Pricing strategies of selected milk tea shops
Introduction
Milk tea can refer to a wide range of teas and tea-based beverages from around the world. Milk tea is, at
its most basic level, a tea with milk in it, yet how these delectable beverages are prepared varies from
country to country and area to region. To lessen astringency and create a mellow, balanced cup of tea,
milk (and sometimes a sweetener like sugar or honey) is frequently added to robust black teas.
Milk tea became a huge sensation thanks to its wonderful and unique spin on a supposedly traditional
drink. Milk tea's appeal among teenagers can also be related to the fact that it is a convenient beverage.
It's just as satisfying to eat it in a café as it is to eat it on the run.
Milk tea is a bizarre food craze. Milk tea popularity is at an all-time high 11 years after it first came on
our shores. The number of milk tea aficionados continues to rise as more milk tea shops open their
doors, each with a comprehensive selection to ensure that everyone may find their ideal cup.
Literature Review
Maurice O’Sullivan Foods 2021 stated that Milk tea is a famous drink that has been heavily consumed
since 2011. This study aimed to determine the combination of milk tea attributes that were most
preferred using a Conjoint Analysis Approach. Specifically, this study utilized different attributes such as
the size of tapioca pearls, sugar level, price range, brands, type of milk tea, cream cheese inclusion, and
the amount of ice. Conjoint analysis with the orthogonal design was utilized to evaluate the preference
of milk tea among consumers. The results showed that pearl size was the attribute most considered by
consumers (29.137%), followed by sugar level (17.373%), the amount of ice (17.190%), the type of drink
(13.421%), price (11.207%), and the least considered were cream cheese inclusion (9.525%) and the
brands (2.147%). The findings of this study will be beneficial to milk tea firms about consumer
preferences regarding the various attributes of milk tea. Finally, the result of this study could be
applicable to different beverage-focused studies worldwide.
Driftus 2018 stated that This milk tea craze started in Taiwan. As regular tea drinkers, Taiwanese realized
that they have respective teas for breakfast, lunch, or dinner, but none for their snack. To fill in the gap,
they developed a drink that we can be considered a snack and beverage simultaneously, the milk tea.
Milk tea is a refreshing flavored iced tea with tapioca balls at the bottom. Milk is mixed with a tea base,
fruits, and flavored syrups, and later, the tapioca balls are added. With its delicious and different take on
a supposedly typical drink, milk tea became a real hit.
Lindsey Goodwin 2021 stated that The term "milk tea" refers to any tea drink with milk added. It can be
as simple as a splash of milk in a hot cup of tea, or it can be a complex recipe including various
ingredients, like the popular bubble tea. Adding milk mellows and smooths out the flavors of tea,
particularly some of the bitter notes found in black tea. Milk tea is enjoyed throughout the world as both
a hot and cold beverage.
Problem Statement
Why is it vital to understand pricing strategy of milktea shops?
What is Strategic Pricing - and Why Is It Important?
Why Is a Pricing Strategy Important for Your Business's Success?
How to develop a Pricing Strategy?
How to Choose the Best Pricing Strategy for Your Company
Purpose Statement
Everything about how your product is received by the market is influenced by its price. As a result, it's
vital to comprehend the significance of price strategy. A pricing that is too low may not generate enough
interest or provide a sufficient profit margin. If you set the price too high, you risk losing the interest of
your customers. Pricing is significant because it establishes the value of your product for both you and
your customers. It's the measurable pricing point that tells customers if it's worth their time and money.
Your pricing methods may have an impact on your long-term profitability.
Theoretical Framework
Research Simulacrum
