According to The Story of Green Tea in 2001, Green tea is said to have originated in 2737 BC. It all started when the Chinese Emperor, Shen Nung, who was habitual of boiling his water, discovered that his habit was directly linked to good health and longevity. The Emperor was therefore remembered as the “Divine Healer”. One fine day, when he knelt to boil his water, the Emperor noticed that a few leaves from a nearby tree had strayed into his pot. When the Emperor drank this solution, he discovered that it had an unusual taste. Mesmerized by the taste and aroma, he went on to proclaim this beverage as “heaven sent”.
Legend has it that the first cup of green tea was brewed almost five hundred years ago. Over the years, the popularity of green tea grew four folds and it is now considered as the second most popular beverage in the world. The only drink which surpasses green tea in terms of popularity is water. In a short span of time, green tea shot to fame in Japan and Far East Asia.
According to The Story of Green Tea 2001, in the year 1650, the Dutch brought tea from China to America. Later, in the year 1669, the British East India Company brought tea leaves to England. In the year 1721, the British East India Company was granted monopoly on all the tea leaves that were allowed to slip inside the British Empire.
The Story of Green Tea 2001 indicates that in the olden days, tea was an expensive commodity and only the royalty and the rich could afford to make use of it on a regular basis. In those days, the price of tea per pound was $29 to $49. Likewise, a pound of tea was sufficient to make 200 tea bags. During the 1800s, ships laden with tea, used to race against each other in a bid to reach the ports with their cargo. The first clipper always managed to command the highest price. With time, as the ferrying continued on a speedy basis, England was loaded with green tea and this in turn led to the reduction in the overall price of tea.
The Making of Japanese Green Tea
Green tea is consumed throughout Japan. While there are numerous varieties, the early season sencha and the new season shin cha, are considered to be the best green tea varieties of Japan. These varieties are so popular that various regions compete with each other in a bid to outbid the other in terms of quality and availability.
According to Japanese Green teas 2005, the Gyokuro tea is supposed to be the most expensive of the lot. It is derived from ten-cha. This luxury tea is made from the first flush leaves. It is pale yellow in colour and is blessed with an appetizing flavour. The leaves are grown for 21 days after which, they are harvested. This sudden change in climatic conditions alters the proportions of amino acids, flavones and the aroma content. The tea is sweet in flavour and is preferred by the country’s elite.
The Sencha tea is a roasted variety, which is first treated with steam before being hot dried and finally fried in a pan. Sencha covers three quarters of all tea which is grown in Japan. The colour of Sencha is emerald and its taste is completely dependent on the location of the leaf and the way it has been processed.
Kamairi Cha is the third variety of green tea in Japan. It is a pan fried variety and is therefore referred to as the “Chinese Green Tea”. After the withering procedure, the leaves are fried at 300 degree Celsius. This is done with the aid of hot iron pans, so as to prevent charring.
According to Japanese Green Teas 2005, the Matcha is a well known Japanese green tea variety. It is available in the form of a powder. Although it is regarded as a heave green tea, the overall strength of the Matcha variety depends on its processing. The Mecha is a bud tea which is derived from the early tea buds. It works as an astringent and is bitter in taste. Considered a grade between Gyokuro and Sencha in terms of quality, the Mecha tea is quite famous for its deep aroma. The other varieties of Japanese green tea include Hukamushi, Kukicha, Bancha, Hojicha and Genmaicha.
Tea-The Plant and the Growth Process
According to Tea Growing and Processing 2009, tea is derived from the Camellia Sinensis plant. While there are hundreds and even thousands of varieties of tea in this world, they are all derived from the Camellia Senensis plant. Leaving aide the herbal varieties, tea is just like coffee and although there could be a thousand odd varieties of the same plant, the plant itself is blessed with distinct characteristics. Climate, elevation and soil conditions determine the overall quality of tea. Likewise, tea becomes diverse by the way it is processed.
There are over 3000 varieties of tea the world over and tea leaves are processed through the means of Withering, wherein the leaves are spread on trough to reduce their moisture content, Rolling, wherein tea leaves are rolled so as to retain their texture and release healthy enzymes, Fermentation, wherein the leaves are spread to encourage the process of oxidization, Firing, wherein the fermentation process is retarded and the leaves are passed through hot air chambers to retains their flavour and finally grading, wherein the leftover fannings are used as teabags.
Work cited
“History: The Story of Green Tea”.2001. Linan Euro-China. 2009. Web.
“Japanese Green Teas “.2005. Relax, Sip & Enjoy: Quality Teas from Around the World. Web.
“Tea Growing and Processing: Brief History and the Plant Processing”. 2009. Midburb.com. Web.
The tea ceremony, popularly known as the Way of the Tea, is a traditional socialization activity in Japan that involved a ceremonial preparation and serving of green tea1. Tea ceremonies in Japan are divided into two main categories, depending on the size of the occasion. The first type of ceremony is the chakai, a simple event that involves the uptake of confectionary, thin-tea and sometimes a light meal2.
The chakai usually lasts less than one hour. The other type of tea ceremony is known as the chaji, and it is a more elaborate and formal function compared to the chakai. It usually involves the serving of a full-course meal, which is then followed by confectionary, thick-tea and thin-tea. Because of their elaborate nature, chajis last a minimum of four hours.
The procedure for the tea ceremony varies depending on the area, the timing and other elements. From this point onwards, the discussion shall analyze the Way of the Tea from the point of view of a chaji, the formal version of the ceremony. A formal chaji basically has one guest and five guests. In the ceremony, guests are should turn up some minutes, or even hours before the appointed time.
They then enter the waiting area, where they hang any items they do not need such as coats. Here, the guests are given the tabi, the acceptable tea ceremony clothes.
During this preparation phase, the guests are served hot water or roasted barley tea. Once they are ready, the guests are then directed to the waiting bench, located outside the area where the ceremony will be held. They sit in this area until the host invites them in for the ceremony.
