Roland Osae-Oppong Internet Marketing
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ROLAND OSAE-OPPONG INTERNET MARKETING Teavana was founded in 1997 by former Applebee's manager Andrew Mack and his wife Nancy, after the couple took a trip abroad and observed American tourists' affinity for fine wine and coffee. The specialty retailer sells more than 100 varieties of premium loose-leaf teas, as well as tea pots and other tea-related merchandise. Its mission is to introduce consumers to the global tea lifestyle, which includes the aromas, textures, tastes, and healthful qualities of loose-leaf teas. Teavana Teavana is a specialty tea and tea accessory retailer based in Atlanta, Georgia. Teavana dream began with an idea that people would enjoy fresh, high-quality tea in a place that was part Tea Bar, part Tea Emporium. They introduce people to the aromas, textures, and beneficial qualities of loose leaf teas while enlightening them with the history and variety of teas available. The company went public last July, and today operates 284 company-owned stores in the U.S. and Canada, as well as 18 franchised stores in Mexico. On December 31, 2012, Starbucks acquired Teavana for about $620-million Starbucks licenses its trademark through other channels such as licensed retail stores and, through certain of its licensees and equity investees, Starbucks produces and sells a variety of ready-to-drink beverages Teavana's commitment is for people to enjoy fresh, high-quality tea in a place that was part Tea Bar, part Tea Emporium. STRENGTHS WEAKNESSES Teavana teas area Making their tea always fresh samples misleadingly extra strong and adding Teavana uses only sweetener in order to premium ingredients drive sales Teavana only sells Sales associates work loose-leaf teas based on commission, Taste the difference of and thus use high Teavana teas pressure sale tactics to make their quotas OPPORTUNITIES THREATS Consistently promote General consumer cross blending different concern of high pricing types of tea Selling tea products, Inconsistence including cast iron preparation tetsubin teapots, instructions and results decorative teapots, Asian- inspired teapots and cups, and tea kettles Establish a tie-in with Starbucks coffee Teavana’s two main competitors are Argo Tea (known as "the Starbucks of tea"), and more recently, the coffee giant itself, Starbucks. Argo. Based in Chicago, privately-held Argo has a strong customer base due to its contemporary menu of hot and cold teas, as well as healthy foods and tea-infused grains and salads. Argo Tea has 25 locations in major cities like New York, Boston and St. Louis, and plans to open international locations this fall in Beirut, Abu Dhabi, and Dubai. Starbucks’ booming coffee business already gives it an edge. Starbucks is nothing short of a global coffee phenomenon, with almost 20,000 stores in 59 countries. It already offers hot and cold tea, but in October, 2012 the chain introduced the Tazo Tea concept—a 1,700- square-foot shop where customers can choose from more than 80 varieties of loose-leaf tea, in addition to buying teapots and other tea-related merchandise. Tazo Tea is already a $1.4 billion brand for Starbucks The shop will also have a Tea Bar that will serve hand-crafted tea drinks (think tea lattes and iced teas) as well as pastries and baked goods. This idea is in direct competition with Teavana, and with the first Tazo Tea concept opening soon in Seattle, it could represent a real threat if the idea gains popularity with customers. STARBUCKS ARGO TEA As the coffeehouse giant of the world with over 11,000 locations in the United States alone, Starbucks continues to be a huge competition for local coffee and tea shops Though Starbucks doesn’t focus completely on tea, it’s still important to recognize the impact the coffee industry has on tea sales In 2010, Starbucks spent more than $172 million on advertising alone, so if Teavana wants to follow in its footsteps, they will need to invest more budget in advertising Handcrafted Beverages: Fresh‐brewed coffee, hot and iced espresso beverages, coffee and non‐coffee blended beverages, Vivanno™ smoothies and Tazo® teas.. Fresh Food: Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups. Teavana is a multichannel business to consumer company. They provide both off and on line channels for intermediate transactions between producers and consumers, creating value for both Teavana does this by facilitating the distribution of goods, and information related to tea to customers The Customer Segments Righteous Tea drinkers The value proposition High-quality tea in a place that is part Tea Bar, part Tea Emporium Customer relationship/Key Activities Introducing people to the aromas, textures, and beneficial qualities of loose leaf teas Enlighten them with the history and variety of teas available Distribution Channels Multi-Channel, both on and offline E-commerce Transactions This model would use electronic catalogue and shopping cart providing access