than 50 days, CEO Loob Holdings is

ready to leave the past and concentrate on Tealive. Tealive will be their new beginning to

make tea great again and the brand will now feature four signature drinks namely

Signature brown sugar pearl milk tea, Roasted milk tea with handmade pearls (sweet

potato), Signature passion fruit green tea and lastly, Grape fruit chia tea booster.

1.1 BUSINESS LOGO

FIGURE 3 Tealive’s Logo.

1.2 TEALIVE’S (LOOB HOLDING) FAMILY

Bryan Loo

CEO

“LOOB is what it is today thanks to my fellow LOOBies. We take on challenges with

determination in our eyes and passion in our hearts. Together, we bring out the tea in

team.”

As LOOB’s chief mastermind, Bryan Loo is the very definition of ‘looking outside

the box’. No idea is too crazy for Bryan. It’s no surprise that his life motto is “think big,

start small, scale fast.”

 Chee Leng Loo

COO

“At LOOB, we believe in running an honest business, and upholding integrity and

transparency wherever we go. That is how respect is earned.”

With over 10 years of experience in the corporate world, Chee Leng is the numbers

guru who helped turn Bryan’s dream into a reality. She continues to inject newness into

the world of F&B.

Bryan Yeow

International Business Development Director

"When we first started, our mission was to grow our brand within Malaysia. Fast-

forward to the present and we are now starting to expand beyond our country. As

someone from humble beginnings, I am proud to be a part of this team."

 With 7 years of experience in the retail segment, Bryan is the go-to-guy whenever

someone in the team needs advice. His outgoing personality and boundless energy

propels LOOB’s vision to the next level.

Head Restaurant Ninjas

Malcolm Goh (Head Chef) & Ryan Yeoh (GM, Full Service Restaurants)

Operations Overlords

Tan Boon Keng (Franchise Manager), Ivy Chien (VP, Operations Excellence), Lim Li Zhi

(Operations Director)
 Operations Overlords

Davin Shin (Operations Director, llaollao), Lee Peck Han (GM, Soda Express), Wong

Kok Yee (Operations Director, Japanese brands)

Management Maestros (Shared Services)

Daisy Chan (Group Supply Chain Manager), Dr. Henry Yeoh (VP, People & Culture),

Carmen Tan (Group PR Manager), Shamaine Lee (Group Finance Manager)

Management Maestros (Shared Services)

Jessica Lee (Group Marketing Manager), Bryan Wong (Group Business Development

Manager), Howard Woon (Group IT Manager), Jeremy Tai (Group Art Director), Ho Ying

Shi (International Markets Development Manager)

1.3 TEALIVE’S FRANCHISE BUSINESS

FIGURE 4 First Tealive’s Outlet at Vietnam.

Two months after losing his Chatime franchise, Loob Holding CEO Bryan Loo started

his own brand, Tealive, which opened its first international outlet in Vietnam recently.

Moving at lightning speed, the company plans to expand to 15 countries in the next three

years. Loob Holding Sdn Bhd endured a trial by fire when it lost the Chatime franchise

early this year and came out with its own brand in less than three months. Having placed

the new brand, Tealive, on a firm footing, CEO Bryan Loo is not letting the grass grow

under his feet. Before Tealive celebrates its first birthday, Loob has already opened its

first overseas branch in Vietnam. The company spent about six months establishing the

business during the transition from Chatime to Tealive.

After that, it had to reassure its 1,000-plus staff that nobody would be laid off. Although

the company rationalised its business and closed down eight non-performing outlets, it

managed to redeploy the workers to the 10 other food and beverage (F&B) businesses

in Loob’s stable. Then, it familiarised its two million customers with the new brand. After
four months of stabilising the business, Tealive started planning their regional expansion

and opened the first outlet in Vietnam. Their open at Vietnam because looking for a

market with a huge population in Southeast Asia. There are only three such markets

which is Indonesia, the Philippines and Vietnam. Indonesia has about 250 million people

while Vietnam and the Philippines have about 100 million each.

With Indonesia, it would be difficult in terms of importing raw materials. A lot of

ingredients are imported and there are too many restrictions there. Also, on a personal

level, Bryan Loo don’t like it because the streets are so jammed. There is so much to do

daily, if you’re always stuck in traffic jams, it makes you unproductive. Byan Loo says they

did not pick the Philippines because of logistic issues and geographical constraints.

In Vietnam, 75% of its population are young, between 20 and 25 years old. So the

entire market is up and emerging. And Tealive’s main demographic is aged between 15

and 25. Also, Loo says, while the most of Southeast Asia is experiencing an economic

downturn, Vietnam is already on the road to recovery. And another plus, in his view, is

the country’s spending habits. The company plans to focus on Ho Chi Minh City because

it accounts for 55% of the total retail business in Vietnam. There would like to open five

stores there this year and increase to 100 by 2020.

Loob has a local partner in Vietnam, Kinh Do Corp, the largest fast-moving consumer

goods company in the country. Having Kinh Do on board allows them to view opening

100 outlets in the next three years as possible because it owns a lot of hotels and

shopping malls and we will be opening many outlets in the malls owned by it. Tealive’s

outlets in Vietnam will also be more upmarket than its Malaysian ones. Loo says the

company is going for this format because it is trying to impress the market and build a
global brand. “We want to make sure that the stores are living up to the ambience and

environment we are striving to create.”

The next target market Loob Holding is Australia. It intends to open its maiden outlet

there next January. It has teamed up with The Sphere Agency, which is the former global

agency for Nandos. Loob is looking to open 10 stores in Australia next year and 40 by

2020. Only the first seven will be directly owned and operated, the rest will be franchised

out. It also plans to open outlets in Thailand by the second quarter of next year. “We are

using different strategies for different markets. In Vietnam and Australia, we will own and

operate the stores. In Thailand, we will have a full franchising model. That means we will

pick the markets that we want to go through the learning curve ourselves,” says Loo.