To summon the guests into the room where the ceremony is to be held, the host nods while facing the guests, who nod back as a sign of accepting the invitation. The guests then move to the purification area, where they wash their hands and rinse their mouths using a special blend of herbs before moving on to the tea house. Prior to entering the room where the ceremony is to be held, the guests have to remove their shoes.
They then take position in order of prestige, and once the last guest has taken his seat, the guest is alerted by a particular sound. The host welcomes the guests before answering a specific question raised by one of the visitors.
Once these formalities are done with, the coal used to heat the water for the tea is laid before the meal is served in a number of courses. After the meal, a small break is allowed and the host uses this interval to sweep the room and replace the scrolls with flowers. As soon as the preparations are over, the guest rings a bell to invite the guests back into the room.
The guests cleanse themselves and assume their original position and a thick tea is served. All the guests take a sip from the bowl containing the thick tea and once everyone has had a taste, thin tea is served together with confectionery. After everyone takes the thin tea, the host declares the ceremony over and he bows to usher out any guest who wants to leave. As they leave, the guests are expected to thank the host for the invitation.
Bibliography
Soshitsu, Sen. “The Urasenke tradition of tea.” Urasenke. 2002. Web.
Footnotes
Sen Soshitsu, “The Urasenke tradition of tea,” Urasenke, 2002.
The Long Mynd Tea Company “TLMTC” is a leading player in the specialty and green tea market in United Kingdom. UK, with a market share of 63%, is the largest tea consuming market in Western Europe (Tropical Commodity Coalition). Tea consumption in UK was pegged at 31,000 tonnes in the year 2008.
Our internal Long Mynd Business Intelligence Unit “LMBIU” has indicated that global supply deficits in 2010 mostly attributed to severe droughts in Kenya and India in 2009 resulted in global tea prices hitting a historical high in 2009. This resulted in Unilever’s PG Tips being priced 28% higher than a year ago, while Tetley was pegged at 7% more expensive (Euromonitor).
Business Issues
The demand for tea in UK has been healthy but rising prices in the market can lead to fall in demand especially for specialty tea which is priced slightly higher than regular tea. TLMTC recognizes the issue and to counter and differentiate its offering we plan to introduce a unique range of product, herbal and fruit tea-bags under the brand name Revive.
Revive offers a unique feature to consumers in the new range of teabags which is the shape of the bags. The company is planning to use an innovative manufacturing process to craft the tea-bags in irregular shapes which involves only minimum wastage. The new bag is designed in a unique flower shape.
The product will be distributed through the existing delivery channels of hypermarkets and supermarkets. We will also tie-up with large café chains to distribute the product.
We plan to promote the launch by an aggressive campaign involving magazine and posters in the Autumn of 2011. The key message in the ads will be around the unique shape and attempt to tie it to herbal and health connotations. The ads will also carry the message of good taste of the tea.
Research Objectives
TLMTC wants to know whether the unique shape of the tea-bag and the taste of the tea are appealing to consumers.
We want to test the hypothesis that the consumers perceive the package as a differentiating factor.
We are also interested in validating the hypothesis that the taste of the new product will be accepted by consumers.
The exploration of these aspects will help us make any possible changes to the product and communication. We also assume that consumers will associate the floral shape to herbs and healthiness. The study should provide us with a clear understanding of how the consumers perceive the packaging as a differentiator. It should also give us clear guidelines on what are the positive and negative perceptions about the new pack.
We expect to get recommendations in form of a programme of research to guide us through the launch of Revive.
Deliverables
We expect to receive a complete report of the research in 4 hard copies and an electronic version of the report to be submitted at the LMBIU office at our corporate headquarters. We also require the research agency to submit a PowerPoint presentation and present it to the marketing team at our offices 1 week after the final report is submitted.
Limitations
Timing: TLMTC wants to have the final report ready by no later than 3rd week of July’ 2011. The marketing team would first review and approve the report. Thereafter, the agency would need to present the key research findings to the marketing team latest by the last week of July’2011.
Budget: The budget that we are willing to allocate to the project is no more than £60,000. This includes any sum spent on travel and other activities to finish the project.
Location: Revive will be launched nationally in UK and hence we want the research to be carried throughout the country in all major cities.
Proposal Submission Information
TLMTC expects a research proposal from the research agency in 2 weeks from the date of receiving research brief. The proposal should be submitted electronically to us, in attention to our marketing manager.
Research Proposal for ‘Revive’ By Insights Consulting Limited
Background
Long Mynd Tea Company “TLMTC”, a leading specialty tea company in United Kingdom, is looking to innovate and introduce a unique range of herbal and fruit tea bags under the brand name ‘Revive’. To help them with the exercise, TLMTC has approached the Insights Consulting team to submit a Research Proposal for the study.
We understand that you want to primarily assess consumer perception of the flower shaped tea bags, which is essentially the prime differentiating factor of the new range, as well as evaluate whether the taste of the new range appeal to consumers.
‘ Tea is a very versatile and competitive category in United Kingdom and hence a deep understanding of the category in general and consumer attitude towards the product in particular needs to be presented in the study (Wilson, 2008). The following outlines our approach to the study in terms of research objectives, scope of the analysis, timelines and budget for the same.
Objectives
To understand the consumer preference and attitude towards the new brand of tea-bags being launched by TLMTC on two parameters namely; consumer appeal for the innovative shape of bags and taste of the product. By means of the study we will provide you with a complete programme of research (data acquisition and analytics) to guide them through the launch of the product.
The report will also provide guidelines on any changes that we deem necessary to make the product more appealing to the target consumer group. The report will also provide leads on consumer perception that will help your marketing team to develop the correct strategy/message to be communicated to consumers though advertisement campaigns.
Methodology – Research Design
Insights Consulting proposes to conduct the study to gauge the appeal for the taste and packaging among the target consumers. As the product is meant for the health conscious group, research would be carried out among those aged between 18-55 years representing Young adults (18-29 years), Older adults (30-40 years) and Middle-aged (41-55 years) consumers.
