ntroducing…

Your Tea 1

Introducing….

Your Tea 2

Your Tea Brings Power Tea to Market

Nicholette Davis, McKenna Goodwin, Charlene Hoang, Jesse Picar, and Courtney

Volek, Steven Velazquez

Point Loma Nazarene University

MKT 332, Christina Kalberg

December 2015

Power Tea

Your Tea 3

Executive Summary

Your Tea, a company who’s known for a variety of teas, now has a brand new

product on the market. Power Tea is an exclusive product that markets to existing

consumers, and now targeted to 3,755,675 men. Your Tea offers a healthy choice and a

muscle-building alternative to anyone who is considering a healthy lifestyle.

Your Tea has identified an opportunity in a niche market for a pre-bottled protein

tea that assists with gaining muscle mass. The company's overall strategy for

addressing this opportunity is through the trends of protein drinks. There are numerous

drinks that integrate popular drinks with protein. What Your Tea has done is infuse

protein with tea-based beverages. Your Tea has an opportunity to meet the needs for

athletes and health driven consumers by bridging the gap for protein and tea drinkers.

The target market for Power Tea is the 3,755,675 men in the United States who

are between the ages of 18 to 44 that drink green tea. Having Power Tea on the market

solves the demand for lactose intolerant, vegan, and protein rich drink that supports an

active lifestyle for young adult men. The key components of Power Tea’s strategy are

influential endorsers, effective advertisements, such as word of mouth, competitive-

based pricing, and efficient packaging.

Of the 3,755,675-targeted men, Your Tea expects five percent of their total

targeted market to reduce to 187,784 men. Among that specific targeted group, Your

Tea will earn $9,389,187 in revenues and expects to grow in the year 2016. Through

successful marketing strategies and pricing plans, Your Tea will continue to compete

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against other competitors, such as Isopure, to promote and prove that Power Tea is the

best all-rounded protein tea-based drink.

Internal Analysis

Your Tea takes an internal analysis of its preexisting skills to make a successful

and exciting marketing plan for its launch of the new men's tea line, Power Tea. The

marketing team analyzes the strengths and weaknesses of the company to attain a

better understanding on how to make profits faster as well as handle hurdles along the

way. The marketing team also conversed about the products that are currently sold by

Your Tea and how the launch of Power Tea will affect these products. Lastly, there was

a great deal of research on the existing forms of marketing and how the company can

integrate its current mission with new ideas.

Your Tea has many different strengths such as social media and computer

networking. The company emphasizes partnerships with health gurus, health experts

and doctors to endorse its products and advertise this alternative healthy drink. One of

the top strengths the company has is its wide range of targeted customers. The targeted

customer is young men between the ages of 18 to 44 who attain the interest of having a

healthy lifestyle. The marketing team takes advantage of the company’s social media

skills, through advertising through different networks such as Instagram, Facebook,

Twitter, and blogs.  Your Tea truly believes that its mission is to make its customer

happy and satisfied with the products provided through the online store.

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Since this is a new product line entering the market there is not a past sales

history to refer to. has been. According to Customer Service manager their data and

numbers are confidential and not released to the public.

Isopure is a current product on the market that is most comparable to the launch

of Power Tea due to their focus on a protein drink that helps grow muscle mass. Even

though similar in end results, Power Tea will not have a hard time making more profits

due to its market position. The product line, Power Tea has an excellent market position

with respect to its umbrella company Your Tea, who has top ranking brand reviews

across the Internet. The current product lines and company brand image has brought in

a large scale of sales volume relative to the sales volume of its competitors in the same

tea industry.

Currently Your Tea has partnerships and sponsorships with fitness gurus, health

experts and doctors to endorse the new line of product, Power Tea. Each endorser has

a specific promotional code.  Once promotional codes are activated commissions will be

credited accordingly. Customers that post via social media or write blog reviews

regarding their experience with the company will also receive a free pack of Power Tea.

The biggest weakness that Power Tea struggles with is the amount of time it has

had on the market.  Since the new line of product is barely starting out there is a lack of

funds to be able to advertise on a larger scale such as TV ads or print magazine ads.

There is also a lack of connections to big corporations that can sell the product in brick

and mortar stores. All current purchases are made online.

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Your Tea provides a wide range of products to its consumers. Some of these

products currently on the market include: Body Tea, Mood Tea, Cafe Tea, Teaware, Gift

Boxes, TeaFace, TeaWare, and EBooks. Due to the marketing research conducted it is

inferred that there will be an increase in all these sales once the Men’s Tea line is

launched. Teaware will have the biggest growth in sales after the launch due to the

widening of the target market and expand in use for tea utensils by males.