With over 70 delicious Tealive drinks on menu and over 400 outlets in Malaysia,

Tealive are growing worldwide. Their still have more than 50 new excellent locations from

across Malaysia. Now Tealive are acting local at the moment but scaling up very fast. By

the end year 2021, their target is to have 1000 stores across 4 key continents and 15

countries.
1.4 MISSION AND VISION

Tealive’s Company Mission:

Big or small, our breakthrough moments define us. Whether you’ve changed your

career or your hairstyle, breaking a world record or a bad habit, these moments

deserve to be savoured. So celebrate your breakthrough with another breakthrough

- breaking a straw through the seal of a delicious Tealive. Tealive. Breakthrough.

Tealive’s Company Vission:

Tealive is more than just tea. It's a point of view, a way of life. It's daring to be

your best to breakthrough barriers, obstacles and challenges to achieve your dreams

to make the world a happier place.

1.5 PERFORMANCE AWARD

Firstly, for performance he has a passion for conquering all things. Passion and

interest keep him going throughout this journey of starting Chatime. He has a quote:

"When I first started out, never saw it as a challenge, because the passion of doing

business, of being my own boss, blinded me to all the challenges in front of me." He

knows what his dreams are about. Dreams with visions guided and direct him to where

he wants to be at. It charged up his motivations, be courageous and give it a chase.

Bryan Loo treats competitors as partners. Competition is everywhere. Hence, joining

forces together will be a bonus to grow the tea culture in Malaysia which can be good for

his own business as well. Without healthy competitions, it is very difficult and almost

impossible to run excellent bubble tea business. The competition encouraged Bryan to

do better in his business. He sees competitors as his motivators. He also tried to extend

their competency by introducing Chatime Card and collaborating with Horlicks.

Bryan Loo also has the mindset of "do not just sell your products, sell your visions."

He successfully made his contact with the director of Chatime because of a global

mindset. This mindset is very crucial to be part of something bigger. He sold his vision to

the director of Chatime and make sure he will go all out to sell the brand to success.

Bryan did not start a business without knowing his true purpose. One thing to learn

from Bryan is to start a business knowing your true purpose. Entrepreneurship is not

about making money, it is also about satisfaction and purpose. His purpose is to spread

the tea culture and lifestyle among the people in Malaysia. Entrepreneurship is a true
calling, not just a decision. The true purpose behind an action of being an entrepreneur

is important before you decide to start a business.

The best achievement of Bryan Loo is to overcome all challenges as he built up

Chatime from an unknown brand into a premier lifestyle tea chain with 145 stores

throughout Malaysia today. He managed good company strategy and vibrant workforce

to help him to build up his company. He managed to overcome all challenges in his

company, and work hard to inforce tea culture in Malaysian lifestyle. And, he did it. Within

4 years, 145 stores throughout Malaysia has built up and it becomes Malaysia current

taste and trend.

Not to mention about his recognition in 2011. Bryan Loo was nominated for the

MRCA 8TV Entrepreneur Award, organized by the Malaysian Retailer Chains Association

(MRCA) and 8TV. Of course, he was the winner of the Best Master Franchiser award in

2012.

In 2013, Bryan Loo won the Ernst & Young Emerging Entrepreneur of the Year

Award. Now and then, he has been featured in many news stories, interviews and

magazines such as FHM or LDR Show etc. Also, he was featured as the cover story for

August 2012 edition of Malaysian Tatler.

 In addtion, Loob Holding (2019) maintains that on 2017, Tealive was awarded with

the MarketingExcellence’s Awards. From that event, Tealive is considered to be an

award-winning international brand. It is currently operating in Malaysia, Vietnam, China

andAustralia with plans to expand to India, UK, Japan & Thailand (Focus Malaysia 2018).

On 31th of July 2018, Loob holding won the Asia’s Best Employer Brand. The award

recognizes Loob as exemplary in practices in relation with Human Resources (HR).The

award evaluates on how the Employer and the Human Resources Department have

performed in specific areas such as ‘Contribution to Industry/National Needs’,

‘Contributionto Business Needs’, ‘Contribution to Employee Needs’.

 2.0 PRODUCT

FIGURE 5: MENU TEALIVE

Tealive serves a wide range of range of delicious drinks on their menu. They have

milk tea, fruit tea, matcha, smoothies, sparkling juice, and much more. Tealive have more

than 50 baverageTealive has invested a great deal of their assets and resources into

setting it up, which now also serves as a retail technology research development to

ensure that business operations remain in good shape, for all the Tealives worldwide.

Through the centre, Tealive has already produced new flavours to complement its existing

array of drinks; an example is the Durian King Smoothie. Durian King Smoothie is the

best seller for beverage drink in 2019 for fruit season. Tealive always create new and

innovation drink to attract customer to come. In 2020, Tealive have do new beverage for

Talive which is Pop Pop Pearls in early January, which is Strawberry Pop Pop Pearls and

Mango Pop Pop Pearls. The latest new beverage is Gula Aren from Borneo Palm Sugar

which have three beverages: Black Diamonds Milk with Gula Aren, Original Pearl Milk

Tea with Gula Aren and Signature Coffea with Gula Aren.
 Besides that, Tealive not sell the beverage but sell the strawless reusable cup and
metal straw. It helps to curb single-use plastics. Tealive has created Malaysia’s first
strawless reusable bubble tea cup. Indeed, it is a good move as many environmentalists
reported that straws can be very harmful to sea creatures, especially sea turtles. It is one
of the many reasons why many restaurants and cafes only provide straws upon request.
Of course, it is difficult to be sipping on bubble tea without a straw. Part of their
sustainability activity, Tealive is now collaborating with OneCup eco glass tumbler to
produce the first-ever strawless reusable bubble tea cup. Dubbed as Southeast Asia’s
largest tea brand, Tealive believes that they need to lead by example and play a role in
the environment. This product can purchase online at Lazada.

