SMB21802 Flipbook

SMP21203 BUSINESS FRANCHISING AND LICENSING
SEMESTER 2 2021/2022

TITLE: GROUP ASSIGNMENT
Prepare for:

Dr. Sri Sarah Maznah Mohd Salleh
Dr. Atikah Nor Johari

Mdm Najuwa binti Mohd Nasir

Prepare by:

Class Name Matric Number
211240366
22D NUR INSYIRAH BINTI KHIRUNIZAM (L) 211240223
211240363
22D AN'NUR BALQIS BINTI AZMI 211240264
211243205
22D NUR HIDAYATUL AKMAL BINTI MOHD AB.RAHMAN

22D HO CHEAN CHI

22D AUNI NADZIRAH BINTI SHARIF ISHAK
DATE OF SUBMISSION: 17 JUNE 2022

1

1.0 INTRODUCTION
Bryan Loo is the CEO of Loob and the creator of Tealive, a tea brand that aims to elevate tea
to new heights. On February 17, 2017, it was rebranded.iBryan Loo launched the business six
years ago at the Pavilion KL shop, where he initially presented the tea mix, before growing to
165 locations by the end of 2016. Chatime was formerly known as Tealive, and Cha is a
Chinese term for tea. However, Chatime's parent company,iLa Kaffa International, decided to
dissolve its agreement with Bryan Loo's Loob Holdings in early 2017. The LaKaffa and Loob
transactions were discontinued due to Taiwan's disagreement with Chatime's economic stance
in Malaysia. At the same time, BryanLoo launched Tealive, his own brand, only two months
after losing his Chatime franchise. In Vietnam, Tealive has recently established its first
international outlet. As a consequence,iTealive has replaced Chatime Malaysia, and Loob
Holdings' CEO is ready to forget about the past and concentrate on Tealive, which has gone
from a corporate divorce shambles to a whole new one in less than 50 days.i

2.0 BUSINESS MODEL CANVA
A Business Model Canvas (BMC) is a strategic management tool for rapidly and efficiently
defining and communicating business ideas or concepts. It's a one-page paper that evaluates a
company's or product's core and rationally and clearly puts down principles.
The BMC is split into two sections. The right side of the BMC is dedicated to the customer
(external), while the left side is dedicated to the company (internal).iThe value proposition,
which is the exchange of value between the company and the end client, brings together both

2

external and internal elements.i The purpose of BMC is to swiftly sketch a picture of the
idea's significance. It also allows us to better understand our own company and expand by
linking our ideas and strategies to turn them into a business. Examining the sorts of consumer
choices that impact the utilisation of our company's systems at the same time. Finally, it is to
provide everyone with a clear picture of how likely the company is to succeed.
The best way for consumers and customers to deal with this is to look at customer segments
and see where the company's goods and services meet customer needs based on Maslow's
Hierarchy of Needs. If we offer goods or services to them, we are a significant partner in
helping other companies realise their value proposition for their clients. It's important to
know what the company's goals are for our client group and where the business, product, and
service fits in the value chain. For example, the table of BMC was provided in figure 1.i

Figure 1

3

3.0 VALUE PROPOSITION

According to Pratt (2018), state that a value proposition is a statement that explains
what benefits a company's products and services will give to its customers. In the
marketplace and among a target market or target audience, a well-crafted value proposition
will distinguish the organization and its unique product or service. It explains why the firm is
best suited to satisfy the demands of the consumer or solve their difficulties. A firm's value
proposition should be tailored to a specific target audience, with a proposition statement that
expresses the value or values that that consumer is looking for from the organization.

Tealive is the most popular contemporary lifestyle tea in Malaysia. The mission of the
tealive is to create enjoyable moments via their vast choice of tea and drinks, putting the tea
in togetherness. Tealive continues to create fresh experiences in a cup in over 270 locations
throughout the world, including Malaysia, Vietnam, China, Australia, and the United
Kingdom, with over 60 different flavors served, ranging from their famous pearl milk tea to
coffee and smoothies (Linc, n.d.). Besides, according to Nur Hanani Azman (n.d.), state that
Bryan Loo, the company founder and CEO of Tealive which the company is focused on its
objective and goal of developing a sound financial plan. Tealive’s long-term goal is to create
Malaysia's own worldwide lifestyle tea brand. According to The Star (2019), its brand aim is
to become a worldwide lifestyle tea brand with 1000 outlets across 15 countries on four
continents in the next two to three years.