Customer

Your Teas’ current customer base is made of mainly women who are interested

in health products. All of Your Teas products are targeted at helping certain issues that

many people face. There are currently two categories of teas. One of the products is

Body Teas, which has eleven products under that category. The next category is Mood

Teas, which has five different products. In the Body Tea category, the teas target issues

like indigestion, fertility, skin problems, and everyday health. The Mood Teas are aimed

at increasing energy, improving mood and assisting with better sleep. There are Her

Tea and Man Tea that target specific problems for women and men. Her Tea assists

with boosting immunity, enhancing mood, alleviating PMS and calming digestion. Man

Tea assists with lean muscle mass gain, calming digestion, stamina and strength,

reducing coffee cravings and enhancing energy. Your Teas’ potential customers are

segmented by gender for the most part. Your Tea has specific products targeted at men

and women and from there Your Teas’ products are targeted to treat individual

problems.

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Your Teas’ new product, Power Tea, is targeted specifically at men. Power Tea’s

target market is men who live an active lifestyle, want to build muscle and are on the go

a lot. Power Tea is a bottled tea that contains forty grams of protein to assist with

gaining muscle mass. This product is different from Man Tea because it contains protein

and is bottled for the customer’s convenience. Power Tea is prepackaged so men can

easily grab it and take it to the gym without the hassle of preparing it first. Men like the

convenience the product brings to them. The geographic segmentation Power Tea aims

to reach is men who live in active cities like San Francisco, Seattle, Los Angeles, Salt

Lake City and so on. Power Tea’s product will be targeted towards the geographic

areas that are centered on living an active lifestyle. Power Tea’s demographic

segmentation is active men in between the ages of 18-44 who have money to spend on

health products. According the US Census Bureau, there are 41,729,723 men between

the ages of 18 and 44. Out of those men, 15% drink green tea, which comes out to

3,755,675 men; this is the market Power Tea is looking to reach. Approximately four out

of five consumers drink tea. Millennials are the largest consumers of tea as 87% of

them consume tea (Tea USA). Power Tea’s target market cares about their appearance

and is willing to spend money on products that will enhance it. Power Tea’s

psychographic segmentation targets men who are strong, hardworking and motivated to

improve their physique.

The major positive response to this concept is that men like the convenience

Power Tea brings. Power Tea is prepackaged and ready for consumption. The

simplicity of the product is the reason men purchase it. In 2014, sales were more than

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$5.2 billion for ready to drink teas. The negative response to Power Tea is that men are

not as open minded to the concept of drinking tea. Many men currently drink protein

shakes, but are not aware that there is also protein tea available. The benefits that men

see is that Power Tea is an alternative to the protein shakes they typically drink and it is

also ready for consumption. Most of Your Teas’ teas sell for around $30-$70 currently.

Power Tea would be priced at around $50 for a twelve pack of the tea, which comes to

a little over $4 per bottle. This is a price men would be willing to pay for Power Tea

because they are already pay around that much for bottled protein shakes. Overall, men

would be willing to purchase the product if they were informed about Power Tea and

knew the benefits it could bring to them.

Competition

Criterion Your ProductPower Tea

Competitor 1IsoPure Tea

Competitor 2Blu Protein Tea

Competitor 3Nectar Protein Lemon Tea

Product Characteristics

● Value Proposition: prepackage protein tea to promote a healthy lifestyle

● 100 calories● Decaf● Lactose free● Fat free● No

preservatives● No impurities

● Value Proposition: ere anti radical

● Flavonoids antioxidants

● Caffeine● Lactose free● Fat free● No preservatives● No impurities.

Value Proposition: Natural and organic high-protein tea designed for everyday use in support of a healthy lifestyle. $12.49 for 4 bottles Made from only the finest natural and organic ingredients Products are designed for everyday use in support of a healthy lifestyle without compromising taste or quality.

Value Proposition: Nectar mixes instantly with a spoon and tastes great One scoop of Nectar per 8-16 ounces of water Consume 2-3 times a day Mixes instantaneously.  100 calories for 1 whole scoop

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Key Strengths

● 40 grams of protein

● Lactose free● No

preservatives● No impurities● Free shipping● 100 calories● Decaf● Variety of flavors● Prebiotic Dietary