DIAGRAM 6: REUSABLE CUP, METAL STRAW AND BUBBLE KIT

 Lastly, Tealive releases its first-ever DIY Bubble Milk Tea Kit. Each kit comes wth
the necessary ingrdients and recipe to perfect a cup of Tealive Bang Bang Coffee or
Matcha. Over the years, while we have seen the rise and surge of the bubble tea fever,
we need to admit that a cup once in a while is necessary. But since Malaysia is now under
the MCO and we’re all encouraged to stay home, what do we do to alleviate the bubble
tea cravings. So, with fun in mind, Tealive releases a DIY Bubble Milk Tea Kit for all
bubble tea lovers. Inspired by Tealive’s Bang Bang Milk Tea, one DIY Bubble Milk Tea
Kit comes with 1KG tapioca pearls, 3 bottles of MilkLab milk, 20 wide straws, 500g brown
sugar, and imported Nishio Matcha as well as imported hojicha. Each kit is selling it
RM150.

DIAGRAM 7: MY BUBBLE TEA KIT

3.0 LOCATION

DIAGRAM 8: MAP
Tealive have more than 500 outlets in Malaysia. Tealive can get at shopping mall,
station petron and other. Everyone can get Tealive around Malaysia because Tealive is
grow faster franchise right now. Besides that, Tealive have seven outlets in Vietnam, two
in China, and one in Australia.

Seventy per cent of these outlets are owned by Loob Holding, while 30 per cent
are operated by franchisees, a Tealive spokesman said. Part of the brand’s expansion
plan involves opening over 1,000 stores in at least 15 countries by the end of next year,
half of which will be located in China. On top of that, it plans to open another 150 outlets
in India by 2024 – goals that Loo, 33, described as “realistic” and “conservative”. The
CEO also said the company is on track and confident of meeting its targets, and is building
relationships with potential business partners in Japan, Indonesia, Myanmar, Mongolia,
and the UAE.
4.0 COMPETITOR
Malaysian bubble tea brand Tealive may have had a tumultuous beginning, but it
is now poised for world domination. The brand was initially created after a high-profile
legal spat between parent company Loob Holding and Taiwanese franchise Chatime in
2017, which ended with Loob Holding rebranding the 161 Chatime outlets it previously
operated into new Tealive stores. Just two years later, the company is now eyeing a public
listing to fund the drink chain’s aggressive expansion, with an IPO slated to take place
between this year and next, Loob CEO Bryan Loo told Business Insider in an interview.

Loob Holding also runs several F&B franchises in Malaysia, including Gindaco,
Croissant Taiyaki, Define:food, Define:burgers and Ko Ko Kai. Meanwhile, Tealive has
over 200 outlets in its home market – where it serves some 2 million customers monthly
– as well as seven outlets in Vietnam, two in China, and one in Australia. Seventy per
cent of these outlets are owned by Loob Holding, while 30 per cent are operated by
franchisees, a Tealive spokesman said. Part of the brand’s expansion plan involves
opening over 1,000 stores in at least 15 countries by the end of next year, half of which
will be located in China. On top of that, it plans to open another 150 outlets in India by
2024 – goals that Loo, 33, described as “realistic” and “conservative”. The CEO also said
the company is on track and confident of meeting its targets, and is building relationships
with potential business partners in Japan, Indonesia, Myanmar, Mongolia, and the UAE.
Neighbouring Singapore is also in its expansion plan, he added. Loo admitted that the
company does not have sufficient cashflow to sustain any aggressive expansion, as
opening a store in Malaysia costs about RM400,000 (US$98,000), and overseas stores
may cost even more.

Hence, it is evaluating “various options” in the capital market to fund the expansion,
and will rely on support from bankers and business partners in the early phases. The
CEO said a public listing could be on the cards “as early as this year, or next year at the
latest”. “In terms of valuation, it would really depend on market conditions,” he added. Loo
explained that Tealive’s stores are all automated, making them highly scalable, and giving
the company the flexibility to have stores as small as 6 square metres or as large as 400
square metres. Tealive’s overseas outlets also tweak their menu offerings to suit local
palates. Loo added that Chinese consumers, in particular, loved the brand’s series of
durian-flavoured drinks.

Besides, some more competitor has the same business like Tealive not only
Chatime competitor for Tealive but have many more same businesses. Even have same
business but from the menu, ingredient, supplier and packaging really make different
product that make unique of product for company that can attract customer and customer
loyalty. Even have many competitors for Tealive, the sales for Tealive still increase it is
because Tealive have many franchisers at any place. Over more 200 outlets in Malaysia
and Tealive are growing worldwide. Because have many outlets so customer can buy
anytime without thinking of the difficult to obtain. The price still affordable to get starting
from RM 8.00.

Another same business like Tealive is The Alley. Sporting an eye-catching deer
logo, this brand definitely sets itself apart from other bubble tea brands with its interesting
layered drinks. It became an instant hit when its first store opened in the country– we can
definitely still remember how pictures of the bubble teas took social media by storm. The
team behind the brand take their products very seriously as they’re known to create their
very own sugar cane syrup and tapioca pearls (known as Deerioca). Outlet for The Alley
is 30 outlets around Kuala Lumpur, Selangor, Negeri Sembilan, Johor, Perak and Melaka.