We understand from secondary sources that for the TLMTC’s product segment, which is herbal teas, to become main segment there is a need for continued innovation around flavour in order to improve the taste of the product. As of now, regular tea is consumed by around 22 million of the UK population and more than half (56%) have experimented with herbal tea but its taste did not appeal to them (Mintel, 2011).
To have a better understanding of the complex consumer preferences, we suggest an optimum combination of both qualitative and quantitative tests to meet the objectives of the study. Following are the recommended methods:
Focus Group Discussions
We propose to conduct in total 9 Focus group discussions in the 3 major cities of United Kingdom which will provide us with a good representation of the target market – London, Manchester and Glasgow, 3 in each city such that it covers all age bands. The Focus group discussion would be led by a moderator while a panel of experts would be present to measure the emotional/ subconscious reactions of the participants.
The participants would be first shown the new tea bags and the moderator would direct questions around the first reaction of the participants, would they like to buy and use it, do they perceive the product to be healthy to understand if the health platform will work for the product, would they be ready to pay a premium for the unique offering, would they include the offering in their daily diet, what would be the likelihood of repeat purchase and most important of all; their suggestions on the product and its unique packaging.
Tea is seen as a healthy drink with high antioxidant content which claims to have slimming effects (University of Maryland, 2010). We understand from other studies that women prefer herbal tea as compared to their male counterparts (DailyMail, 2011).
The FGDs will try to understand this angle as well and try to find if there is a special need of this consumer segment which can be addressed by the product in its current form or with any variants.
Taste Test
The participants would then be requested to taste the product and the next round of discussions would be directed to that aspect. It would again assess the first reaction, how they would like to consume it, would they be ready to pay a premium for this experience, etc.
It is also very important to assess that the health connotation does not intervene with the taste experience of consumers. The taste test will also provide us insights into how different consumers perceive “Revive” as compared to the other brands available in the market. The moderator can also test the possibility of certain flavours and variety (Hot/ Iced) which the participants might seek.
Projective Techniques
We also propose to use Projective Techniques in the focus groups. We will introduce photos and use techniques such as word association and third person technique. Participants will be asked to look at photos and associate different types of people with the new concept/packaging and taste.
This technique would be especially useful since it is a premium product and hence would help in measuring whether it succeeds in appealing to the higher sensibilities of the consumers. This will help us understand the motivations of consumers in consuming the category. It may also help in forming a platform for promotion message building directed at the target market.
We appreciate the general feeling that Projective techniques in themselves may not provide any robust insights and are not considered as method of choice to study consumer motivation, nor do these techniques provide all the tools for such studies.
Though they do help a researcher uncover feelings, beliefs, attitudes and motivation which many consumers find difficult to articulate and explain (Donoghue, 2000). In an experience based category like herbal tea, these techniques will be worthwhile to use.
Questionnaire Based Survey
Administered surveys are important to cover a larger sample base and also gain information on aspects which cannot be covered through qualitative measures.
It would aim at profiling tea drinkers and non drinkers demographically (Revive being a health based premium offering – income, age and gender profiling gains major importance), assess their eating habits (and mainly tea drinking habits in case of tea drinkers and probability of drinking tea in case of non drinkers) and shopping habits, price they would be willing to pay for the product and the optimum pack size for first trials (which would help you in the launch promotions).
It would be also important to analyze whether consumers shift from other beverages to herbal tea given its benefits and increasing health consciousness (The Observer).
The survey questionnaire would be designed based on the above aspects and the inputs we receive in the FGDs. It would include a screener to ensure data collection from a representative sample.
Alternate Techniques
An alternative to Focus Group discussions is Online Focus Group discussion. We can also replace the normal taste test with blind taste test. We can also take help of depth interviews to get in-depth understanding of consumers on a one-to-one basis.
Online focus Group discussions are hard to monitor and they are quite impersonal to gauge customer reaction, which in a way hinders the qualitative assessment associated with focus group discussions. They are also not a good way to reach non-computer literate consumer base and need additional infrastructure (Wright, 2005).
We will also miss out on experiential elements which are essential to a product category like tea. Blind taste tests can be a good medium but here we want to establish the taste perceptions of just our brand and get qualitative feedback on taste comparison.
Blind taste test also requires additional product samples to be used which will have additional time and cost implications. Hence we recommend doing normal taste test. Depth interviews are a good option but are costly and time consuming exercise.
Given the budget constraint and quick turnaround time of the project we recommend conducting focus group discussion which will allow us to combine the discussion with taste test and use our projective techniques as well.
Internet and in-venue surveys would help in accumulating additional information through a larger sample thus optimizing results and providing an all round analysis. This combination will provide us with a robust solution on the research front and also help us overcome the various limitations like time and budget restrictions.
Sampling
Focus Group Discussions
Target population: Health conscious people (18-55 years) and tea drinkers.
Sampling frame: Our database for each city.
Sampling method: The sampling would be a combination of.
Stratified sampling: since the respondents of Focus Group have to meet the criteria of being tea drinkers.
Quota sampling: to cover the entire target age group and both the genders.
Sample size: 90.
Quotas
Since females are the primary shoppers in UK (Lake) as well as prominent consumers of herbal tea, their quota is kept higher than males. The quotas would be as follows:
Gender
Age Group
Quota
Female
Young Adults, 12-29 years
24%
Older Adults, 30- 40 years
20%
Middle Aged, 41- 55 years
23%
Male
Young Adults, 12-29 years
10%
Older Adults, 30- 40 years
13%
Middle Aged, 41- 55 years
10%
The sample will be sourced equally from North, South and Midlands (33% each) to ensure uniformity and non-biased result due to skewed sample.
The group discussions will be carried out in the following scheme-
Group 1: South young adults 18 – 29, (3 males, 7 females)
Group 2: South older adults 30 – 40, (4 males, 6 females)
Group 3: South middle aged 41 – 55, (3 males, 7 females)
Group 4: North young adults 18 – 29, (3 males, 7 females)
Group 5: North older adults 30 – 40, (4 males, 6 females)
Group 6: North middle-aged 41 – 55, (3 males, 7 females)
Group 7: Midlands young adults 18 – 29, (3 males, 7 females)
Target population: Health conscious people (18-55 years).
