Topic a study on the reasons behind the mass consumption ofmixue among neu students in 2022 2023

NATIONAL ECONOMICS UNIVERSITY -*** - FINAL ESSAY ENGLISH 1OO TOPIC: A Study on the Reasons behind the Mass Consumption of Mixue among NEU Students in 2022-2023 Group Class: Advanced Finance 64B Members: Trần Vũ Minh Ngọc (Leader) - 11224782 Phạm Trà My - 11224393 Trần Thu Hà - 11221994 Ninh Quế Anh - 11220516 Trần Thị Thanh Vân - 11226874 Phùng Huyền Trang - 11226504 Lecturer: Mrs Pham Thi Thanh Thuy Hanoi, 2023 This is a preview Do you want full access? Go Premium and unlock all 16 pages Access to all documents Get Unlimited Downloads Improve your grades Upload Share your documents to unlock Free Trial Get 30 days of free Premium Already Premium? Log in Content: I Introduction .2 Research background 2 Scope of the study 3 Theoretical Background .3 3.1 Factors affecting the wide coverage of Mixue Ice Cream & Tea: 3.2 Emerging issues in Mixue's business tactics: 4 Research gap Research methods II Results The primary reasons for Mixue Ice Cream & Tea's strong brand awareness among NEU students 1.1 Affordability: 1.2 Convenience: 1.3 Social Media Trends: How much influence each factor has on NEU students' consumption habits Limitations of Mixue’s business tactics .9 3.1 Quality Control: 10 3.2 Price Competition: .10 3.3 Franchise Management: 10 3.4 Market Saturation: 10 3.5 Dependence on Trends: .10 Suggestions 11 4.1 Quality Control: 11 4.2 Competitive Pricing Strategy: 11 4.3 Franchise Management: 11 4.4 Innovation and Differentiation: 11 4.5 Online Presence and E-commerce: 11 4.6 Sustainability Initiatives: 12 III Conclusion .12 References .14 A Study on the Reasons behind the Mass Consumption of Mixue among NEU Students in 2022-2023 Abstract Mixue is a renowned milk tea brand that has gained immense popularity in Asia, especially Vietnam With numerous outlets scattered around Hanoi, the capital city of Vietnam, Mixue has established itself as one of the hottest milk tea stores in the region This research delves into the contributing factors that have led to Mixue's success among NEU students in recent years and how much they influence NEU students’ purchasing decisions It also highlights the challenges that have arisen due to the brand's rapid expansion and offers suggestions for improvement The popularity of Mixue among NEU students can be attributed to its strategic location, competitive pricing, effective marketing campaigns, and franchising system Nonetheless, concerns regarding market saturation and quality control have surfaced Analyzing the Mixue case can offer valuable lessons for both students and entrepreneurs It provides practical insights into pricing policies, marketing strategies, and franchising, which can be applied to enhance business knowledge and create successful ventures in the highly competitive food and beverage industry I Introduction Research background Vietnam's continuous progress and rising per capita income have led to the expansion of the service and catering industries, particularly the milk tea sector This has resulted in the impressive growth of Vietnam's bubble tea market, which attained a valuation of $362 million in 2021, making it the third biggest market for milk tea in Southeast Asia The number of milk tea stores in the country has also surged to a remarkable 439 Mixue has emerged as one of the most popular milk tea stores, thanks to its exceptional and distinctive marketing strategy As of 2021, Mixue has expanded its operations to 200 stores In the rural province of Henan in 1997, Zhang Hongchao and Zhang Hongfu founded Mixue Bingcheng Starting out as a small ice cream, drinks, and fast-food shop in the less developed district of Zhengzhou, the provincial capital, the brand began to gain more recognition In 2010, Mixue Bingcheng collaborated with Baodao Trading Co to launch its franchise channel for the first time In 2018, the company made a strategic move by selecting Vietnam as the location for its first overseas store Sticking to its principle of keeping its prices low, Mixue Bingcheng priced their products around RMB yuan, which amounts to approximately $1 The decision proved to be advantageous as the brand experienced significant growth This led to the establishment of an overseas warehouse, laying the foundation for future expansions abroad Today, the number of Mixue Bingcheng franchises has grown remarkably to 8,000 as of 2020 In early June of 2021, Mixue garnered public attention and created a buzz after releasing a theme song through various social media platforms like Bilibili, TikTok, and Weibo The song generated substantial online hype and stirred discussions, leading to a significant boost in Mixue's brand awareness and sales This study aims to examine the factors that have led to Mixue's extensive number of stores, determine the significance of each factor, identify the limitations of its current strategy, and provide recommendations for optimizing Mixue's business strategy Scope of the study Students studying at NEU were the group's research subjects, mainly focusing on K64 Beginning on March 22 and concluding on May 25 was the length of the research period The study is carried out to investigate the main factors Mixue's recent popularity among NEU students has contributed to it, to identify problems brought on by the franchisees' rapid growth, and to