Established in Singapore in 2008 Luxury Tea brand with over 800 unique tea blends and 200 varieties Retail and premium tea salons in 14 countries worldwide Offers tea accessories and tea infused patisseries Strengths Weaknesses 1. High Product Quality 1. Unappealing digital and social media presence 2. Wide Product Variety 2. Lack of vertical integration 3. Highly Trained Stuff 4. Unique aesthetic appeal of salons Opportunities Threats 1. Growing health and wellness trend 1. Existing Competition 2. Establishment of Tea Academy in Canada 2. Substitute Products Political Stability of Canadian political environment Minimal government intervention in business except mainly through: taxation labor laws Economical Canada has a growing and vibrant economy with : low interest rates stable inflation rates strong currency Social Diverse cultural society Growing population Relatively good earning power of residents Technological Advanced technological society Technology is widely used in areas such as: Manufacturing/Production Communication Research and Development Demographic • Male and Female • Age 20 and above • Above Average Income Psychographic • Appreciate Experiential Products • Status Seekers Geographic • Toronto To spread the tea drinking culture among Canadians (and tourists to Canada) by providing rare and sophisticated tea blends and creating a unique tea drinking experience in our salons. Become a market leader in the luxury tea category in the next 5 years Reach profitability within two years Maintain at least 10% growth annually High-end experiential environment Luxurious salon aesthetics Offer unique blends Innovative brewing techniques Personnel: Tea specialist Tea Tasting Events Tea Sampling Kiosks Position TWG as the Haute Couture of Teas Tie-ups with other luxury lifestyle brands 4 P’s: Product Highest Quality Tea Over 800 different single-estate, fine harvest and exclusive blends of tea Offers a variety from loose teas, packaged teas to tea bags and tea collections The White House Tea Yellow Gold Bud Tea 4P’s: Product Tea Service Luxurious Tea Salon European and Asian blend decor Highly trained knowledgeable staff Luxury Experience Low Quality High Quality Basic Experience 4P’s: Place • Fairmont Hotels and Resorts Wholesale: premium hotels and restaurants 4P’s: Place • Yorkdale Shopping Centre Retail: TWG salon 4P’s: Place • WHOLE FOODS Retail: high-end retailers 4P’s: Place • Web-site • Mobile phone application E-commerce 4P’s: Promotion “Wide variety of tea of superb quality for elite, for those who appreciate a luxury and sophisticated experience”. Product message 4P’s: Promotion • Articles in lifestyle magazines and web-sites • Articles in business oriented issues • Blogger’s posts (food, lifestyle) Public Relations 4P’s: Promotion • Celebrities’ presence on TWG events • Seek connection with Royal Family Celebrity Endorsement 4P’s: Promotion • Toronto Fashion Week Events and Sponsorship 4P’s: Promotion • Our clients will be our brand ambassadors Word-of-mouth 4P’s: Promotion • Country Specific Social Media Implement Premium Price Strategy in Canada Set a benchmark of 15% higher prices than Singapore prices Price Comparison Product David’s Tea TWG Tea Loose Teas CAD 4.50 – 24.50 CAD 6.50 – 854.50 Packaged Teas CAD 6.00 – 54.50 CAD 40.50 – 750.00 Tea Bags CAD 6.00 – 39.50 CAD 25.00 Tea Accessories CAD 2.50 – 250 CAD 5.00 – 13,075.00 5 Year Sales Projection for TWG Tea 53,281,800 40,986,000 34,155,000 27,000,000 1,000,000 2014 29,700,000 1,100,000 2015 1,265,000 2016 $ Sales 1,518,000 2017 Cups of Tea & Desert Sold 1,973,400 2018 Entry of similar competitors. • ensure high product quality • intensify communication of strengths Interruptions of raw materials supplies. • maintain strong relationships with suppliers Food contamination • follow standard procedure Lawsuits • hire the best law firm