Next, arguably one of the best bubble tea brands, KOI was already stealing the
hearts of Malaysians even before it opened its first outlet in the country. Many Malaysians
would visit its outlets in Singapore and share their verdict on the drinks on social media
until it finally came to Malaysia. Apart from the usual toppings of black tapioca pearls and
jellies, KOI’s golden tapioca pearl is what differentiates the brand from others. The chewy
golden topping gets its colour from brown sugar and has a noticeably smaller size, making
it a unique and pleasant experience to chew on. Their signature Golden Bubble Milk Tea
is a great choice for those who are eager to taste the golden pearls. The new kid on the
block, KOI is not yet present in Malaysia but intends to open its first outlet in Malaysia
somewhere in 2017. With the bubble tea market in disarray and consumers confused
about where their loyalties lie, KOI believes that this is the ideal time for penetrating the
Malaysian market. Both Chatime and Tealive have experienced some bad hits to their
image and consumers might be fed up by the business side of all of it. What is even more
concerning being the issues raised over the nature of the ingredients that Tealive uses
for its products. If you just want some tea and don’t want to worry about anything, even
the slight suggestion that something is wrong might repel possible consumers.

TABLE 1: STRENGTHS AND WEAKNESSES

Next, the same business like Tealive is Tiger Sugar. Tiger Sugar hype for this
bubble tea is travelling all the way from Taipei to Malaysia as the brand opened its first
outlet in Sunway Pyramid on New Year’s Day. What a way to start the New Year! Dubbed
the most popular milk tea in Taipei, the drink is made out of dark brown sugar syrup, black
tea base, tapioca pearls and cream mousse. Be ready to snap a quick picture of the
beautiful “tiger stripes” pattern that forms of the sides of the cup as you mix your drink!
With a combination of hot pearls at the bottom and cold milk at the top, it can only expect
the drink to be oddly satisfying. The unique of the Tiger sugar is the Brown Sugar Boba
Milk drink and Brown Sugar Boba Milk with Cream mousse. The drink tastes delicious,
they use a special Japanese milk and minus one point because it cannot control the
sweetness. That is the unique of the product for Tiger Sugar and Tealive doesn’t have it.
The starting price for drink Tiger Sugar is RM 8.90 to RM 12.90. It currently has branches
all over Asia, including Hong Kong, Singapore, the Philippines, and of course, Malaysia.
Tiger Sugar Malaysia first launched in February 2019. Their first outlet was in Sunway
Pyramid and now they have opened multiple outlets across the Klang Valley.

Lastly, Xing Fu Tang Malaysia is the most popular when launch in 2019 at
Malaysia. The unique of the product Xing Fu tang is the menu is Taiwanese Brown Sugar
Bubble Tea. With the rise in popularity of brown sugar milk tea, it’s no surprise for Xing
Fu Tang to be well-known for its Brown Sugar Boba Milk in which the tapioca pearls are
cooked the traditional way. The pearls are steeped in brown sugar and “stir-fried” in front
of customers before being scooped quickly into the cup. But that’s not all! The drink is
also sprinkled with brown sugar on the top and torched for a caramelised finish! How
unique is that? The brand recently announced their first outlet in Malaysia at SS15
Subang Jaya so keep a close eye on their website to find out when they’ll be opening
their doors.
5.0 MARKETING
5.1 TEALIVE STRATEGY
Tealive was born under difficult circumstances. Previously operating under the

name Chatime, the switch came when parent company La Kaffa suddenly terminated the

deal due to branch of contract. Loob Holding and La Kaffa are now embroiled in an

ongoing court case to resolve the issue. While that goes on, players such as KOI began

entering the market, and Chatime has even come back to the shores sporting a new

master franchiser, and a new rapid expansion plan.

They’re here among the many existing players in Malaysia Gong Cha, Each-A-

Cup, Latte Me, Blackball, and that’s just naming a few. Despite that, Tealive seems to be

having a good year. On the legal front, the court dismissed Chatime’s injunction against

Loob Holding Sdn Bhd for carrying a similar business as Chatime in May.

In October, Tealive launched their first shop in Vietnam, and they’re now seriously

eyeing Australia as their gateway to the west. By year’s end, Tealive will have close to

175 stores in Malaysia, and 4 in Vietnam. Other than that, Bryan Loo, the CEO of Loob

Holding, has also revealed that we’ll be seeing more Tealive drive-thru’s and petrol station

kiosks in 2018, in the home-grown brand’s bid to become a household brand.

For those who don’t live in populated city areas. They have invested in our own

Tealive truck allowing people to supply and conduct beverage sampling at rural areas

and event spavin. During the transition, 161 franchisees chose to follow Bryan Loo and

switch into Tealive and having many franchisees choose to stay with him perhaps helped

Tealive’s assimilation into the local consciousness. They spoke to the team, and these
are their key strategies that they’re working on to position themselves as major contender

on the scene.

5.2 THREE STRATEGIES STRAIGHT FROM TEALIVE

 Developing innovative products

Specifically, a Global Product R&D centre, which is completely focused on curating

new drink flavours, both foreign and local. According to CEO of Tealive, they were

constantly evolving and looking for ways to innovate and improve. To build the centre,

Tealive has invested a great deal of their assets and resources into setting it up, which

now also serves as a retail technology research development to ensure that business

operations remain in good shape, for all the Tealives worldwide.

In fact, the centre will still see more development and funds pumped into it moving

forward. This is in a bid to “surpass customer’s expectations by delighting them. Through

the centre, Tealive has already produced new flavours to complement its existing array

of drinks, an example is the Durian King Smoothie which sold out in just two weeks. They

have since introduced Vietnamese coffee into their Malaysian stores, and there are also

the drinks that come as a result of their partnership with Horlicks.

On top of these new drinks, Tealive has also introduced the Mighty Mam Mam a

variety of snacks such as popcorn chicken, pies, and other bite-sized food that can be

eaten on the go. Some of these are are indeed elements carried over from their roots,

and on Tealive’s side, there seems to be internal considerations to keep what worked

before while still changing things up.