Fiber● No Artificial

Ingredients● No GMOs● Gluten-Free● Energy release

● No preservatives● No impurities● Accessible to

buy in store● Drinking only 1

bottle a day● Gives lots of

energy● 40 grams of

protein● 40 mgs of

caffeine

● Taste● Organic● Variety of flavors● Organic cane

sugar● Inulin (dietary

fiber)● New Zealand

whey● Prebiotic Dietary

Fiber● No Artificial

Ingredients● No GMOs● Gluten-Free● 45 calories

● 38.99 for 2 pounds of tea● Can choose how much

protein you intake● Corn Free Egg Free, Fish

Free, Gluten Free, Peanut Free, Salt Free, Shellfish Free, Sugar Free, Tree Nut Free, Wheat Free, Yeast Free

● Specialty Diets: Gluten Free, Lactose Free, Low Carb, Sugar Free

● Saves bottles

Key Weaknesses ● Not in store● $50.00

$64.99 for 12 bottles Not organic 45mg of sodium High calories (170)

● Contains whey protein (milk)

● Made from concentrated juices and acids

● 14g of sugar● 10 grams of

protein● protein varies with

flavor● 20 mg of sodium● Whey protein

isolate (milk)

● Not premade● Must drink 2-3 times a

day for normal protein intake

● Whey protein (milk)● 6 grams of protein in ¼ a

scoop● Only available online

Etc.  1st most proteinOnly lactose free tea  2nd most protein  Best tasting  Most inexpensive

 

The three main competitors for Power tea are IsoPure Tea, Blu Protein Tea and

Nectar Protein Lemon Tea. IsoPure Tea is the main competitor because of their

marketing tactics. When searching protein tea through Google, IsoPure tea is the first

populated site.  IsoPure is sold in stores and on bodybuilding.com, vitaminshopp.com,

amazon.com and gnc.com.  They have extremely good reviews on all of the sites. They

have various flavors and are the only tea with 40 grams of protein and 40 mgs of

caffeine. Their value proposition is “we’re anti-radical”.

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Blu Protein tea is the best tasting tea however, this can be relative to the person.

Blu Protein tea is sold on Amazon.com, vitacost.com, vitaminshoppe.com and

powerteas.com. The ingredients used are organic, GMO free, and gluten-free. Blu

Protein tea is the most inexpensive packaged tea and has various flavors as well. Blu

Protein tea is not one of the first pages to populate on a Google search of protein tea

but they are the first images to populate on Google for protein tea. Their value

proposition is “natural and organic high-protein tea designed for everyday use in support

of a healthy lifestyle”.

Nectar Protein Lemon Tea is the second protein tea to populate on Google

search. This formula is not pre-bottle like the rest of the competitor. The tea is a powder

formula which the consumer just adds water to. This is sold though amazon.com,

drugstore.com, vitaminshope.com and other online websites. They have 6 grams of

protein with ¼ of a scoop. It is 100 calories for one whole scoop. The tea is sold for

$38.99 for two pounds so that makes this the most inexpensive protein tea on the

market. The ingredients used are gluten free, lactose free, low carb, and sugar free.

This will probably be the choice for people interested in sustainment.  Their value

proposition is “Nectar mixes instantly with a spoon and tastes great”.

Macroenvironmental Factors

When entering the market with a new product one needs to consider the

environments that affect the product or service. Social, political, demographic,

economic, and technological environments within the current market have both positive

and negative effects on the new product, Power Tea.

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Social environments have a great effect on the target market due to the

population and sustainability. When looking into the Western countries, Power Tea’s

main geographical region for sales, there is an obvious decline in birth rate. This is a

negative effect on marketing Power Tea since there will be less customers to market the

product to and in turn lower sales of the Protein Power Tea. Within the social

environment there is a trending pull towards sustainability. Consumers are increasingly

becoming conscious of environmental conservation. Power Tea’s marketing team has

responded to these rising levels of consumers’ environmental consciousness with a tea

packaging that highlight this fact. This positively affects the product due to the eco-

friendly packaging that is highly sellable due to the social pull towards sustainability.

Political factors can have a great effect on Your Tea’s business. Several aspects

of government policy such as taxes, tariffs and trade control can affect company profits.

Due to international trade over the internet it is highly important Your Tea follows all

American laws while providing to residents in the country. If taxes and tariff prices are

raised and trade control is more highly regulated there could be a negative impact on

Power Tea’s marketing plan due to a smaller amount of funds to market the new line to

the tea’s new male target market.

The demographic and economic environments have a great effect on the

marketing of the new line of men’s high protein tea. By marketing Power Tea to males

as well as women the company has broadened the target market to the entire

demographic market. The target market has doubled just by simply expanding the tea

line with Power Tea. The economic growth of the country also has a positive effect on

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the sales and marketing of the product. Many families are finally recovered from the

recession from 2008. Due to this, there is a feeling of security with a larger discretionary

income. In return consumers are more likely to spend their money testing new products

for their households, such as Power Tea.

