Running the business using psychology as a priority tool

Running the business using psychology as a priority tool

Have you ever tried ‘Thai tea’? Tea is a relaxing beverage, which has long story. It is famous for both European and Asian people to drink during the day. Apart from the long history of the original tea, there has a change and taste development to suit each country or society.

Tea can represent as beverages for elderly people in the past. However, the current trend has shown the rising of beverage shop opening where tea has become the main ingredient. I would like to give the Thai famous tea shop which has long history since 1945 named “Cha-Tra-Mue”.

chatramue logo

Cha-Tra-Mue faces the problem of brand image that can be perceived as only for old people and does not represent young generation. In 2017, Cha-Tra-Mue has become a great success in reaching all generations by changing its sale strategy. The management of new young generation operates the business more understanding what the target needed. For instance, the very popular product which brings Cha-Tra-Mue back to the market is “cha-kulharb” (Cha=tea, kulharb= rose)

ชาตรามือ กราฟ

Cha-ku-lharb or Rose tea is one of the most popular menus because of the quality of the product and its marketing strategy. This brand used adaptive marketing strategy, which is a significant factor to change the brand image to approach consumers. Cha-Tra-Mue uses social proof as a tool to help their business.

chatramue rosee

Looking at the product; rose tea was launched on valentine’s 2017 with the idea to have a new product during this love season; yet, it has become the bestseller menu that the company decided to continue. Due to the social media has gone viral about this tea as a detox tea because the ingredient and the effect of drinking it. The main attribute of rose tea for health such as detoxification, improve digestive system, healthy skin, nervous system and reduce fat in the blood.

6-persuasion-principles

The quality of rose tea cannot be popular without social proof. It is one of the psychology of persuasion defined by Robert Cialdini. Social proof in Cha-Tra-Mue can clearly be seen as word of mouth; from consumer to another consumer. For example, when first consumer drank rose tea and really want to go to the toilet, they think it is very effective tea then they told other friends. So, from word of mouth of your friends can be both users and wisdom of your friends social proof. For the former means the real customer’s review, the latter is from your friends which persuade you to buy follow them. Another key to announce the property of rose tea is to be published in the online channels that also lead people to buy. This will be the social proof in section wisdom of the crowds, which many people think it is good, then follow. Moreover, many consumers face with defecation after drink rose tea, therefore, some doctor has proven which is an expert social proof that this tea does not put any medicine to help detoxification but use all natural elements instead. Furthermore, Thai celebrities also post and review this tea which becomes celebrity social proof.

social proof

Basically, customer behavior showed that people want to try new thing like try the power of rose tea and challenge with it. Some of them want to try because of their defecation problem. On the other hand, the popularity of slim body might be the factor that consumer buy because it is a detoxification. Thus, they would buy detox tea which recommended by expert than buy medicine to solve defecation issue.

For example, According to LALANDE (2016), Thailand was ranked two from ten of Asean Economic Community of an obesity problem. Trend of healthy and slim body is the significant factor for Thai people. Some people think that often defecate can make them get slimmer and healthier. So, people who have difficult excretion might have rose tea as a way to help them because it sounds safer than take slim pills.

 

After persuasion, Marketing tools needed

From social proof which gathered a majority of consumers to know, change attitude of the brand and to be their customers. Cha-Tra-Mue produces other flavored milk tea and creates product extension, which is soft serve ice-cream apart from beverages. Additionally, the package has also changed but remains its original logo brand for the concept of long prominent tea in Thailand.

product chatramue

The psychology of persuasion should run with marketing strategy. The result of using psychology first has increased its market share, created brand awareness with product extension and increased number of branches which over 60 branches in Thailand (longtunman, 2017). Cha-Tra-Mue should use adaptive marketing to maintain customers and increase profits.

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Thinking about the latest cafe or restaurant you went, are you the one who was persuaded by social proof?

 

Reference lists

  1. Bernazzani, S. (n.d.). 20 Examples of Social Proof in Action. [online] Blog.hubspot.com. Available at: https://blog.hubspot.com/marketing/social-proof-examples [Accessed 7 Nov. 2017].
  2. Cialdini, R. (2011). The Psychology of Persuasion. [online] Videoplus.vo.llnwd.net. Available at: http://videoplus.vo.llnwd.net/o23/digitalsuccess/SUCCESS%20Book%20Summaries/2011%20June%20SBS/Influence%20Summary.pdf [Accessed 6 Nov. 2017].
  3. Discovery in Action. (2015). 6 Persuasion principles for your work and personal life. [online] Available at: https://www.discoveryinaction.com.au/latest-news/6-persuasion-principles-for-your-work-and-personal-life/https://www.discoveryinaction.com.au/latest-news/6-persuasion-principles-for-your-work-and-personal-life/ [Accessed 7 Nov. 2017].
  4. longtunman. (2017). ชาตรามือ คือ สุดยอดการตลาด. [online] Available at: http://longtunman.com/1682 [Accessed 7 Nov. 2017].
  5. The Nation. (2016). Thailand and the obesity epidemic. [online] Available at: http://www.nationmultimedia.com/life/Thailand-and-the-obesity-epidemic-30290296.html [Accessed 7 Nov. 2017].


21 thoughts on “Running the business using psychology as a priority tool”

  • Your topic make me wider.. The old Thai Tea “Cha-Tra-Mue” can get new customers by online advertising. Also heard of rose tea. It make me eagar to try one. Moreover, the new product line. I personally an ice cream lover, can’t wait to test one.
    This is a very successful story.

  • I really like this tea brand. Sometimes I choose other brand but there is no one that taste better than Cha Tra mue. It smells so good. I just try a new one from this brand, honey rose tea, It has a lot of benefit. Hope everyone try it once of your life. Just try it!!!

  • Surprisingly for an old company with an old product become popular among new generation.
    Like you said, the new generation is effected, led or believed with available information in social.

    In the past, I brought a newly launched product mainly based on advertisement and some recommendation from my friends. But now I buy it from word of mouth of society via many online tools. Rose tea is also my example.

  • I agree that become popular due to social media. They launched new product that people need at the right time. I haven’t tried it yet but it’s on my list. 🤤

  • It is true that the new products are popular due to social media, the products satisfied the customer’s needs and demands. Not to mention they taste really good.

    • Yes, many products well known fast but some of them has gone fast too. However, Cha Tra Mue was proofed by its quality so, they still take big contribute of tea’s marketshare.

  • I think the opening wasn’t very tied to the message you’re trying to send with the rest of article. That said, I think you have an interesting topic and argument.

  • I think that’s an interesting viewpoint. I also wonder though, if this method of marketing will one work on society where people are not as addicted to social media and not idolize the celebrity as much as Thai’s society. The re-branding of the tea as a healthy drink is a smart marketing tool, considering how “being healthy” is a popular trend in Thailand right now.

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