Measuring The Effectiveness Communication: A Case Study On DAVIDsTEA

Mission

Discuss About The Measuring The Effectiveness Communication.

DAVIsTEA is a Canadian specialty tea and tea accessory retailer based in Montreal, Quebec. It is the largest Canadian-based specialty tea boutique in the country. In 2008, David Segal and his cousin_ Herschel Segal launched their first store in Toronto and then a year later, first store in Montreal was established. During four years from 2008 to 2011, they have opened 50 stores across Canada and by the end of 2012; DAVIsTEA had more than 75 stores. management, there is a big change in the company at the time. In March 2016, co-founder David Segal resigned from DaVIsTEA then on December 8, 2016, Bullen was named Interim President and CEO, effective February 1, 2017.

“Great tea, friendly stores, and above-and-beyond customer service.”

To make tea fun and accessible to all. It is what makes us a fun place to visit, an easy place to love… and a great place to work.

To share our passion for tea with the whole world.  At DAVIDsTEA, we share more than just the love of amazing tea or a great sense of humor. We share a culture_ a philosophy. It’s all about how we treat our customers, our products and each other

1. FUN: Creating customers smiles with our special and unique light, energetic and un-academic tone of tea flavours.
2. FRIENDLY: Demystifying tea associate with above-and-beyond service will surprising and delighting our customers.
3. INNOVATION: We keen on innovating our products to be unique, exclusive blends and in-house designed accessories to adapt to our customers’ desires.
4. RESPONSIBLE: Organic, compostable, recyclable, reusable.
5. PASSION: Commitment, enthusiasm, and pride in the company. Love and excitement for what we sell and what we stand for.

1. To have the largest share of the North America loose-leaf tea market by the end of 2013

2. To grow to 550 stores with 320 stores in America and 230 stores in Canada by 2017

3. To concentrate on re-energizing the existing U.S. store base, as new store growth is projected to be five stores by 2018

4. To launch a new online shopping platform to handle online orders, easing shopping and accelerating e-commerce by the beginning of 2018

5. To have DAVIsTEA in each of Canada’s 100 most affluent communities

Location of Factor	STRENGTHS	WEAKNESSES
INTERNAL	· High experience · Existing distribution and sales network · Direct online marketing · Customization for customers experience · Friendly and outgoing staff · Good environment · Premium quality products · Fresh products · Online purchase possibility with customization	· Competitive market · No seating inside physical stores · High turnover of employees · Focus on Caffeine free product · More expensive products · No selling offer for coffee or hot chocolate
	OPPORTUNITIES	THREATS
EXTERNAL	· Growing demand in Canada · Expansion to US and Europe · Healthier life style adoption in Canada and U.S. · Creating a seating station inside the stores · Developing cheaper products · Developing products containing  caffeine · Immigration policy by the government will increase consumers	· Substitute products such as coffee and juice · Increase on prices · Increase on labor costs · Increase market share by competitors · Reduce product quality

David’s Tea will help in providing the local upper and middle-class community an effective place to socialize. The customers will be facilitated to indulge in different varieties of fine teas. The people will also find varieties of loose teas to gift their friends and family. This would be unique present as souvenirs of their holidays. For tourists, David’s Tea will prove to be a destination centre when in town. It would be a break from the shopping and be a warm-up visit. The potential customers will be glad to pay the premium price for the product in exchange for great taste, high quality and sense of prestige that they will receive.

Vision

The sale of tea will increase due to the high charge applied. This is because people believe that quality products are sold expensively, and consumers only go for the best. The targeted group is highly educated to know the subtle differences. In the recent times, the tea market is rapidly increasing. The sales of tea have increased up to 165% since the year 1990. The number of shops selling loose tea has also increased to about 200 shops.

