Table of Contents Page Number I. EXECUTIVE SUMMARY………………………………….……………………………...1 II. INTRODUCTION A. Description of Business…………………………………………….……………….2-3 B. Description of Community…………………………………………………….…….3-4 C. Description of Business……………………………………………………………..4-5 III. RESEARCH METHODS USED IN THE STUDY A. Description and rationale of research methodologies……………………………….5-8 B. Process used to conduct the selected research………………………………………8-9 IV. FINDINGS AND CONCLUSIONS OF THE STUDY A. Findings of the research study………………………………………………...……9-11 B. Conclusions based on findings………………………………………………..…...11-12 V. PROPOSED REBRANDING PLAN A. Objectives and rationale of the proposed rebranding plan………………….…….12-13 B. Proposed activities and timelines………………………………………….………13-15 VI. PROPOSED BUDGET A. Cost associated with proposed rebranding strategies…………………………………16 B. Proposed metrics to measure return on investment………………………………...…17 VII. BIBLIOGRAPHY…………………………………………………………………………18 0 8-Twelve Oriental Market Executive Summary Overview: 8-Twelve Oriental Market is recently opened family business located in San Leandro, California. Their main focus in the market is their drinks: milk tea, tea, and smoothies. A majority of their customers are predominantly teenagers and young adults as bubble tea remains one of the most popular trends. Since their opening day, they have accumulated an overwhelming amount of loyal and returning customers. Goal: After an extensive amount of research, we have discovered that 8-Twelve could have a much larger potential market if they were to improve their company image while engaging in more efficient ways to reach out to feasible customers. Hence the reason why we have decided to rebrand 8-Twelve in hopes of providing their business with a newly revamped brand name along with a better way to interact with customers. Also, since one of the owners of 8-Twelve is not happy with the current logo, we plan to create a new one that satisfies everyone’s taste. Current Brand: 8-Twelve has been doing fairly well in giving their brand name a positive connotation, but not many people are aware of their presence as they rarely put any effort into making themselves heard. After conducting a number of surveys and interviews, we have come to discover that the workers at 8-Twelve are always friendly and welcoming. When people think of 8-Twelve, they see somewhere that gives them a place to relax and hang out with friends while enjoying good drinks and good food. Rebranding Plan: In order to create a new logo for their new brand, we must meet up the owners and devise a new design that will appease both David, and Tom who are the co-owners of this family business. To construct lasting social media emergence for 8-Twelve, we plan on creating a Twitter as well as Instagram. Due to social media being one of the biggest gold mines for advertising, we concluded that the best way to promote their brand would be to appeal to users of the most popular virtual communities and networks. Lastly, we plan on relocating their business as we have discovered that there has been an extent of people complaining about finding parking and their inconvenient location. Timeline for Implementation, Budget, Metrics: We will begin our rebranding plan by meeting with the owners to discuss the changes in January. The entire plan will take course over the months of January until its grand opening in August. The total costs of redesigning the logo, creating a social media presence, and moving locations will be approximately $470,495. We plan on measuring the success of the rebranding plan by comparing previous income and sales rates with the influx of sales at the new location. Also, the amount of followers, “Likes” and “Shares” on Instagram, Twitter, and Facebook will determine if the creation of a social media presence was worth it. 1 II. INTRODUCTION A. Description of the Business 8-Twelve was first established on March 4, 2013 with its sole purpose being the complete satisfaction of all customers. As the owner of 8-Twelve, David Kuang, expressed with a genuinely sincere expression, “I want customers to feel relaxed when they come in, and leave happy.” Located on the corner of Dutton and E. 14th Street in San Leandro, California 8-Twelve can’t be missed with its newly modern physique. 8-Twelve is also a market in addition to the beverage allotment. Upon entering the store, you are first faced with the bubble tea and beverage counter with the do-it-yourself toppings bar. Behind the counter is the market, which has a wide variety of goodies ranging from snacks to toys to makeup and cosmetics. With the spacious interior, there are many chairs and tables located throughout the market; there is even a set of sofas along with a Karaoke machine and a TV for entertainment. The owner, originally residing in San Francisco noted the year-round foggy and chilly weather which, of course, would be unsuitable for opening a cold beverage market. Due to San Leandro’s location in the Bay Area, it has a much warmer climate as opposed to the weather in San Francisco, making this location much more sufficient to thrive in the economy. Not only does San Leandro have a more stable seasonal weather, but the cost for leasing this facility is much cheaper than it would be elsewhere. This newly opened business is a family partnership with two owners. Operating hours start from 9 a.m. until 11 p.m. Monday through Sunday, with a total of six employees who work part-time, switching off shifts starting from 10:30 