Sampling frame: Our database for each city (for in-venue surveys) and Internet Panel for Online surveys.
Sampling method: Quota sampling, to cover the entire target age group and both the genders.
Sample size: A sample of 1200 would be distributed equally between In-venue Surveys (600) and Online surveys (600).
Quotas
The survey questionnaire would be administered among both tea drinkers (75%) and non drinkers (25%). It would span 1200 respondents (400 from each city – 100 males, 300 females). This will ensure a proper coverage of the target consumer groups and thus provide us with robust results.
Data Collection and Analysis
Our team will record, transcribe and analyze each of the group discussions and use their results for the final recommendations. The results will be categorized and presented to reflect the views of each demographic group separately and on a combined level to give a holistic view of consumer perception and preference.
The taste tests and projective techniques will also be analyzed and combined with the results of the overall FGDs to come up with a complete solution as required by you. Imbibing the learning from the opinions and ideas that come out in the study, the final report will be a complete guide that will help TLMTC launch Revive successfully in the market.
It will provide adequate consumer insights and marketing cues to help your team in strategizing a successful launch.
The questionnaires would be administered both in person and through internet (50% – 50%).Personal interviews would be conducted at strategic venues; essentially data would be collected from outside retail outlets (hypermarkets/ supermarkets – distributions channels for ‘Revive’) and cafés as they would help in reaching out to our main target market, i.e. shoppers and tea/brewed beverage consumers respectively.
Internet interviews would save time and cost, at the same time in-venue surveys would optimize sample representation.
Deliverables
We will submit 4 (four) hard copies and an electronic copy of the report as requested by TLMTC at end of the study. The report will provide in-depth analysis and report the facts and insights that we gather from the exercise. It will also discuss the recommendations we will make and explain the rationale of the same. We will also clearly spell out the limitations (if any) of the study.
As requested we will also do a PowerPoint presentation of the key results at your head offices one week after the final report is approved. We understand that the audience at the presentation will be members from the marketing team who would be more interested in the key takeaways and action points. As such, we will only present the top-line findings and recommendations at the presentation.
Timing
We assume that the proposal will be accepted by second week of May 2011 and we will be able to start work from third week of May around 16 May, 2011. The project will take approximately 8 weeks to finish after the proposal is accepted. We plan to finish-off the final presentation by 11 July, 2011 so that your marketing team gets ample time to execute the recommendations for an Autumn launch.
Tasks
Start date
Duration (in number of working days)
End date
Set up focus groups
16.05.2011
5
20.05.2011
Focus Group Discussions
23.05.2011
5
27.06.2011
FGD Data Analysis
30.05.2011
7
07.06.2011
Compiling Report
08.06.2011
5
14.06.2011
Set up Questionnaire
15.06.2011
3
17.06.2011
Field work
20.06.2011
5
24.06.2011
Survey data Analysis and Report
27.06.2011
7
05.07.2011
Submission of Final Report
06.07.2011
1
06.07.2011
Review of the report and feedback
07.07.2011
2
08.07.2011
PowerPoint Presentation
11.07.2011
1
11.07.2011
Budget
The total cost of the project is estimated at £58,500 as follows:
Task
Cost/unit
No.’s
Total Cost
Focus Group Discussions ( 2 hours each)
£3,000
9
£27,000
In-venue Interviews
£24
600
£14,400
Internet Interviews
£13.5
600
£8,100
Project management/ Data processing
£9,000
Total
£58,500
We have tried to adjust the cost of the project under the budget limit indicated by TLMTC in the research brief.
Wright, K. B. “Researching Internet-based populations: Advantages and disadvantages of online survey research, online questionnaire authoring software packages, and web survey services.” Journal of Computer-Mediated Communication, 10(3), article 11. (2005). Web.
The Azure Sky Tea Company’s performance in the US has been admirable. The current score of the nation in the Hofstede ranking places the parameters of individualism, uncertainty, power distance, and masculinity at 91, 46, 40, and 62, respectively. These scores are admirable for a business since they signify a relatively stable business environment. However, there is need to integrate the current market of the Azure Sky Tea with better or similar cultures in two external markets as part of the global marketing strategy. The growth will not only expand its market, but also spread the risks as a result of the dynamics in the tea industry. Thus, this paper proposed the German and Canada markets as the most suitable new markets that the US based Azure Sky Tea should expand into.
Possible Combination of countries: Canada and Germany
Germany has the largest economy in Europe. The current score of Germany in the Hofstede ranking places the parameters of individualism, uncertainty, power distance, and masculinity at 67, 65, 35, and 66, respectively. On the other hand, Canada has a developed economy just like Germany. The current score of Canada in the Hofstede ranking places the parameters of individualism, uncertainty, power distance, and masculinity at 80, 48, 39, and 52, respectively.
The characteristic of masculinity indicates the determinants of success and quality of life. For instance, high masculinity indicates that an economy is driven by the need for success and competition. Apparently, Germany has a high masculinity score of 66 while that of Canada is 52. This is a sign that Germany values performance more than Canada. The social status in Germany is defined by the ability to acquire expensive cars, homes, and other forms of luxury. On the hand, success is reflected in the values of quality life and addressing social welfare in Canada. The two countries have more or less the same score in power distance. The difference is only 3 scores. Therefore, the business environment in the three markets is the same.
Uncertainty avoidance defines the approach that a country may adopt to deal with unpredictable future, which is the power or lack of power to control the unexpected events in the future. Germany has a high score of 65 in uncertainty avoidance. This means that the country has insignificant inclination for uncertainty avoidance. The score also suggests that Germany prefers deductive approach to inductive approach in dealing with unpredictable future (Hofstede 1993).
