Tea Market Research: "Eco-fusion Tea"

Published: 2021-09-13 13:30:09
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“Eco-fusion Tea” is a sustainable Fairtrade tea, the product line of beautiful, premium, flavoured teas includes English Breakfast Tea, Pure Camomile, Lemon and Honey, Wild Apple and Wild Berry.
“Eco-fusion Tea” will be the leading sustainable Fairtrade tea supplier in Australia with a rapidly developing consumer brand and growing customer base.“Eco-fusion Tea” will be a tangible socially and environmentally sustainable choice for consumers wanting to life a sustainable lifestyle, want a great quality product at a reasonable price the cares for the environment.
Our goal is to find enthusiastic, engaged and energised investors in our exciting new venture, “Eco-fusion Tea” is an exciting, vibrant addition to the tea market, it will reinvent the concept of environmentally friendly “green” tea, making it a household staple, and the cup of choice for consumers when they visit cafés and restaurants.
At present there is a wide variety of tea available both on the supermarket shelves and in boutique tea shops at urban shopping centres. While the main-stream tea brands are showcased and promoted effectively, who hasn’t heard of Dilmah or Twinings, the Fairtrade products on offer are poorly marketed, with low visibility in the market, little advertising and no reasonable explanation to consumers as to why they should consider a Fairtrade product.
With a sustainable, product comes other challenges;

Price of current offering compared to non-sustainable sources. Ø Standard tea ranges in price from $1.30 to $6.75 per 100g, depending on brand and flavour. Fairtrade tea currently on offer ranges in price from $5.95 to $14.00 per 100g.
Poor packaging of current offerings. Ø Current packaging is dark lacking life and energy and is generally insipid.
Poor marketing of current offerings. Ø While there are currently Fairtrade offerings in the tea market, none of them are household names. Many people, even non-tea drinkers have heard of Twinings, or Dilmah, the fact that Oxfam and T2 offer a Fairtrade product to the market is not well known.
Do consumers know what fair trade means? Ø Not only are many tea drinkers unaware of what Fairtrade means, many consumers are unaware of the meaning behind the Fairtrade initiative.
Do Consumers know what impacts unsustainable sources have? Ø It would be fair to say that the average consumer would be unaware of the impact of unsustainable farming, it just isn’t on our radar when we are at the supermarket. However, there is a push towards more sustainable and environmentally friendly products and processes, consumers are becoming aware of the over-processed quality of some of our foods, with the popularity of vegan and paleo diets, consumers are becoming more aware of what goes into their foods.

