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Executive Summary
Tea 2 Go, built in September 2015 in College Station, Texas, is very new to the
community. Located along William D. Fitch Parkway, they are in a newly developed
area that is quickly building up. Tea 2 Go is known for their healthy variety of tea options
ranging from loose leaf to commercial. Their slogan is “Healthy Tea 4 Healthy Living.”
They also provide a very knowledgeable staff to help customers with any needs or
questions they may have.
There are over 100,000 people living in the College Station with over 55,000 of them
college students. There is significant potential for growth with this target audience.
According to the Texas Higher Education Coordinating Board’s enrollment forecast for
2015-2025, Texas A&M University is expected to reach over 66,000 by the year 2020.
The following proposal provides a step-by-step plan for how Tea 2 Go will be able to
reach college students and attract them to their store. They have main problems: lack of
brand awareness and location. Our campaign objectives are to increase store ticket
count to 150 per day, generate social media awareness by increasing Facebook likes to
1,800, and create more awareness through Twitter and Instagram. We plan to do this
with four different campaigns: alliteration advertising, setting up booths at New Student
Conferences, profit shares with student organizations, and setting up booths outside of
Kyle Field during game days.
By implementing these marketing campaigns, Tea 2 Go will increase brand awareness
and word of mouth referrals to their store. These campaigns are simple to implement
and require little to no expense, which is perfect for their low marketing budget.
Our team is proud to present this proposal to Tea 2 Go. We are very honored to have
conducted the research, composed the plan, and designed the creative executions
you’ll find on the following pages.
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Table of Contents
Meet the Team………………………..……………………………………………..…….…….... 3
-Team Information
External Environment……………………………………………............................................ 4
-Industry Overview
-Industry Analysis
-Competitive Analysis
-Secondary Research
Internal Environment…………………………………………………………………………..… 5
-Client Background & History
-Client Information
-Recent Marketing Efforts
-SWOT Analysis
-Ethnographic Research
Target Market…………………………………………………………………………......…….… 7
-Primary Research
-Target Market Identification
-Target Market Analysis
Objectives & Insights………………………………………………………………………..…... 8
-Key Research Insights
-The Problem
-Campaign Objectives
Big Idea & Creative Plan………………………………………………….…………….………. 9
-The “Big Idea”
-Creative Executions
Media Plan………………………………………………………………………………….....…. 10
-Translation of Media
-Media Plan Details
Final Plan……………………………………...…………………………………….…………… 11
-Campaign Evaluation
Work Cited………………………………….……………………………….…………………… 12
Survey Results
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Meet the Team
Team Information
This semester we have been working on a case competition for our organization, the American
Marketing Association. Our team consists of 3 members: Shelby Harris, Jakub Marshall, and
Brittany Pogue. Below is some information on each team member to let you know more about
each one of us.
-Shelby Harris
Howdy! My name is Shelby Harris, and I’m a junior marketing major in Mays
Business School. I’m from a tiny town called Roby, Texas, with a population
of 600 people. I came to Texas A&M in the fall of 2013, and it has been the
best decision I have made. My goal is to pursue a job in the analytics and
consulting field after I graduate in May 2017.
-Jakub Marshall
Howdy! My name is Jakub Marshall. I’m a sophmore Food Marketing
Systems Major in the Department of Agriculture Economics from Tomball,
Texas. I joined the Aggie family this semester, Spring 2016, and I have
thoroughly enjoyed every moment of it.
-Brittany Pogue
Howdy! My name is Brittany Pogue and I am a junior Communications
Major from Sugar Land, Texas. I came to Texas A&M in the Spring of 2015
and have been working towards a Minor in Business. I hope to pursue a job
in the marketing field after my May 2017 graduation.