offer recommendations for improvement Theoretical Background Factors affecting the wide coverage of Mixue Ice Cream & Tea: So far, there are only a few articles mentioning the reasons for Mixue Ice Cream & Tea's widespread coverage (Beini Li, 2022) mentioned the positive impact of Para-social Interactivity Theory (PSI) on Mixue's brand awareness development and sales increase The research indicates that the Mixue Ice Cream & Tea mascot created a generally positive image in the minds of customers, allowing PSI to work (Jiaying Zhao, 2022) has listed some of Mixue's successful online marketing campaigns, such as an earworm theme song, a refreshing new brand visual identity including an adorable mascot, and many TikTok trends related to Mixue for people to collaborate with, which has gained huge social media fame in China since its promotion in 2018 Furthermore, Guzman et al used a descriptive design to This is a preview Do you want full access? 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Log in investigate the impact of milk tea store marketing strategies on consumer preferences Guzman et al discovered that the most appealing marketing strategy was branding because it can leave a good impression on the customer (Pengjun Yu, Wingnam Shi, Chongxin Yang) (2021) Emerging issues in Mixue's business tactics: Jiaying Zhao (2022) points out some weaknesses in Mixue's Marketing Strategy such as social media platforms More specifically, in their research, although overseas social media users are prone to viral content as well, several variables can shake the compatibility of Mixue’s online marketing strategy with overseas netizens First, whether the overseas netizens will be intrigued by this format of audio remix videos and the design of the character is not certain Secondly, re-creating a past trend will automatically reduce the novelty and excitement that originally came with it in the first place and may even appear as “overdone” or “boring” In addition, another important aspect of Mixue’s marketing strategy is its low price Whether or not to carry that low price into the new market, and if so, how Mixue can accomplish such a task are all crucial for Mixue to consider Mixue can learn from experiences and points out some aspects that need to be paid extra attention to According to Ziwen Chen's (2021) research, Mixue Ice Cream & Tea can earn a lot of money by supporting all of its opening franchised stores from raw materials to finished products, but the franchise model also hurts its future growth The first is the difficulty of managing each franchised store It is difficult to handle each store with care Mixue does not participate in any profit-sharing, indicating that specific store management and operation are not Mixue's primary focus Secondly, Ziwen Chen also states that franchisees can barely make money Because of the franchise model, franchisees have limited profit-taking space between the fixed cost and pricing under Mixue’s regulation Moreover, franchisees need to dedicate themselves diligently into the work to reach a certain sales volume, or they aren’t able to gain profit and survive until the next fiscal year Last but not least, the article also mentioned that the scale of new store openings is gradually becoming saturated At present, the location of opening a new franchised store is the most vital point which affects the flow of people directly Since Mixue mainly makes money from franchise fees and raw materials, the number of stores is a direct cause for its revenue Research gap Most milk tea industry research papers focus solely on marketing strategies or separately analyze social media's impact on society and the development of social media, rather than combining the milk tea industry and social media to investigate the relationship between the two fields When studying the milk tea industry, researchers typically focus on analyzing the brand's position, pricing, and other aspects Furthermore, scholars who study social media marketing rarely conduct case studies on individual brands to examine how they use their specific location and social media techniques to promote their brands successfully In contrast, this study will highlight current trends in the milk tea industry as well as the market impact of social media Moreover, the research also has an all-around look into how a specific milk tea brand takes advantage of the location, competitive pricing and platform provided by social media to achieve better performance in the highly competitive and more complicated milk tea industry The research is designed to answer the following questions: ● What are the primary reasons for Mixue Ice Cream & Tea's strong brand awareness among NEU students? ● How much influence does each factor have on NEU students' consumption habits? ● What are some suggestions for dealing with the limitations of Mixue's business tactics? Research methods The study employs both qualitative and quantitative research methods Firstly, a survey will be carried out to establish a theoretical framework for the number of NEU students who purchase Mixue products, the frequency of their purchases, their opinions on the brand and the factors that impact their decision-making process Secondly, the theoretical framework will be utilized to evaluate the identified factors Both survey and interview methods will be employed to