Last but certainly not least, the technology environment has the biggest effect on

the marketing of Your Tea’s new line of tea, Power Tea. With the big social media

boom, there is a big push to use “insta famous” Instagram users to promote products to

younger generation women, and now men. Power Tea’s marketing team utilizes the

YouTube channels to give rave reviews of the upcoming products to get consumers

excited and more apt to purchase online right after watching an educational video

demonstrating the positive effects when drinking Power Tea. Many of the company’s

ads are found on Facebook and blogs.

It is vital that Power Tea’s marketing team pay attention to the social, political,

demographic, economic, and technological environments in which the new product is

entering the market. Most of these currently have a positive effect on the marketing

tactics, but the company still needs to keep analyzing the customer's wants and needs

in each area.

SWOT Analysis

Strengths● Instagram● Fully Developed Website● Using bloggers as a mean of

advertisement● Social media● Health benefits

Weaknesses● Strictly online● Lack of information to customers● Responding to customer service

emails in a timely matter● Nutritional information● Evidence to back up claims

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● Sustainable● Fast Delivery

Opportunities● Expanding to wholesalers to

distribute into stores● Adding men-geared beverage

strengthens weakest sector of Your Tea

● Current trending “health kick”

Threats● Other companies selling their

products in stores rather than online only.

● Other companies offering similar products

● Men preferring traditional protein powder over protein tea.

Strengths and Weaknesses

Your Tea like any other business has their weak points and their strong points.

Your Tea Specifically uses the aid of social media and today’s technologies to

strengthen their business. One of Your Tea’s biggest marketing strategies is the use of

Instagram. Your Tea currently has 405,000 followers on Instagram alone. They post an

average of five images everyday and get thousands of likes and comments on each of

them. Your Tea has recognized the importance of brand recognition. “Your social media

networks are just new channels for your brand’s voice and content. This is important

because it simultaneously makes you easier and more accessible for new customers,

and makes you more familiar and recognizable for existing customers”, (DeMers).

Another strength Your Tea has is the health benefits of their products. Your Tea

boasts the improvement of their customers lives through improved digestion, increased

metabolism and weight loss, increased energy levels, cleansing of the liver, improved

concentration, and reduced concentrations.

While doing all these things the tea tastes good too. Your Tea may have their

strengths but they also have their weaknesses. One of Your Tea’s biggest downfalls is

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the lack of a physical storefront. This keeps the customer from being able to physically

interact with Your Tea’s products. All the customer has is the website and what others

on social media or on the Internet have to say about the product. Another issue with

running a business entirely online is being able to excel in customer service. It is difficult

to achieve customer loyalty through the Internet rather than in person. There is no real

person-to-person interaction through the Internet.  However, Your Tea makes up their

weaknesses through their social media and sponsorships. Your Tea sends their

products to people like Youtubers or bloggers to help spread the word about Your Tea.

Opportunities

1. Expanding to wholesalers who will be able to sell products in storefronts. This is

the biggest downfall as a company. If wholesalers can be sold to, More

customers will be reached more. For example the people that do not use

Instagram or read fitness bloggers.

2. Targeting men for the upcoming product release. A majority of the products are

geared towards women, twenty to be exact and only one tea blend for men. The

newest product is geared towards men. According to the United States Census

Bureau there are 51,712,000 men between the ages of 15 to 39 in the United

States in the year 2012. These are the people that are being targeted for Protein

Tea that will be released.

3. Current trending “health kick”. In today’s society it is all about the way a person

looks. Working out and getting fit has a lot to do with the way your body looks.

Many people base their body image ideals off of the celebrities that are on the

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front pages of magazines. Your Tea uses this to our advantage. Your Tea posts

people like Victoria Secret’s models on Instagram to show customers how they

can look when they drink Your Tea products and use other products provided by

Your Tea.

Threats

1. Other companies selling their products in stores rather than solely online. One of

the biggest issues with not selling in a physical store is the opportunity for a

customer to be able to physically touch and interact with the product before

purchasing. Other companies that are selling their products in a store do not

have this problem. Customers may decide to do their business with them over

Your Tea because of this issue.

2. Other companies selling similar products. When you search protein tea on the

Internet there are various companies selling protein tea. Your Tea plans to have

the product conveniently prepackaged and already brewed. All the consumer has

to do is twist off the cap and drink. There is another company named Nature’s

Best who is already selling a premade protein tea, which makes them Your Tea’s

main competitor.