 Even recently, Tealive is on a marketing blitz for the new Frog Bang drink, which Bryan

Loo described as a fun drink we came across during one of their travels and thought it to

be interesting. Frog Bang is something which is increasingly popular in Taiwan and felt it

will work with the Malaysian market.

 Tealive made a slew of strategic partner

One of those efforts include out-of-the-box campaigns. With a start-up called Monsta,

Tealive did a university program. Its participant’s opportunities to a project development

with Loob Holding, fulfilling both Monsta’s bid to provide opportunities for university

students, and Tealive’s bid for their campaigns.

Partnering with moola, nitizens were tasked with snapping pictures of Tealive branded

cars in the wild for a chance at drinks and discounts. Meanwhile with GoGet, Tealive

introduced a tea break takeover campaign that offered 50 cups of Tealive for 10 winners

who posted a picture of themselves drinking or declaring their “love for tea”. Besides that,

there are other seemingly unorthodox partnerships with the ongoing TV3 series Aku &

Dia, a movie starring Chris Evans called Gifted, and many others.

 International expansion

Tealive used to be very much focused on the domestic expansion but moving forward

most of their investment will be allocated towards local and international expansion. In

fact, their expansion has been put in the front and centre for the brand for the next three

years. By 2020, the brand hopes to unlock 15 countries.

 One of Bryan’s oft-quote phrases is “born in Malaysia and raised for the world”, but

the fruit of that sentiment is coming true by using their expansion map as a mood board

to inspire more drinks in Malaysia. When asked about introducing Vietnamese Coffee

drinks in Malaysia right after launching in Vietnam, Bryan stated that We never

compromise on quality or take shortcuts, and our tea is of the best quality and brewed

freshly daily,” said Bryan. Perhaps an expected answer, but the success or failure of the

brand lies in the most visible result: once a drink touches a customer’s lips. And in the

end, that’s the only thing that matters.

With Tealive’s current position in the market, it’s easy to forget that they could easily

have crashed and burned after Loob Holding’s fallout with Chatime. We think that it is a

testament to the company’s experience in growing brands that they are able to make the

transition to Tealive seem smooth. It will certainly be interesting to see how the bubble

tea wars rages on in this nation, between the existing players and other that may come

into the fray.

5.3 TEALIVE BRAND STRATEGY

Most recently, Tealive, a rookie from Malaysia, entered the market as if

it were saturated by opening two stores in just half a month. Despite being a latecomer,

Tealives invested violently and even announced it would open 100 stores within the next

3years. Ambious tealive will rise to No. 3 in the list of milk tea brands that are most popular

among young people.

In Malaysia, Tealive now has 165 stores, of which 80% are directly managed and

20%are franchised. In 2011, when we entered the market in Malaysia, we were pioneers.

A2er we achieved impressive results, nine months later, the market had 50 more brands

from Taiwan. But how many brands exist in this market now? Only we and Gong Cha.

Tealive currently has 165 stores and Gong Cha has only 12 shops, which is a

huge difference Terence. Maintaining such growth rate, next year we will be among the

top 3 favourite brands in Vietnam and that is the goal that we are aiming for.

According to Mr. Loo, Vietnam has a culture of enjoying drinks, tea and coffee

quite close to Malaysia, so he believes that this is a potential al market for Tealive to

penetrate and develop. When asked, what makes you believe that Tealive will succeed

in Vietnam, a market that seems to be saturated with milk tea? Do you think fever of milk

tea will soon cool down as many other imported trends? Mr. Loo is optimistic about

the potential in the Vietnamese market and takes the example of Taiwan, a

country with a history of milk tea up to 60-70 years, with nearly 500 brands but milk fever

of tea not only does it not cool down but on the contrary becomes a culture of the people

of Taiwan. He also shared about Tealive's marketing strategy. In Vietnam, in the phase,
they will focus on developing in big markets like TP. Ho ChiMinh City, Hanoi and Da Nang.

In addition, on, they are always researching to market new products and they offer 5

new flavour especially suitable for Vietnamese people.

In order to compete with the available milk tea brands, Tealive chose a new

direction on with the support of technology to reduce labour costs, increase products and

product quality. In the future they will have a vending machine instead of

having to queue for purchase. They expect to open 2-3 to the auto shop. There

customers can choose drinks by taste and pay via bank card or cash. Tealive claims to

make a difference for itself with modern and advanced technologies. Since then create

their own Blue Ocean for customers. They will bring more advanced technologies

into Tealive stores, which will make a difference between them and their competitors.

They want to bring new experiences to customers. And technology is a new

trend, but is being supported and strongly developed in Vietnam. Tealive also thank

to the advantage of the scale,

Tealive has a compere price compared to its competitors Not only that, the

brand also provides Tealive card for customers to conveniently pay. They also

thank to the prepaid app or swipe card technology; customers do not need to pay cash.

With all these advantages, despite being a new brand, the Tealive is confident to breakout

in a short me and lead the most favoured milk tea brands.

5.4 TEALIVE 4P’s MARKETING MIX

1. Product

Tealive provide high quality hand-made provides high quality, hand-made and healthy

beverage called the Bubble Tea. It is also known as “Pearl Milk Tea” or “Boba Tea” it is a

refreshing and innovative drink with a base of tea with juice or milk and tapioca. Besides,

TeaLive also includes different varieties of teas and flavour. This allows the company to

encourage customers to search for their favourite flavour and also satisfies each

consumer needs. Not only that, Tealive offered health bubble drinks with the mix of

nutritional sachet such as collagen, antioxidants, protein and energy.

2. Price

The price for every product offered by Tealive was around the range of RM5.85 –

RM9.40. The price shows the affordable and high quality of the Tealive beverage.