establish the factors with the most and least influence on the frequency and need of Mixue products among NEU students The survey will be divided into two parts to examine the same subjects The first part will investigate the general factors responsible for the students' decisions, while the second part will focus on identifying the marketing and business strategies that contribute to the brand's success Based on the information collected, the study will highlight the advantages and disadvantages of Mixue's business model and provide recommendations for improvement II Results The primary reasons for Mixue Ice Cream & Tea's strong brand awareness among NEU students The research aims to analyze data represented in charts to understand the reasons behind the preference of National Economics University (NEU) students for consuming Mixue's products The charts highlight several factors contributing to Mixue's sudden popularity among NEU students, including affordability, convenience, social media trends, and brand loyalty 1.1 Affordability: The affordability of Mixue's products, according to the chart, has a significant influence on its popularity among NEU students Mixue has established itself as a brand with reasonable prices, with a cup of tea costing around 25,000 VND Other well-known brands, such as Highland, charge between 45,000 and 65,000 VND for a comparable drink Students can enjoy high-quality beverages without breaking the bank thanks to the availability of low-cost options Choosing Mixue over other brands allows students to indulge in their favorite drinks at an affordable price This factor can be particularly significant for students who have limited resources and cannot afford the high-end prices of some of the more expensive brands The affordability factor has helped Mixue compete with other brands in the market and establish itself as a popular beverage choice among NEU students 1.2 Convenience: The chart reveals that convenience is a crucial factor in influencing students' preference for Mixue products Mixue has rapidly expanded its stores' network, and it has strategically located them near schools and universities, making it more convenient for students to access their products Unlike other brands that prioritize creating spacious stores for customers to relax and socialize, Mixue targets students who prefer quick purchases between classes This approach aligns with students' busy schedules, allowing This is a preview Do you want full access? 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Log in them to grab a drink and proceed to their next class promptly Furthermore, the COVID-19 pandemic has shown how online ordering has become increasingly popular, and this has further enhanced the convenience factor for Mixue As students may have limited time between classes or have concerns about being in crowded areas, the ability to order online and have the drinks delivered directly to them can be highly attractive Mixue's adoption of online ordering platforms, such as food delivery apps, provides an additional layer of convenience for students who prefer to order from the comfort of their own homes or dormitories The combination of physical store locations and online ordering capabilities can provide a seamless and convenient purchasing experience for students Mixue's focus on providing affordable, convenient, and quick services aligns with the needs and preferences of busy students, making it a preferred choice for refreshing beverages 1.3 Social Media Trends: The chart reveals that Mixue's social media presence is another significant factor contributing to its popularity among NEU students The influence of viral trends on platforms like TikTok has had a significant impact on brand awareness and engagement For example, a meme featuring actor John Cena eating Mixue ice cream and praising its taste became viral, attracting the attention of Vietnamese consumers, including NEU students Subsequently, Mixue's official song and associated challenges gained popularity, further fueling brand awareness and engagement While not all participants were aware of the social media trends, a significant portion expressed their interest in purchasing Mixue products after being exposed to these trends In the study, 63.4% of the students who filled out the forms knew about social media trends, and only 18.3% actually participated in the challenges However, regardless of their level of participation, the majority of participants expressed their willingness to repurchase Mixue products and recommended the brand to their families and friends This indicates a level of brand loyalty and satisfaction among NEU students Mixue mascot’s presence in viral trends creates a sense of excitement and curiosity among students, leading them to try Mixue's products and participate in the challenges Moreover, social media represents an integral component of Mixue's marketing strategy, allowing the brand to reach a broader audience, particularly among younger consumers, who are actively present on social media platforms This approach helps generate brand awareness and customer engagement, contributing to Mixue's overall popularity among NEU students Figure 1: Participants' feelings about recommending Mixue to their social circles How much influence each factor has on NEU students' consumption habits It is challenging to determine the