Problem-solving is an important skill in management for an organization. A
competent manager must be able to cope with and manage the numerous challenges that arise
throughout the process of a regular workday. According to Indeed Editorial Team (2022), the
ability to recognize the cause of a problem and design a viable remedy is referred to as
problem-solving. Although problem-solving is frequently thought of as a distinct skill, it is
complemented by a number of other skills. The first value proposition is the packaging. The
convenient packaging will attract customers the customers that have a busy schedule on a
daily basis. For instance, the drinks will not only be packed with the plastic cup but will also
add the recycled plastic as a hold to a plastic cup. The packaging will help them to get their
drinks on the go and fast. This can help the customers would feel convenient when they are

4

holding the drinks. Hence, this would solve the inconvenience of holding the cup which can
reach the customers’ need.

Besides, Tealive offers a diverse choice of delectable beverages at reasonable costs,
making it accessible to individuals of all socioeconomic backgrounds. According to
Marketing Interactive (2021), state that Tealive is undoubtedly one of the first few brands that
spring to mind when Malaysians think about bubble tea. Rather than coffee, Tealive was
recognised for its tea cocktails. As Tealive want to meet the needs of customers for coffee
every morning and Tealive wants the customer to think of Tealive when they are about to take
a cup of coffee. Tealive revamped its Coffee by Tealive range, switching from tea to coffee
and modifying its quirky and upbeat attitude. Hence, the next value proposition is the price of
the Tealive coffee. According to Ong (2020), state that customers will find the pricing to be
quite reasonable, as Tealive Coffee is offering every cup of coffee for only RM5 every
morning. It is reasonable and economical when compared to other brands such as McCafe
and Starbucks, whose costs are significantly more than Tealive offering price. Customers will
be able to sip the cheapest yet highest-quality coffee.

5

4.0 MARKET AND CUSTOMER SEGMENT

The identification of target markets serves as the foundation for developing a marketing
mix that will successfully meet the requirements of the market. It consists of product, pricing,
promotion, and place, and it is an in-depth research into the characteristics of the target
market.Customers are the most important aspect of any business. Even if we invent
something fantastic, without buyers, the product or business will fail. The customer segment
focuses on who will benefit from this product or service.

From a geographic point of view, Tealive divides its customers into groups based on the
country they live in. For example, it is currently focusing on the 14 states of Malaysia by
releasing a new drink based on what is popular with Malaysians. Next, Tealive divides the
market by age, gender, and stage of life based on demographics. The company's target
customers for the new product are between the ages of 13 and 25. Aside from that, the second
largest group of Tealive's customers is adults between the ages of 26 and 35, both male and
female. This is because young people like their drinks sweeter than older people, who usually
like their drinks less sweet. Also, the customers are split into different groups, such as
students, employees, and professionals. Most likely, this Tealive is aimed at college students
and postgraduate students who live in the area around Taman Bendahara, Pengkalan Chepa.
Then, psychographic segmentation divided customers into groups based on how they live and
what kind of people they are. For example, most students come from cities, so they know
about the latest fashions and are used to living comfortable, luxurious lives. The company has
also used a variety of data entry methods to help create a psychographic profile of a typical
customer. For example, they have interviewed their target audience and used surveys to get
all of their customers' information. Tealive's product line has grown to include a wide range
of drinks, such as milk tea, crafted tea, matcha, fruit tea, smoothies, sparkling juice, cocoa,
and coffee. Most of the time, customers can choose from a variety of alcoholic and
nonalcoholic drinks. Also, customers can customise their drinks by choosing the type of ice,
the amount of sugar, and the toppings they want.

Bubble Tea is a healthy drink that TeaLive offers to its customers to keep them coming
back. It is made by hand and is of high quality. It is a drink that is often called "Pearl Milk
Tea" or "Boba Tea." It is a creative drink made from juice or milk and tapioca tea that gives
you energy and makes you feel creative. TeaLive also has a number of different teas and
flavours mixed together. Because of this, the business is better able to meet the needs of its

6

customers and get people to look for their favourite flavour. In addition to this, TeaLive
provided customers with beverages that included balanced nutrients such as collagen,
vitamins, calcium, and energy.

In addition, the price of each TeaLive product was between RM5.85 and RM9.40 per unit.
The TeaLive beverage's price suggests that it is both cost-effective and high-quality. Despite
the fact that its sales costs are identical to those of its competitors, TeaLive has never stopped
trying to stop matching prices with them. Customers, governments, manufacturers,
distributors, and competitors all play a role in determining the price of a product. Because the
quality is theirs, TeaLive's target market is not just first-class customer but it's available to
everyone.