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External Environment
Industry Overview
The United States is the 4th largest tea market in the world with no looks of declining in
popularity. According to IBISWorld.com, tea is consumed in nearly 80% of United States
households. (Carter) With the growing health awareness in the country, more and more people
are turning towards drinking tea. IBISWorld states that “revenue for the Tea Production industry
is therefore expected to rise at an annualized rate of 2.4% over the five years to 2016, totaling
$1.6 billion.” In the next ten years, the industry’s value added (IVA) is expected to increase an
average 2.9% each year. With new competition coming into the market, product offerings are
expanding to maximize sales opportunities in this growing market. The good news is, with the
healthy eating index expected to grow a little over 2016, the tea industry has a good future
ahead of it.
Industry Analysis
According to IBISWorld.com, the per capita tea consumption is currently on the rise. This is
leading to more industry competitors. Current competitors such as Starbucks and McAlister’s
are now introducing more tea options for their customers. The advantage Tea 2 Go has over
their competitors is their healthiness and wide variety of flavors. BizMiner.com reports that the
average startup sales for coffee/tea retail stores was around $418,000. Average sales for
smaller businesses climbs to a little less than $450,000. (Industry Market Research)
Competitor Analysis
Tea2Go’s competitors mainly includes chains, coffee shops, and other businesses that offer
beverages and study areas.
Competitive Analysis - Starbucks
Starbucks is a top competitor in the coffee industry and has been for many years. It is known for
its clean atmosphere, customer service, and high quality of coffee.
It started in 1971 in Seattle, Washington, initially selling coffee beans and coffee making
equipment, and has since spread worldwide. They now have more than 21,000 across the
globe.
Starbucks has a revenue of almost 16.45 billion dollars and spends over $350 million dollars in
marketing. (Starbucks)
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Competitive Analysis - Mugwalls
Mugwalls is a local coffeehouse in the College Station area, providing a popular study spot for
students. The late business hours and inexpensive coffee, tea and pastry prices attract students
throughout the semester. It is known for their relaxed environment and their variety of drink
options.
Mugwalls was established in 2009, quickly becoming a popular study spot for students. They
are an independent coffeehouse, with their only location in College Station.
Mugwalls has an annual revenue of less than $500,000 with a staff consisting of approximately
five to nine employees.
Competitive Analysis - McAlister’s
Mcalister’s Deli in College Station is a major competitor due to their Famous Sweet Tea. It is
also known for its nutritious menu, recently releasing a new green tea in effort to “go green”.
Mcalister’s Deli is a franchise restaurant which was established in 1989 in Oxford, Mississippi.
As of 2015 they have opened more than 335 restaurants in 24 states and are expecting another
77 future locations to open.
Mcalister’s have an annual revenue of about $459 million.
Secondary Research
We gained our secondary research through a couple of research databases: IBISWorld and
BizMiner. Through IBISWorld, we gained insight into the tea industry. It explained how the
industry was currently doing and where it was going in the future. BizMiner described how the
coffee and tea retail industry was doing financially. Listed on the last page is our work cited.
Internal Environment
Client Background & History
Tea 2 Go started out in a small town with “vision of bringing the amazing health benefits and
tastes of loose leaf tea from all around the world to the every-day man and woman.”
(Tea2Go.com) Tea 2 Go is known for providing a wide range of tea choices with many different
health benefits. They offer of 120 variety of naturally and organic flavors with options to have
loose leaf, commercial, packaged to brew at home, etc.
Tea 2 Go currently has seventeen locations across Texas. They are a franchising company who
rely on its franchisees to play a major role in their success.
Client Information
Price range, product mix, advertising spending, distribution, current target market, current
positioning, and slogan
The College Station location opened in September 2015. They have over 120 variety of loose
leaf tea flavors. Currently, they do not have a marketing budget set; however, they are allowed
to spend a maximum of $500 a month if approved. (Distribution) Tea 2 Go College Station has
two different target markets: college students and homeowners that surround the store location.
(Positioning) Their current positioning to promote the healthiness of their tea. With the health
trend increasing, this is a big advantage to distinguish their brand. Tea 2 Go’s slogan is “Health
Tea 4 Health Living” which does a great job at explaining what they are about.