precise degree of influence each factor has on NEU students' consumption habits without specific quantitative data or a detailed study focusing on measuring the impact However, based on the information provided, we can make some general observations regarding the potential influence of each factor: Figure 2: Several factors contributing to Mixue's sudden popularity among NEU students In terms of affordability, Mixue's competitive pricing has the most influence in shaping NEU students' consumption habits, with approximately 69.9% of the participants responding to this factor Students who are on a budget may be drawn to Mixue's lower prices compared to other brands This may result in students choosing Mixue more frequently, leading to a higher consumption rate than other brands Additionally, affordability may also lead to increased customer satisfaction, as students feel that they are getting value for their money According to the study results, convenience was selected by 68.9% of the participants as the second most crucial factor One reason for this is Mixue's strategic placement of stores in locations near the university, making the brand a conveniently accessible option for NEU students With a busy schedule, having quick access to Mixue's products can make it a convenient choice for students looking to grab a snack or drink between classes In turn, convenience can lead to higher consumption frequency, as students are more likely to choose Mixue over other brands because of its accessibility Moreover, Mixue's implementation of online ordering options offer NEU students an extra level of convenience This means that those who would rather have their drinks ordered to their dorms or homes can place their orders with ease, making the overall experience more convenient Figure 3: The impact of Mixue's close proximity to participants' purchasing decisions Social media trends can also influence NEU students' consumption habits, particularly for those who actively engage with these trends As the study suggests, certain memes, challenges, and other social media trends can increase awareness of Mixue and demonstrate the brand's popularity among other consumers For students who are influenced by these trends, the influence on their consumption habits may be more significant However, it is important to note that not all students are aware of these trends, and the impact may be more significant among a specific subset of students who engage with social media Nonetheless, positive experiences, satisfaction with the brand, and a 10 This is a preview Do you want full access? 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Log in sense of loyalty can drive repeat purchases and encourage students to continue consuming Mixue products regularly Limitations of Mixue’s business tactics The business tactics employed by Mixue, despite their success in attracting NEU students and gaining popularity, are not without limitations Some of the limitations of Mixue's business tactics can include: Quality Control: The rapid expansion of Mixue's franchises near NEU may raise concerns about maintaining consistent quality across all locations As the number of stores increases, ensuring the same level of product quality and customer experience can become challenging Inconsistent quality can potentially impact the brand's reputation and customer satisfaction Price Competition: While Mixue's competitive pricing strategy has contributed to its popularity among NEU students, it can also pose challenges Engaging in price competition with other brands may lead to a margin squeeze and reduced profitability Moreover, relying solely on low prices as a competitive advantage may limit the brand's ability to differentiate itself in the long run Franchise Management: Mixue's franchising system, while enabling rapid expansion, can present challenges in managing and maintaining individual franchise stores’ quality and performance Ensuring franchisees adhere to brand standards and deliver a consistent customer experience can be demanding Inconsistent store management and operation may impact overall brand perception Market Saturation: The proliferation of Mixue franchises near NEU raises concerns about market saturation As the number of stores increases, the customer base may become saturated, leading to intensified competition among similar brands This can impact customer loyalty and necessitate continuous innovation and differentiation to stay ahead in the market 11 Dependence on Trends: Mixue's success in leveraging social media trends to attract customers can be a double-edged sword Relying heavily on trends may make the brand susceptible to fluctuations in popularity and shifting consumer interests Over time, maintaining a consistent level of trendiness and novelty can be challenging, requiring ongoing innovation and adaptation These limitations highlight the areas where Mixue's business tactics may face challenges and require careful consideration Overcoming these limitations can be crucial for sustaining growth, maintaining brand reputation, and staying competitive in the market Suggestions Quality Control: To overcome this limitation, Mixue may have to implement a quality control procedure that enforces brand standards across all franchise locations regularly This procedure should cover various aspects such as ingredients sourcing, food