to customers throughout the world. Payment received from customers is the source of earning revenue. Teavana handles a transaction that was generated by a product and provides some form of completion service and charges a fee for doing so. That could be processing a credit card transaction, handling a banking transaction, or shipping something to someone An idea that people would enjoy fresh, high- quality tea in a place that is part Tea Bar, part Tea Emporium. Teavana introduces people to the aromas, textures, and beneficial qualities of loose leaf teas while enlightening them with the history and variety of teas available The target customer is the avid tea drinker with a righteous palette who has a desire for premium tea. The company aims to provide this value to the customers rather than up the competition. Since Teavana locations mainly exist in malls, the target market seems to include those people that live in suburban areas near malls. These people are generally tea drinkers who consume at least three tea beverages a week. According to the Packaged Facts report, baby boomers are the prime purchasers of high-end specialty teas. While younger, college students and graduates prefer ready-to-drink beverages (which makes of 58.7% of tea market), older generations prefer specialty teas (36.4 % of market) (Rubner). Surfers – 8% Spend the most time on line Bargainers – 8% Use internet for entertainment and shopping According to alexa.com, the Teavana web domain ranks 7,608 in the United States, in which Google ranks first. Based on internet averages, teavana.com is visited more frequently by females who are in the age range 55-64, have no children, and are college educated. Simplifiers – 29% Make life more convenient; want great customer service According to the Tea Association of America, “The Baby Boomers (1943 to 1962) are staunch believers in values. Boomers feel entitled to be treated special. Quality of life is essential, especially because they realize they are aging, and love self-improvement. Boomers want to be in control and want to be involved; consequently, they are very busy people Though these women seem to be the most frequent visitors, they may not actually be the prime purchasers; thus, it is important to focus also on those who shop in-stores. Connectors – 36% New to internet; loyal to offline brands The large and increasing number of media formats makes it increasingly important to successfully integrate multiple media in marketing programs TV Best for Generating Awareness Print Best for Creating Familiarity Good for Promoting Consideration Online Best for Promoting Consideration, Driving Purchase Intent All Have a Role in Promoting Loyalty TV Least Effective Paid Search Keywords Tea White Tea Tea Store Loose Leaf Tea Gourmet Tea Tea Gifts Herbal Tea Flavored Tea oolong Tea Organic Tea Email Promotions Sampling Free In-store samples featuring Teavana store teas Search Engine Optimization Website integration with organic search that displays high quality web pages to engage and persuade the audience Social Media The frequent mention of the different types of offerings and specialties they supply Online display advertising Contextual: Ads are served based on page content such as keywords and the URL on an automatic or semi automatic manner Behavioral: Ads are served based on their recent behavior; the web pages they viewed, keywords they typed into a search engine, or products and services they shopped for online or a combination of all three According to KeywordTrak, the average cost per click for Teavana.com links is $1.36. With around 2,000 clicks a day, this means Teavana spends around $2,500 on paid internet ads per day (“Opportunity”). Teavana has created a customer database with nearly 300,000 individual names of people who have placed an online order or in-store purchase in the previous two years. The company then sends direct marketing messages to customers to highlight any tea news or promotional events (SEC) They leverage social media through the frequent mention of the different types of offerings and specialties they supply This is integrated into their tea of the month program. Teavana also holds competitions and encourages audience interaction through social media for rewards Pinterest their highest trafficked platform. They provide boards like Relaxation Teas, Rare Teas and Exotic Finds, Gifts with Meaning, What's In Your Cup, Pin It To Win It, and A Heaven of Tea Teavana has a whole page “Looking for help?” dedicated to helping customers with their problems. The answer questions in detail under the following tabs Our Satisfaction Guarantee (Return Policy) Ordering Payment Options Pricing Shipping Rates & Policies International Shipping Rates & Policies Contact Us FAQ: Frequently Asked Questions Teavana believes that due to the high traffic locations of stores(usually malls) and the unique shopping experience it offers, it does not need to spend as much money on conventional advertising as other retailers.