Besides,Tealive was trying to avoid competing price with their competitors that’s way its

selling prices is byte same range that their rivals. There are five major stakeholders that

affect pricing such as Consumers, Governments, Suppliers, Distributors and Competitors.

Tealive must be able to make a balance between the stakeholders to get a profitable

income developed by the price of the products, government will put a select price for the

tea applying: price fixing, price discrimination, minimum price, and many more,

consumers are the most important part in this part while pricing taking in count that they’re

the ones who’re buying the products but will pay a certain price and the way to know what

price consumers are able to pay we must make sources and campaigns to know a little

bit more of the consumers.

 3. Place

Tealive is normally situated in central shopping areas, hypermarket or even across

highway. By selecting this location, the Tealive is looking for being in areas of high foot

traffic where they can be conveniently shopped. Tealive hopes to encourage customers

to buy tea while they are shopping. Besides, their strategies always to open kiosk or outlet

in most of petrol station which are well-known of the place with high volume of potential

consumers

4. Promotion

Tealive uses different promotional elements such as personal selling:

 Tealive use personal employee’s interaction to sample the product sand to educate

its costumers about the teas that we sell. Employees make recommendations to

consumers who are looking for to try new flavours. This experience will give them

a competitive advantage among competitors.

 Social networks: The main means of promotion of the “Breakthrough” is through

our online social networks such as Facebook and Instagram. In other words, either

big or small their breakthrough moments define them. Whether it has changed the

career.
6.0 CURRENT ISSUE

6.1 JAKIM CONFIRMS TEALIVE IS HALAL AMID CLAIMS OTHERWISE

DIAGRAM 9: ISSUE
The Malaysian Islamic Development Department (Jakim) has debunked claims that
popular local bubble tea brand Tealive is not halal. The Islamic Body’s Halal Hub Division,
in a statement, confirmed that the halal certificate issued to the business was authentic
and that it had never deemed Tealive as “haram”, as had been circulated online recently.
“The viral posts by some irresponsible quarters are not true. We would like to stress that
Tealive, which is operated by Loob Integrated Sdn Bhd, is a bearer of a valid Malaysia
Halal Confirmation Certificate (SPHM). “As such, the public is advised to be warier before
disseminating information on halal status of products that are yet to be confirmed its
authenticity,” it said today. The viral message claimed that Tealive, which currently has
over 300 outlets in the country, had supposedly been confirmed as “haram” by Jakim as
the beverage contained alcohol and porcine products. Jakim advised public members to
refer to the relevant authorities if there were any uncertainties regarding the halal status
of a product, to ensure there was no misunderstanding that could threaten the country’s
harmony. “We also advise the public to be smart consumers, so as not to be easily
influenced by false messages like this,” it said. Those who wish to verify the halal status
of a product can do so by visiting the Malaysian halal website at www.halal.gov.my or use
the Verify Halal smartphone application. The issue of Tealive’s halal status comes just
days after Starbucks Malaysia was similarly accused of being haram on social media,
which Jakim had also rubbished.

6.2 Tealive vs Chatime: Settled Out of Court

DIAGRAM 10: OUTLET CHATIME AND TEALIVE

After almost two years of court and arbitration proceedings, the owners of
Tealive and Chatime have finally reached a mutual agreement. In a joint statement
released today, 30 August 2018, Loob Holding Sdn Bhd (Tealive) and La Kaffa
International Co Ltd (Chatime) announced that both companies have reached an
out-of-court settlement to amicably resolve all disputes and both parties have
agreed to withdraw all ongoing proceedings in Malaysian courts as well as
arbitration in Singapore. Previously on the 5th July 2018 the Court of Appeal has
rejected the application by Tealive’s Loob Holding Sdn. Bhd.(“Loob”) to stay a
prohibitory injunction granted in favors of Chatime’s La Kaffa International Co
Ltd(“La Kaffa”) in relation to the restraint of trade was granted by the Court of
Appeal on 27th June 2018. Loob has now applied to the Federal Courts to reverse
the ruling on the prohibitory injunction granted in favors of La Kaffa.

La Kaffa terminated the franchise arrangement it had entered into with Loob
on the grounds that alleged breaches were committed by Loob such as withholding
payments and using unapproved raw materials. Loob then went on to open
Tealive, a similar business to Chatime with a replication of Chatime’s menu, layout,
 outlets and team. La Kaffa sought out injunctions against Loob to stop Loob from
selling similar products as theirs and to return its properties such as the operating
manuals. The Court of Appeal allowed the injunction to stop Loob (Tealive) from
continuing its business in selling similar products as La Kaffa (Chatime) in
Malaysia. Loob subsequently sought for a stay on the injunction which was then
dismissed by the Court of Appeal. Loob applied to the Federal Courts to reverse
the ruling on the injunction granted in favour of La Kaffa.Both Partiees have now
finally reached a mutual agreement and have decided to settle the dispute out of
court.