3. Men preferring traditional protein powder to protein tea. Most people do not like

change. Being able to switch men from protein powder to protein tea will be the

biggest business to consumer problem. However, drinking protein tea will

eliminate the chalky taste the consumer gets when drinking the traditional protein

powder. In addition to the elimination of the chalky taste the protein tea will be

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dairy free making it extremely desirable for those who are lactose-intolerant or

have removed dairy from their diet as a lifestyle choice.

Marketing Strategy

Segmentation and Targeting Strategy

According to Tea USA’s web site (www.teausa.com), “In 2014 Americans

consumed over 20 million servings of tea… [and] approximately 85% of tea consumed

in America is iced. In 2014, ready to drink sales were conservatively estimated to be

more than $5.2 billion.” Considering that the product, Power Tea, is ready to drink and

cold, there is a broad target market to appeal to. It is targeted to approximately

3,755,675 men between the ages of 18 and 44 who drink green tea, who are health

conscious, and spend time in the gym. These younger adult men will be interested in

Power Tea because it fulfills any one of their needs whether it be lactose intolerant,

vegan, or protein rich drink that supports their active lifestyle.

Power Tea is of interest to the bodybuilding community as it offers an on the go

choice that delivers the right amount of proteins needed to develop muscle mass.

Anyone from military personnel to teens involved in school sports may find that the line

of Power Tea readily meets their needs and wants. The product offers convenience,

health benefiting qualities, and its delicious taste.

In regards to geographic segmentation, consumers will be reached who are living

in active cities such as San Francisco, LA, or Salt Lake City. Demographic

segmentation consists of active men between ages of 18 and 44 who have extra money

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to spend also known as discretionary income. The psycho segmentations are believed

to be men that are strong, hard working who are looking to improve physique.

The Gap

One target market segment in detail is men between ages of 18 and 44 out of

roughly 3,755,000 men who are health conscious looking for a protein powder

alternative. This target market was chosen because there is a niche market for men tea

drinkers that addresses the issue of non dairy protein powders (for those who are

lactose-intolerant, vegan, or a lifestyle choice). Power Tea is a non-dairy protein

supplement, and is pre-bottled making it convenient and available to dairy drinkers and

non dairy drinkers alike. The gap is bridged for people that cannot buy protein rich

drinks that contain harmfully dairy products.

Positioning

At Your Tea a significant amount of nutrients is provided at a low cost. In fact,

Power Tea stands apart from the rest because of its outstanding taste alone not to

mention that it’s packed full with muscle building protein. The product offers natural

nutrients from the tea leaves and yet provides 40 grams of protein, which beats many

protein drinks such as some Gatorade protein beverages that only offer twenty grams of

protein. Power Tea benefits customers by giving them a means to become healthier and

happier. It fuels the body with muscle repairing proteins and can make one feel good

after experiencing the savory taste of power tea! Power Teas tag line is: “More than just

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protein, more than just Tea”. The product really does offer the best of both worlds by

delivering premium taste as well as the healthiest ingredients to keep you healthy.  

Objectives

1. The goal is to expand the business by selling products to other intermediaries

and by opening Your Tea cafes on college campuses nationwide within the next

five years. These will be called “Power Stations” offering specifically power tea in

all its flavors. Being that often times college students consist of adults between

the age of 18 and 44 there is a high probability that the company will be reaching

the right target market.

2. By the end of 2016, the company will seek to reach the target market by offering

power tea at the lowest cost out of all available on the market. Your Tea teas will

cut manufacturing costs so that the final retail sale will go from $13.95 down to

$11.95. This price reduction will always appeal to male college student.

3. By the second year of putting the product out to the public, the business will have

increased the total market share by two percent, resulting from the increase in

marketing budget of ten percent.

Market Mix Strategy

● The business will strategic objectives by

1. Arranging meetings with wholesale buyers as well as collage boards in

order to pitch ideas and show off the product.

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2. Lowering cost by more effectively packaging Power Tea to reduce weight

and size therefore cutting transportation cost of the item. We can also

order shipments months in advance to ensure that airfare is not used to

deliver the product, as this can be very costly.  

3. The product will become more attractive and attention getting by bringing

more professional graphic designers to modify the packaging.