7

5.0 CHANNELS

According to Britteny (2021), state that the channels via which a company
communicates its offers to certain groups of its clients are referred to as the organization's
channels. Without channels, a company model is incomplete. Businesses use them to
communicate with and reach out to their target audiences. Channels can be construed in
several ways. A channel can be a corporate distribution system or a trading region between
support and resistance on a chart. The movement of commodities from producers to
consumers is accomplished through distribution channels. It is important to know the channel
that should be used to offer solutions to customers who will buy the product.

Tealive business uses the delivery apps and the Tealive store picks up websites as the
main offered solution to customers who are going to buy the products which can save the
customer time. The customers who wish to experience the Tealive menu but are unable to
visit the store can also be delivered to the customer because Tealive are cooperate with the
delivery app that provides the delivery service to the consumer. This way will make
purchasing the items more convenient for our customers. The customers can place an order
using the delivery apps and select the items that wish to order. Customers who use the
delivery app just select the drinks or snacks they like and the location to which they wish to
have them delivered, then complete the payment process. For instance, the delivery apps that
would solve customers who want to purchase the products can via grab food and food panda
which will deliver the product to the customers. Tealive fully utilizes the delivery app to
offer and deliver the product wherever the customer is. Meanwhile, Tealive pick-up websites
may make it easier for consumers to order snacks and drinks through the Tealive websites,
which can save customers time by eliminating the need to queue and wait for their orders. As
a result, this will allow the customers to take the drinks and food on the move quickly.

According to Zain (n.d.), Tealive is intended to appeal to individuals of all ages.
Tealive is designed to appeal to individuals of all ages. This is to match the spending habits.
The bulk of Tealive's customers is between the ages of 18 and 25. Aside from that, adults
aged 26 to 35 years old make up the second-largest group of Tealive consumers. The target
customer of Tealive splits their customers into several groups, such as students, employees,
and professionals. This is because Tealive has a relatively simple and easy-to-serve menu.
For instance, nowadays most students especially secondary and university students spend
their money on beverages like Tealive drinks and snacks which are up to date on the current

8

trends and live a comfortable and wealthy lifestyle. At the same time, Tealive realized that
these three groups of people do not have time for a cup of coffee in the morning and do not
know how to make a cup of tasty tea. They needed to be on time for work and class. Then it
assists our consumers who are so preoccupied with their work that they do not have time for a
cup of coffee and tea. Tealive offers a diverse choice of delectable beverages at reasonable
costs, making it accessible to individuals of all socioeconomic backgrounds. Tealive's product
is far less expensive than its rival. In comparison to its competitors, Tealive's normal
Signature milk tea costs only RM 6.50. This is to suit every stage of income group whether it
is lower, middle, or higher-class groups also can afford a cup of product in Tealive.

6.0 CUSTOMER RELATION

Customer relations are the methods that companies implement in order to interact with
their clientele and develop meaningful, lasting relationships with those clients. Customer
relations encompass a wide range of activities, including assisting customers with their
day-to-day questions, developing long-term policies that lead to customer success, and
everything in between. When executed correctly, it has the potential to result in positive
outcomes such as increased customer lifetime value (CLV), higher customer retention rates,
and improved customer relationships.

The first thing is that Tealive gives you a free drink when you sign up. For only RM10.35,
you can become a Tealive Unitea member at any Tealive location for life and get a free drink
of your choice right away (worth RM6.60). The second one is that you'll get goodie tokens if
you sign up and a birthday token every year that you can use to get a free drink (worth
RM6.60) at their store. Token can only be used in the month of your birthday. The third one
is a "buy 10 get 1 free" deal. If you use prepaid value on your unitea card to buy 10 drinks at
any Tealive location within 6 months, you'll get a free drink token right away. When you get
a token, you have 3 months to use it. After that, get BPoints and pay less. With a Tealive
unitea card or other type of bcard, you can earn BPoints that can be used to get free drinks at
any Tealive location (660 BPoints = 1 drink worth RM6.60). Tealive also offered promotions
that were only for members. Members can get access to special deals on Tealive unitea and
be among the first to hear about new sales, giveaways, and contests.