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Recent Marketing Efforts
In the past few months, Tea 2 Go in College Station has made several marketing efforts. They
have given out free gallons of commercial tea around the community. This is a simple, easy way
to get their name out to many people in the Bryan/College Station area in a way that everyone
loves, free stuff. They have also done in-store promotions that they have advertised in-store and
through their Facebook page. Previously, they have set up booths at the College Station city
career fair and the Premier Market Expo at the Brazos Expo Center. Another marketing effort
they made was sending corporate post cards with coupons to nearby neighborhoods. Each of
these marketing efforts have been a great way to expose the community to the Tea 2 Go brand;
however, they have not produced the return that was expected from them.
SWOT Analysis
Internal Strengths
Friendly, knowledgeable staff
Offers quality loose leaf tea with
many health benefits
Low prices
Clean, quiet atmosphere and study
lounge
Weaknesses
Location
Limited budget
Lack of brand recognition
Externa
l
Opportunities
New growth around store location
Signage advertising
Kyle Field game day venue
Threats
Competition with other
beverage companies
Strengths
-Tea 2 Go has several strengths. With their wide variety of flavors, a well-trained staff is
necessary to keep the customers informed. They have a knowledgeable staff who really care
about the customers and in sure they received what they want. They are able to give customers
many healthy options in their various tea flavors. Tea 2 Go still maintains a very affordable price
in their product selection, which is great for college students who are on a budget. They also
offer a nice study lounge and seating area that is clean and quiet.
Weaknesses
-Despite their many strengths, Tea 2 Go still has a few weaknesses. The biggest weakness
would be their location. Located approximately 15 minutes from campus, they are not in the
within a common shopping area for local college students. They are also located in a new area;
therefore, not many business are around them to help draw more traffic. The lack of a market
budget isn’t helping their businesses, especially since not many students have heard about Tea
2 Go before. They need a marketing budget in order to build brand recognition.
Opportunities
-Tea 2 Go is facing many opportunities. Even though they are located in a new development, far
away from Texas A&M University, the area they are in is growing rapidly. Many new businesses
will be constructed around them which will drive more customers to the area. They also have
many marketing opportunities. One of these opportunities is signage near Hwy 6 and along
William Fitch Parkway. While the costs is a bit pricey, it gives them a big opportunity to attract
customers who wouldn't see their store otherwise. They also have the option of setting up a
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venue at Kyle Field. With the new stadium being able to hold up over 100,000 fans, they could
get their name out to many people at once.
Threats
-The significant threat that faces Tea 2 Go is the competition with other beverage companies in
the area such as Starbucks, Mugwalls, Sweet Eugene’s, etc. They attract many college
students daily because of their brand recognition and location. With Tea 2 Go being new to the
area, not many students are familiar with who they are.
Ethnographic Research
Each of our team members visited the College Station Tea2Go store to meet with the manager
and collect more knowledge about the store and also visited as an average customer. During
our in store experience we were impressed with the helpful and knowledgeable staff members
which were quick to assist the customers. The environment was clean with spacious lounge and
study areas to accommodate students. The music playing throughout the store was quiet and
relaxing to provide a study environment. The first impression a customer receives when walking
into the store is the numerous choices of loose leaf tea. However, the commercial teas were
hidden from the customer behind a wall of merchandise when walking through the front door.
When observing the customers that occupied the tables in the store we concluded that majority
were of an older age range, not college students. The store is setup as a study lounge yet it
lacks the target customers in need of a study area, college students.
