Hollys Coffee Based In Korea Franchising In Singapore Marketing Essay

Hollys cocoa Based In Korea Franchising In capital of capital of Singapore market place EssayThanks to the growing popularity for Korean pop and Korean dramas, they atomic number 18 the main influences in recent years. To benefit from the trend, Hollys Coffee, being the largest coffee bean cosmic string in Korea result venture into Singapore through master franchising to pull market sh be in the Food and Beverage industry. Hollys Coffee ordain distinguish itself from the appease of the coffee chain in Singapore by get downing their queerness and socialisation to Singapore. Hollys Coffee leave alone emphasize on its brand promotion and advert to allow Singaporeans to be aw ar of the brand.This motif will further introduce how Hollys Coffee set its global dodging, the opportunities and the challenges faced. high society BackgroundHollys Coffee is a specialty coffee company luff headquartered in Korea. The company was established in 1998 and opened Koreas first espress o tell on that year. Its snoops offer espresso, coffee, tea, coffee- and tea-establish cold and hot specialty drinks, a word form of pastries and other(a) snacks, and coffee supplies. By 2008, there were to a greater extent(prenominal) than 100 Hollys Coffee shops in Korea, and the franchise had expanded with additional stores in Japan, China and Malaysia. It has a barista honorary society called the Hollys Coffee AcademyCountry Background southerly Korea has a market economy which ranks 15th in the world by nominal gross domestic product and 12th by purchasing power parity (PPP), identifying it as cardinal of the G-20 major economies. It is a high-income real country, with a developed market, and is a fragment of OECD (Organization for the Economic Co-operation and Development). On top of that, it is a country filled with productive culture and heritage. Koreas population is one of the most ethnically and linguistically homogeneous in the world. Virtually all Koreans shar e a common heathenish 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 like the World affirm 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 couple of(prenominal) developed countries that were able to avoid a recession during the global financial crisis and its economic harvesting rate will reach 6.1% in 2010, a sharp recovery from economic growth rates of 2.3% in 2008 and 0.2% in 2009 when the global financial crisis hit.Entry dodgingHollys Coffee will enter Singapore through master franchising system that allows individuals or corporations to buy the rights to sub-franchise within some specific countries. This is to minimize guess when it enters the country where its brand is seldom familiar to the topical anesthetic community as well as i t is difficult to attract investments.It is essential to motivate franchisee to practice more people. Franchising fundament provide high motivation to franchisees as they precisely need to pay fixed royalty. It means that more customers they serve customers, the more profit they can expect.The most popular franchises are those with widely know brand names. In fact, the brand name or trademark of a company is normally the single essential item desired by the franchisee. Having K-pop influences all over the round, the Korean fans must crap heard 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 cafes as well.Franchising is an entry mode that allows for rapid geographic expansion. ships company often gains competitive advantage by being first in seizing a market opportunity. Franchisers can benefit from the cultural acquaintance and know-how of local mangers. This helps lower the risk of the business failure in unacquainted(predicate) markets and can create a competitive advantage.Marketing and RD StrategiesThere are two entry strategies of Hollys Coffee one is to introduce products that have Korean own characteristic, another is to differentiate with other coffee brands by cogitate on side menus like waffle or patisserie.However, there are a lot of its own domestic coffee retailers in Singapore and Hollys Coffee is still not well- cognize to local people. Thus, it is very important to make Singaporeans aware of its brand and Hollys Coffee might be unresolved to the financial risk linked with sober selling expenditure such as brand promotion and advertisement in the course of spread 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 p romoting a unique selling point as advertisement would be a unspoiled strategy.A global marketing strategy can also be successful if the firm has managed to change local preferences. A new product entering a local market will usually change preferences to some degree, whether by new features, promotion, or price. unrivalled of the good selling points tostand on themarketshare ofcafe businessin Singapore could be either theme, or products. At the end of the day, it depends on whether the products or the theme of the cafe house attracts the customers, and afterward the business sustains. To coffee lovers, they are looking for good coffee for genuine 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 close of the cafe house. Uniqueness of the products as mentioned above, whereby to bring in the sweet spud latte definitely catches attention of the locals. By bringing in local product to overseasstands chance in pene trating overseas market, in the long run the overseas acceptance will also be the significant figure whether it helps to boost up sales.With Korean trends being so popular, Hollys coffee whitethorn consider 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 white 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 strateg y 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 about Hollys coffee, as it is not easy to change the attempt and preference when they are used to the existing brands. On top of that, it is overpriced to start up a caf in Singapore, therefore it is important to have a detailed breakdown of the startup cost like registration and licensing, and other operating expenses as well.Evaluation and ConclusionAll thank 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 Koreans will start to sponsor Hollys coffee when it opens in Singapore.Singapore has been a popular choice for overseas talents internationally, as mentioned above there are about 20,000 Koreans in Singapore. It ashes one of the popular places for relocation for its reputation as a right and 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 meritless political situation. Government policies and regulations may change from time to time based on political stability and poses a risk for its foreign entities.