Marketing Strategy Analysis Essay Example

By adding incentives, more consultants will be able to reach Steeped Tea enthusiasts, which will sustain the company's substantial growth. According to the company website, Steeped Tea offers over 80 distinct flavors of premium loose-leaf tea including black, green, white, herbal, wellness, long robins flowering tea balls PU-ere mat. The product line also includes high-quality tea pots and accessories like infusers measuring spoons infusing tire sticks travel cups with infusers tins sugar toppers gourmet cake scone muffin mixes spice rubs dips Jams are also available to enhance the tea line.While Steeped Tea may not have the same extensive range of teas as competitors like Davit's Tea or Tavern, it still provides consultants with a wide selection to offer clients. The tea is available in two sizes: small bags and large bags. This allows customers to try different teas with the small bag or save money on their favorite tea with the larger bag, matching the options provided by competitors.

Steeped Tea ensures a full flavor and higher quality by using large tea leaves compared to tea in bags. They source their tea from countries known for producing high-quality leaves due to optimal elevation and humidity, including India, Sri Lanka, China, Japan, and Thailand. Additionally, some of their teas are certified organic and they are involved in the Ethical Partnership.

To help consultants start their business successfully, Steeped Tea offers a consultant kit for purchase which includes various items such as a stainless steel teapot, different teas, rubs, honey sticks variety pack, ribose soap, measuring spoon, tea sacs for pots infuser clip-on and a tea apron. By offering this kit along with other services such as full-service tea

parties with demonstrations and taste tests to create a social experience for customers sets them apart from loose leaf competitors.

Their market strategy focuses on targeting consultants in order to increase party bookings which will showcase more products resulting in recruiting more consultants.The consultants should be trained on the health benefits of tea and provided with ingredient lists and nutritional information to have at tea parties. Currently, Steeped Tea only offers ingredient lists to customers, while competitors like David's Tea provide online and in-store access to ingredient lists and full nutritional information. Having educational information will help Steeped Tea attract loyal customers who not only sample the tea but also have access to nutritional information. The product branding is effective as the tea is packaged in bags featuring the Steeped Tea logo for consistent branding. Social media marketing also maintains consistent branding, with the Dragon Den pitch featured on the main Backbone page. The independent consultant kit is competitively priced at $149, providing a value of over $350. This price is comparable to other direct sales companies such as Pampered Chef ($195) and Epicure ($175), as stated on their respective company websites. Based on this information, we recommend no changes to the consultant kit which includes a 47 oz.Stainless Steel Teapot, 9 Delicious Teas - The Top Sellers, Our Famous Smokey Tea-kaki Rub, Honey Sticks Variety Pack, Lemon Drop Ribose Soap, Perfect Pot Size Measuring Spoon, 1 Pot Tea Sacs, Clip On Tea Infuser Classic Tea Collection Catalog Opportunity Brochure Order Forms Steeped Tea Apron Table 1.To further encourage customers to become independent consultants, the suggestion is to offer free shipping for sales over $150 instead

of the current threshold of $250. It is also worth considering following the example of other direct sales companies like Airborne and Menelaus by promoting special offers during certain months, which can be advertised on our website. In September 2013, it is suggested that a special promotion be introduced to attract new consultants. Any independent consultant who recruits four new consultants they personally sponsor will receive a $100 bonus. Moreover, if these new recruits sponsor 2 new consultants in their first and second month, they will each receive a $20 gift card per month. These bonuses will be in addition to the regular incentives included in the career plan.

Consultants should be motivated to achieve their targets by offering competitively priced high-quality loose tea leaves. This product is consumable and provides consistent re-ordering, along with nutritional value. The loose tea is sold in bags ranging from $6.99 to $20.99, while egg bags are available at prices ranging from $10.99 to $21.99 per bag. It is recommended that these prices remain unchanged as they closely match those of competitors.