6.3 Key point from the Chatime vs. Tealive Case

 This case between Loob and La Kaffa provides an example to franchisors and
franchisees about the operation and enforceability of restraint provisions under
Malaysian law.
 When entering an agreement, parties should identify restraint of trade clauses and
assess whether they will be able to comply with the restraint of trade provisions
and to be fully aware of the accompanying restrictions. The courts will not
necessarily agree that the restraint is unreasonable.
 If franchising in Malaysia (or considering doing so), franchisors should review their
restraint of trade and governing law clauses to ensure they are effective as well as
ensure a written guarantee is obtained from the franchisee in accordance with
Section 27 of the Malaysian Franchise Act 1998.
 If you are appointed as a franchisee, you have been granted a right by the
franchisor to operate a business using the bran and concepts owned and
developed by the franchisor and you are also bound by the rules of the franchise
agreement and law.
 As a franchisee you cannot freely misuse the franchisor’s intellectual property,
open a side business with an identical product, or replace ingredients without prior
approval from the franchisor.
6.4 Business Collaboration

 Tealive, Safi kick off health, beauty partnership

DIAGRAM 11: COLLABORATION WITH SAFI

LIFESTYLE tea brand Tealive, owned by Loob Holding Sdn Bhd, has partnered
local beauty brand Safi in the “BeauTealive” campaign to promote the newly released
“Beautea” range.The range of facial cleaners made with 100% premium tea is inspired by
the tea-drinking culture, which has plenty of health benefits. In this range, the cleansers
are developed for different skin types.Loob founder and CEO Bryan Loo said the power
of tea brought together two leading homegrown brands to collaborate and showcase the
benefits of tea beyond that of a beverage.“There are many types of tea that are known
for their health benefits and anti-inflammatory properties when consumed, but they also
go beyond drinking as when applied externally, it can have a positive effect on our skin,”
he said at the launch of the BeauTealive campaign in Kuala Lumpur yesterday.He said
tea drinking is an age-old practice and modern research has revealed its wide-ranging
health benefits, including lowering blood cholesterol and triglyceride levels for
cardiovascular health, protecting the brain and reducing the risk of diabetes.

The collaboration campaign promotions began on March 1 and will be taking place
until April 30 nationwide whereby a buyer with any purchase of one Tealive drink will
receive a RM3 discount voucher for one Beautea cleanser.The offer also works vice
versa, where with any purchase of a cleanser from the collaboration range, one will
receive a voucher of RM3 off for one Tealive drink.He added that from the partnership,
the company plans to move forward intothe halal lifestyle market.Safi brand owner, Wipro
Unza (M) Sdn Bhd product manager Kazlina Kassim said tea-based skincare is growing
in popularity as consumers are looking for natural products.The Beautea cleanser range
makes the company’s first venture into the premium price range of above RM22 for each
cleanser.

 DUCk Cosmetics and Tealive release boba-inspired lippies

DIAGRAM 12: COLLABRATION WITH DUCk

Vivy Yusof is a major bubble tea fan, as her fans would attest. She even had a
vlog where she blind tasted different bubble tea brands. So it’s no surprise that the purple
colored brand collaborated with Tealive, another purple colored brand with a line of velvet
matte lipsticks. The Limited Edition dUCk Boba Lipstick Set has each lippie named after
a boba drink-- 70% Sugar (Mauve Rose), Pudding Please (Soft Pink Nude), Brown Sugar
(Warm Plum), Warm Boba (Soft Brick Nude) and Extra Pearls (Neutral Pink).

Loob Holding chief executive officer Bryan Loo says the brand has always said that it
is more than tea. “This team-up with the well-loved dUCk Cosmetics brand provides us
with the reason to bring more joy to our customers. Clearly, we share the same target
customer profile who will benefit from this partnership which comes with an exclusive
design Tealive x dUCk Membership Card,” he says. Throughout March, 50 selected
Tealive outlets will be offering 10 per cent discount when customers flash their dUCk
Boba Lipstick upon ordering. Customers will also receive their drinks in a special Tealive
x dUCk sleeved cup (while stocks last). Each purchase of the set also comes with a
lifetime Tealive membership. There’s also a contest offering over RM1,000 worth of dUCk
Cosmetics vouchers and preloaded Tealive x dUCk membership cards. Just upload your
most creative picture with the Tealive x dUCk standees displayed at the 300 selected
Tealive outlets to stand a chance. Contest ends March 15, 2020.

 Tealive Introduces Malaysia’s First Strawless Reusable Bubble Tea Cup with
One Cup.

DIAGRAM 13: REUSABLE CUP

Tealive is now collaborating with OneCup eco glass tumbler to produce the first-
ever strawless reusable bubble tea cup. Dubbed as Southeast Asia’s largest tea brand,
Tealive believes that they need to lead by example and play a role in the environment.
Reducing single-use plastics sounds like a perfect start.

Tealive has created Malaysia’s first strawless reusable bubble tea cup. Indeed, it
is a good move as many environmentalists reported that straws can be very harmful to
sea creatures, especially sea turtles. It is one of the many reasons why many restaurants
and cafes only provide straws upon request
 It appears that there will be several types of tumblers available soon. The first one
looks very similar to Tealive’s single-use cups as it is decorated with purple hues. A glass
version is also available. Pink or blue, your choice! In this version, it comes with a metal
straw. Will you be purchasing the tumbler with a closing lid, or with a metal straw
attached? Let us know in the comments.

 Touch ‘N Go eWallet embarks on A Year-long Partnership with Tealive

DIAGRAM 14: COLLABORATION TOUCH ‘N GO eWALLET

Tealive lovers rejoice, the Touch ‘n Go eWallet (eWallet) has announced its year-
long partnership with Tealive, bringing together technology and life’s simplest offering –
tea. This partnership also signals the start of more attractive promotions and discounts
for selected Tealive drinks with payment made through the Touch ‘n Go eWallet.

Syahrunizam Samsudin, CEO of TNG Digital Sdn Bhd said, “Malaysians are
passionate about tea, and technology allows us to enable these moments. We are
extremely excited that Tealive shares this vision with us and together, we want to make
a difference in the lives of Malaysians in the simplest and most meaningful way.
“Upcoming promotions include a Raya Campaign which will begin on 5th May 2019 until
15th June 2019, where users can enjoy their favorite Tealive drinks at only RM2.50,
exclusively with the Touch ‘n Go eWallet.

