In-depth analysis of Teavana Holdings Inc. including current brand analysis and suggestions for re-branding.

1. TEAVANA
By: Jake Smith, Rachel Ozios, Kenny
Hall, Franki Reynolds & Logan Bronkema

2. Corporate Brand Audit
By: Jake Smith, Rachel Ozios, Kenny
Hall, Franki Reynolds & Logan Bronkema

3. //Tea Industry
“The tea category is
ripe for reinvention
and rapid growth.”
- Starbucks CEO Howard
Schultz

4. //Industry
Trends:
 Premiumization
 Health &
Wellness
 Artisan
“Consumers are willing to
pay more for high-quality
teas and even pay a
premium to purchase
these products onpremise.” - Jonas

5. //Internal Audit

6. //Product
Pricing:
 Bulk teas range from
$2 to $25 per 2oz
 Merchandise ranges
from $7 to $250
 Higher than most
competitors
“As for Teavana, I went to one of their
local retail locations and was blown
away by the price difference. So much
so I didn‟t purchase any tea while I
was there.” – Web Review

7. //Packaging & Selection
Packaging:
 Color coded
 Easy to read
 Logo size
Selection:
 Broad range of
teas – over 100
kinds
 Variety of Tea
merchandise –
tea
pots, infusers,
presses, etc.

8. //Mission Statement
“Establish Teavana as the most recognized
and respected brand in the tea industry by
expanding the culture of tea across the
world.”

9. //Goals
• Provide the highest quality loose-leaf teas in the world
• Educate our guest in the health benefits of drinking tea
and intriguing global culture of drinking tea.
• Be known as one of the best retail organizations in the
country to work for.

10. //Management & Employees

11. //Employee Training Process
Learn about
the Teas
Learn to make
the tea
Learn to market
the health
benefits of the
tea
Learn about the
tea pots sold in
stores
Learn top three
teas in every
category
Learn the sampling
method
Learn topdown-selling
technique
Learn to sell
the tea

12. //Beliefs
Teavana
Employees =
“Partners”
Corporate Office =
“Support-center”

13. //Logo
 Word mark –
 Pictorial Mark-
 Signature
“Starbucks dropped the word
„coffee‟ from its logo in 2011 in a
move to expand beyond the coffee
market and become a multiproduct company.”

14. //Locations
NEW LOCATIONS
Teavana Fine Teas + Tea Bar
1142 Madison Ave
New York, NY 10028
United States
Map It
Teavana Fine Teas + Tea Bar
2625 NE University Village
Street
Seattle, Washington 98105
United States
Map It
 300 stores in malls
 Located primarily in the U.S.
 A few located in Canada &
Mexico
There is room for growth in the U.S. (Currently ranked #22 in tea
consumption), as well as in the Middle East, where there is a high
demand for tea.

15. //Store Layout
Efficiency:
Average store is about
920 square feet and
the sales per gross
square foot are
around $980.
Organization: Use glass shelves
for merchandise and organize tea
by color behind the counter.

16. //External Audit

17. //Website Structure
“Their ordering system and
customer service are
abysmal, and the tea is not
worth the trouble.” –Anonymous
Customer
NEGATIVITIES
No site map
Title is too long
Lack of alternative text on images
Load time is slow
Domain name is only registered
for 10
No conversation forum

18. //Advertising
 Teavana doesn‟t do a lot of traditional
advertising

19. //Social Media
 Website
o Teavana.com is a fully functional website that has all the bells and
whistles.
 Facebook
 Twitter
o Their most dynamic and involved platform
 YouTube
o Soft presence
 Pinterest
o Offers the high potential

20. //Twitter
 15,000 Followers
 14,000 tweets
//Pinterest
Pinterest account with over 13,500
followers, 18 boards and over 300 pins

21. They are #1 to
come up when
searching for:
“tea store”
“tea sale”
“herbal tea”
Plan to grow
online sales
which currently
make up 8% of
total sales.
//SEO

22. //Consumer Perception
“I don‟t believe Teavana
will ever grow into what
the Starbucks brand has
become for one simple
reason: tea lacks the
major caffeine count.”
-Howard Shultz
REPUTATION
Inviting atmosphere
Wonderful samples
Poor customer service
High prices
Disrespectful
management

23. //Community Outreach
By 2015, Teavana
hopes to contribute
one million volunteer
hours each year to its
communities.