9

Tealive uses their personal employee’s interaction to sample the products and educate it
customers about the drinks that they sell,the company has used personal assistance to directly
communicate with the customers. The worker will take orders and handle all the complaints
made by the customers.The barista will provide some flavour suggestions that are always the
main choice of Tealive lovers who want to try new flavours.This company provided Tealive
delivery hotline customer service.Next,Tealive also interacts with the customers with
technology. Tealive have used social media to communicate with the customers such they use
platforms like Instagram, Facebook, Whatsapp and Twitter to promote their business and
interact with the customers.They also provide an automated service in their store where the
customer has to order at kiosk. They will order, pay and then pick up their drink at the
counter. This will be easier for the customer and the relationship is guided by these
mechanisms in order to achieve the corporation's aims and objectives.

The business solution is the best (or better yet only) one round because the process of
problem-solving is an essential component in the day-to-day operations of organisations.
Investing in the long-term viability and adaptability of one's business requires one to cultivate
and hone the skills of one's workforce, and a business that does this does so through training.
It provides the company with overall stability, which enables its employees to effectively
solve problems, and over time, it enables those employees to easily deal with issues that have
a greater complexity, which results in an even distribution of labour throughout the
environment.

10

7.0 KEY ACTIVITIES

In Business Model Canvas, key activities play an important role in every business
organisation. A business must take crucial actions through a business model in order to
succeed and achieve its goals. An organisation's overall long-term potential and purpose must
be defined.

1. Production

Tealive has been approaching many types of ideas to deliver and produce a good product that
mainly focuses on tea. In Malaysia, tea culture has been here for a long time now and Tealive
is a business that improvised tea into more attractive and unique menus to match with the
local taste. Through these innovative visions, Tealive has produced a lot of popular menus
such as Bang Coffee, Choco Shaka Lava and become their signature menu. Significantly,
Tealive's popularity is rising because of their improvised production styles that are always up
to date with the consumer target market and also attract a lot of new consumers with the local
menus. Besides that, Tealive also produces other menus targeting fruit smoothies and
sparkling drinks. No matter what kind of tea you prefer, there is something on their menu for
everyone.

2. Services and Delivery

As well as services that are important in Tealive main activities, because Tealive is an F & B
business so the quality, hygiene are critical to maintain in all their branches. This shows why
Tealive is very strict and fundamental for their employees training so that the employees can
deliver top services for instance greet customers, take orders, suggest drinks, promote and be
able to sustain the cleanliness of the store and the quality of the products. From that, the
business is able to be carried out smoothly and customers will feel comfortable. Besides that,
service delivery is also provided in GrabFood, Foodpanda for customers who are unable to
get the drinks, this surely helps and convenience for the customers. Furthermore, they provide
consumers with sipping tea with toppings that they want such as jelly, pearl, black diamond

11

and many more as a refreshing and unusual experience to enjoy. Then, they provide
customers with preferred sugar levels so they can customise their drinks according to their
own tastes to increase customer satisfaction. Tealive’s menu and services are diversified
because there are so many different alternatives to pick from.

3. Marketing and Collaboration

Marketing is an important strategy in every business operation where it is a long term plan
and goals of the company. It allows companies to look ahead on how they want to operate the
business, to maximise the profit and sales, to produce products that meet customer needs and
to understand the target market. Tealive are constantly on the lookout for new ways to take
advantage of any possibilities to attain their objectives to cope with better results of every
strategy applied. Moreover, Tealive is very up to date to promote their product on social
media platforms such as Instagram, Twitter, these social media is essential to engage with
potential consumers. Hence, the information about the drinks is easier to reach, attract, spread
and more people will be aware about Tealive. From that, Tealive is able to increase
awareness, revenues and sales in different areas.
Besides that, Tealive has collaborated and partnered with numerous big brands such as Nestle
Kitkat, Mamee’s, Duck Cosmetics, Safi skincare, Magies and Loucase. For instance, they
launched a Boba lipstick partnered with Duck Cosmetics, the product has been viral and sold
out instantly when it first released. In addition, they also have a deal where customers can get
a 10% discount on any Tealive drinks if they show their Boba lipstick at the selected store.
From the collaboration they are able to attract new consumers, expand their network,
communication and increase mutual. Through that, Tealive surely gains more knowledge,
produces better innovative ideas and reaches new markets.

12

4. Branding

Branding is important for business appeal with great images, perception towards the
organisation in the market. With branding Tealive is able to build loyal customers,
differentiate them from competitors and be recognizable. For instance, Tealive has been
sponsoring, creating awareness and also selling strawless reusable cups to reduce single-use
cups by half a million each month. These ways can educate people to reuse and save nature to
decrease using plastic everyday and replace it with strawless reusable cups.

