Page 6 - Getting the Secret Recipe Right

4.0 PRICING STRATEGY

C) IN-LINE

Meanwhile, Secret Recipe use in-line
strategy for introducing the new Boba
series drinks. As you know that during the
craze trends for “Boba tea”, variety of new
shops open for business in introducing
this drink as their main product e.g. Xin
Fung Tang, Daboba, Tiger Sugar, The Alley
and also joining the trend as
complimentary product is Tealive and
Chat Time. Thus, to compete with the
others, Secret Recipe introduce their price
as below.

Refer to figure beside, the price is
compared among brands that provide
boba brown sugar milk or milk tea. As you
can see, Daboba set the highest price for
its boba which is RM13.90, while Tiger
Sugar is RM12.90 and Xin Fung Tang is
RM12.50 for cold drink. The cheapest price
for boba brown sugar milk tea is at Tealive,
RM8.10 for large size. Secret Recipe use in-

line strategy by setting the price to be
RM9.50 for large size drink.

D) MARK UP

In order to cover up the overheads generated to operate the business,
Secret Recipe’s markup to 250% to arrive at menu price8, which is at
the industry average level range. The pricing objective is to be as
reasonable as possible for the average household income who
demands a good dining experience8.

Secret Recipe is focus on high catchment area, serving in middle-
upper customers, where they are more willing to pay for more tastier
food served in a clean, comfortable and pleasant environment. In
order to maintain its brand, proper management team in each outlet
will ensure standard must be above satisfactory level; in terms of
productivity, satisfaction, quality control and growth.

05 Geting the Secret Recipe right