Chatime is a bubble ice tea company that’s done something that few businesses have done in their markets. They found success by completely changing how an entire culture approached their product – without mind control!
By going through various interviews with CEO Bryan Loo, it was easy to determine the two central elements that allowed the bubble ice tea leader to top their industry: proper product education and savvy placement.
Sales Done Right
The great thing about business is that there are a hundred ways to make a sale. The not-so-great thing about business is that 99% of those ways are wrong. Succeeding in any industry is usually a shot in the dark that requires owners to shift gears whenever necessary.
Sometimes those shifts need to happen as soon as the approach level. Instead of getting people to buy more tea, Chatime changed tactics and began telling people about the benefits of tea instead. This was a wise shift because:
- It took advantage of the current health craze
- It didn’t sound like sales talk
- They marketed themselves as a much tastier alternative to traditional tea
Look for Oil
When an owner starts a food-based business, the common targets are shopping malls. Chatime didn’t initially target those places because their visibility would drown against established competition. Instead, they went to places with high exposure potential and little competition – petrol stations.
People don’t normally think of drinking tea while they pump gas into their car. But, give them a choice – and become the only choice – then they’ll come with little provocation. It’s the same situation if you were a cake café next to a large bookstore.
What Chatime essentially did was to correctly apply the basics of business (attend to a need and location) to a modern audience. Anyone who has ever been a part of managing a company knows how difficult this is to put into practice.
Bet On the One Percent
A lot of things had to go right for Chatime to succeed. Which means there’s a 99% chance that everything you do will fail. But, if you don’t bet on that 1%, then you will fail 100% of the time.