8.0 KEY RESOURCES

In every business operations require resources or assets because the company needs it in
order to function effectively.

1. Physical Resources

Physical resources are an asset for every business organisation, it is important because they
also act as a capital for a company to survive. The physical resources include stores,
machines, distribution networks and vehicles. From these important assets, businesses are
able to operate and work everyday solving the problems if anything happens in the store. All
the equipment
For instance, Tealive has over 600 outlets alone in Malaysia with almost 650 stores outside
Malaysia at Brunei, Vietnam, Philippines, Myanmar also in Australia. Additionally, Tealive
has been set to open 1000 outlets to embrace more branded assets in their physical stores
because they wanted to explore new chances, tried to slew into petrol stations stores and has
been working with Petronas. Moreover, Tealive is known for their fancy technology and
machines. They provide a fancy tea dispenser, planned kitchen and high tech cup sealer. All
the equipment improved efficiency, saved more time, allowed workers to work faster and
improved productivity.

13

2. Human Resources

Human resources are needed in everything, people that are recruited as your employees
surely play an important role in the company to help improve, bring more knowledge, ideas,
and present the images of business. Human capital or resources refers to all of an
organisation's staff' skill set. Based on their education background, personal and professional
experience. From that they can improve by a lot of training and from that to contribute to
business profits.
Tealive companies definitely rely on employee experience, talents of employee expertise
fields to expand the business operations. Through that, businesses are able to strengthen the
operation, influence good relationships among them so they can bring a more positive
environment to work at.
Furthermore, Tealive has almost 3000 employees in total and is always recruiting more staff
so that the company can provide enough staff to accommodate a lot of workload, because
Tealive wants their employees to be able to maintain the sustainability of product and
services in every outlet. Due to that, employee welfare is taken seriously and recognizes the
importance of employee fare. Besides that, Tealive always trains their employees to improve
their work performance and do not let others be left behind because they are trained to be
skilled and flexible at any position as Tearista, cashier and customer service so that they can
handle at the peak hour. Through that, employees always learn new things and build good
teamwork.

3. Intellectual

Intellectual resources include the patents, brands property also partnership and require a long
time to be established. Tealive has built a very strong brand name and image so they rely
significantly on its brands to market their products to a loyal customer base. This is because
Tealive has a rough start where they are actually another franchise under Chatime but due to
the circumtumes they restart to rebrand their own business.

14

Slowly over time, as a brand, Tealive has managed to distinguish out more because the brand
has a refined Malaysian flavour to it. For example, they started in Raya and Ramadan sales
and promotion when they worked with a lot of collaborators and influencers to bring more
Malaysia feels into it. From that, Tealive steps up the strategy to partner with a lot of
Malaysian based companies like Petronas and also a lot of collaboration such as Duck
Cosmetics, Loucase and more. From that, Tealive gained a trustworthy image and settled
down the establishment phase and also reached a great audience and potential consumers.

4. Financial

Finance is a critical resource for all firms, but while some have larger finances than others,
such as banks, which rely solely on the accessibility of this key asset. For example, Tealive
has a stable financial balance as Tealive reported an investment range of RM 250 000 until
RM 480 000 in one outlet. And it is a good amount for business franchises with good royalty
fees including advertising.

9.0 KEY PARTNERS

A key partner list is a list of other companies, suppliers, and outside parties that we might
need to finish our most important tasks and give our customers value. This leads to the
question of "who else do I have to depend on if my company can't accomplish its value
proposition on its own?". "If I sell groceries to consumers, I could require a local bakery to
deliver fresh bread to my business," for example. People who help us grow our business
market are valuable partners whose job is to show clients what our company can do for them.

Loob's local partner in Vietnam is Kinh Do Corp, the country's biggest fast-moving consumer
products firm. Loob Holdings' vision to build 100 outlets in the next three years is boosted by
its ownership of Kinh Do. This trust exists because its partner, Kinh Do, controls a number of
hotels and shopping centres where Tealive will build outlets.

Tealive outlets in Vietnam will be more opulent than those in Malaysia. This is because Loob
Holding is converting to an in-line shop with attractive Scandinavian-style retail lots, some of
which are 3,000 square feet in size. Loob Holding might use a bigger size in Vietnam because
the country is laid-back and its people want a more comfortable place to rest and talk.