 Loob Holding and PETRONAS tie-up for outlet expansion

DIAGRAM 15: COLLABRATION WITH PETRONAS

Loob Holding and PETRONAS Dagangan have tied up to open Tealive franchised
stores in its Kedai Mesra outlets throughout the country, targeting up to 300 Tealive stores
in three years. Tealive menu at PETRONAS stations will also carry customised drinks
that are only available at Kedai Mesra. Loob CEO Bryan Loo said that Tealive has already
set up four pilot stores at PETRONAS Bukit Antarabangsa, Ara Damansara, Kesas
Highway and Besraya Highway and the response has been "overwhelming". He added
that given PDB’s network of 750 Kedai Mesra, the partnership is a "great opportunity" for
Loob to expand the reach of the Tealive brand.

Meanwhile, Tealive is also celebrating its milestone of 222 outlets through its
Breakthrough Moments Carnival, which will see three Malaysians fulfil their purpose-
driven wish via the 2019 Breakthrough Challenge. Consumers can either share their story
on Tealive's Facebook comment section, submit it via a microsite or drop it into a wish
bucket at the carnival to participate. They are also required to state why it is important for
their wish to be fulfilled this year. The carnival will also feature a bubble tea pit, Tealive
trivia, a Breakthrough dance battle, lucky draw stations and a #MyTealiveMoment photo
contest. Loo said the event is organized to show its "deep appreciation and gratitude" for
its customers' support over the years. He added that the carnival was held as Tealive
wanted consumers to celebrate their own breakthrough moments, big or small.

.
7.0 FINANCIAL
Malaysia’s bubble tea market has come a long way, having held ground amid many

fleeting food and beverage (F&B) trends. The Taiwanese-born tea drink, known for its

seabed of chewy tapioca pearls, has become a mainstay. There are already some 45

bubble tea operators nationwide. Popular brands in the market now include Chatime,

Tealive, The Alley, Tiger Sugar, Gong Cha and Koi Thé. One brand in particular has been

growing steadily since its inception two years ago. Tealive, owned by F&B group, Loob

Holding Sdn Bhd, was born following a messy corporate divorce with La Kaffa

International Co Ltd after the latter ended its Chatime franchise agreement with Loob

Holding. Tealive has since expanded to over 200 outlets nationwide. With that, Loob

Holding, which also operates food outlets Ko Ko Kai, Gindaco and Define Food, is

continuously expanding. In Malaysia, Loob Holding recently said it intended to hire 1,200

to 1,500 more workers over the next two years as it plans to add another 250 Tealive

outlets by mid-2021.

Besides aggressively expanding, Loob Holding is planning an initial public offering

(IPO) in Malaysia. The owner and operator of the popular and fastest-growing Tealive

bubble tea franchise in the country could fetch as much as RM1 billion based on previous

valuation, but the final value would be largely dependent on the market and investors’

appetite for such listing. Confirming the plan two weeks ago, Loob Holding chief executive

officer Bryan Loo said the group is targeting to list in the first half of next year. A report

quoting people with knowledge of the matter said the group could raise as much as

RM300 million from the exercise.

 According to the people, Loob Holding has hired advisers for the planned share sale.

They said the firm is considering seeking a valuation of as much as RM1 billion. However,

they added that as deliberations of the IPO plan are still in early stages, it may not

necessarily lead to a deal. Though there are no confirmed figures in Loob Holding’s

planned IPO, the group’s reported asking price of a RM1 billion valuation fares higher

compared to Berjaya Food which was valued at RM641.58 million as of May 24. Berjaya

Food, which is currently trading at a price earnings of 28.59 times, has been trading

sideways over the past one year. Year to date, however, the stock has climbed 28% to

close at RM1.79 last Friday.

Regionally, Loob Holding is not the first bubble tea maker to list on a stock exchange.

Over in Taiwan, La Kaffa International has been listed on the Taipei Exchange since 2012

and is currently valued at NT$4.71 billion (RM625.33 million). It is the only public-listed

bubble tea company in Taiwan. In fact, local Taiwanese reports say La Kaffa plans to list

a subsidiary on the Australian stock exchange in the third quarter of 2019.

In Hong Kong, B&S International Holdings Ltd, known for a famous franchise called

TenRen, debuted on the local stock exchange last year. It had a market capitalisation of

HK$332 million (about RM177.16 million) as at May 21. Over the past year, share prices

of La Kaffa have risen 47% while those of B&S International have fallen some 62%.
8.0 APPENDIX
9.0 REFERENCE

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bubble-tea-franchises

Ihsan, S. L. A. (2020, March 3). dUCk Cosmetics and Tealive release boba-inspired

lippies. Retrieved from

https://www.nst.com.my/amp/lifestyle/flair/2020/03/571281/duck-cosmetics-and-
tealive-release-boba-inspired-lippies

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KoHiRoSHi. (2020, February 8). Tealive Malaysia's First Strawless Reusable Bubble

Tea Cup! Full of Boba Pearls Each Time You Drink It! Retrieved from
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Loke E. (2018). 10 Bubble Tea Shops To Visit That Are Not Chatime Or Tealive.
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Loob Holding opens 50th Petronas Tealive Outlet. (2019, September 4). Retrieved from

https://moneycompass.com.my/2019/09/04/loob-holding-opens-50th-petronas-
tealive-outlet/
Lim, G. Y. (2020, April 8). Malaysia's bubble tea chain Tealive collaborates with Safi to
release Beautea-branded facial cleansers. Retrieved from
https://www.cosmeticsdesign-asia.com/Article/2020/04/08/Malaysia-s-bubble-tea-
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Maan D. (2017). From Chatime to Tealive: The Founder of Malaysia's Loob Holdings
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Tan, J., & Tan, J. (2019, December 16). Chatime vs Tealive: The Legal Drama Brewing
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tealive-the-legal-drama-brewing-in-malaysia.html
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