On the other hand, individualism is defined by scale of interdependence among the citizens of a nation. The score for this country is 67. Generally, the high score of 65 in uncertainty avoidance and 67 in individualism indicate that the Germans rely heavily on the actions of the experts to balance the high uncertainly and relatively depend on each other. In comparison, Canada has a score of 48 in uncertainty avoidance and 80 in individualism. Despite the difference in the score, they fall in the same percentile for the two countries.
Recommendations
The proposed entry into the German and Canadian markets will target users of different tea products of the Azure Sky Tea. The company may choose Berlin and Ottawa as head offices in Germany and Canada, respectively. The company will offer customized tea products that incorporate the cultures of the two countries.
From the gathered data, it is apparent that scores of the US, Germany, Canada on Hofstede scales on the parameters of individualism, uncertainty, power distance, and masculinity fall within the same percentile, with slight variances in the individualism parameter. Therefore, the proposed German and Canadian markets will fit within the current business model the Azure Sky Tea Company used in the US.
The most imperative proportions of the Hofstede representation for the Azure Sky tea, in the new markets, would be balancing the dimension of power/distance to minimize the degree of inequality in managing the new offices and business models. The leadership approach will have to embrace the low power/distance score to make the bridge between the US office and new offices accommodative (Casimir & Waldman, 2007).
The Azure Sky Tea will effectively make an entry into the German and Canadian markets as a company operating on the pillars of affordable, quality, and tasty tea products. Reflectively, to capture the distribution channel, the beneficial interests will be distributed across the commodity pool of the target market. This strategy will facilitate the restructuring of effective sales and public awareness to develop the customized tea product knowledge in Germany and Canada (Keegan & Green, 2013).
The main potential risks inherent would be cross-cultural differences and imbalance in the required skills. It is important to implement strategies that are critical in maintaining a low score in this dimension (Hofstede, 1993). A low score dimension translates into novel ideas and creative expression among the employees, despite the variances in cultures. Besides, it is necessary to roll out skills training program to ensure that the organization has a low score in the masculinity dimension. Therefore, the elements of employee equality, job design, and collectiveness will become ideal for the Azure Sky Tea organizational development in the new markets.
References
Casimir, G., & Waldman, D. A. (2007). A cross cultural comparison of the importance of leadership traits for effective low-level and high-level leaders: Canada and Germany. International Journal of Cross Cultural Management, 7(1), 47-61.
Hofstede, G. (1993). Cultural constraints in management theories. Academy of Management Executive, 7(1), 81-94.
Keegan, J., & Green, M. (2013). Global Marketing (7th ed.). Upper Saddle River, NJ: Prince Hall/Pearson.
Positive customer experience is instrumental in keeping clients satisfied which directly correlates to loyal customers and increased wallet shares from these clients. However, it is very hard for a company to ensure customer service that coincides with the set expectations because the personnel that makes customer-service decisions should think pragmatically and maintain a balance between the needs of their company and the requirements of their new and loyal customers. Thus, companies’ managers are now on the look for methods of enhancing the customer service experience for providing better customer service that goes along with the goals of the business.
The outsourced “outside” sales employees are mostly self-employed individuals that work based on the commissions they get from selling the product. Since this portion of sales employees greatly contributes to the revenue of the business, so poor customer service equals poor sales. In this case, training should be provided for employees that show low levels of performance. Moreover, it can be beneficial to introduce policies that benefit the customers since they are often perceived as the main source of complaints (Drummond, 2014, p. 8).
Business Restoration
Restoring a business can be complicated, especially in a scenario of getting back attractiveness to the brand on the part of customers. It is important to keep in mind that if a company receives negative reviews from customers, there is no reason to panic. On the contrary, this is an opportunity to analyze the performance based on the reviews and get better instead of defending the business and staying blind to criticism. Rebranding might be a good idea in such a case because at times a company rarely thinks what its brand represents, what are its ideas and targets. Rebranding can be seen as “putting on a fresh coat of paint” in both literal and figurative meanings (Bhasin, n.d., para. 2).
To restore the attractiveness of a brand and gain support from potential customers in an atmosphere of strict competitiveness, Tea and More can look into organizing community events and other parties that can be an opportunity to put the brand’s name out there as well as boost the employees’ morale. Creating events can be an inexpensive solution that will bring the company closer to the public. As building new bonds with the community is important, creating a focus group to get insights into what customers think about the business can also be instrumental in rebuilding the attractiveness of a company.
The business likely has some issues that are under the surface, or a company can be doing an array of useful things for the business without putting enough focus on them. Thus, a focus group is the best way to get any answers a business might have (Bhasin, n.d., para. 11).
Stock Outages Reduction
For ensuring effective purchasing, a business should stop paying attention only to the numbers. To find the balance between stock outages and the problem of having too many items in stock, the usual buying plan should be implemented on the basis on the demand for the product as well as the uniqueness of the most popular product so that the stock never runs out. According to the 80-20 demand rule, it is crucial to outline the top 20% of the most in-demand items as the ones that must never be out of stock. Then, to this list, the stock manager should add the next 40% of the stock that is in moderate demand, and that is unique enough so that the customers cannot find an alternative to the product from another supplier (Everitt, 2008, para. 16).
Another aspect of stock outage reduction is the minimization of the frustration of customers when a stock outage does occur. Even the biggest companies like Target can occasionally run out of some items. Thus, a business should develop a strategic plan to manage customer dissatisfaction. Employees should be trained to apologize for the inconveniences and offer a close substitute for the desired product and inform about the time the item is coming back in stock. Furthermore, a pre-order system can be also helpful as a way to calm customer dissatisfaction (Everitt, 2008, para. 22).
Reducing Collection Time and New Varieties of Experiments
It is important to note that seasonality is crucial when it comes to tea collection; some tea sorts are being collected only at a particular time of year (Tea Harvesting Timeline, 2011, para. 1). In order not to alienate customers while the tea is being collected and shipped, the company should go back to the reduction of stock outages. Thus, if any issues prolong the tea harvesting time, business is sure that the most popular tea varieties are always in stock.
