Should MooMoo Shakes Go Global?
After several years of strong growth across the UK, MooMoo Shakes built its brand around bold flavours, colourful cups, and youth-targeted marketing. But with the UK government planning to expand the sugar tax to include milk-based drinks, MooMoo faces a difficult decision: reformulate its recipes and risk losing its identity, or look abroad for new opportunities.
The Expansion Idea: China
At a recent strategy meeting, MooMoo’s co-founders discussed potential overseas markets. One idea stood out: China.
- With a huge population and a booming market for sweet beverages like bubble tea, China offers massive potential.
- Young Chinese consumers are increasingly seeking fun, trendy, and indulgent drinks.
- MooMoo’s marketing style and product lineup could appeal to this demographic.
However, entering a foreign market is risky. Cultural differences, legal challenges, and ethical expectations could all impact success. The Head of Strategy proposed conducting a STEEPLE analysis of the Chinese market to make an informed decision.
What is a STEEPLE Analysis?
STEEPLE stands for:
Social, Technological, Economic, Environmental, Political, Legal, and Ethical factors.
It is a strategic tool that businesses use to evaluate external influences in a market — helping them spot opportunities and threats before making major decisions.
Student Task: Help MooMoo Decide
Your task is to help MooMoo evaluate whether it should:
- Stay in the UK, adapt its recipes, and pay the sugar tax
OR - Enter the Chinese market with its current high-sugar product line and bold brand
To do this, complete the following:
Step 1: Conduct a STEEPLE Analysis
Research the Chinese market and complete a STEEPLE analysis focusing on:
- SOCIAL: Consumer habits (S)
- TECHNOLOGICAL: Tech infrastructure & payment systems (T)
- ECONOMIC: Economic growth & income levels (E)
- ENVIRONMENTAL: Sustainability pressures (E)
- POLITICAL: Trade policies & political stability (P)
- LEGAL: Business regulations & advertising rules (L)
- ETHICAL: Views on child marketing & nutrition (E)
You can use a range of secondary research techniques but I would recommend starting with news articles, reports, and country profiles. When using AI, perplexity would be a good option as you can check the sources.
Step 2: Make a Recommendation
Create a short presentation in small groups that answers the question below:
Should MooMoo stay in the UK and reform, or expand into China?
Justify your answer using insights from your STEEPLE research and market knowledge.