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YELLOW TEA INC.

CONTENT
• Yellow Tea Background • Why Globalize?
• products • Global Marketing Mix Strategy
• Vision, Mission • International expansion
• SWOT Analysis • Global Entry Strategies
• Competitor • Fair Trade
• Values of our business
• Promotional Mix
• Marketing Strategy
• Contribution
• Market Segmentation
• Conclusion
YELLOW TEA BACKGROUND

• Yellow Tea is a Tea beverage company of 100 employees headquartered in China, specialized in making
Chrysanthemum tea.
• It is a flower based infusion beverage made from chrysanthemum flowers of the species chrysanthemum
morifium
• It is China’s one of most popular herbal tea
• This Tea is well-known for its cooling properties ,The chrysanthemum tea is a special grade known as the
Huang Shan ( Yellow Mountain) Chrysanthemum
• It is very refreshing and has a natural fragrance and taste.
PRODUCTS
PRODUCTS

Products: Quality:
• Chrysanthemum tea Fresh product with hand picking
• Green tea
• Black tea
• Rose tea
Packaging:
• Jasmine tea • Different product sizes
• Mint tea • Attractive
• Lavender tea • Easy to handle
• Oolong tea
PRICE
Chrysanthemum:
$1/per chrysanthemum
$6.99/per box with 8 units
$15.99/per box with 20 units

Green tea,Black tea, Oolong tea: $9.89/per box with 12 bags(500g)

Rose tea, Jasmine tea, Mint tea, Lavender tea: $10/per bag with 500g
PRODUCTS
• Chrysanthemum Milk Tea
• Chrysanthemum Frappuccino
• Chrysanthemum Tea with Yakult
• Chrysanthemum Tea with Milk Cap
• Chrysanthemum Fruit Tea
• Chrysanthemum Rose Tea
VISION AND MISSION

Vision:
• Our long-term vision is to be a market leading in business in the industry of Tea beverages and make our product as
global as possible reaching all countries of the world

Mission:
• The mission is to provide our customers with high quality and best value products
• Establish Yellow Tea company as the premium purveyor of the finest tea in the world while maintaining our growth.
SWOT ANALYSIS
Strengths:

• Developed brand, copyrights, trademarks, website


• Self-cultivation
• Strong knowledge based
• Operate with retail stores
• International shipping
• Market leader
• Valued and motivated employees
• Good working environment
SWOT ANALYSIS
Weakness:
• Simple product structure
• Lake of external focus (too much focused on domestic business)
• Cross functional management
• Product pricing is low

Threats:
• Competition(restaurant, supermarkets, other tea or coffee
shops)
• Market saturation in China
SWOT ANALYSIS

Opportunities:
• Customers trend toward more healthy life
• Technological advances
• New products
• Emerging international markets
COMPETITOR
• Gong Cha
• Happy lemon
• Meet Fresh
• Starbucks
• McCafé
VALUES AND STRATEGIES OF OUR
BUSINESS
• Embracing business excellence
• Unity working as one team
• Hard-work and dedication are the hallmarks of our people
• People and customer focus to earn loyalty
MARKETING STRATEGY
• Market structure:
Monopolistic competition
• Competitive activity:
Many companies are in the market and competition is fierce.
Competitors use location , product mix and store atmosphere differentiation to establish market niche
• Industry costs and capital structure:
Low to moderate costs for each product
Major start up expenditures are equipment and property
Major operating costs are labor and cost of sales
MARKET SEGMENTATION
• 18-70 years old
• Those who feel that drinking tea is “cool”
• People who wants to lose weight
• People who wants to have a health or high quality life style
• It’s one of the best choices of gifts
WHY GLOBALIZE?
• Saturated home market
• Extensive competition in China
• Product reached brand maturity in China
• Only got positive feedback from foreign friends that have tried it
Issues faced while Globalizing:
• Culture
• Gender issues
• International joint venture
• Marketing channels
GLOBAL MARKETING MIX STRATEGY

• Retailing formula is same throughout the world whereas product offering and are modified to
suit local taste.
• Yellow tea Inc. advertising strategies play a crucial role in success of the business.
• The advertising strategies adopted by the firm are more local and differentiated rather than
standardized
INTERNATIONAL EXPANSION
• Yellow Tea company foreign business will be launched trough Franchising and Licensing
arrangements with prominent local retailers.
• It is safer for our company to do business overseas with a partner.
• We going to enter simultaneously the countries of Japan and Thailand
• We will be launching a standardization of the product across Japan and Thailand.
HOFSTEDE’S CULTURAL DIMENSION
ECONOMIC OUTLOOK OF JAPAN AND
THAILAND
Japan Thailand

Population 127 Million 68.8 Million

GDP per capita (USD) 32,484 5,732

GDP (USD) 4,117 395

Economic Growth (in%) 0.5 2.8

Unemployment rate 3.4 0.7

Inflation Rate (CPI in %) 0.8 -0.9


GLOBAL ENTRY STRATEGIES

• We will be licensing and franchising our product because it is helpful to grow our business
rapidly in those areas
• Using a franchising arrangement with Japanese convenience stores or “Konbini”, so we will let
the franchisee to use our intellectual property and operating system, in return they will pay us
an upfront fee and a monthly fee
• We will be giving “Aum Tea Company” in Thailand a license to use our patents, trademarks and
trade secrets, which means “Aum Tea Company” will be paying us a flat fee and will help us
grow sales without having to invest in new locations or distribution Networks
GLOBAL HRM

• Yellow Tea company realized early on that motivated and committed human resources were
the key to the success of a business.
• We try to recruit the right kind of people and make an effort in retain them.
• The culture of our company and the relationship we have with our people is our sustainable
competitive advantage
• Yellow Tea company invests in Training employees in the skills they would require to perform
the job efficiently
• We try to have employees that are the most productive in the industry and have a low
turnover, so that the employee reach the level of mastery in their domain.
FAIR TRADE

• Help ensure that farmers of the Yellow Mountain (Huang Shan) receive an equitable price for
their Chrysanthemum and strengthen their farms for the future
• Paying premium price stimulates production of high quality tea and also promotes sustainable
growth in a market
• It upholds our company’s commitment to purchase high quality product in a socially
responsible manner.
• Investing social projects in Tea communities
PROMOTIONAL MIX

• Advertising
• Personal selling
• Public relations
• Sales promotion
CONTRIBUTION
• Build charity fund to help some pool families
• Establish Hope Primary School for some children who lives in the deep mountain
• Helping pool families after natural disaster
CONCLUSION

• Global company
• Adaptation strategy
• Globally successful
• Future oriented
Thank You
REFERENCES
http://www.focus-economics.com/countries/thailand
http://www.focus-economics.com/countries/japan
https://geert-hofstede.com/china.html
http://blog.i7marketing.com/small-business/globalize-new-product
https://www.marketingdonut.co.uk/marketing/marketing-strategy

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