The document discusses a project to introduce a new vitamin-infused tea called Vitalitea into the Argo Tea product line. Vitalitea would contain 50% of the recommended daily allowance of several vitamins. Research was conducted through customer observations at Argo Tea stores, surveys, and focus groups. The research found that customers associate Argo Tea with health and see the potential for a vitamin-infused tea to be popular and profitable.
2. Project Overview The goal of this project is to introduce vitamin infused tea into the Argo Tea product family.
3. Description of the Product Vitalitea is a new vitamin-infused tea Each teabag contains 50% of the RDA (Recommended Dietary Allowance) for certain necessary vitamins (Niacin, Riboflavin, Folacin, Vitamin B6 & 12, and Thiamine) Vitalitea is available hot or iced
4. Product Methodology Knowing the people of today are more concerned with health than in years past, this is the perfect pairing of nutrition with a much loved drink. With ArgoTea continuing to do very successful in business, regardless of the economy, this was the perfect opportunity to launch a product with a new, hip feel and consumer base.
5. Objectives To successfully launch a new brand of tea into an already successful tea company Build awareness of the benefits of Vitalitea Show steady growth in Argo Tea stores, particularly Whole Foods and Trader Joes
6. Hypothesis Argo Tea is primarily a tea-based caf辿. The focus of the environment is health and relaxation. With this in mind, Vitalitea, our vitamin-infused tea, would be a highly popular and profitable product for Argo Tea.
7. Atmosphere Low music Plenty of stations for laptops Style: urban loft People didnt have lids on their drinks Lamps contribute to a homey atmosphere Mostly 2-person seating or less Natural colors with bold accents Original tea-brewing viewing room
8. Store features tea tap Actors door from original theatre Product advertised on walls in nice, decorative fashion Bi-levels Easy to move around, very open layout Tea wall with samples Often free samples given out High chair available Free drink on your birthday
9. 10 people total (90% women, 10% men) 5 people on laptops 2 people eating 1 interview taking place 50% cold drinks, 50% hot drink Behavioral Observations Upper Level Behavioral Observations Lower Level 15 people total (80% women, 20% men) Only 2 pairs of people sitting together, others alone 1 person reading a book 1 businessman reading the newspaper 50% of people have the lids removed from their hot drink 70% hot drinks 4 people on laptops 4 people texting 2 people writing in notebooks
10. Target Audience Age 20-35 Not gender specific Tea drinkers Urban professionals Students Health conscious individuals
11. Demographic Upper 20s to mid 30s Working professionals Urbanites Primarily female A lot of laptop users, texters, technologically literate people Employees Uniform is in earth tones Trendy, young individuals One female employee wears a green bandana
12. 10 Key Insights from Observations Has a primarily female customer base Caters to a laptop / high technology crowd Focuses on natural environment Cares about quality of their products produced in house Places importance on family in the "coffee shop" environment Believes in an open, "urban loft" type of environment Gives away free coffee and tea to people on the street. Also gives away a free drink on your birthday: caring and appreciative toward their customers Believes in having a display of their selection for diversity and testing: care about the quality of their product Uses low lighting and ambient music to create a calm, relaxing environment Understands that due to public knowledge of the health benefits associated with tea, Argo Tea might have an edge over its competitors during the fall and cold/flu season
13. Research: Projective Techniques Brand Association: Which of these brands would you associate with Argo Tea? Timbuk2, Converse, Fender, Apple, Microsoft, Sperry, Trek, Google, Borders, Barnes & Noble, Urban Outfitters, American Apparel etc. Sentence Completion: Argo Tea is more ___________________ than Starbucks, Caribou, and other competitors. When I walk into Argo Tea, the first thing I think of is ________________. Argo Tea is _______________________________________________. I want Argo Tea the most when I am _____________________________. I prefer Argo Tea over its competitors because _____________________ _______________________________________________________.
14. Argo Tea Survey One Picture Analysis Girl, Twenties, 1st Year Law Student Picture Association In here for the environment Nice place to study Quiet Coffee drinker KEY INSIGHT: Doesnt really drink tea (besides Earl Gray) but thinks the idea of a vitamin-infused tea would be interesting and do well.
