Hollys Coffee Based In Korea Franchising In Singapore Marketing Essay

Hollys Coffee Based In Korea Franchising In capital of Singapore Marketing EssayThanks to the ontogeny popularity for Korean pop and Korean dramas, they are the main influences in recent years. To benefit from the trend, Hollys Coffee, being the largest umber chain in Korea will venture into Singapore through master franchising to gain market share in the intellectual nourishment and Beverage industry. Hollys Coffee will distinguish itself from the rest of the coffee chain in Singapore by bringing their uniqueness and culture to Singapore. Hollys Coffee will emphasize on its brand promotion and advert to entirelyow Singaporeans to be aware(predicate) of the brand.This report will further introduce how Hollys Coffee set its global strategy, the opportunities and the challenges faced. party BackgroundHollys Coffee is a specialty coffee company chieftain headquartered in Korea. The company was established in 1998 and opened Koreas first espresso shop that year. Its shops offer esp resso, coffee, tea, coffee- and tea-based cold and hot specialty drinks, a variety of pastries and other snacks, and coffee supplies. By 2008, there were more than 100 Hollys Coffee shops in Korea, and the franchise had expanded with additional stores in Japan, China and Malaysia. It has a barista academy called the Hollys Coffee academyCountry BackgroundSouth Korea has a market economy which ranks 15th in the world by nominal GDP and 12th by acquire power parity (PPP), identifying it as one of the G-20 major economies. It is a high-income developed country, with a developed market, and is a member of OECD (Organization for the Economic Co-operation and Development). On top of that, it is a country filled with rich culture and heritage. Koreas population is one of the most ethnically and linguistically homogenous in the world. Virtually all Koreans share a common cultural and linguistic heritage. With 48.7 million people inhabiting an area roughly the size of Indiana, South Korea has one of the worlds highest population densities.Other financial organizations handle the domain Bank describe Korea as one of the fastest-growing major economies of the next generation along with BRIC and Indonesia. South Korea was one of the a few(prenominal) developed countries that were able to avoid a recession during the global financial crisis and its economic growth rate will reach 6.1% in 2010, a sharp recovery from economic growth place of 2.3% in 2008 and 0.2% in 2009 when the global financial crisis hit.Entry StrategyHollys Coffee will enter Singapore through master franchising method that allows individuals or corporations to pervert the rights to sub-franchise within some specific countries. This is to minimize risk when it enters the country where its brand is seldom familiar to the local anesthetic community as well as it is trying to attract investments.It is essential to motivate franchisee to serve more people. Franchising can provide high motivation to fr anchisees as they just need to pay fixed royalty. It nub that more customers they serve customers, the more profit they can expect.The most popular franchises are those with widely recognized brand names. In fact, the brand name or trademark of a company is normally the single important item desired by the franchisee. Having K-pop influences all over the round, the Korean fans must have comprehend of Hollys coffee since it is the largest coffee chain in Korea and on top of that, there were dramas and variety shows that were screened in the coffee bars as well.Franchising is an door mode that allows for rapid geographic expansion. Company often gains competitive advantage by being first in seizing a market opportunity. Franchisers can benefit from the cultural knowledge and know-how of local mangers. This helps lower the risk of the business failure in unfamiliar markets and can create a competitive advantage.Marketing and RD StrategiesThere are two entry strategies of Hollys Cof fee one is to introduce merchandises that have Korean own characteristic, another is to differentiate with other coffee brands by focusing on side menus similar waffle or patisserie.However, there are a lot of its own domestic coffee retailers in Singapore and Hollys Coffee is still not well-known(a) to local people. Thus, it is very important to make Singaporeans aware of its brand and Hollys Coffee might be exposed to the financial risk linked with heavy trade expenditure such as brand promotion and advertisement in the course of spreading its brand.Another key point of marketing approach would be unique selling point. There are a lot of coffee shop with varies target groups with their own brand all over the world, however, only few big brands have gained majority of market shares. Gaining public awareness by promoting a unique selling point as advertisement would be a good strategy.A global marketing strategy can also be successful if the firm has managed to change local op tions. A new product entering a local market will usually change preferences to some degree, whether by new features, promotion, or price.One of the good selling points to arise on themarketshare ofcafe businessin Singapore could be either rootage, or products. At the end of the day, it depends on whether the products or the foot of the cafe house attracts the customers, and subsequently the business sustains. To coffee lovers, they are looking for good coffee for sure to non-coffee lovers, perhaps they are looking out for a place to rest with a drink and at the same time to enjoy the ambient of the cafe house. Uniqueness of the products as mentioned above, whereby to bring in the cherubic potato latte definitely catches attention of the locals. By bringing in local product to overseasstands chance in penetrating overseas market, in conclusion the overseas acceptance will also be the significant factor whether it helps to boost up sales.With Korean trends being so popular, Holly s coffee may dole out to implement with things that may relate to the Korean dramas or song.Opportunities and ChallengesIn Singapore, It is quite challenging to stand for market share in Singapore for cafe Food Beverage sector, especially there are a lot of its own domestic coffee retailers or popular brands already well known in the market, i.e. Coffee Bean, Starbucks which makes Hollys Coffee rarely known to local people. Thus, it is very important to make Singaporeans aware of its brand and bring out the uniqueness of this Korean cafe especially the sweet potato latte that that is not available in Singapore.By bringing in Korea characters as a theme of cafecould bea good selling point and marketing strategy. As for business strategy, international strategy could be the appropriate strategy since its going to maintain Korea theme cafe. Therefore, Hollys Coffee might be exposed to the financial risk linked with heavy marketing expenditure such as brand promotion and advertisement in the course of spreading its brand.It is important to come up with the marketing and promotions to introduce to the locals almost Hollys coffee, as it is not easy to change the taste and preference when they are used to the existing brands. On top of that, it is expensive to start up a caf in Singapore, therefore it is important to have a expound breakdown of the startup cost like registration and licensing, and other operating expenses as well.Evaluation and ConclusionAll thanks to the influences of Korean pop to all over the world, there are more people getting more interested in Korean culture and heritage. There is an average of 20,000 Koreans residing in Singapore. many an(prenominal) Koreans will start to patronize Hollys coffee when it opens in Singapore.Singapore has been a popular choice for foreign talents internationally, as mentioned above there are about 20,000 Koreans in Singapore. It remains one of the popular places for relocation for its reputation as a safe a nd orderly country to educated children in. For a business, we will like it to be set up in a politically safe developed country incomparisonto a developing country with vainglorious political situation. Government policies and regulations may change from time to time based on political stability and poses a risk for its foreign entities.