until 9:00 p.m. 2 As an employee at FedEx in San Francisco, the owner, David, claims that his job already provides him with enough money to make a decent living. Stating that he had too much time on his hands, he decided to start up his own business here in San Leandro. Deriving the name “8-Twelve” from a Hong Kong childhood movie, David deemed this name to be “perfectly funny” for his new business. This gives him nostalgic feelings of his childhood when he used to always watch comedy and action films. B. Description of the Community San Leandro was first incorporated on March 21st of 1872. With the Hayward Fault running through the city, it is now home to a population of nearly 86,890 people. San Leandro is one of the most historically rich places with many previous eras full of culture and religion. San Leandro in the 21st Century now includes growing leadership, partnerships, communities, and innovation. With the new installation of a city-wide fiber optic loop, residents and communicate with each other much faster via the internet. The following are percentages given for each age range in San Leandro: ● Under 19 – 25.8% ● 20 to 39 – 29.8% ● 40 to 69 – 32.8% ● 70 and older – 11.5% The overall female population is predominant to the percentage of the male population, with a ratio of 52% to 48%. The median age of all the residents in San Leandro wavers around 39 years. Being the fifth most diverse city in the United States, many different cultures and religions have integrated themselves into the pores of the city. The percentages for each race are as given: 3 ● Hispanic – 27,209 (31.6%) ● Asian – 22,595 (26.3%) ● White – 20,090 (23.3%) ● Black – 12,012 (14%) ● Mix (2 or more races) – 3,347 (3.9%) ● Pacific Islander – 780 (0.9%) ● American Indian – 34 (0.04%) C. Description of the Business or Organization’s Mission, Target Market and Existing Branding Efforts While 8-Twelve receives a variety of customers both female and male of different races, religion, and age they do not have a specific target market. This is due to the fact that their specialty products are not limited or narrowed down to any specific market of consumers. With their most popular products being milk tea, smoothies, sandwiches, and crepes, 8-Twelve appeals to a broad consumer market that includes a wide spectrum of ages. Since they have no specific target market, their mission statement is simply the desire for customers to come in and feel comfortable in the environment they have set. Based on what David said, managing 8-Twelve is just a hobby for him. Since this is a newly opened business, he had stated that it would still be a while before they can actually profit from sales due to having to reimburse themselves for the start-up costs. David had voiced that, “I don’t really care about the money since I already have a job at FedEx and I am already happy with that. I just wanted a place where people can walk in and feel comfortable while enjoying good food.” 8-Twelve promotes their business mainly through word-of-mouth, but they also have a Facebook page to keep people updated on any upcoming events or promotions. In addition, they are listed on Yelp with a surprising turnout of reviews for such a newly opened business. Social 4 Media is very important to 8-Twelve as a means of promotion, due to the fact that a majority of their customers are part of the generation that enjoys using Instagram and Twitter to update the world about their every thought and action. 8-Twelve also gains recognition from schools around the area such as San Leandro High School and Arroyo High School. They participate in fundraisers for various clubs in which every customer that presents a coupon saying they are a participant, a percentage of the purchase will be given to that organization. III. RESEARCH METHODS USED IN THE STUDY A. Description and rationale of research methodologies selected to conduct the research study The objective of our research is to rebrand a local business– 8-Twelve. Our goal was to revolutionize the way people view this business; in other words, our mission is for existing or potential future customers to reflect upon 8-Twelve and harbor positive feelings. We used both primary and secondary research in conducting our studies of this business. Primary research is the information and data that is collected for the first time. Our primary research consists of interviews with one of the owners himself, an employee, and to gain a better understanding of what the teen population thinks of 8-Twelve, a survey was created and distributed among fellow students for their opinions. Secondary research is research that already exists and can be obtained through the Internet or from books. We browsed web for additional information and customer feedback with respect to this business. 