24. //Customer Reviews
“I always feel like nobody‟s listening to me. It‟s like
they have their own agenda, and I always walk out
feeling bad about spending more than I had
intended.”
Opinions from around the
web:
 Aggressive salespeople
 Upselling products
 Overpriced teas
 Misleading tea samples
“For first-time, uninformed buyers,
they make you think that the $6 or $7
tins are mandatory, and that only their
tins will keep your tea fresh for longer
than a week.”

25. //SWOT Analysis
STRENGTHS:
- Strong Product & packaging
- Partnered with Starbucks
- Store aesthetics
- Strong Social Media Base
- Location presence
- Health benefits
S
OPPORTUNITIES:
- Tea is a globally consumed
product
- Growing market for tea in U.S.
- Opening tea bars
- Starbucks rewards at Teavana
- Create Teavana rewards
O
WEAKNESSES:
- High prices & significant price
range
- Aggressive sales tactics
- Misleading tea samples
- Management sets high sales
quotas
- Inefficient online sales process
W
THREATS:
- Mall policies & restrictions
- Indirect Competitors: local tea
shops, small chains, Amazon,
etc.
- Direct Competitors: David‟s Tea &
TAZO
- Caffeine Count
T

26. //Solutions

27. TEA HEAVEN
“Opening the doors to
health, wisdom & happiness.”
It‟s about
experience.
"When customers visit one of
our stores, we want to
immerse all of their senses in
the tea experience. Our goal
is to educate them about the
pleasures of drinking tea, its
history and the many health
benefits it provides."
- Andrew T. Mack, Founder

28. //Website Structure
Solution
s Reconstruct website
Introduce minimalism
Make seasonal products available
online
Create a discussion forum

29. //Customer Feedback
Teavana can rebuild customer trust through intentional
feedback methods.
 Create feedback page
on website that is clear
and easy to find
 Encourage postpurchase surveys
 Ask questions like:
“How would you rate our
customer service?”
“How would you rate the
quality of our tea?”

30. //Social Media
Introduce this new platform to
post job listings, seek out
excellent salespeople, and show
their corporate culture.
Use hashtags to steer traffic to their
site, increase promotion through
prizes, and stay connected with their
customers.

31. //Customer Perception
Solution
s Improve customer service
Develop consistency in tea brewing
instructions
Make samples available to old and new
customers
Create a rewards program

32. //Sales Methods
 Remove top-down
selling technique
 Remove monthly
sales quota
 Implement
incentive program
to motivate
employees

33. //Promote Wellness
Use the
health
benefits of
tea to
promote
Teavana
Heart Health Diabetes
Stress
Skin
Pregnancy

34. //Tea Consultant
Become a Teavana Consultant:
 Sell tea and merchandise to
people you know
 Host Teavana “tea parties”
 Earn rewards for reaching
sales goals

35. //Interactive Displays
 Tell the story of
tea
 Give more
information about
the varieties
carried
 Tool for customers
while they wait for
a sales rep

36. //Sources
•
BOLTON, D. (2013). A HEALTHY TURN. Specialty Coffee Retailer, 20(1), 16-18.
•
O'Connor, C. (2013). Starbucks Opens Its First Tea Bar As CEO Schultz Bets On $90 Billion
Market. Forbes.Com, 21.
•
Ebenkamp, B. (2008). Tea Brand's Blend Includes Just a Pinch of Starbucks.
Brandweek, 49(10), 12.
•
Tea poised to be next 'hot' beverage. (2013). Beverage Industry, 104(7), SOI-8.
•
Teavana case study. (2008). Teavana Case Study: Capitalizing on the Rising Demand for Tea in
the US, 1-9.
•
Wilson, M. (2003). Reading the Tea Leaves. Chain Store Age, 79(9), 48-51.
•
Wong, V., & Berfield, S. (2013). For Starbucks, Coffee Is So 1990s. Bloomberg
Businessweek, (4353), 32.