Market mix analysis
The product selected is herbal tea powder. Tea is made from leaves and internodes of the Camellia Sinensis plant. Despite the name, herbal tea is not made from the tea plant but steeping herbs, flowers, or roots. The tea will be processed differently from other types of tea in Canada and will, therefore, be a unique product. Herbal tea relieves stress and anxiety as it calms the mind. It will also be of benefit to the consumer, especially those who have arthritis since it reduces inflammation. It also lowers the blood pressure and is considered an anti-aging agent. Unlike other types of teas, herbal tea does not contain any caffeine, which becomes an added benefit to the consumer. The consumer will derive these, among many other health benefits from herbal tea.
Aden herbal tea will be the brand name. The brand name will make a memorable impression on the customers, and from it, they know what to expect that it herbal tea since the name clarifies that it is not just any other type of tea but herbal tea. The name also is unique, and therefore the product distinguishes itself from other tea products, which makes the company unique from its competitors. The brand name will also increase the company’s value since being the only firm that produces the herbal tea it will be more appealing for investors and gives the firm more leverage in the industry (Rubio, Villaseñor, & Yagüe, 2017). New customers will also be generated since the name will give a positive impression of the company to customers. It will also create trust in the market due to the polished and professional portray of the name, which adds value to the company.
The main target for herbal tea is the older people from the age of 60. Herbal tea is mainly associated with immunity. It has been proven to have many health benefits, such as reducing inflammation (Gross, Montero, Hammer, & Berti, 2017). Older adults being at a very high risk of being affected by many diseases prefer taking herbal tea to reduce the regular visit to the doctor. Anti-aging as a benefit of taking herbal tea makes the older people a perfect target since it will be an ideal marketing strategy. It is also proven that herbal tea boosts mood from research done in japan that healthy older men who drink herbal tea are 44% less likely to suffer from depression. Herbal tea also strengthens bones by increasing bone mineral density, which is essential for older adults to have strong bones. These, among other factors, make older people be the primary target for the product.
The other alternatives for herbal tea are different types of tea that have the same benefits. Black, green, white, yellow, and oolong tea are some of the varieties of teas that may have equal health benefits as herbal tea. Coffee may also be an alternative for the herbal tea, caffeine-free coffee, which is Decaf coffee. The main competition would be green tea. Green tea is known for its many health benefits, including helping in the prevention of cancer. The primary marketing strategy for the herbal tea being its health benefits may be overshadowed by the green tea. There are not many companies in Canada that produce green tea, and therefore it may not significantly impact the performance of the herbal tea.
Various positioning strategies may be taken, including brand strategy and excellent communication, but the best would be creating a new value curve. This strategy involves competing on the aspects that competitors have failed to deliver. This is the best strategy since there is no other company in Canada that produces herbal tea, which gives the company a competitive advantage. Since the company is new, it also becomes the best strategy. The product meets the needs of the target market in that it has many health benefits that the older adults ought to take advantage of due to their reduced immunity of the body. Herbal tea is different from other types of tea since it is made from herbaceous plants and not from the tea plant, Camellia sinensis like the rest. Unlike other types of tea, herbal tea does not contain caffeine, which makes it a distinguishing factor from the rest.
The product, herbal tea, is different from others because it entirely does not contain any caffeine and is made from herbal leaves, flowers, and roots (Killedar &Pawar, 2017). Its growing process, therefore, becomes different from the rest since it is a combination of various herbal trees and not from a single plant. The product has more value over the rest due to its unlimited health benefits and its unique taste. The taste varies from its flavors, for instance, from peppermint to lemongrass and honey-sweet flavors. The main benefit of herbal tea to the target market is that it lowers the risks of developing diabetes because of the chemical components in the tea called polyphenols, which help the body to metabolize glucose, therefore, reducing diabetes.
The best price proposition would be three dollars for ten sachets of green tea. There is not too high for older people since they may not have a stable source of income and may rely on relatives and friends for support. The price should be set considering the benefits of herbal tea. The best pricing method would be a cost-plus pricing approach where a reasonable mark up should be placed. The distribution channel should be through distributors (Salter & Hogan, 2018). These will add value to older adults as it will be convenient, and also they have an opportunity to enquire from the distributors. The best strategy should be push strategy since the product will be new in the market. There should be a special type of channel distribution that will ensure that the customers are in contact with the producers for the customers and producers to get feedback about the product since it is new in the market.
The promotion message should be ‘ refresh you with a combination of the best natural tea at reasonable prices.’ This will deliver the intended message that the brand is of the best quality and is still affordable. Specific mediums such as salespersons should be adopted. This is to ensure that there is direct contact between the customers and the manufacturers so that they may be able to get first-hand information (Brown & Ingene, 2019). This will also serve as a good marketing strategy since there will be the creation of awareness about the product, which makes it an efficient distribution channel to the company.
Refernces
Brown, J. R., & Ingene, C. A. (2019). Putting it all together: a conceptual framework for integrating distribution channels research. In Handbook of Research on Distribution Channels. Edward Elgar Publishing.
Gross, J., Montero, C. G., Hammer, M., & Berti, P. (2017). Creating Healthy Bodies in Rural Ecuador at a Time of Dietary Shift. In Food, Agriculture, and Social Change (pp. 34-47). Routledge.
Killedar, S. G., Pawar, A. V., & Suresh Killedar, C. G. (2017). Preparation of Herbal Tea from Mulberry Leaves. Journal of Medicinal Plants, 5(2), 325-328.
Rubio, N., Villaseñor, N., & Yagüe, M. J. (2017). Creation of consumer loyalty and trust in the retailer through store brands: The moderating effect of the choice of store brand name. Journal of Retailing and Consumer Services, 34, 358-368.
Salter, A. W., & Hogan, T. L. (2018). Expectations and NGDP Targeting: Supply-Side Problems with Demand-Side Policy. Journal of Private Enterprise, forthcoming.