At first glance some of these challenges may seem insurmountable, but in fact these challenges open up an opportunity for a new product in the market place.
In the last decade, we have been bombarded in the media with images detailing the ecological damage done to our world through unsustainable consumption. The advent of social media platforms has increased this visual onslaught, with the ecological results of our unsustainable consumption out there for all to see.
As never before, consumers are faced with a real choice, continue to consume as through there is no tomorrow, or become more ecologically aware, and through sustainable consumer choices step back from the abyss of ecological disaster and move towards a cleaner more sustainable future.
Today, we see a large amount of social pressure through Facebook, Instagram, Twitter and other media around greener more environmentally friendly lifestyles. In 2010 researchers from the University of Minnesota conducted research into whether social pressure played a part in consumer choices. They “found consumers are willing to sacrifice luxury and performance, to benefit from the perceived social status that comes from buying a product with a reduced environmental impact.” (The Guardian, 2010). They found that “people were also more likely to choose green products when doing so in public.” (The Guardian, 2010).
In January last year Unilever conducted an international study into consumer behaviour, the results concluded that a third of consumers are now buying from brands based on their social and environmental impact. (Unilever, 2017).
According to Forbes, “Millennials prefer to do business with corporations and brands with pro-social messages, sustainable manufacturing methods and ethical business standards.” (Forbes, 2017). The trend towards more sustainable consumer behaviour is occurring across all bands and markets.
The time is now ripe to launch a new sustainable, product into the market, with marketing across all social media sites as well as main-stream media, “Eco-Fusion Tea” is ready to take a substantial market share. As investors, are you ready to be in on the ground floor?
“Eco-Fusion Tea” is an environmentally friendly, sustainably sourced Fairtrade tea, it is the solution to the challenges found in the current sustainable tea’s market.
“Eco-Fusion Tea” will develop sales-oriented pricing goals, to boost volume or market share, by pricing “Eco-Fusion Tea” at $5.95 per 100g, placing “Eco-Fusion Tea” at the low end of the current FairTrade offerings and well below the high end of standard tea on offer. The goal of low-pricing being to lure customers from current competitors and quickly gain industry share, with a comparatively low-price “Eco-Fusion Tea” will be placed mid-market.
“Brands that establish a reputation for environmental stewardship among today’s youngest consumers have an opportunity to not only grow market share but build loyalty among the power-spending Millennials of tomorrow, too,” says Grace Farraj, SVP, Public Development & Sustainability, Nielsen.
Existing brands carry a poor brand perception in the market, with the perception that environmentally friendly tea is more expensive, for health nuts, or is boring. With “Eco-fusion Tea” we aim to bring a moderately priced sustainable tea to the market, marketed to every tea drinker, with bright interesting packaging.
As discussed earlier, current products are poorly marketed. Current research shows that people are increasingly persuaded via social media to have a social conscience “Eco-Fusion Tea” will use this to our advantage, advertising through all social media platforms, as well as through main-stream media to capture the widest audience as possible. In addition, a social community approach will also be developed, through hosting “tasting days” at community groups, supermarkets, farmers markets and at food and wine festivals. Through advertising and community contact we aim to promote the idea behind the Fairtrade brand, the benefits of our brand and the beautiful taste of a well-made cup of tea.
The environmental and social sustainability of our product will differentiate it from current standard tea offerings in the market, our push to educate consumers and community groups as to these benefits will differentiate “Eco-fusion Tea” from the other FairTrade tea on the market. Our extensive social media education and advertising program will highlight for consumers the lifestyle, social and environmental benefits of “Eco-fusion Tea”.
Opportunity & Target Market
The target market for “Eco-fusion Tea” is generation Y and Z consumers, younger consumers who follow growing trends towards social and ecological awareness. We acknowledge that older consumers that have been brand loyal for years are less likely to switch, however social marketing through tastings will aim to address this demographic as well.
Lifestyles of consumers will play a significant role in marketing “Eco-Fusion Tea”, we offer a socially and environmentally positive consumer choice, allowing consumers to support sustainable farming, farmers and workers, and develop a sense that they are contributing towards a more sustainable future.
While our target market is generations Y and Z, we will also be promoting our products to cafés and restaurants, many are now offering a more sustainable product, we will capitalise on this by marketing our product to this demographic as well.
“In the 12 months to June 2016, 9.8 million Aussies 14+ (50%) drank at least one cup of tea in any given week, a fraction up on the same time last year (49%, or 9.6 million people). The average volume consumed in this period is 9.5 cups per person, up from 9.1 cups last year.” (Roy Morgan, 2016).
With one in every two Australians over the age of 14 years drinking at least one cup of tea on average every seven days, hot tea is one of Australia’s most popular non-alcoholic beverages. With generations Y and Z consuming on average between 7 and ten cups of tea a week there is room in the market for a well-designed, well marketed, sustainable offering in the market.
“Eco-fusion Tea” will produce $1,500,000 in sales in the first year, this will result in gross profit of $600,000. Sales are conservatively expected to increase each year by 15%.
Our financial objectives are to:

Generate $1,500,000 sales.
Achieve an 40% gross profit, and 30% net profit.
Achieve a 10% profit Margin.
Achieve 15% growth annually

Our Marketing objectives are to:

Achieve product placement in all major supermarkets, convenience stores, cafés and restaurants.
Achieve product placement growth of 20% in supermarkets annually.
Achieve eye-level placement in supermarkets.
Achieve social media platform awareness.
Increase community awareness.

Our Sustainability Objectives are to:

Ensure that all tea is sourced from certified FairTrade suppliers/farmers.
Ensure Fairtrade farmers are certified and complying with the rigorous standards and farming practises that protect the environment.
Increase community awareness.

“Eco-fusion Tea” will have extensive educational, static and video advertising, to educate consumers on the environmental and social impacts of tea growing, the benefits and mitigation of these factors by Fairtrade as a whole, and by “Eco-fusion” as a brand and company, as we support FairTrade practises.
“Eco-fusion Tea” is an exciting, vibrant addition to the tea market, it will reinvent the concept of environmentally friendly “green” tea, making it a household staple, and the cup of choice for consumers when they visit cafés and restaurants.

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