Steeped Tea has achieved success by providing a unique tea party experienceThe company's growth and profitability will be achieved by implementing strategies that cater to independent consultants who promote the company. Existing consultants should continue promoting Steeped Tea through word-of-mouth and utilizing various social networking platforms such as Facebook, Twitter, LinkedIn, YouTube, Pinterest, mainstream websites, and blogs. These platforms are extensively used by direct sales competitors, so it is crucial for consultants to regularly update and share their sites with news, recipes, blogs, and information about tea parties.

In line with the increasing trend of health consciousness, our target audience

consists of women consultants with families who possess a business-oriented mindset along with an entrepreneurial spirit. They should also be health conscious and physically fit. To reach this specific group of individuals, we can set up booths at lifestyle shows, health facilities, community events, trade shows, and employment events where samples of Steeped Tea are available.

Additionally targeting unemployed mothers can be done by offering Steeped Tea at play groups and community centers. This approach not only promotes Steeped Tea to the desired market segment but also has the potential to recruit other mothers as consultants.Consultants should receive training on the advantages of being a consultant, such as having a flexible schedule that is ideal for women with children. Additionally, consultants have the opportunity to earn extra income through a substantial 30% commission, which is especially beneficial for stay-at-home moms. They also receive training and support to learn more about Steeped Tea products' quality and have access to travel and rewards opportunities.

Steeped Tea provides comprehensive promotions for its consultants (Career Plan, 2013). This promotion allows them to advance levels and receive commissions, bonuses, and free products based on their sales and recruits. This strategy is similar to other successful direct sales companies. To promote the benefits of becoming an independent consultant at Steeped Tea further, we suggest adding an additional incentive to the current offerings. Offering a $100 bonus for existing consultants who recruit new consultants would encourage them not only to sell the product but also market the business experience.

New independent consultants will be motivated to start recruiting right away because they will receive a $20 gift card when they sponsor another consultant within their

first two months of joining the company. Meeting monthly targets is crucial for consultants in order to enjoy all the associated benefits corresponding with their level of achievement.

The company was established in Hamilton, Ontario by Place Hate and Tania Shaman.Research indicates that the grocery channel in this province has a value of $415 million, with Ontario accounting for $169.2 million, representing over 40% of the tea market in Canada (The Tea Association of Canada, 2012). The breakdown by province is as follows:

- Ontario: $169.2 million (41%)
- Quebec: $65.5 million (16%)
- Alberta: $61.9 million (15%)
- BC: $59.8 million
- Manitoba and Saskatchewan: $35.1 million
- Maritime provinces: $23.6 million (6%)

Table 2 suggests that Ontario is the most suitable location for implementing a marketing strategy to increase independent consultants.

Moreover, incentives should be provided to provinces and the United States in order to expand the number of consultants on the Steeped team and sell products across different regions.The objective is to have a significant number of consultants covering medium to large cities within Ontario, facilitating efficient sales of tea parties and products.These tea parties are crucial for selling and promoting the product while also attracting new consultants.Existing consultants should utilize this platform to promote the Dragon's Den pitch and recruit potential independent consultants.Suggested locations for Steeped Tea consultants to network and find customers include lifestyle shows, health facilities, community events, trade shows, employment events, play groups, and day care centers.

Customers have the option to order online through the company website. However, it is necessary to go through an independent consultant in order to maintain the personal shopping experience that Steeped Tea offers.

APPENDICES week 7 Consumer Behavior - Can

you identify what steps and influences are likely to be involved in the purchase of your product? Some of the steps and influences involved in purchasing Steeped Tea products include problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior. One significant influence is receiving a "Tea Party" invitation, which creates a desire for socializing with friends over a cup of tea.

When it comes to searching for information, customers rely on personal sources such as friends who explain the product's benefits and opportunities to become consultants or hosts and make money. The purchase can be made by attending a Tea Party or shopping on the website WWW.Tapped.Com. The website offers monthly specials, host specials, and guest specials with prices ranging from $6.99 to $100.