Target Market
Primary Research
Survey
We conducted a survey with 50 respondents from local college students. The questions ranged
from learning about their study preferences to their tea drinking habits. The top factors they
considered when picking a place to study were: free wi-fi, quiet atmosphere, comfortable
seating, and proximity of location. We then switched the topic to tea. We found that 52% stated
that they drink tea anytime of the day, while only 18% said they never drink tea. The top three
places they went to purchase tea was Starbucks, McAlister’s, and Chick-Fil-A. We asked them
to rate various factors on a scale of importance to them. Factors such as price of tea, variety of
flavors, health benefits were evenly spread across the scale. The factor with the most
importance was “Promotions/Special Discounts in the store.” The average price students were
willing to spend for a cup of tea was $2.70. When asked how they usually hear about new
stores in the Bryan/College Station area, the main answers received were: word of mouth,
friends, and social media.
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In-Depth Interview
We conducted seven in-depth interviews for a second source of primary research. In our
interview questions, we ask about their social media habits, what draws them to booths at the
MSC and Kyle Field, and what their thoughts were on alliteration advertising. From our research
we gathered that our target market uses social media every day and they also follow businesses
on their social media accounts. They said that the reasons they stop at booths at the MSC
would be for free items; however, they take brochures if they are handed them. They normally
stop at booths outside Kyle Field for the same reasons while also buying products if they are
interested. Majority of our respondents answered that alliteration advertising does attract them
to a business because it’s catchy and makes them feel like they are getting a good deal.
Target Market Identification
With the store being located on the southern outskirts of College Station in the residential area,
the brand recognition needs to be expanded into the heart of College Station. Over 75% of the
Bryan/College Station population is college students, ages between 18 - 24. Focusing on
reaching the college students will allow Tea2Go to reach a larger potential customer
base. College students are known for seeking out the cheapest options when it comes to
spending money due to low student incomes and the expenses included with attending
college. The low prices Tea2Go offers, beating the prices of competitors, will attract the student
population. Aside from competitive prices, college students are constantly searching for study
friendly environments. Tea2Go provides a study area including many tables and a lounge to
accommodate groups. Tea2Go proves to be college friendly, however, the brand has not yet
fulfilled its potential to reach the majority population of students in the Bryan/College Station
area.
Objectives & Insights
Key Research Insights
The research we gained from our surveyed showed us that local college students are willing to
drive up to 10 miles for a food/beverage store. They get the motivation and knowledge of new
places from word of mouth. This can come from friends and social media.
The Problem
The problem that Tea 2 Go faces is a lack of brand recognition with local college students. With
the proximity of the store being away from busy college areas, Tea 2 Go is currently having to
rely on word of mouth to increase traffic at their store.
Campaign Objectives
Increase store ticket count to 150 per day
Generate social media awareness by increasing Facebook likes to 1,800 or more
Creating more awareness through Twitter and Instagram
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Big Idea & Creative Plan
The “Big Idea”
For our “big idea,” we decided on four different campaigns. These campaigns will be set in
chronological order within the 4-6 month timeframe.
-Alliteration Advertising
According to the research we gathered in our in-depth interview, many college students are
drawn to creative advertising. Catchy phrases such as “Whiskey Wednesdays” and “Texas
Country Tuesdays” are a great way to attract students and help them constantly remember your
business. Moreover, we found that the most important factor college students look for is
promotions/special discounts in the store. By having special days devoted to this factor and by
giving them a recognizable name, we will be able to grab the attention of the student body.
We plan to start this campaign as soon as possible.
-New Student Conferences
Our next campaign would be to set up booth at the MSC during New Student Conferences
throughout the summer. According to our in-depth interview results, students are more likely to
stop at booths in the MSC if they are giving away free stuff. By giving away free samples of the
different flavors of teas, we can attract new customers to our booth. These students are new to
the area; therefore, they most likely don’t have a strong preference of where they like to study or
get beverages from. By targeting these students right when they get to campus, you can begin
to establish a loyalty between them before the competition can.
We plan to start this campaign at the beginning of June until mid-August.
-Profit Shares
This campaign will take place when the fall 2016 semester begins. It will build upon the loyalty
we have already established with students throughout the summer. At the beginning of the
semester, Tea 2 Go will reach out the student organizations, sororities, and fraternities. They
mention on their website how they “strive to be an active part in each and every community we
are fortunate enough to be a part of by supporting local community events…” (Community) This
will help them do that by supporting the local college students and building that trust between
them. It will also increase brand awareness by word of mouth and social media.