15. Argo Tea Survey Two Picture Analysis Mostly chose leaves in the ads Associates brown and green with Argo Chose the turtle because wanted the turtle to be part of Argo tea Like the hibiscus tea only gets that flavor Like Argo because it ISNT Starbucks or Caribou More sophisticated Prettier Calmer / quieter atmosphere Girl, Twenties, Student
16. Argo Tea Survey Three Picture Analysis Girl, Twenties, Student Picture Association Green Leafy Whole grain Fast/Quick Comfortable Environment Natural Healthy / Fitness Zen Crisp Modern
17. Argo Tea Survey Three Sentence Completion Argo Tea is more NATURAL than Starbucks, Caribou, and other competitors. When I walk into Argo Tea, the first thing I think of is ZEN . Argo Tea is SOMEWHERE I NEED TO GO MORE . I want Argo Tea most when I AM ON THE GO . I prefer Argo Tea over its competitors because THEY HAVE A BETTER TEA SELECTION THAN OTHERS .
18. Argo Tea Survey Three (cont) What Brands would you associate with Argo Tea?
19. External Perception Survey We conducted an outside survey to determine the opinion of the product being introduced to Argo Tea: Vitamin-Infused Vitalitea. Numbers are based on the 34 total respondents to the survey.
20. Research: General Survey Question Examples How do you feel about the fact that the tea is freshly grown and brewed in their flagship store? (Also, were you aware of this fact before now?) How does the availability of drink samples make you feel about Argo Tea? How do you feel about the environment in Argo Tea (music, lightingetc.)? Does the health-conscious stigma attached to drinking tea influence your purchasing decisions?
21. External Perception Survey 68.1% of people drink tea (either hot or cold) weekly 61.7% of people think health benefits are either important or very important when drinking tea Quick Facts When asked if somebody would purchase a drink infused with vitamins, 85.3% of people said, Definitely or Probably
27. New Key Insights from Research The color green is commonly associated with Argo Tea Leaves are commonly associated with Argo Tea Argo Tea is a comfortable, calm environment Argo Teas environment is conductive to studying and/or relaxation Health is associated with Argo Tea The stores modern and clean setting is a favorable for the on the go tea drinker The idea of a vitamin-infused tea served at Argo Tea is well received
28. Consumer Insights: Laddering Product Benefits Basic Needs Higher Psychological Needs Warm Tasty Drink Source of Daily Vitamins Keeps You Healthy Source of Hydration I feel sophisticated, more intelligent and creative when I drink tea.
29. Consumer Insights: Ad Semiotics Sign Signifier Signified Tree Christmas Christmas Drink Denotation Connotation Enjoying a Enjoying the Holiday-inspired Holidays & the Drink fun that comes with it Ideologies: during the Christmas season, Holiday drinks are to be enjoyed! Syntagmatic Relations: During the Holiday season, warm drinks signify relationships, togetherness, and happiness.
30. Consumer Insights: Spheres of Influence Hip & Urban; Feel city-savvy Healthy Drink My Friends Drink It Hot New Drink to Have People will think Im health conscious I like Argo Tea, trust the brand Vitalitea
31. Consumer Insights What We DONT Want: A bad cup of vitamin-infused tea would be cherry flavored, grainy, and taste like cough syrupa lot of vitamin drinks are gross and grainy.
32. Consumer Insights What We DONT Want: I would be disappointed in a vitamin tea that was mineral-like or chalky I expect it would work better in red, hibiscus and white teas. Consumer Insights What Could Work:
33. Marketing Implications Inform the public of the new drink by way of sponsoring a Chicago and New York Bike Race Create buzz about Vitalitea during Cold/Flu season Bring in students with free drink coupons Also includes bring a friend and get a free drink Branch out to national grocery stores and chains within a years time of launch
34. Integrated Marketing The chosen store for the Vitalitea Brand Launch will be Trader Joes. There are two reasons for this: There are Trader Joes in the cities where Argo Tea is found Trader Joes is the grocery store that best fits Argo Teas image of individuality Offer Vitalitea in all Chicago and New York City airports via new Vitalitea Themed Vending Machines Offer Vitalitea in all schools and cafes nationwide
35. Conclusion Vitalitea would work as an Argo Tea product. It fits into their product family well. Its imperative that Vitalitea is available to consumers in a grocery store, as well as Argo Tea, as proven by the research.
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