5 Primary Research Personal Interviews: 1. David Kuang, 8-Twelve Co-Owner 2. Yuki Hu, 8-Twelve employee David Kuang, 8-Twelve Co-Owner Rationale In our first step of analyzing the existing brand of this business and to gain further understanding regarding their target market as well as their mission statement, we conducted an interview with one of the Co-Owners of 8-Twelve, David. The interview questions were predominantly based around the management of the business and what they believe their current brand to be. We were able to collect information on the foundation and thought process on the construction of 8-Twelve, as well as their vision for its future. Through this interview, we were able to conclude that their main method of promotion is through word of mouth and social media. They believe that if customers are satisfied and happy with their service, then they will most definitely tell their friends and family about 8-Twelve. Yuki Hu, 8-Twelve employee Rationale Yuki is a part time employee at 8-Twelve, working from 11am till 5pm on weekdays and 10:30am till 7pm on weekends. Yuki says, “David’s constant upbeat attitude and positive energy puts me in a happier and more relaxed mood.” David’s genuine passion for his business along 6 with his ambition to conciliate every customer is very much contagious-everyone leaves in a pleasantly pleased mood. Subsequent to the interview with Yuki, we organized a simple customer questionnaire to attain on-site customer feedback. The responses we received were quite the correlation as to what Yuki had conveyed about the positively peaceful contagious mood that David sets. She also gave us insight regarding the interior layout of 8-Twelve; the coowners wanted everything to be customer-friendly. Teen Survey: To find out more about what the current generation thinks of 8-Twelve, we conducted a ten question survey for our peers. After surveying close to fifty people, we were able to draw up a few conclusions based on the results; the first being 8-Twelve’s most sought after products which are their drinks: milk tea, smoothies, and tea. Everyone that participated in this survey enjoys the fact that the owner and employees are so welcoming when customers enter the store, which in turn makes them feel more relaxed and comfortable. In addition, out of all four of the milk tea businesses in San Leandro-Quickly, Tea-4, 8-Twelve, and Tapioca Express- 8-Twelve remains the most popular on the list of top favorites. This is mainly due to their fairly priced drinks in comparison to Tea-4, which markets a size small drink for nearly $3.50 while 8-Twelve offers a 32 ounce cup for the same price. This concludes that teenagers around San Leandro usually go for the cheaper priced drinks, and while 8-Twelve does not have the best drinks in the area, they are still fairly decent at the most reasonable prices, which is usually what a majority of teens are looking for. 7 Secondary Research Customer Reviews 1) Yelp.com Company Information 1) Company’s Facebook 2) Foursquare.com 2) Company’s Website Research Databases 1) Google Maps Articles 1) Factors that Define a Brand Rationale: We began our research process by looking up the store location and where it was situated in relation to the city to gain a deeper understanding of whether or not location comes into play with this particular business. We then looked up customer reviews to determine if we could pinpoint an average customer age range and the most beneficial factors that 8-Twelve has to offer its customers as well as any complaints or setbacks. Finally, we searched up additional information about the company that may give them any advantages over other milk tea locations in the relative area. B. Process used to conduct the selected research methods Personal interviews: To increase our understanding about 8-Twelve and their current branding efforts, we conducted two interviews: one with a co-owner and one with an employee. Prior to the interview process, we came up with the main topics we wanted to discuss in the interviews as well as any additional information we would need for this research process. To set up an appointment for these interviews, we called the number that was given on the Yelp website and informed them of our purpose in this project. Every group member attended the interviews as we all took notes and highlighted the most important key factors pertaining to 8-Twelve. The 8 questions we came up with for the Co-Owner was much more detailed than the questions targeted at the employee. Along with questions regarding their promotion efforts and current progress of the business, we also designed a couple of questions circling around where they believed they stood with other local milk tea stores. Teen survey: We believed it was important for teens in the local area to cast their opinions in regards to what they think of every tea franchise. In order to create a thorough and to-the-point questionnaire, our group came up with questions that asked for ratings. We first surveyed our peers about what they think of 8-Twelve and their products, as well as how often they came to purchase drinks or other merchandise. Then we asked students to rate all four tea businesses based on quality, prices, and location. Our findings allowed us to gain a better understanding of the customers’ feelings and emotions towards 8-Twelve and the tea industry. We each conducted our surveys with our friends and other peers, giving us a wider range of groups to include in our research study. IV. FINDINGS AND CONCLUSIONS OF THE STUDY A. Findings of the research study In order to determine what actions must be taken to rebrand 8-Twelve, we conducted a research study to gain additional insight on this business. Listed below you will find the key findings of our research. 