By ordering more stock of the most popular items, the tea collection time will not be as important. However, the process of handling sales can be improved. The invoices can be sent to customers by fax as well as the interest on balances to target less than ninety days. For keeping good customer relationships, keeping the most sold products in stock can be instrumental. By gradually implementing the changes, Tea and More will be able to steadily decrease the collection period to meet the optimum.
Because of the increased awareness of health, the demand for new varieties of tea will continue to increase. Moreover, small tea manufacturers are becoming known nationwide thanks to their innovative and specialized teas (Tea Production in the US: Market Research Report, 2016, para. 2). Thus, Tea and More should continue experiments with new tea varieties on a smaller scale. If successful, new tea varieties should be gradually introduced into the regular stock of products for reducing any risks.
Strategic Innovation for Business Growth
Business improvement and growth are closely linked to strategic innovation that relates to the creation of new products or business models able to offer new value to customers. Strategic innovation is a framework that combines an array of creative approaches towards a business that includes consumer research, development of new perspectives on the existing strategy as well as new research (Palmer & Kaplan, n.d., p. 1).
The strategic innovation framework implies a holistic approach towards a business that has a practical use on any level. Furthermore, the approach combines the exploration of possibilities that have a short-term impact on the business with opportunities that can potentially have a long-term effect. Tea and More should look into the strategic innovation framework that will challenge the company to focus on an open-minded development process that forces them to look and think far beyond the set rules and limits.
References
Bhasin, H. (n.d.). 10 Easy Ways to Rebuild and Market Your Business Image. Web.
The primary difficulties of branding often account for target customers. The task of attracting new clients is double demanding for famous companies since economists acknowledge that it is always challenging to surpass the initial success (Williams par. 1).
The Lipton Tea corporation that possesses high customer rates and is widely recognized by the world tea-lovers adopted a successful approach to renovated branding. Thus, the management of the company develops and improves its production, but keeps an orientation on the initial clients, which helps the company to maintain the standards of efficient marketing (Strebel and Ohlsson par. 2).
The Lipton Tea innovative brand is a line of ice tea drinks. The company targets two primary customer segments while developing production. However, the management team gives creative names to the client’s cohorts that underline their preferences. The first group is called Happy Yogis and the second team is referred to as Forrest Gumps. Thus, one can deduce that the first segment, which accounts for a primary market category, underlines the universal conception of the company.
Mainly, it refers to clients, which support healthy lifestyles. According to the medical advisories, cold tea beverages serve as a perfect substitution for carbonated drinks. Moreover, it is claimed that such products control the consumed calories and provide anti-oxidants for the organism (“Iced Tea and Its Many Benefits” par. 3). The second segment, which constitutes the secondary market sector, aims at reaching busy people, who need daily beverage supplies. The marketing strategy presupposes attracting Forrest Gumps by advertising Lipton glass bottles that are easy in use and can be carried by the customers.
The Lipton Tea company embraces a winning strategy of customer segmentation since it follows three dimensions of customers’ engagement: current value, future promises, and client loyalty (Hwang, Jung, and Suh 181). Therefore, it does not exclude its permanent client cohorts from the renovated segments but rather supports their demands. However, the company pays attention to the seasonal specification of product development by selling summer bottles, which maintains actual value. Moreover, it keeps a future perspective since, due to the scientific estimations, interactive technologies will enhance the level of health promotion throughout the world in the next ten years (Street, Gold, and Manning 3).
Customers profiling helps the management of the company to connect to its customers, which inflicts an elaborate understanding of the clients’ needs. Though approximately 28% of citizens remain inactive in the USA, there is a strong tendency to a healthy living revitalization (“President’s Council of Fitness, Sports & Nutrition” par. 1).
Therefore, the Lipton Tea corporation that launched the production of low-calorie beverages matched the preferences of a global society to the marketing peculiarities. Thus, the customers that fall into the primary segment are, primarily, young and motivated people, who care about their physical and mental well-being. Such clients are likely to engage in sports activities as well as pursue multiple traveling routes and keep a diet or even embrace vegetarianism.
The marketing category of Forrest Gumps has a diverse character and can include occasional clients, who do not buy the product temporarily. This sector is stipulated by the rashness of urban life. Thus, the grouping accounts for preoccupied individuals, who usually prefer passive rest and staying out of the marketing sector at the times of their occupational inactivity. Consequently, this cohort is characterized by its occasional nature.
Works Cited
Hwang, Hyunseok, Taesoo Jung, and Euiho Suh. “An LTV Model and Customer Segmentation Based on Customer Value: A Case Study on the Wireless Communication Industry.” Expert Systems with Applications 26.2 (2006): 181- 182. Print.
Street, Richard, William Gold, and Timothy Manning. Health Promotion and Interactive Technology: Theoretical Applications and Future Directions, London: Routledge, 2013. Print.
Do you consider Numi’s relationships with its producers as important to its marketing as the relationships with its customers?
Numi’s relationship with its producers is important in marketing. There is a need to have a good relationship between the company and its producers so as to ensure that they continue producing quality products from the farms. This will aid in marketing through production of high quality tea that meets consumer’s satisfaction. Even though Numi’s relationship with its producers is important, I consider the relationship with their customers to be of more importance in marketing their products because it is the consumers who act as the backbone of any thriving business and the better their relationships, the more efficient the marketing will be.
How does Numi use technology to enhance its customer relationships? Can you suggest other ways in which the management team can use technology to reach consumers of Numi teas?
Numi has embraced technology to keep track of its consumers and make them part of the Numi family. This has been made possible through use of e-mail communication, monthly periodicals and newsletters to keep their consumers up to date with latest trends and developments in the company. Numi has also opened a fan page on facebook and twitter where consumers and other interested parties can join and chat hence promoting consumer relationships and also widening their networks for marketing tea products.
Numi can design a website where consumers can get all the information pertaining to the product and a section for online services where they can freely post their opinions, complains or questions about the product and services and get instant feedback from the company’s’ support team.
The company can also use mobile phones to market their tea by sending special coupons to their potential consumers and also reaching out to their esteemed customers through messaging services.