15

Loob Holding is seeking a market in Southeast Asia where there has historically been a huge
population. There are just three such marketplaces in Indonesia, the Philippines, and Vietnam.
According to some estimates, Indonesia has a population of over 250 million people, whereas
Vietnam and the Philippines each have a population of around 100 million. In the case of
Indonesia, importing raw materials would be difficult due to the country's clogged roadways.
Every day has many tasks to do, but you will be unproductive if you are continuously caught
in traffic. Meanwhile, according to Loo, Tealive did not choose the Philippines owing to
logistical issues coming from geographical limits imposed by the Philippines' huge number of
islands. As a consequence, geographical constraints may make establishing 100 branches
impossible. Loo picked Vietnam because it has a youthful population (about 75 percent of the
population is between the ages of 20 and 25). As a result, the whole market is increasing and
developing. This is because the majority of Tealive's users are between the ages of 15 and 25.

Furthermore, while much of Southeast Asia is experiencing an economic downturn, Loo
claims that Vietnam is already on the mend. Another benefit, according to him, is that the
country's tea spending habits are 25% higher than in Malaysia. Tealive, on the other hand,
sells twice as much as Malaysia.

As a result, Loob's next target market is Australia. It intends to open its first shop there in
January of the following year. It has partnered with The Sphere Agency, which was formerly
Nando’s worldwide agency with extensive experience and global branding, so Tealive will
have a lot of synergies. They also assist us in expanding our brand internationally. Loob plans
to open ten new locations in Australia next year, bringing the total number of locations to 40
by 2020. The corporation will own and operate just the first seven; the others will be
franchised. He went on to say that over the next two years, Tealive will do everything
possible to build a strong Eastern brand that will also appeal to Western markets. One of
Loob's main "reasons'' for going abroad, he said, was the weak domestic market.

Tealive, for example, is well-known for providing more than simply drinks and snacks. In
fact, they've enlarged their product portfolio to include, among others, safi and FashionValet.
The name says it all: Beautea by Safi is a new range of high-end cleansers made with black,
apricot, white, and green tea extracts. Skin care products include Revitalizing Scrub, Detox
Cleanser, Anti-Acne Gel Cleanser, and Hydrating Gel Cleanser, to name a few. Beautea by
Safi brings together the expertise of Safi and Tealive, Malaysia's top milk tea company, to
deliver beauty from the inside. Then there's Beautea by Safi, a new line of high-end cleansers

16

infused with black, apricot, white, and green tea extracts. Skin care products include
Revitalizing Scrub, Detox Cleanser, Anti-Acne Gel Cleanser, and Hydrating Gel Cleanser, to
name a few. Beautea by Safi is available online at Lazada and Watsons. Tealive has partnered
with FashionValet Sdn Bhd to launch the dUCk Boba Stick (dUCk). Fresh Boba Wood is
claimed to be sold out as a result of the collaboration. Each lipstick is priced at RM 50.
Tealive has made it clear that they want to establish a global network of stores in order to
integrate their supply chain into the company's image. Economies of scale will only grow
over time as a result of local and global development. At the same time, the company's
abilities are being put to the test. According to Loo, Tealive must be prepared for baptism by
fire, which involves rapid growth. The organisation has a clear mission to apply a global
perspective to its executives. And he wants to make sure everyone in the firm has the
opportunity to grow.

10.0 COST STRUCTURE
The last but not least component of a Business Model is the Cost Structure. The cost structure
is the sum of the various types of fixed and variable costs that comprise a company's total
expenses. Cost structure is used by businesses to set pricing and identify areas where
expenses can be cut. It have two types in cost structure whereas variable cost and fixed cost.

17

FIXED COST

Fixed costs are expenses that remain constant regardless of output. Whether a company
makes sales or not, it must pay its fixed costs, which are unrelated to output.

Rent, employee salaries, insurance, and office supplies are examples of fixed costs.
Regardless of the volume of products manufactured and sold, a company must still pay its
rent for the space in which it operates. Rent will remain constant whether a company
increases or decreases production. Although fixed costs can change over time, the change
will not be related to production, so fixed costs are considered long-term costs.

When you join the Tealive family, you will be backed up by our business system. Tealive is
dedicated to your success, from site selection to construction to operational, advertising, and
marketing support. Through our partnership programme, tailored to various levels of
expertise and involvement, the team will guide you from setup to opening your store. So,
whether you're entering the world of F&B for the first time or the tenth, you'll be right at
home.