1. Primary research key findings a. Personal interview with David Kuang, Co-Owner of 8-Twelve: 9 i. From the interview with David we were able to gather that he is unsatisfied with the current logo but had to compromise with his partner, which is how they ended up with their present logo. ii. The owners of 8-Twelve do not have a concrete plan for keeping up with changing trends; they assume that milk tea and smoothies are things that people would always enjoy, and are hoping that each new generation will help keep their business alive. iii. They currently do not have any consistent means of promoting their business asides from word-of-mouth, but David also said that he does not really care to advertise all that much. b. Interview with Yuki Hu, employee i. There is nothing Yuki is unsatisfied with as an employee at 8-Twelve. She is good friends with both the owners and her responsibilities are fairly easy. She gets breaks every now and then when there aren’t too many customers spilling in, and she loves the carefree atmosphere. c. Teen Survey i. From the survey we conducted, we can conclude that a majority of the teen population goes to 8-Twelve as their first choice. We asked people to rate 8-Twelve based on quality, prices, and location and all the responses show that almost everyone thinks they are at least decent. 10 2. Secondary Research key findings a. Customer Reviews i. A majority of our secondary research consisted of customer reviews on Yelp and Foursquare due to the fact that 8-Twelve is a newly opened business and there isn’t much information to be obtained. We found out that the star attraction that brings people to 8-Twelve is their free toppings bar, and the fact that there is no limit as to how many toppings you can get. b. Social Media i. Through the social media site of Facebook, we found that they announce any upcoming promotions or events happening in the future. B. Conclusions based on the findings Primary & Secondary Research Conclusion The main conclusion that is most prominent based on all our findings is the ever-growing idea that 8-Twelve remains one of the most popular places in San Leandro to come to for beverages. Many locals come here when they first think of getting some milk tea, and even some teenagers from other areas have heard of 8-Twelve. Relaxed, calming, and friendly is what people first think of when 8-Twelve is mentioned which proves that they already have a positive brand name. Along with their highly competitive prices in the beverage field, they are becoming more known throughout the Bay Area. We have come to the conclusion that since Mr. Kuang is not satisfied with the business logo, then a new logo will be redesigned that satisfies not only the owners but captivates potential customers. 11 However, our research also tells us that this business is not very effective when it comes to promoting and advertising upcoming events and promotions, as their only social media site is Facebook. 8-Twelve has the potential of reaching many more probable customers which would give them better customer relations. Word-of-mouth can only go so far in this particular market, but with the right plan for a new promotional mix, 8-Twelve can grow to attract so many more customers. Although social media is becoming a highly recognized and sought out means of promoting businesses, not many people are aware of 8-Twelve’s media presence which consists of only their Facebook page. V. PROPOSED REBRANDING PLAN A. Objectives and rationale of the proposed rebranding plan 1. Location Rationale: 8-Twelve’s current location is on the corner of 596 East 14th street. Their location is much bigger than other local milk tea businesses because it was required by City Hall that they incorporate a mini market as well, hence the name 8-Twelve Oriental Market. Their location is very out of the way and nearby any places where people usually tend to go. Additionally, finding any parking spots is horrifying because they do not have their own parking lot. Being located on the corner of a main road just adds to the inconvenient location factor because it makes it hard for licensed customers to navigate around the store to find parking, so people usually have to park down the street or even a couple blocks away. 12 2. Logo Rationale: 8-Twelve’s most recent prevailing logo is an upright infinity loop meant to look like the letter eight with the word twelve written over it. David, of the co-owners is not satisfied with the logo but reluctantly agreed on it because he had to compromise with the other owner. He believes that the logo is not entirely visible to the public unless you were to look closely at it. He also stated that the huge number eight is too loud and distracts customers from actually seeing that there is also the word twelve written across it. 3. Create a Social Media Presence Rationale: The only social media sites that 8-Twelve participates in is Facebook. Their official Facebook page statistics shows that very few people know about the page . Their current means of promoting their brand is by no means efficient in reaching out to potential and existing customers alike. Social networks are one of the biggest players in advertising a business these days because much of the promoting is done for free by people who are devoted and loyal customers. New social media strategies will greatly improve 8-Twelve’s customer relations as well as effectively bring forth the existence of their business. B. Proposed Activities and Timelines This section explains the activities that 8-Twelve will implement in order to gain advances in promoting their brand as well as a timeline to show the action plan step by step. 1. Re-designing the Logo: With every brand comes a logo, and logos are the main visual component of a company’s brand identity. 