What methods would you suggest that Numi use to collect customer data?
Numi can use questionnaires to get to know their consumer’s details and opinions towards the products and services offered by the company. The questionnaires can be distributed throughout their retail outlets.
Use research agencies to carry out face-to-face interviews and research on the target consumers like the students and get to know their names, profile, preferences and opinions towards Numi tea.
Numi can also use internet based assessment forms where consumers fill up the forms online, and submit them to the support team.
Numi can also carry out a general survey in the market so as to gather general demography of its target customers.
The story of Honest Tea is one of those truly inspiring corporate legends that create a unique air of trust and attractiveness for the customers. The firm owes a lot of its charm to Seth Goldman’s ability to maintain a balance in the social, economic, and environmental progress of the organization. By linking the company’s mission to the current health concerns (“the wealthiest does not mean the best lifestyle, diets, and interactions” (Woodward, 2013)), he designed the unique business framework that served as the platform for entrepreneurship to evolve rapidly by building a “mission-driven brand” (Woodward, 2013).
As a result, the societal and the environmental factors of the Triple Bottom Line (TBL) were incorporated into the foundation of the company’s philosophy, which implied that “a problem equals a solution” (Goldman, 2013). By stressing that the needs and preferences of the retailer do not necessarily have to coincide with the ones of the customer, Seth added the third (economic) dimension of the TBL to his project: “if you don’t like it doesn’t mean the customer won’t” (Goldman, 2013).
Specific Aspect
I find the social aspect to be the easiest to incorporate in the company’s framework. Branding the product to the target audience by incorporating specific images and ideas seems a comparatively easy task, even though it requires extensive market research. Meeting the environmental standards, however, clearly is the hardest challenge. Pollution and waste are integral and inevitable elements of the manufacturing process, and reducing them to zero is barely possible.
Comparison
The concept of TBL might be unpopular with other organizations since it requires a very elaborate allocation of resources. More importantly, TBL implies that the very concept of marketing should be reconsidered and that an innovative strategy should be created.
When it comes to consumer service facts, Tea and More utilizes three permanent salespersons. These representatives are usually accountable for the events within a market of numerous locations. In essence, the sales agents characterize a varied range of products to the small markets, including private restaurants and grocery stores. The employment of full-time marketing representatives has enabled the company to grow its operations within the local market. Therefore, regarding the information on consumer service, Tea and More has been leading in ensuring improved consumer experience despite facing various challenges.
Payment Conditions
The Tea and More (TAM) consumers are generally given a 30-day window period from when the product has left the inventory before their payment is considered. Furthermore, the company relies on regular mail to send its invoices despite several clients preferring the use of fax to send invoices. To maintain good consumer relations, the organization does not charge interest proportions on balances less than 90 days in arrears. Conversely, clients with bad credit standards and absent credit information are expected to pay for the products using their credit cards. In such cases, TAM allocates a 4 percent surcharge or cash managed by external sales representatives before they are presented to the company. However, the control of such finances has been problematic over the years as various personnel deducts their commissions before presenting the remaining cash to the finance department. From the facts, payment operations of the company have played a vital role in its operations, including the supply chain.
Product Variety
Another significant fact that can be assessed from the TAM’s case is the account of the aspect of product variety. Considering the growing demand for products by the leading cafeteria businesses, TAM has adjusted its production operations to focus on introducing new kinds of teas. On the contrary, the wholesale and retail sectors are inclined to six traditional tea types manufactured by the company. According to previous data from the company, the efforts to create a vast product line have been limited by the enormous capital required to realize the objective. Therefore, conclusions from the aspect of product variety are critical to the firm’s supply chain.
Major Problem
From the assessment of the case study, the main problem TMA is currently facing is the increased production costs. The company’s TMA operation expenses have surged over the years due to the growing demand for various products, inventory management procedures, and supplier deficiency. First, the aspect of a diversified commodity line requires that the company source more raw materials from other suppliers as their current partners are overwhelmed by the required quantities. Similarly, on the element of inventory management, the consumers prefer having their invoices faxed compared to regular mailing. Such guidelines will require more resources in establishing an electronic payment system, which is costly to maintain. Therefore, the issue of production cost is vital in this case; thus, the paper will present various mitigation strategies.
Possible Solutions
The challenge of increased production costs has impacted the company’s success. However, the issue can be resolved through the implementation of various approaches. To begin, TMA should assess its manufacturing operations by understanding how the tea varieties are produced and eliminating any activities that are redundant and expensive (Arhin et al., 2022). The strategy will involve streamlining each stage of the creation cycle and monitoring the capital needed to complete the step. Furthermore, it will necessitate understanding each target market and preference, thus introducing tea brands that satisfy their specific needs. Second, TMA’s managers should make an effort to cut the direct price of materials. The organization can effect this resolution by identifying competitive vendors for their raw materials (Kumarihami & Song, 2018). As a result, if the firm does not acquire a cheap supplier, it should concentrate on negotiating a long-standing partnership that will drive reduced unit costs. Finally, TMA should redesign its products by using inexpensive and fewer foundation materials without affecting quality (Du Toit et al., 2018). In this case, the corporation should streamline its goods by eliminating features that do not influence its overall marketplace appeal.
Rationale
From the analysis of the solutions to the challenge of increased production costs, the effective approach for mitigating the problem is the examination of manufacturing procedures. The strategy will be effective in the case of TMA since the company intends to introduce different varieties of tea (Arhin et al., 2022). Usually, this will improve the comprehension of the product creation activities and identify those that require significant funding. Additionally, the solution is effective as it will help the firm managers know the appropriate funding for each process, hence effective budgeting.
Implementation
To begin, the TMA managers will commence the process by communicating the objectives of the solution, which is to understand the cost of each manufacturing stage. Second, the administrators should outline the plan’s timeline in the execution design. At this stage, the executive will determine the time frame for the successful introduction of the strategy. Third, the company is expected to apportion adequate resources. In this case, the leaders will collect information on the production time for each tea and its cost and determine how they will acquire the absent materials. Fourth, the managers should allocate group staff duties by establishing an overall team schedule with general responsibilities for each member to engage. The move will help boost the knowledge of each tea brand, its requirement, and its production period. The final step is assessing success, which entails deciding how regularly TMA will examine its progress. Therefore, the challenge of increased production cost is a vital component in the tea production sector and can be effectively mitigated through understanding the production processes.