Tactical Marketing Programing Plans – Product plan

Approximately four in five consumers in the United States drink tea, with

Millennials being the most likely (Davies 1). Your Tea has five different categories of

tea. There are Mood Teas, Body Teas, Cafe Teas, Teaware and Teaface. Each of

these categories offers various products. Your Teas new product is Power Tea. Each of

Your Teas’ products has a specific target market they are geared towards. For example,

Your Teas new product,

Power Tea, is specifically made to target male athletes, bodybuilders or weight

lifters.  Power Tea is a pre-bottled tea that contains 40 grams of protein to promote

gaining muscle mass. No other protein tea on the market contains as much protein as

Power Tea. Power Tea is also a non-dairy protein supplement, so people who are

lactose intolerant can consume it. Your Teas’ target market segment is men from the

ages of 18-44 who are interested in growing muscle faster, without compromising their

bodies with harmful steroids. This can range from your average male gym member to as

extreme as a professional body builder. Currently, Your Tea has partnerships with

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fitness gurus, health experts and doctors to endorse the product. Each endorser has a

specific promotional code. Once promotional codes are activated, commissions will be

credited accordingly. Customers that make posts or reviews regarding their experience

with Your Tea will also receive a free 60-day pack. The end of 2016 Your Tea will offer

Power Tea online as a twelve pack selling for $50. By the second year of putting the

product out to the public, the total market share will have increased by 2%, resulting

from the increase in marketing budget of 10%.

Your Teas current products also promote natural base tea and teatox blends for

a healthier body. Mood Tea is based on helping consumers regulate their hormones

and endorphins. The most popular Mood Tea is Happy Tea, which increases mood,

calms digestion, alleviates stress, and eases anxiety. For Mood Teas there are four

different options, Happy Tea, Energy Tea, Sleep Tea and Hangover Tea.  For Body

Teas there are ten options, Tiny Tea, Her Tea, Anti C Tea, Skin Magic Tea, Antioxidant

Tea, and Fertility Tea. These products are sold in 14 day packs as well as 28 day

packs, which accounts for the extra options in this section. Cafe Tea has five options,

Organic English Breakfast, Premium Peppermint, Mint Choc Rooibos, Jasmine Green

and Apple Nut Crumble. This section focuses primarily on taste. In the Teaware section

there are currently eight different styles of mugs to choose from to carry your tea. Your

Teas’ travel Teawares are specially designed to retain heat twice as long. The fifth

section of goods is the facial line, Teaface. Teaface is a scrub that gently exfoliates,

revitalizes and nourishes skin, heals scars, evens out skin tone, and creates a glowing

complexion. With all these benefits the scrub also has an exotic Ylang Ylang scent to

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soothe the soul. For gifts and holidays there are specific sections with gift sets that

contain different varieties of Your Tea. Current gifts sets are Creatures of the Night,

Man Box, Mini Makeover, and Wellness Box.

All orders come in a special unique box that accentuate the benefits of the

products. Orders over $60 will come with free shipping. Packages will be shipped within

one to two days or ordering.

In 2014, 80 billion servings of tea, or more than 3.60 billion gallons of tea were

consumed by Americans (Davies 1). This is why Your Tea was founded. Not only is

Your Tea helping Americans fill their tea cravings, but they are also giving them the

specific tea that they want. All of Your Teas’ products have a specific purpose while

promoting a healthier body. Men who drink one and a half cups of tea a day lower their

risk of colon cancer by 70% (Davies 1). Since Your Teas new product targets men, not

only will it be helping with muscle growth, but also with reducing the risk of cancer.

Below are examples of the products from Café Tea, Teaware and the gift sets.

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Tactical Marketing Product Plan – Pricing Plan

Your Tea is founded upon competition based pricing and will continue to promote

a natural base tea and teatox blend for a healthier lifestyle. Given that there are so

many competitors in the market, Your Tea has established some pricing strategies to

become successful. Your Tea has five different categories of tea: Mood Teas, Body

Teas, Cafe Teas, Teaware and Teaface. Each of these categories offer different

purposes for our customers and will be priced differently. In our product-line pricing, our

teas range from $25-$55 a box, and, for our new product, Power Tea, it will be bundled

at $50 for a 12-pack; in addition to orders over $60, Options to purchase individual teas

will be priced at $4.25 per tea bag. Your Tea has complimentary orders with free

shipping and with free rewards for great feedback. As we offer a wide range of choices

for our customers, we are also considering accessories that come along with our

products, such as travel mugs and regular mugs. To help motivate our customers and

encourage tea drinkers to enjoy their tea wherever they go, our optional-product pricing

for our travel mugs will be priced at $29.95 and our regular mugs at $13.95. For our by-

product, we are incorporating our existing teas to promote Power Tea to be more

popular amongst athletic customers or for a muscle building alternative for our targeted

audience. Currently, Your Tea has partnerships with fitness gurus, health experts and

doctors to endorse the product. Each endorser has a specific promotional code, and

once promotional codes are activated, commissions will be credited accordingly.

