85'C Analysis
Executive Summary – 85’C
In little over a decade since Mr. Wu Cheng-Hsueh envisioned his café, 85’C has established itself as a premier bakery brand with an affordable price tag. Beyond the ideal temperature to preserve the flavor of coffee, the brand identity now establishes the benchmark for quality for a wide array of bakery products like cakes, breads, savory edibles, gourmet desserts and healthy beverages like tea.
At 85’C, perfection blends seamlessly with ambition. As a result, the company has reached out rapidly beyond the boundaries of Taiwan, breaking new ground in China, Australia and U.S.A. With expansion came larger operations, new marketing strategies suited to demographics and local trade regulations, and success.
All the while, the core business values at 85’C have been preserved with care – allowing patrons and customers to enjoy beverages and bakery products without flinching at the price tag. Quality, as they have proven, does not need to brandish the price tag to make its way.
With the new horizons opening up, 85’C now stand at the cusp of yet another milestone. Their foray into the South-East Asian market starts with their upcoming marketing ambitions in the Singapore. The challenges are manifold. Despite popular perception as a ‘tea-drinking nation’ the region has seen rapid drop in tea sales, with the nation swapping the traditional drink for a quick cappuccino. It pits any new entrant against formidable entities like Starbucks and Dunkin, besides popular instant coffee brands like Nescafe and Boncafe in supermarkets. Familiarity with Asian food habits and oriental markets, in form of Taiwan, China and Hong Kong does give 85’C some valuable market insights and experience to build on.
Singapore is passionate about their beverages, evidenced by the recent success of Tea and Coffee World Cup Expo 2013. Compared to oriental markets like China, or generally favorable weather of Australia and the U.S.A, their new is a heavily
In little over a decade since Mr. Wu Cheng-Hsueh envisioned his café, 85’C has established itself as a premier bakery brand with an affordable price tag. Beyond the ideal temperature to preserve the flavor of coffee, the brand identity now establishes the benchmark for quality for a wide array of bakery products like cakes, breads, savory edibles, gourmet desserts and healthy beverages like tea.
At 85’C, perfection blends seamlessly with ambition. As a result, the company has reached out rapidly beyond the boundaries of Taiwan, breaking new ground in China, Australia and U.S.A. With expansion came larger operations, new marketing strategies suited to demographics and local trade regulations, and success.
All the while, the core business values at 85’C have been preserved with care – allowing patrons and customers to enjoy beverages and bakery products without flinching at the price tag. Quality, as they have proven, does not need to brandish the price tag to make its way.
With the new horizons opening up, 85’C now stand at the cusp of yet another milestone. Their foray into the South-East Asian market starts with their upcoming marketing ambitions in the Singapore. The challenges are manifold. Despite popular perception as a ‘tea-drinking nation’ the region has seen rapid drop in tea sales, with the nation swapping the traditional drink for a quick cappuccino. It pits any new entrant against formidable entities like Starbucks and Dunkin, besides popular instant coffee brands like Nescafe and Boncafe in supermarkets. Familiarity with Asian food habits and oriental markets, in form of Taiwan, China and Hong Kong does give 85’C some valuable market insights and experience to build on.
Singapore is passionate about their beverages, evidenced by the recent success of Tea and Coffee World Cup Expo 2013. Compared to oriental markets like China, or generally favorable weather of Australia and the U.S.A, their new is a heavily
References: Tea & Coffee World Cup Asia 2013 | Singapore EXPO . 2014. Tea & Coffee World Cup Asia 2013 | Singapore EXPO . [ONLINE] Available at: http://singaporeexpo.com.sg/2012/10/10/tea-coffee-world-cup-asia-2013/. [Accessed 19 April 2014]. Taiwan 's 85C Bakery Café expands in California, Taiwan Insights, December 23, 2013. Available at: http://www.taiwaninsights.com/tag/85c-bakery-cafe/. [Accessed: 17 April] Giddens, Nancy, & Hoffman, Amanda (2010) Wong Wee Kim (2013). Population Trends 2013, ISSN 1793-2424, Department of Statistics, Ministry of Trade & Industry, Republic of Singapore, 3-5. Bauer M (2010). Hallo coke, Journey of Cola brands in Romania, 22(1), 22-29. 85C Bakery Café, US. Available at: http://www.85cafe.us/ [Accessed: 18 April] Peng William (2014) Financial Times | Taiwan’s coffee chain challenger. 2011. Financial Times | [ONLINE] Available at: http://www.ft.com/cms/s/f8fc482e-a61f-11e0-8eef-00144feabdc0 [Accessed 20 April 2014]. SBUX Income Statement | Starbucks Corporation Stock - Yahoo! Singapore Finance. 2014. [ONLINE] Available at: https://sg.finance.yahoo.com/q/is?s=SBUX. [Accessed 20 April 2014]. Sea Salt Latte: Is 85C The Next Coffee Craze? : NPR. 2014. NPR. [ONLINE] Available at: http://www.npr.org/templates/transcript/transcript.php?storyId=1274 [Accessed: 20 Jan 2014] Sustainable Table | Local & Regional Food Systems Tso, Amy & Saeed, Amelie. (2009). Starbucks of Taiwan find Success, 19(3), 12-15. Young, J.L. 85℃: Wu Cheng-hsueh Takes the Temperature of Success｜Economy｜People｜WantChinaTimes.com . 2014. [ONLINE] Available at: http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20101209000001&cid=1602. [Accessed 20 April 2014].