The Tea Market In The Netherlands Marketing Essay

Market analysts believe the tea industry will go on to turn and will likely non gain its full possible any clip shortly. The positive alteration in the industry is related to two major factors ; consumers raised demand of time-saving services and for convenience and the positive promotion given to tea. The tea market in the Netherlands is presently making good. Harmonizing to a study by Euromonitor the hot drinks market is sing a healthy growing. Peoples are preferring to pass money on tea as an low-cost luxury despite the economic crises ( Euromonitor 2010 ) . Gross saless of tea in 2008 generated grosss of $ 296.9 million dollars, which is 29.4 % of the entire hot drinks market as indicated in the graph below.

The European Union ( EU ) has the biggest impact on the tea industry in the Netherlands as they follow most of its ordinances. Legal demands are the footing for the market entry and merchandises sold in the EU must run into these demands. Other demands are societal, largely brooding on the safety of workers and environmental patterns affecting the tea production ( EPCKenya 2010 ) .

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There has been a positive encouragement for the tea industry particularly within Europe, it is the 2nd largest continent after Asia to import tea. In 2002, NL consumed one ten percent of tea ingestion in UK as the biggest consumers in Europe ( MAMO et all 2006 ) . As mentioned above the economic crisis has seen consumers choosing to purchase more tea as other merchandises have become more expensive, Harmonizing to the Euromonitor the fact that hot drinks are seen as a good manner to acquire comfort and experience good when times are unsmooth has helped the sector to accomplish growing ( Euromonitor 2010 ) .

Social environment

Consumer gustatory sensations are altering as consequence of societal influences, doing tea imbibing more convenient, pleasant and stylish. Consumers are prefer to taking more attention for their wellness and have improved cognition about nutrition. Today ‘s universe demands a batch and consumers are more pressed for clip, any merchandise make fulling the consumers ‘ demand for relaxation and convenience are accepted readily into the Dutch life style ( Datamonitor 2009 ) . There is more focal point on anti-stress and simplification of one ‘s life. In the last decennary, tea ‘s benefits of wellness have been widely and positively discussed in media. Studies continuously prove these benefits of tea, with wellness benefits a sociable of betterment in bosom wellness, lower degrees of cholesterin to and diminishing opportunities of malignant neoplastic disease ( ukteacouncil.com ) . The positive promotion has decidedly increased the demand for tea which has been increased by the Dutch belief in natural homeopathic interventions to forestall disease. The latest influential tendency is the concern for the environment. This has besides been n the media hence the popularity of just trade goods ( Max havelaar.com ) . Consumers are now besides demanding quality merchandises offering true value. ( Euromonitor 2009 )

Technological environment

This sector is really competitory in the Netherlands. The tea consumer is going progressively educated and complex. This means manufacturers and Sellerss need to maintain making added values merchandises to pull and provide for the single demands and penchants. There is a great call for continued advanced research and developments to come up with new spirits and merchandises ( Euromonitor 2009 ) .

Market features

There are a batch of merchandises in the market, black tea, green tea, white tea, fruit herbal teas. Black tea has the largest market followed by black merger tea. However green tea demand is turning as wellness issues become more popular. The bulk of tea is sold in tea bags covering 94 % ( Datamonitor 2010 ) . The mean monetary value of tea is Euro 1.81 per 100 gms. Tea is largely sold in Supermarkets with specialized tea sold in specialized tea stores. In the old old ages tea was taken largely outside the place but 2009 saw more consumers preferring to take tea in the place. ( Euromonitor 2010 ) .

Consumer features

Tea in the Netherlands is drank by all types of people, nevertheless the chief demographics are people of all ages from largely 21 old ages of age upwards with adult females being the most consumers. Womans between the age of 30 and 50 are still the major tea drinkers. There are varied minutes of use and broadening gustatory sensations. Women will chiefly imbibe tea during interruptions and in societal scenes. They prefer flavoured teas such as vanilla and chai, every bit good as Earl Grey. Work force are a section turning that is seeking the enjoyment of tea. Most are devouring it for wellness grounds, every bit good as to alleviate emphasis. Men by and large prefer the original teas, including oolongs and leafy vegetables. Others such as immature consumers ‘ involvement in tea is driven by the many media. They besides try tea for wellness grounds. ( Datamonitor 2009 )

There is a turning market for just trade teas. China is among the chief providers of just trade tea along with, Vietnam, Tanzania, Sri Lanka, Rwanda, Nepal Laos and a few other emerging beginnings. 85 % of all just trade tea is tested and certified organic. The Fair Trade was started in 1988 when a autumn in the monetary value of java facilitated economic crisis for developing states that produced and sold java, holding great effects on little graduated table husbandmans. The Netherlands was the first state to be active about Fair Trade enfranchisement through the first of all time Fair Trade label, Max Havelaar. It did non take long, many states followed the tendency of Fair Trade enfranchisement. Merchandises with the Max Havelaar label are produced and traded under just conditions. Max Havelaar label is one that consumers and concerns the chance for little manufacturers in developing states aid to get a better topographic point in the supply concatenation so that they can populate their work. The Max Havelaar label found in the Netherlands entirely returned more than 250 different merchandises runing from peanut butter to bath towels. Most companies are now heading in the way of just trade. ( Max Havelaar.com )

However, harmonizing to the consequences of the interview with the teabar proprietor who has been in the tea cafe industry for 4 old ages, she acknowledged that many European people ( non merely Dutch ) are doubting about the quality of the tea that comes from China. Peoples tend to give more trust to the Nipponese tea. Please see interview appendix B.