8-Twelve’s current logo gives the company’s face an immature look and is way 13 too “loud” and distracting to make a lasting impression. We plan to remake the design into something more sophisticated that will give off a sense of meaning in relation to the purpose of the business. David Kuang claims that their current design is much too distracting and not very visual to customers, so in order to achieve our goal of creating a well-designed logo, 8-Twelve’s new graphical representation must have clean-looking elements without inconsistent elements. 2. Creating a Social Media Presence 8-Twelve participates in many local high school fundraisers. Social media marketing is the most important method for online marketing for small businesses. We came up with a promotional plan for 8-Twelve to increase the amount of “Likes” and “Shares” on Facebook. Once the process of redesigning their logo has been completed, they can begin implementing their new promotional plan. We came up with a month-long plan that will allow customers to “Like” and “Share” their Facebook page. When a certain amount of “Likes” and “Shares” have been reached, 8-Twelve will release a new deal for their drinks. A new goal must be attained every week for the span of that month. In addition, 8-Twelve will start a Twitter account to update their followers on upcoming promotions and events. Lastly, they will also create an Instagram account to display any new drinks or food items. 3. Relocating There are no parking lots near 8-Twelve and there are rarely any available parking spaces. This can turn away any potential customers simply because they have nowhere to park their car. Location is a critical factor in the success of a business. If it is not easily accessible by the public, then it is very much in danger of going bankrupt. We will start off the relocating plan of action by discussing possible locations with the owners. Searching for a well-populated area near shopping centers or downtown area’s 14 would be most suitable for a small business like 8-Twelve. There would be a plentiful amount of parking spaces, and being near other restaurants would attract more potential customers. Timeline Month Logo Location Advertisement January Propose change of location Get owners approval. Update current website and include menu, prices and yearly promotion(s). February Begin working with real estate agent. Work with personal bank to reassure loan. March Begin looking Create Twitter and Instagram for new locations near accounts. Hone Facebook a local shopping page. center. April Meet owners of 8-Twelve to discuss logo change and potential renovated designs. Continue search for new location. Decide the new location. May Meet with graphic designer to consider new design. Relocate 8-Twelve June Finalize new logo design. Adapt and refurnish the new location. Spread word of grand opening through social media. July Order stamp cards and cups with the new logo. Finalize any necessary changes Plan for opening. Promote 8-Twelve’s opening and “Drinks for $2.00” for grand opening. Big opening 8/12 “Drinks for $2.00” August 15 Continue promotion through social media. “Share” Facebook page to unlock new upcoming discounts/deals. VI. PROPOSED BUDGET A. Costs associated with proposed rebranding strategies 1. Redesigning the Logo In order to make the desired changes to their logo, it is going to cost the owners $320 because the cost to work with a graphic designer is $40 per hour for 8 hours. COST: $320 2. Creating a Social Media Presence There are no costs associated with creating Instagram and Twitter accounts.Creating a polished and refined Facebook page requires a professional webmaster seeing as the owners claimed to not have much knowledge of how Facebook works. We propose that it will take at most two hours to update all necessary information and upload all the display pictures. It will cost $15 an hour to hire a professional, so the total cost will be $30. COST: $30 3. Relocating Moving to a new location will be the most costly part of this plan. Since they do not need to incorporate a market in their new location, it will cost approximately $420,000 for an average sized store, and we estimate about $50,000 to refurnish the place. COST: $470,000 Additional Costs New Stamp Cards: 200 for $60 New Cups: 500 for $85 ______________________________TOTAL: $470,495_______________________________ 16 B. Proposed Metrics to Measure Return on Investment 1. New Logo In order to measure if the new logo design was worth the investment, we would look at the influx of customers at the new location compared to 8-Twelve’s previous location. If the new graphical representation of 8-Twelve proves to be a success in capturing the attention of onlookers, then there will be an increase in sales. 2. Established Social Media Presence After claiming official 8-Twelve social media accounts, the return on investment can be measured by the amount of “Likes” and “Shares” 8-Twelve has gained since beginning of the rebranding plan. The 8-Twelve Facebook page should gain an additional two thousand “Likes” and at least 500 “Shares”. The success of creating a Twitter and Instagram account can be measured by the amount of followers they have gained. 3. New Location Measuring the return on investment with the new location is fairly easy. An increase in sales and products sold will give solid proof as to whether or not a new location was worth the investment. 17 VII. BIBLIOGRAPHY "8-twelve Oriental Market." 8twelve Oriental Market. WordPress, n.d. Web. 08 Jan. 2014. Yelp Inc. "8-Twelve Oriental Market." Yelp.com. Yelp Inc., 11 Mar. 2013. 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