Product StrategyDAVIDsTEA offers a line of products which include over 100 different varieties of teas, in addition to their vast range of teaware and other items.
Each store location has at least 30 regular blends and 5 seasonal blends in stock. Such a wide array of options allows customers to search for their favourite flavours, ideal health benefits, or to offer customers specific teas for special situations. For instance, a refreshing tea for a hot day or a calming blend for someone will enable a broader appeal to customers throughout the day. Products are offered in a modern retail atmosphere with a distinct DAVIDsTEA aesthetic. The strong brand throughout the store is further elevated by ensuring every product is placed in a branded DAVIDsTEA container.Price StrategyDAVIDsTEA beverages can be separated into two main categories of to-go drinks, and bulk tea for home (including loose-leaf teas). DAVIDsTEA to-go drinks are priced around $2 to $3 USD per beverage, which is equivalent to medium to high-range coffee shops. DAVIDsTEA bulk teas are priced cheaper compared to their competitors, all the while offering high quality products.
Promotion StrategyDAVIDsTEA utilizes a variety of promotional elements are utilized to raise awareness of their brand: Advertising and direct marketing is utilized by DAVIDsTEA through strongly branding themselves and their offerings (from cups to tea cans to at-home accessories) with their familiar teal colors. Pairing this with local and neighborhood advertising, such as posters and print advertisements within 100 meters of their stores, creates additional sales. DAVIDsTEA does essentially no print or media advertising, and instead relies on word-of mouth to promote their products. Subsequently, the interactions and knowledge that their employees are able to pass on to customers are critical to encouraging word-of-mouth promotion.
Personal selling is one focus area in which ongoing staff education and training ensures their employees are excellent personal sellers and representatives of their brand. In addition, the company has a fairly thorough recruitment process. DAVIDsTEA will educate its guests about its products by actively sampling them and by encouraging employees to engage customers as they walk into or past the store.Internet and social media promotion is a strong point of focus for business, as DAVIDsTEA already significantly conducts transactions and sales online. Combined with their social media (Facebook, Twitter, Pinterest), DAVIDsTEA listens to customer feedback to constantly improve their product offering.Sales promotion strategies implemented by DAVIDsTEA capitalizes on the seasonal market well, creating blends for spring, summer, fall, and winter. They do this through a holiday gift guide, as well as online. Continuing to offer online promotions and advertising through their website will help drive revenue and repeat purchases.
Moreover, partnering with other like-minded companies that advertise seasonally (for instance, select clothing lines) could help increase their sales.Frequent Steepers loyalty program is a strong point in the retention and continual engagement of DAVIDsTEA shoppers. For every dollar spent in-store or online, members will earn one point. For every 100 points earned, 50 grams of any tea are rewarded for free. Other benefits include free cups of tea on DAVIDsTEA Frequent Steepers birthdays, as well as when a profile is created upon sign-up. If not enough points are earned for a free bag of loose leaf tea, the balance is rolled over to the next 3-month period.
Every 100-point increment is converted into free tea rewards at the end of December, and leftover points will then be converted into free beverage rewards for redemption in any DAVIDsTEA store. The points balance will go back to zero and there will be 60 days for rewards to be claimed. 80% of customers are members of Frequent Steepers club. Events and presence at events are great strategies to spread awareness of their tea. The company holds a significant number of events, mainly tastings of their familiar and new products. They also sponsor fundraisers and charity events occasionally by supplying teas.
DAVIDsTEA School events are also held where customers can learn about the benefits of tea drinking.Place and distribution strategy positions DAVIDsTEA in main shopping areas and central avenues with heavy foot traffic. It is largely advantageous to be the only tea-specific venue within the mall or street. Additionally, it is strategized to be in close vicinity to large corporate skyscrapers, given that their occupants favor a coffee-break lifestyle and appreciate a higher-quality beverage that augments their personal image.