As employee of Tealive, they will give salaries minimum RM1500 above based on position
you apply. Besides that, they also provide the insurances to protect the employees. The initial
capital to start be franchisee under Tealive is RM480,000 with royalty fee of 3% include
marketing and profit fund.

VARIABLE COST

A variable cost is a business expense that varies according to how much a company produces
or sells. Variable costs rise or fall in relation to a company's production or sales volume,
rising as production increases and falling as production decreases.

Variable costs include the costs of raw materials and packaging for a manufacturing company,
as well as credit card transaction fees and shipping expenses for a retail company, which rise
and fall with sales. A variable cost is distinguished from a fixed cost.

Loob Holding Sdn. Bhd is the supplier of Tealive. They provide all the raw and packaging
materials include the menus of beverage. The milk they use in menu are made with Minor

18

Figure's Organic Oat Milk, not just oat milk. They're 100 percent plant-based and the world's
first organic oat milk, imported from the United Kingdom. Minor Figures, which is free of
refined sugars, is widely used by baristas all over the world.
For the packaging, Loob Holding Sdn. Bhd has prove the design of sealer cup for
appreciation to customers who support Tealive until they success. The sealer cup are designed
a set of cup sealers with cheeky tongue and mouth illustrations to make people smile.
customer would be greeted with the amusing sensation of going mouth-to-mouth with a
quirky, colourful character the moment they poked their straw into the open mouths and took
a sip. This straightforward design contributed to the transformation of everyday bubble tea
into a source of joy for Tealive drinkers worldwide.

19

11.0 REVENUE STREAMS AND PRICING MODELS

The Revenue Streams section of the business model focuses on how the company as a whole
will generate sales. A revenue stream is an important component of a business model because
it influences strategy, business planning, and investment. A revenue stream represents the
monetary value that customers are willing to pay for the goods and services provided. A
revenue stream, on the other hand, is not a business model, but it does influence how a
business model operates. In a nutshell, revenue streams are the sum of all product and service
sales. However, in accounting, it is commonly referred to as net sales.

According to article, Creador founder and CEO Brahmal Vasudevan, the company chose
Loob as its first investment in the fast-growing food and beverage (F&B) sector because
Tealive had grown to be a regional leader with over 650 stores in less than five years.
Brahmal cited Loob's impressive RM307 million revenue and RM58 million net income for
the fiscal year ended June 30, 2020. (FY20). "This resulted in a phenomenal three-year
compound annual growth rate (CAGR) of 56% in revenue and 180% in net income."

This shows how fast Tealive growth in industry even they are just local company. The
impressive revenue or net income are because of good strategy and plans to maintain the
market in industry. According to CEO of Tealive, Bryan Loo, they now are focused on their
digital strategy and prioritising customer convenience across the store network, including
various cashless and contactless ordering channels – scan to order, order ahead, and drive-in
model, "

Pricing modelling refers to the methods for determining the best price for your products.
Price models consider factors such as the cost of manufacturing an item, the customer's
perception of its value, and the type of product for example, retail goods versus services.

Tealive, as a beverage merchant business, has been a pioneer in the beverage industry, but not
only in Malaysia. Tealive has over 70 delicious flavours in Malaysia (Tealive, 2019).
However, rather than providing customers with a direct choice of 70 flavours, Tealive should
select the top three of their products to be their recommendation and to boost branding at an
early stage. When their sales begin to rise, they will gradually introduce new flavours in order
to maintain their innovation and capture the attention of customers.

20

Tealive has launched a campaign called "Teabreak Takeover," in which customers who post
pictures of themselves drinking tea on social media sites like Facebook will receive a free
drink. Not only that, but Tealive's promotion tactics rely heavily on television, radio, and
billboard advertising. This shows how alert Tealive to maintain the company and focused on
what customers need.

12.0 CONCLUSION

In conclusion, every franchise companies must apply business model canva as the way to
maintain in marketing and identify the loss or problems. They also can planning the strategy
to gain a lot of profit and reduce the loss.

From this, we can see that business model canva is really important. This is because BMC is
a visual representation of key elements of your business and how they relate to one another.
BMC can be use to create a clear picture of value proposition, operations, customers, and
finances. It’s also can use it as a small business owner to identify target market segments and
how to appeal to those segments.

Besides that, the business model canvas assists with the execution steps necessary to bring
the idea to market. Connecting the dots between the value proposition + customer segments +
revenue streams is an excellent addition to company marketing strategy, positioning
statement, and sales strategy. Franchisee have an advantage over their competitors, who are
engrossed in the lengthy pages of the business plan.