Customers that make post or reviews regarding their experience with Your Tea will also

Your Tea 23

receive a free 60 day pack. Knowing that Power Tea provides more than forty grams of

non-dairy protein, we believe that we will become successful with our pricing strategies

and continue to provide convenience to tea drinkers and protein drinkers at the same

time. Below is the list of our Product-Mix Pricing structure that will further our revenue.

Your Tea’s Product Mix

● Competition-Based Pricing

● Product-mix Pricing

o Product-Line Pricing: Mood Teas, Body Teas, Cafe Teas, Teaware, and

Teaface from $25-$55.

o Optional Product Pricing: As we offer a wide range of choices for our

customers, we are also considering accessories that come along with our

products, such as travel mugs and regular mugs.

o Captive Product Pricing: Our company already sells tea bags of different

kinds, however, since Power Tea is being marketed, there wouldn’t be any

other product that must be used with Power Tea.

o By-Product Pricing: For our By-Product, Your Tea will use its existing

products to help promote Power Tea be more popular amongst athletic

customers.

o Product Bundle Pricing: Your Tea offers a 12 pack of Power Tea for the

price of $50.00 and all orders come with complimentary orders over $60

with free shipping. In addition to free shipping over $60, we offer discounts

Your Tea 24

to customers who give great reviews or feedback. For our single products,

our tea bags will be priced at $4.25 per tea bag.

Tactical Marketing Plan – Distribution Plan

Your Tea, operates solely online. All of Your Tea’s products are available for

purchase worldwide on the website. Your Tea’s new product, Power Tea, will be sold

solely online without the use of intermediaries. Your Tea will be using a direct marketing

channel to directly sell its products to interested customers. Your Tea will be using

exclusive distribution, as Your Tea is the only company carrying the their products like

Power Tea. Although Your Tea won’t be stocking the products in stores, it will be selling

the products with an available inventory online. Your Tea is using a vertical marketing

channel (VMS), more specifically a corporate VMS. Your Tea’s production and

distribution are combined under single ownership. Your Tea does not have a middleman

or other intermediaries to sell its products to as it is intentionally selling its products

directly to customers. This makes Your Tea’s companies operation streamlined and

easier to run because they are not dealing with other companies.

Your Tea has seven warehouses worldwide that they ship their products from.

Their warehouses are located in Australia, United States, Canada, Hong Kong and the

United Kingdom. Customers’ orders will be shipped from the warehouse closest to

them. Your Tea’s regular orders take 2-5 business days to be delivered and the

shipping cost will be priced at $5 for orders under $60 in the United States. Orders over

$60 will qualify for free shipping. Your Tea currently doesn’t have express shipping

available for orders in the US; however, customers in Europe have the option of paying

Your Tea 25

more for express shipping, which will take 1-2 business days to be delivered. Once Your

Tea has been ordered, its consumer marketing channels would be directly to its

consumers via FedEx, USPS or local mail services.

Your Tea will continue to provide great products to its customers directly online

and through advertisements. Through Your Teas marketing channel strategies, it will be

receiving its revenue by relying on the online services and sales. Your Tea is founded in

Australia and will be of service to any customer who is interested in a healthy lifestyle

through its products. Furthermore, Your Tea will also continue to market its teas to

motivate and encourage its customers to have a healthy alternative and an enjoyable

beverage.

Tactical Marketing Program Plan – Promotion Plan

The company, Your Tea, already runs a successful click only business that

allows for our product to be sold online directly to our final customer (business to

consumer marketing).This direct marketing tactic benefits buyers because it is

convenient, easy, and private. The website is easy to navigate and contains hundreds

of reviews on products. Having reviews easily accessible to customers is extremely

valuable to them because customers can see how beneficial the product has been to

others before they purchase it. It certainly builds trust and assurance of product

satisfaction

        We also rely heavily on social media to grow the business and sell it’s products.

The plan is to continue to use these same distribution methods with the new product,

Power Tea. Amazingly, the Your Tea Instagram account has over 400,000 followers

Your Tea 26

and over 6,000 posts. In 2014, Instagram had over 300 million users, and over 70% of

them were coming from outside the US (Tech Crunch). Through using Instagram, the

company is able to reach thousands of buyers globally. Instagram models and

celebrities help by endorsing the product and by helping it spread by word of mouth. In

fact, Russian model, Anyuta Rai, has 1.4 million followers on Instagram and has

endorsed the brand before. She posted a photo with a Tiny Tea product that received

over 24,000 likes. From doing this, thousands of people gained awareness of the brand.

