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Summary
TLDRThis transcript details the rapid success of a Chinese ice cream franchise in Thailand, highlighting its aggressive expansion strategy since 1997. The brand, known for its affordable prices and efficient supply chain, has grown to over 200 branches in Thailand. The founder leveraged a franchise model, which allowed for rapid growth and lower costs. The brand's marketing strategy includes memorable logos and social media engagement. Despite competition from similar Chinese brands, it has become a global phenomenon, ranking 4th in the world with its franchises. The brand is now preparing for an IPO, showcasing its remarkable journey from a small shop to a global ice cream powerhouse.
Takeaways
- 🇨🇳 The ice cream brand 'Iceason' from China has rapidly expanded in Thailand, becoming the 4th largest in the world with numerous branches.
- ⏱️ It took less than 17 years for Iceason to become a prominent brand in Thailand, starting from a single store in 2007.
- 🏫 The brand's initial success was attributed to its strategic location near universities and commercial hubs, which are high-traffic areas.
- 💡 Iceason's founder, Zhang Hong, started the business with a loan of 4,000 RMB (20,000 Baht) while studying at university, selling ice cream in Jilin City, China.
- 🔧 The brand developed its own ice cream recipe and controlled costs by having a central kitchen and its own supply and distribution system.
- 💸 Iceason's competitive advantage was its lower prices compared to competitors, selling at 2 RMB (10 Baht), which attracted a large customer base.
- 📈 The brand grew by introducing new menu items and expanding its brand recognition, becoming a household name.
- 🌐 In 2007, Iceason shifted to a franchise model, which allowed for rapid expansion and better management of resources and costs.
- 💼 The franchise model included selling franchise packages and providing supplies, which resulted in high profit margins for the brand.
- 🌟 Iceason's marketing strategy involved creating a memorable brand image with a simple logo and mascot, as well as using social media effectively.
- 🌐 The brand's international expansion began in 2018, starting with the ASEAN region, and it has since registered in Thailand with a significant investment.
Q & A
How long did it take for Ice Monster to become popular in Thailand?
-Ice Monster, known as 'ี่เสีย' in Thai, became popular in Thailand within less than 17 years.
What was the initial strategy that helped Ice Monster expand rapidly in Thailand?
-Ice Monster expanded rapidly in Thailand by using a single strategy: entering the Thai market during the mid-1980s and quickly expanding to over 200 branches within 2 years.
Where was the first Ice Monster branch located in Thailand?
-The first Ice Monster branch in Thailand was located in Ramkhamhaeng 53.
What was the main reason behind Ice Monster's ability to sell their products at a lower price than competitors?
-Ice Monster was able to sell their products at a lower price due to developing their own ice cream recipe, controlling costs, and having their own supply and distribution system.
How did Ice Monster's founder, Mr. Zhang, initially start the business?
-Mr. Zhang, a fourth-year university student, borrowed money from his family, about 4,000 yuan or 20,000 baht, to open an ice cream shop in Jilin City, Jilin Province, China, in 1997.
What marketing strategy did Ice Monster use to create a memorable brand image?
-Ice Monster used a simple and memorable marketing strategy with a mascot, the 'Snow King' or 'ตุ๊กตาหิมะ' in Thai, and light-hearted jingles to become a global trend.
What was the turning point for Ice Monster's business expansion in 2007?
-In 2007, the founder decided to expand the business using a franchise system, which allowed for better management and control over the supply chain, resulting in lower costs and more competitive pricing.
What are the benefits of the franchise system for Ice Monster's business model?
-The franchise system allowed Ice Monster to expand rapidly without using the founder's own capital, by simply offering a good product and business model for others to invest in and operate.
What was the initial investment required to open an Ice Monster franchise in Thailand?
-The initial investment to open an Ice Monster franchise in Thailand included a franchise fee of 50,000 baht per year, management fees of 25,000 baht per year, training fees of 10,000 baht per year, and various other costs such as equipment, initial inventory, and setup fees.
How does Ice Monster's success in Thailand compare to its global presence?
-Ice Monster has been successful not only in Thailand but also globally, with branches in Laos, Cambodia, Malaysia, Indonesia, Singapore, the Philippines, Australia, New Zealand, and Japan, making it one of the top ice cream chains worldwide.
What challenges does Ice Monster face in the competitive Thai market?
-Ice Monster faces challenges in the competitive Thai market due to the rapid emergence of similar ice cream shops from China offering comparable products and prices, creating a competitive landscape.
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