Tealive claims to be the regional leader in its category, with 650 stores generating MYR307
million ($75 million) in revenue and MYR58 million in profit in fiscal 2020. This was the
highest profit since Tealive was launched in 2017 and was a local product. This shows how
function business model canva to companies especially franchisor to gain profit and make
new customer everytime.

To stay ahead of the curve, every franchise company must create a business model canvas
rather than a business plan. A business model canvas's nine key elements assist and guide in
documenting an in-depth, succinct, and clear definition of your company. It gives a
competitive advantage to launch a profitable startup by focusing on aspects other than
product developments

21

13.0 REFERENCES

A. Britteny. (2021). What are channels in business model canvas? Retrieved on January
30 May 2022.

https://artradarjournal.com/paintings/canvas/what-are-channels-in-business-model-ca
nvas/

B. Indeed Editorial Team. (2022). What Are Problem-Solving Skills? Definitions and
Examples. Retrieved on January 29 May 2022.

https://www.indeed.com/career-advice/resumes-cover-letters/problem-solving-skills

C. Linc. (n.d.). TEALIVE. Retrieved on January 28 May 2022.

https://thelinckl.com.my/store/tealive/#:~:text=Putting%20the%20tea%20in%20toget

herness,variety%20of%20tea%20and%20beverages.

D. Marketing Interactive. (2021). MarketingExcellenceAwards MY 2020 highlight:
How Tealive broke out of bubble tea mould with OOH coffee activation. Retrieved
on January 30May 2022 from
https://www.marketing-interactive.com/marketingexcellenceawards-my-2020-highli
ght-how-tealive-broke-out-of-bubble-tea-mould-with-ooh-coffee-activation

E. Nur Hanani Azman. (n.d.). Tealive’s owner Loob Holding aims for IPO this year.
Retrieved on January 28 May 2022 from
https://themalaysianreserve.com/2020/02/10/tealives-owner-loob-holding-aims-for-ip
o-this-year/

F. Ong, E. (2020). Tealive Coffee For RM5 Promotion (Every Morning). Retrieved on
January 30 May 2022.

https://makanguru.my/2020/07/09/2811/#.YpjxlahBzIU

G. Pratt M, K. (2018). Value proposition. Retrieved on January 30 May 2022.

https://www.techtarget.com/searchcio/definition/value-proposition-VP

22

H. The Star. (2019, May 21). Tealive makes its debut in the UK. Retrieved on January 28
May 2022 from
https://www.thestar.com.my/business/business-news/2019/05/21/tealive-makes-its-de
but-in-the-uk

I. Zain, S. (n.d.). 2.0 TARGET MARKET. Retrieved on January 30 May 2022 from

https://www.studocu.com/my/document/open-university-malaysia/education/target-m
arket-tea-live/11153793

J. Business Model: Key resources. (n.d.). Retrieved from empowerwomen:
https://www.empowerwomen.org/en/ilearn/my-courses/business-development/busines
s-model/business-model-key-resources

K. Pikri, E. (2017, December 6). Tealive’s High Velocitea Growth—3 Strategies Straight
From Bryan Loo’s Playbook. Retrieved from Volcan Post:
https://vulcanpost.com/627681/tealive-strategy-expansion-international/

L. Writer, S. (2021, March 25). #MarketingExcellenceAwards MY 2020 highlight: How
Tealive broke out of bubble tea mould with OOH coffee activation. Retrieved from
Marketing-Interactive:
https://www.marketing-interactive.com/marketingexcellenceawards-my-2020-highlig
ht-how-tealive-broke-out-of-bubble-tea-mould-with-ooh-coffee-activation

M. Mike Ebinum (2016,7 July). How to: Business Model Canvas Explained. Sheda.

How To: Business Model Canvas Explained | by Sheda | Sheda | Medium

N. Jennifer Jacobs (2017, 13 October). Cover Story: Full Steam Ahead for Loob. The
Edge Markets.

Cover Story: Full steam ahead for Loob | The Edge Markets

O. Will Kenton (2022, 06 March). Variable Cost Meaning.

https://www.investopedia.com/terms/v/variablecost.asp

P. Tom Mock (2017, 21 May). The Benefits Of Using Business Model
Canva.https://asheville.score.org/blog/benefits-using-business-model-canvas#:~:text=
The%20BMC%20is%20a%20visual,to%20appeal%20to%20those%20segments

23

14.0 VIDEO PRESENTATION
https://youtu.be/_uvrTxyVUHs\

24