Brand Audit Proposal

Topics: Brand, Branding, Brand management Pages: 18 (5514 words) Published: March 8, 2015


The objective of David’s Tea brand audit is to evaluate and relate the theoretical approaches with practical market research and mainly to come to know about the inventory and exploratory expects of the brand. The behavioural and psychological nature of the brand equity will be analyzed and the current position of the brand in industry will be examined. We would like to study and research the brand effectiveness, strategy, positioning, customers’ perception, and further testify the brand in a multidimensional perspective. Marketing and Business Environment

David’s Tea is the first Canadian-based tea company, established by David Segal, a young passionate entrepreneur eagers to bring the happiness taste of life to people through the consumption of tea.  David’s primary functional vision is to provide consumers with a high quality tea developed by its own tea expertise. The company builds its very own brand equity and engagement with customers by delivering a sense of belonging, and connecting people who are willing to share their tea experiences together in the brand community. Its first store was successfully launched in 2008 on Queen Street, a metropolitan area in Toronto, Ontario. Traditionally, existing tea consumers are limited to experience a small and narrowed market where not many selection of tea was offered. However, David’s Tea has taken the leading stance in the industry by breaking the traditional concept of tea, informing tea alone possesses an indefinite potential to be developed and grown. In David’s Tea store, customers are offered with over 150 types of flavoured tea from all over the world. It also differentiates itself from other tea brands such as Teavana from Starbucks and Tim Horton’s by providing variety of seasonal tea collections and the Tea of Month, which can be easily made at home, office, and anywhere you want. Unlike Starbucks where tea and coffee sold are consumed on the spot, David’s Tea uniquely sells every supplies needed for tea and also shows how easy and fun it is to make tea with people at your own place. By doing so, people have a chance to be more exposed and dissolved into the ‘tea culture’ with various people in their daily life. However, back in 2008, investing in the tea industry was considered as a risky move for many beverage companies. According to Statistics of Canada, both tea and coffee industry where most weight is heavily put on represents 1.1% of the value of sales of food and beverage goods manufactured. The consumption of tea both in Canada and internationally was lower by far relative to the coffee consumption. Coffee alone generated the revenue more than $1 billion per year whereas tea served just above than 500 million in 2007. The gap between tea and coffee industry seemed to be significant and definite at that time. However, currently in Canada, intensive competition has been rising among beverage brands and retail stores as the consumer’s preferences and tastes had shifted toward products that enable ‘healthy lifestyle’. Tea is a profitable commodity. Store footprints are usually small, while mark-ups and profit margins are high, ranging from 50% to 70%. More businesses attempt to entre the industry to expand the business scale. For example, Teavana, a tea specialty acquired by Starbucks aggressively positioned its products in response to the competition. Stores across America feature ‘Oprah Chai Tea’ which is personally blended and developed by Oprah Winfrey, a world-renowned and influential TV show host, writer and publisher, to capture more potential customers in beverage industry.  In addition, Teavana plans to expand its tea business around the world by launching more tea stores every year.      Current challenges and untapped opportunities for brand equity Current Challenges

David’s Tea has achieved many successful milestones and developed its own competitive advantages over other competing companies. However, there are still some...

References: [1] Pierre Chandon, Note on Brand Audit: How to Measure Brand Awareness, Brand Image, Brand Equity and Brand Value., 2004, INSEAD
[2] "Adding to Cart..." DAVIDsTEA
[3]"CEO Conversations: David Segal on David 's Tea." Montreal Gazette. N.p., 29 Oct. 2014
Web
[4] "David 's Tea Marketing Plan." David 's Tea Marketing Plan. N.p., n.d. Web. 05 Feb. 2015. http://www.slideshare.net/KyleBuyers/davids-tea-marketing-plan
[5] "PYMNTS.com." PYMNTScom
N.p., n.d. Web. 03 Feb. 2015.
Appendix
Figure 1: Imports, Exports and Sales of Goods Manufactured, 2008
Figure 2: Share of Non-Alcoholic Beverage Market by Volume, 2008
Figure 3: Number of David’s Tea Stores
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