-Kyle Field Booth
Our last campaign features setting up a booth outside of Kyle Field during football game days.
With Kyle Field now able to hold over 100,000 fans in the new stadium, this is the ultimate way
to attract a large number of customers at one time. Our competition, McAlister’s has already
established a spot during game days; however, by making ourselves stand out from the crowd,
we can draw fans to our booth. Some ways we plan to do this are by letting customers sample
the different teas before buying, doing fun contests that gives customers ways to win free
products (Ex. predict the winning score and win a free drink every week), special discounts for
bulk buys, etc. By now, we have built a brand reputation and setting up a booth outside of Kyle
Field will help grow that awareness. It’s not about making a profit, but about building awareness.
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Creative Executions
Media Plan
Translation of Media
Social Media will play a large role in the execution of this marketing plan. College students are
devoted users of social media, therefore, Facebook, Instagram and Twitter are the most
promising advertising outlets for our target market. We are aware that Tea 2 Go has already
created Facebook, Instagram and Twitter pages, however, there is a lack of followers and
promotions posted. Gaining more followers on all social media sites can be achieved by offering
discounts to those who share and/or post about their Tea 2 Go purchase on any of the social
media sites and present proof of their post at the counter at their next visit. Not only will Tea 2
Go be gaining social media followers through this process, but also receive additional
advertising through the social media use of the students themselves. Alliteration advertising
can easily be promoted by urging the customers to check any and all Tea 2 Go social media
pages to find out the “deal of the day”. The same idea goes for profit share events. When
teaming up with a sorority, fraternity, or any other community organization, Tea 2 Go can
advertise a discount to those who post about the profit share on a social media outlet. Tea 2 Go
can also promote their social media accounts at both the Summer New Student Conference
booths and the Kyle Field booth. By simply creating a poster with all social media handles listed
will provide recognition for the Tea 2 Go social media advertising.
It has been proven that social media advertising greatly benefits business. Our surveys
confirmed that students follow business accounts on social media to stay updated with the daily
specials and deals. According to a study done by The Statistics Portal, social media has
increased company exposure by 90%, increased loyal customers by 69%, and improved sales
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by 51%. Due to the fact that our target market is so devoted to social media, increasing
recognition and becoming more active on all Tea 2 Go social media pages will improve brand
recognition and ticket sales.
Media Plan Details
Considering the limited marketing budget, social media is an inexpensive marketing approach.
We are aware that Tea 2 Go has been provided with the opportunity to purchase a marquee
sign either in front of the store or on Highway 6. Again, considering the marketing budget as of
now, social media advertising will be more productive and cost efficient than the price of a
marquee advertising.
Final Plan
Campaign Evaluations
The campaign will be evaluated based on if we reached our measurable objectives. If we reach
these objectives then it has been a successful campaign. Our objectives will be success
completed through our “Big Idea” by increasing brand awareness and motivating customers to
visit the store through creative advertising and promotions.
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Work Cited
Carter, Britanny. Tea Production in the US. Rep. IBISWorld, Feb. 2016. Web. 14 Apr. 2016.
Industry Market Research: Coffee and Tea Retail Stores. Rep. N.p.: n.p., n.d. BizMiner. Web. 14
Apr. 2016.
"Starbucks: Marketing Budget 2015 | Statistic." Statista. N.p., n.d. Web. 18 Apr. 2016.
file:///C:/Users/Shelby/Downloads/AgendaItemVIIFEnrollmentForecast2014.pdf
"Community." Tea 2 Go. N.p., n.d. Web. 19 Apr. 2016.
"Benefits of Social Media Marketing Worldwide 2015 | Statistic." Statista. Statista, n.d. Web. 19 Apr.
2016.