The interest of people in the tea business is also largely depending on the increase in the proliferation of coffee shops. The working segment of Canada and America has a common belief that hot beverages are affordable luxuries. accounting, fashion within countries is always on the move. Fancy coffee drinks are so widely accepted worldwide that now people are looking for more unique and new treat to enjoy. Hence, the target markets are those consumers, who have been turning towards tea as the more affordable and natural or original luxury as compared to coffee.

	19-30	31-50	51-70	71+
% of consumed beverage (%)	Men	Women	Men	Women	Men	Women	Men	Women
Coffee	40	39	71	64	79	74	75	68
Tea	20	30	27	35	33	47	49	56

Figure 1. Beverage consumption between Coffee and Tea

In the gourmet teahouse segment, competition mostly depends on the skilled tea tenders, education, and cultivation of loyal consumer base. Previously the consumer used to have tea bags and various other low quality and tea dust offerings from the grocery stores. The range of textures, tastes, and fragrance from the high and real quality tea amazes the target customers.

TEA DRINKERS: committed tea drinkers always choose quality over convenience and price. The customers seek out completely fresh leaf as well as tippy varietals in the area. The customers also drive largely to buy quality loose teas so that they bring home with them.

COMESTIBLE GIFT BUYERS: in the recent times, the people want something different to gift their friends and family. In earlier times, peoples used to gift local cheeses and organic meats to their families and friends. Couples and teenagers look for unique and different items from standard boutiques. Instead of some cheap box of chocolates, they want something more indulgent.

TOURISTS: the tourist has a variety of reasons for visiting any particular place. The tourist often seeks high-quality foods, gifts, beverages, and service. The consumer prefers small-scale, local businesses to larger chains. In addition to this, the consumers also want to be highly assured about the quality. Once such tourist or visitors try the tea from David’s tea would does not want to return.

Values

New tea drinkers who never had nice flavored tea are the other potential customers of David’s Tea. Moreover, people pursuing healthy lifestyle are also the other potential customers that are to be acquired by the Company.

3.1 Communication

3.2 Customer relationship strategies

4.1 Management of Sales

4.2 Space Management

The tea industry in Canada and America is lucky to have huge domestic markets that annually consumes around 20% of the tea produced in the countries. Tea is one of the cheapest beverages all over the world besides water. There is many opportunities to increase the tea consumption in these domestic markets. Tea is both a healthy and lifestyle drink that is served with variety. Tea especially green tea is becoming popular among all the age group, and youngsters of all the age groups prefer to take iced tea. Different flavours such as pepper, cinnamon, and mixed fruits should be promoted to the cola addicted young generation. Since the customers can mix several flavours, sometimes those mixes might taste funny and different. In those cases, DAVIsTEA enforces that there are no problems with the mixture; it is because not all possibilities are used. This approach almost forces the customers to keep shopping and trying the products, which will increase the company’s revenue.

Figure 2. Tea mixture

Another unique attribute for DAVIsTEA is its use of social media. Usually, companies make use of social media to promote their brands and business, but DAVIsTEA has a different approach to it. Twitter is used as a tool whereas the customer can have their doubts and questions answered by the company. A specific department inside the company makes sure that all questions made through Twitter are properly answered.

In addition, the customers can have orders placed by Twitter and schedule its pick up in the physical stores that is the best for their convenience. DAVIsTEA has the preference to use Twitter because they understand more efficient than Facebook. The customers simply have to open the software and leave a quick message, while on Facebook the customer would have to write a status, which makes it longer and more difficult, especially if using a mobile phone.

Figure 3. DAVIsTEA’s Twitter page

The future is also great for all such tea company that deals with the organic certified handmade tea, green tea, purple tea, white tea and other specialty teas. In the recent times, small tea growers have started establishing their gardens and processing units to generate green teas. In addition to this, the demand for a variety of teas has also lead to opening up job opportunities for various people. Small cold storage also would prevent the tea from quality degradation. Other areas of opportunities for DAVIsTEA includes value addition. Such as packaging of the tea with indigenous products like the cane, jute, and bamboo highly appeal the target customers.

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