Du Toit, J., Nankhuni, F. J., & Kanyamuka, J. S. (2018). Opportunities to enhance the competitiveness of Malawi’s tea industry: Evidence from an analysis of the tea value chain.
The aim of the research was to determine the right marketing mix for price, promotion, product, and place for Yorkshire Tea to put it at a competitive edge with its key competitors by identifying and determining the right market and their needs to tailor its product to meet customer needs.
Introduction
Yorkshire Tea is one of the tea beverages that are widely consumed by a number of people in the beverage market occupying about 27% of drinks besides alcohol, water, soft drinks, and coffee.
Research has shown that Yorkshire Tea occupies a 20% share of the market while its closest competitors PG Tips is estimated to occupy 18%, Twinning’s estimated to occupy 18%, Tetley estimated to occupy 16%, and Other brands that occupy 28% of the market. The demographic consumption of Yorkshire tea is characteristic of an even distribution. Product information is readily available online, magazines, newspapers, and other retail outlets.
Methodology
A five member team was formed to conduct the research discussed as follows. These members consisted of Leo, Emma, Jason, Imad, and the group leader. The team planned way before hand on the tools to use for conducting the interview and analysing the results.
According to their plan, questionnaires were administered on a number of male and female participants. The percentage composition of the participants in age was designed as follows: below 16-2%, 17-25-42%, 26-35-34%, 36-45-18%, 46-59-4%, and above 60-0%. The team had identified the outside of the shopping mall located near Univercity.
Each participant was required to provide information by filling in the questionnaire on one’s most preferred drink, and the frequency with which the drink of choice was taken. In addition to that, participants were required to fill in the questionnaire on the most preferred tea among the range of tea beverages that were perceived to be York Shire’s Tea competitors. Competing tea beverages against Yorkshire that were researched on included, Yorkshire Tea itself, PG Tips, Twinning’s, Tetley, and other tea beverages from other destinations.
Each participant was required to indicate how they came to know Yorkshire Tea with the options of Televisions, magazines, Newspapers, and people to select from. Other information sources could be online and an individual’s own encounter with the product.
According to article Novak (2010, p.1), further research was conducted on the volume of sales of York Shire Tea and the packaging done on the product. The effect of different packaging methods and the perceived value and customer loyalty to the brand thus created were identified to range from light red, dark red, blue, brown, and green and their respective percentage packaging were analyzed.
Customers supplied information on their preferred product price, which was evaluated on the scale of very expensive, expensive, fair, and cheap to very cheap. The information was presented graphically for analysis purposes.
According to McNamara (n.d, p.1), each respondent was required to provide information on the most preferred customer they thought the product was tailored to target. In addition to that, each participant provided recommendations on any improvements to be made on the product they thought was desirable to meet their needs.
Results and Analysis
According to the research it was established that Yorkshire Tea (n.d, p.1) enjoyed a 20% consumption rate as compared to its competitors. Data was analyzed and presented graphically. It was established that other tea beverages competitively occupied 28% of the market, while the closest competitors had 18% and 16% shares in the market.
That indicated how competitive the market was in terms of customer base for the product to maintain a strong customer base and sustain its position and increase its market share. Thus the concept of place, where to market the product, its brand name could seriously impact on its position in the market. The quality of product packaging, consumption warranties and other aspects should be incorporated in product design and differentiated to meet target market needs.
According to the Novak (2010, p.1), the research indicated that the pricing of the product should be consistent with market demographics, which could depend on, among other factors production costs of Yorkshire Tea, supply chain components such as transportation.
McCarthy (2010, p.1) argues that other pricing components for consideration included warehousing, advertising costs, public relations, and administration activities. According to the article Yorkshire Tea, they were realized to be pertinent factors to integrate in product promotion to succeed in sustaining and increasing the market share for the product affirmed in the article Yorkshire Tea.
Internet, magazines, newspapers, and other marketing were identified to take shares in advertising the product. The Yorkshire Tea (n.d, p.1) promotional schemed were realized not meet all the marketing needs as each occupied a relatively small share.
According to the article The Marketing Mix, product pricing was perceived to be relatively expensive for the majority of participants as illustrated on the figure below. Promotional actives were noted to be rare as the respondents affirmed.
However, it was realized during the research that different packaging were done on the product tailored at different market needs and taste. These included packaging products in light red with a 10% liking from the customers, Dark red that had a 30% share, blue with a 20% share, Brown with 10% share, and Green with a 30% share. Based on these distributions of product innovations, the colors with a high percentage share could be enhanced and their prices tailored to attract more customers.
Conclusion
The research successfully established Yorkshire Tea’s competitors based on the 4 P’s of product, price, promotion, and place. Tea drinking was realized to take only 27% of the drinks consumed in the market and the need to expand on this market was clear from the research results.
The product was established to take a 20% share of the market behind its key competitors who were 28% ahead of the beverage. Other close competitors were closely behind Yorkshire tea with a paltry 18% and 16% respectively calling upon producers to adopt aggressive marketing methods to attract more customers to create a strong customer base and brand loyalty, like the coca coal company.
It was realized that despite the beverage being tailored to meet key target customers, a lot of innovation was needed in the side of product promotion, pricing, product innovations, and place to attract more customers. That could give the company an upper hand in the competitive market.
Following the research it was recommended that future research incorporate Porter’s five industry forces along with the 4 P’s approach, and value chain analysis and their effects on the strength of the product in the market and sustainability and strategies to gain a bigger market share. It was recommended further that Yorkshire Tea producers incorporate key competing elements characterizing their competitors, identify, and evaluate their weaknesses and build on their strengths to thrive on success in the market.