Specifically for the newest product, plans are to get male athletes with strong social

media presences to promote Power Tea. Through endorsements of these male

athletes, other men will learn about the product and will be inclined to try it. This creates

consumer-to-consumer marketing because buyers learn about the product directly from

other consumers.

Since there is a well marketed website that seeks to build customer relationships

resulting in direct purchases there is always a need to attract the target market to the

Your Tea website. Plans are to pay for advertising space on other websites such as

Facebook or Pinterest in order to bring more consumers to the website. This includes

paying to appear on the first page of Google when people search for products like

protein teas. Paying for this advertising will bring in more consumers and reach a wider

target market, meaning there be an increase in click through rate.

To boost sales even more, Your Tea will collect email addresses of any Your Tea

customer who chooses to be updated on new sales and items. They will be able to do

this by clicking “update me” after a purchase on the website or by agreeing to it after a

Your Tea 27

purchase elsewhere. With these email addresses it will enable the company to send out

newsletters to its customers. Then after planning a 10% off promotional sale for all

Power Tea items bought, an email will be sent to existing customers to inform them of

the sale. The email will strongly encourage that the recipient forwards it and passes it

on to a friend! By encouraging to share newsletters to family and friends Your Tea

hopes to reach an even larger audience. It is possible that the family or friend in which

the newsletter is shared with may not in fact purchase any products at that very

moment; however when they are on the market looking for a protein tea or any other

type of tea, Your Teas products will be one their mind.

To conclude, while using all of these methods, there is a hope to see the viral

marketing concepts take place in the business. Excitingly, this can lead to future sales

down the road. Your Tea will have numerous opportunities to gain customers by using

these many different forms of marketing along with the different platforms they offer.

Measures, Evaluation, and Budget

Concerning our Power Tea product, it is of the utmost important that our

customer is satisfied with what they get. With our goal being to satisfy our customer we

plan to set up a live feed “satisfied or not” graph that shows the progression of

customers happiness with our product weekly. Our customer will be able to rate their

level of satisfaction with our Power Tea product out of five stars. Their rating will be

combined automatically and posted on the graph weekly to show the general

satisfaction of our customers that week. Not only do we want our customers to be able

to express their lack of satisfaction or satisfaction with our product, but we want

Your Tea 28

feedback as to adjust our product or keep it the same in order to please our customer. If

the customer is involved in the process of making our product better we believe it will

help with customer retention and commitment to our product.

Money Needed

The money needed to implement Power Tea’s marketing plan is roughly

$500,000. It will be partly obtained from a family inheritance amounting to roughly

$200,000. A Wells Fargo loan of $200,000 and private investor’s investments of

$100,000 will also be obtained and used for the marketing of Power Tea.

Expected Revenue

Power Tea expects to sell to five percent of the target market according to a

competitor. Your Tea’s target market for this product is 3,755,675. It is believed that the

consumers of Power Tea will purchase a pack of 12 per month for the year equaling

2,253,405. Power Tea 12-packs will be sold for $50 and because it is sold for $50 and it

is planned to sell 2,253,405 cases our expected revenue is $112,670,250.

Expected Expenses

Your Tea’s top three expenses that will go into bringing Power Tea to market include

sustainable packaging, promotional social media, and business analytics. Sustainable

packaging is believed to initially cost approximately $200,000. The next largest cost to

Power Tea is the cost of promotional social media which includes sponsoring Youtubers

or bloggers to write or talk about Power Tea to their viewers. This is expected to cost

around $100,000. The last largest expense is the business analytical systems to further

understand how the product is doing. Being able to understand how a customer comes

Your Tea 29

across a product because if Your Tea can understand where the majority of their

business is coming from they will be able to feed more money into that. It is believed

that the system that will be produced for Power Tea should cost about $50,000 to add

the new product to the pre-existing systems already in place.

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References

Constine, J. (2014, December 10). Instagram Hits 300 Million Monthly Users To

Surpass Twitter, Keeps It Real With Verified Badges. Retrieved December 8,

2015, from http://techcrunch.com/2014/12/10/not-a-fad/

Davies, Dora. "Tea Fact Sheet 2014." Http://www.teausa.com. Teausa, 22 July 2014.

Web. 27 Oct. 2015.

DeMers, J. (2014, August 11). The Top 10 Benefits Of Social Media Marketing.

Retrieved December 7, 2015, from

http://www.forbes.com/sites/jaysondemers/2014/08/11/the-top-10-benefits-of-

social-media-marketing/

Tea Fact Sheet. (n.d.). Retrieved November 11, 2015, from

http://www.teausa.com/14655/tea-fact-sheet.

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