preparation processes, cleanliness and hygiene standards, equipment maintenance, and customer service protocols Competitive Pricing Strategy: To solve the problem, Mixue may need to consider adding premium products or services to its portfolio and charging higher prices for them Creating unique and specialized products may attract a new target audience while maintaining price competitiveness for the brand's standard products Franchise Management: To figure out the issue, Mixue may need to explore new geographic markets, such as opening stores in new regions or partnering with university campuses outside of NEU Offering additional services, such as catering and corporate events, can also broaden Mixue's customer base and revenue streams Innovation and Differentiation: To maintain customer interest and enthusiasm, Mixue should regularly introduce new products and flavors, while also collaborating with local influencers or celebrities in promotional campaigns that appeal to the target demographics 12 Online Presence and E-commerce: It is recommended that Mixue improve its online presence by investing in a reliable ecommerce platform, which would enable efficient online ordering and delivery services to meet the rising demand for convenience and contact-free transactions Sustainability Initiatives: Mixue ought to integrate environmentally friendly practices into all aspects of its supply chain, including utilizing eco-friendly packaging and sourcing ingredients sustainably To bolster the brand's image and attract environmentally conscious customers, these practices should be communicated clearly to the public By implementing these suggestions, Mixue can further enhance its market position, sustain growth, and continue to be a preferred choice among NEU students and other target demographics III Conclusion The study conducted on the reasons driving the widespread consumption of Mixue among NEU students in the academic year 2022-2023 sheds light on several crucial factors that influence their consumption patterns The research indicates that Mixue's affordability, convenient store locations, social media trends, and brand loyalty are significant factors that attract and retain NEU students as customers Mixue's affordability emerges as a key driver, as the brand's competitive pricing strategy makes it an ideal option for budget-conscious students seeking value for their money Secondly, the convenient store locations near NEU campus make Mixue readily accessible, further contributing to its popularity among students It is important to note the impact of social media trends on Mixue's success as memes, challenges, and appealing brand promotions have successfully generated a buzz around the brand For students actively engaged with these trends, social media provides a platform to discover and embrace the brand, strengthening their consumption habits Most NEU students expressed their willingness to repurchase Mixue products and recommend the brand to others It is also crucial to recognize the limitations of Mixue's business tactics, such as maintaining consistent quality across rapidly expanding franchises, price competition, 13 This is a preview Do you want full access? 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Log in franchise management, market saturation, and trend reliance These issues must be addressed carefully to ensure long-term success and sustainability Overall, the study's findings provide valuable insights for students and entrepreneurs alike Students can gain practical knowledge on marketing strategies, pricing policies, and the franchising system through Mixue's case study Entrepreneurs can learn from Mixue's success and shortcomings, identifying areas for improvement in their own ventures within the competitive food and beverage industry Mixue can utilize these findings to refine its business tactics, address the limitations, and continuously innovate to meet the evolving needs and preferences of NEU students and other target markets By doing so, Mixue can cement its position as a popular choice among NEU students and sustain competitiveness in the dynamic marketplace 14 References [1] Horton, D., & Richard Wohl, R (1956) Mass communication and para-social interaction Psychiatry, 19(3), 215–229 doi:10.1080/00332747.1956.11023049 [2] Shi, W., Yang, C., & Yu, P (2021) Brand New Milk Tea Market: Chinese milk tea development and brand analysis Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) doi:10.2991/assehr.k.211209.429 [3] Li, B (2022) Analyzing the phenomenon of the increase of brand awareness of Mixue Ice Cream & Tea in Chinese market through para-social interactivity theory BCP Business & Management, 33, 421–426 doi:10.54691/bcpbm.v33i.2821 [4] Parris, D L., & Guzmán, F (2022) Evolving brand boundaries and expectations: Looking back on Brand Equity, Brand Loyalty, and Brand Image Research to move forward Journal of Product & Brand Management, 32(2), 191–234 doi:10.1108/jpbm-06-2021-3528 [5] Zhao, J (2022) Marketing strategy and the U.S market based on the performances of existing chinese milk tea brands Highlights in Business, Economics and Management, 2, 289–296 doi:10.54097/hbem.v2i.2375 [6] Guzmán, F., & Paswan, A K (2009) Cultural Brands from emerging markets: Brand image across host and home countries Journal of International Marketing, 17(3), 71–86 doi:10.1509/jimk.17.3.71 15