By: Jake Smith, Rachel Ozios, Kenny Hall, Franki Reynolds & Logan Bronkema

TEAVANA

By: Jake Smith, Rachel Ozios, Kenny Hall, Franki Reynolds & Logan Bronkema

Corporate Brand Audit

//Tea Industry

“The tea category is ripe for reinvention and rapid growth.”

- Starbucks CEO Howard Schultz

//Industry Trends: Premiumizatio

n

Health &

Wellness

Artisan

“Consumers are willing to pay more for high-quality teas and even pay a premium to purchase these products on-premise.” - Jonas Feliciano

//Internal Audit

//Product Pricing: Bulk teas range

from $2 to $25 per 2oz

Merchandise ranges from $7 to $250

Higher than most competitors

“As for Teavana, I went to one of their local retail locations and was blown away by the price difference. So much so I didn’t purchase any tea while I was there.” – Web Review

//Packaging & Selection

Packaging: Color coded Easy to read Logo size

Selection: Broad range

of teas – over 100 kinds

Variety of Tea merchandise – tea pots, infusers, presses, etc.

//Mission Statement“Establish Teavana as the most recognized and respected brand in the tea industry by expanding the culture of tea across the world.”

• Provide the highest quality loose-leaf teas in the world

• Educate our guest in the health benefits of drinking tea and intriguing global culture of drinking tea.

• Be known as one of the best retail organizations in the country to work for.

//Goals

//Management & Employees

Learn about the Teas

Learn to market the

health benefits of

the tea

Learn top three teas in

every category

Learn top-down-selling

technique

Learn to make the tea

Learn about the tea pots sold in stores

Learn the sampling method

Learn to sell the

tea

//Employee Training Process

Teavana Employees = “Partners”

Corporate Office = “Support-center”

//Beliefs

//Logo Word mark –

Pictorial Mark-

Signature

“Starbucks dropped the word ‘coffee’ from its logo in 2011 in a move to expand beyond the coffee market and become a multi-product company.”

//Locations NEW LOCATIONS Teavana Fine Teas + Tea

Bar 1142 Madison Ave New York, NY 10028 United States Map It Teavana Fine Teas + Tea

Bar 2625 NE University Village

Street Seattle, Washington 98105 United States Map It 300 stores in malls

Located primarily in the U.S. A few located in Canada &

Mexico

There is room for growth in the U.S. (Currently ranked #22 in tea consumption), as well as in the Middle East, where there is a high demand for tea.

Efficiency:Average store is about 920 square feet and the sales per gross square foot are around $980.

Organization: Use glass shelves for merchandise and organize tea by color behind the counter.

//Store Layout

//External Audit

//Website Structure“Their ordering system and

customer service are abysmal, and the tea is not

worth the trouble.” –Anonymous Customer

NEGATIVITIES

No site map Title is too long Lack of alternative text on

images Load time is slow Domain name is only

registered for 10 No conversation forum  

//AdvertisingTeavana doesn’t do a lot of traditional

advertising

//Social MediaWebsite

o Teavana.com is a fully functional website that has all the bells and whistles.

Facebook

Twittero Their most dynamic and involved platform

YouTubeo Soft presence

Pinterest o Offers the high potential

//Twitter 15,000 Followers 14,000 tweets

//PinterestPinterest account with over 13,500 followers, 18 boards and over 300 pins

They are #1 to come up when searching for:“tea store”“tea sale” “herbal tea”

//SEO

Plan to grow online sales which currently make up 8% of total sales.

//Consumer Perception “I don’t believe Teavana will ever grow

into what the Starbucks brand has

become for one simple reason: tea lacks the

major caffeine count.”-Howard Shultz

REPUTATION

Inviting atmosphere Wonderful samples Poor customer

service High prices Disrespectful

management  

//Community OutreachBy 2015, Teavana hopes to contribute one million volunteer hours each year to its communities.

//Customer Reviews

“I always feel like nobody’s listening to me. It’s like they have their own agenda, and I always walk out feeling bad about spending more than I had intended.”

“For first-time, uninformed buyers, they make you think that the $6 or $7 tins are mandatory, and that only their tins will keep your tea fresh for longer than a week.”

Opinions from around the web: Aggressive salespeople Upselling products Overpriced teas Misleading tea samples

//SWOT Analysis STRENGTHS:- Strong Product & packaging - Partnered with Starbucks - Store aesthetics - Strong Social Media Base- Location presence- Health benefits

WEAKNESSES:- High prices & significant

price range- Aggressive sales tactics- Misleading tea samples - Management sets high sales

quotas- Inefficient online sales

processOPPORTUNITIES:- Tea is a globally consumed

product- Growing market for tea in

U.S.- Opening tea bars - Starbucks rewards at

Teavana- Create Teavana rewards

THREATS:- Mall policies & restrictions - Indirect Competitors: local

tea shops, small chains, Amazon, etc.

- Direct Competitors: David’s Tea & TAZO

- Caffeine Count

S W

O T

//Solutions

TEA HEAVEN“Opening the doors to

health, wisdom & happiness.”

"When customers visit one of our stores, we want to immerse all of their senses in the tea experience. Our goal is to educate them about the pleasures of drinking tea, its history and the many health benefits it provides."

- Andrew T. Mack, Founder

It’s about experience.

Reconstruct website Introduce minimalism Make seasonal products

available online Create a discussion forum   

//Website Structure

Solutions

//Customer FeedbackTeavana can rebuild customer trust through intentional feedback methods.

Create feedback page on website that is clear and easy to find

Encourage post-purchase surveys

Ask questions like:

“How would you rate our customer service?”

“How would you rate the quality of our tea?”

//Social Media

Introduce this new platform to post job listings, seek out excellent salespeople, and show their corporate culture.

Use hashtags to steer traffic to their site, increase promotion through prizes, and stay connected with their customers.

//Customer Perception

Solutions Improve customer service

Develop consistency in tea brewing instructions

Make samples available to old and new customers

Create a rewards program  

//Sales Methods Remove top-

down selling technique

Remove monthly sales quota

Implement incentive program to motivate employees

//Promote Wellness

Use the health

benefits of tea to

promote Teavana

Heart Health Diabetes Skin Pregnancy Stress

//Tea Consultant Become a Teavana Consultant: Sell tea and merchandise

to people you know Host Teavana “tea

parties” Earn rewards for reaching

sales goals

{Empower customers with knowledge} Tell the story of

tea Give more

information about the varieties carried

Tool for customers while they wait for a sales rep

//Interactive Displays

//Sources • BOLTON, D. (2013). A HEALTHY TURN. Specialty Coffee Retailer, 20(1), 16-18.

• O'Connor, C. (2013). Starbucks Opens Its First Tea Bar As CEO Schultz Bets On $90

Billion Market. Forbes.Com, 21.

• Ebenkamp, B. (2008). Tea Brand's Blend Includes Just a Pinch of Starbucks.

Brandweek, 49(10), 12.

• Tea poised to be next 'hot' beverage. (2013). Beverage Industry, 104(7), SOI-8.

• Teavana case study. (2008). Teavana Case Study: Capitalizing on the Rising

Demand for Tea in the US, 1-9.

• Wilson, M. (2003). Reading the Tea Leaves. Chain Store Age, 79(9), 48-51.

• Wong, V., & Berfield, S. (2013). For Starbucks, Coffee Is So 1990s. Bloomberg

Businessweek, (4353), 32.