The experience of connecting with friends and family at a Tea Party plays a crucial role in influencing customers to buy the product. Hosting Tea Parties can generate significant sales, averaging $500 per party.The influences mentioned should be taken into account when developing the marketing strategy for the product, place, price, and promotion. We are pleased to have achieved No.7 ranking on Profit ass's list of Canada's Fastest-Growing Companies and have been recognized as the industry leader in the Food Processing and Distribution sector. Our partnership with investors David Clinton and Jim Traveling through Cab's Dragon Den has enabled us to expand our business successfully. We now share Steeped Tea and collaborate with U.S. consultants and teams as part of our ongoing growth plan to enter the $26 billion direct sales market in the U.S.

Our company's value lies in our significant sales figures, reaching millions of dollars, along with a profitable

margin of 10%. Thanks to our market strategy, we can offer affordable prices for our products, ranging from $6-$12 per type of tea purchased. The majority of our products are priced below $100.

To incentivize our consultants, they receive a 25% commission on sales along with bonuses for achieving milestones. Customers also benefit from free shipping options, special offers, half-price items, and discounts based on sales volume.

We have found that adopting a direct-selling model is an effective strategy for promoting our products due to its rapid expansion within both Canadian and American markets.

Regarding targeting specific consumer segments based on discussed dimensions in Chapter 9: Target Markets Options Menu: Forum How can you group buyers into segments? It is essential to identify which segment(s) would be most suitable for consuming your product.Sales for Steeped Tea are primarily concentrated in Canada and the United States. In both countries, tea consumption has surpassed 65 million. Approximately 127 million Americans consume tea, with 80% of them being homeowners who buy tea for their households. Originally established in Canada, Steeped Tea has expanded its market presence to reach customers residing in major cities. Through online shopping, customers can enter their postal code to find the five nearest consultants and select a city that suits their needs. This marketing strategy specifically targets potential buyers living in these urban areas.

Tea is enjoyed by both genders, but it particularly appeals to women, especially those under the age of 34 who have a specific interest in herbal teas. To effectively target potential consumers, Steeped Tea should focus on men and women aged 25 and above, regardless of their marital status. It is worth noting that

while more men are now consuming tea, women still dominate "tea party" attendance and tea purchasing.

Individuals earning around $25,000 per year are more likely to purchase products from Steeped Tea due to its affordability. Although higher-quality products may come at a higher price point, they can attract a wider customer base who can afford them and thus increase sales revenue and profits.Steeped Tea focuses on generating profit through social events like tea parties, targeting individuals who are socially active. Increasing tea party attendance and encouraging hosting and consultation would be beneficial. Targeting extroverts would lead to higher sales as more people attend and host these parties. Steeped Tea offers a wide range of tea products including black, green, herbal, wellness, white, ribose, PU-erh, long and flowering tea balls, hot chocolate, and lattes. Their teas cater to health-conscious and physically active individuals. Sampling and purchasing their tea sets differentiate Steeped Tea from competitors. This also leads to other benefits such as preference over other products and relaxation and health benefits. The appeal of decreased heart attacks and calories burned from drinking specific tea products is advantageous for physically active individuals who prioritize their health. To increase profits in Canada, the United States, and highly populated areas, Steeped Tea's marketing mix should target physically and socially active women aged 25 years old or older. Advertising the benefits and features of the products will help drive profitability with a focus on promoting the health benefits for physically active individuals being a top priority.Tea parties are beneficial for individuals who enjoy socializing and can gain advantages from either hosting or becoming a consultant. It is recommended to focus on

creating iced tea recipes using loose leaf teas, especially in regions with warmer climates. According to tea.Ca, tea holds the second position as the most consumed beverage globally, just after water. The consumption of tea is projected to increase by 40%, resulting in nearly nine billion cups per year. This growth will contribute to the overall expansion of the tea market in grocery channels, which is estimated at $415.1 million. Ontario leads the Canadian market with a staggering $169.2 million, surpassing other provinces by more than $100 million. In 2012, sales saw a 4% rise while specialty tea experienced a growth rate of 3%, outselling regular tea both in terms of volume and sales figures. Regular bagged teas currently hold the majority share at 76% of the total market, leaving specialty teas accounting for approximately 23.4%.