This sentiment is supported by MAMO et all on their book. It is said that “ Chinese exports to the EU and Japan are hindered by import limitations imposed because pesticide residues encountered in Chinese tea exceed maximal permitted degrees ” ( MAMO et all 2006 ) .

Company analysis

A long established tea company, The Hong Kong Fine Tea Ltd ( THF ) has expertness for bring forthing and administering the high quality Chinese teas for more than a century. Over coevals, nowadays this company has become cognizant to the strong competition in the tea market. Therefore THF program to spread out their concern to Western European and North American market so that they can present the high quality tea spirit of Chinese teas to the western universe.

In order to construct Chinese tea consciousness among the aimed market who are immature urban professionals, THF require a retail and merchandise trade name construct that fit to the immature urban professionals features.

Strengths

Market leader in China ‘ Central District in all types of teas.

Experience in selling tea.

Failings

Limited experience of Western consumers

unknown to Western consumers.

Lack of western technological expertness.

Opportunities

I ) Introduce echt Chinese tea. Create wonder and be the first.

two ) Worsening markets for other drinks such as soft drinks as consumers become more wellness witting.

three ) Wider cognition of wellness benefits of tea.

Menaces

I ) Major competition from market leader Pickwick and other large makers.

two ) possible trouble in distribution of the tea retail merchants have set tea types of merchandises they already sell.

Consumer analysis

Demographic cleavage

We used income as our chief footing for the cleavage. This was because of the quality of the trade name. Hong Kong Fine Teas have been bring forthing high quality tea for old ages therefore we would desire to come in the Netherlands market at the same degree. The trade name will be meant for consumers of upper center and low upper category. They besides are in a professional occupation which means they have a university instruction or are in University. We besides chose age as many merchandises in the market are based upon “ phase of life ” and there are different forms of ingestion at different ages.

Psychographic cleavage

On the footing of Psychographics, life style was the best suited for this merchandise because it determines how people organise their lives and pass their clip and money ( Pelsmacker 2009 ) . Valuess of working hard to acquire in front in their callings, they have money and believe in quality of life, passing on comfort, pleasance, wellness and young person merchandises clip rescuers.

Geographic cleavage

Where people live has an impact on their ingestion wonts ( Pelsmacker 2009 ) . This will besides assist us in be aftering for the shop locations and the distribution for the in-store merchandises. We will take at the urban professional as the lucifer the societal category and feature of demand for clip. For farther cleavage please mention to appendix A.

Consumer Profile

Therefore from the research consequences above our ideal consumer will be from the demographic of 25 old ages to 44 old ages, probably to be in university and or a professional. Demographically they are urban, looking for benefits in tea of wellness, relaxation and greening. Psycho diagrammatically they are sociable, environmentally active, busy and stressed – seeking convenience and necessitate the restful benefits given by tea. They are interested in new civilizations and gustatory sensations. Second the trade name would be more ideal to aim on the job category people who have a high disposable income.

Consumer penetration

Our research consequences ( appendix C ) revealed that a big per centum have tried Chinese green tea. Most of the consumers are more concerned with wellness benefits of tea and would besides wish a tea that relaxes and rejuvenates ( bespeaking a demand for refilling of energy ) . Choices of tea vary a great trade and depend to a great extent on single gustatory sensation, hence consumers now prefer to brew their ain tea in order to acquire a personal gustatory sensation right, no longer do they like tea brewed to cover many gustatory sensations at one time. Most consumers prefer green tea to other types of tea. Therefore our cardinal penetrations are: –

Drinking tea for

Health – increased metamorphosis, anti-oxidation, good balanced

Relaxing – refreshment, repose

Rejuvenation – renewed energy

Warmth – during winter

As shown below in the chart.

Core consumer penetration

A consumer includes more psychological countries – what consumers think and feel, what their aims and how these act upon how they behave. Many of these things are non witting behaviors or ideas on the portion of consumers. A big figure of consumers are affected, possibly expectant of assorted external factors such as the manner a trade name is marketed. Consumers are non born desiring to purchase a peculiar trade name. Therefore our chief nucleus penetration is consumers are looking for a high quality genuine green tea, easy to do that will rejuvenate them while loosen uping in a healthy manner. This clearly shows what our client is looking for and why.

Large thought

As consequence of the above a clear chance arises when we identify that we can come in the tea market in Netherlands to offer a echt Chinese tea that gives the great benefits people have heard of Chinese tea. Our large thought comes from the penetration that “ Many consumers have heard of Chinese green tea but experience it is non for them ” we intend to offer them an experience of Chinese spring in a cup of green tea. This is because Chinese spring is associated with freshness, heat and that ‘s when everything comes to life. The Chinese believe spring clip is besides the best clip to reap the high quality tea leaves the highest wellness benefits.

Brand construct

All merchandises have nucleus benefits that are to be provided for consumers. Consumers seldom want to pay a big sum for merchandises or services that merely present the chief nucleus benefits, that is what they already expected to acquire as a ground for the nucleus monetary value. Successful trade names are those that surprise a consumer with added value in coupled with nucleus benefits. These added values travel toward the trade name to puting itself as different from the rivals. Added values executed good will hold the client taking the trade name as a penchant because they are unable separate the two. Consequently, some clients are likely to be in hunt for the trade names to add intending to their life in footings of life style or personality. A trade name can usefully be represented like a “ fried-egg ” format, where the trade name is shown to hold nucleus characteristics that are surrounded by less touchable but effectual characteristics as shown below. ( strategicmarketsegmentation.com )

Therefore as explained above the trade name is to give the simple functional value – intrinsic advantage of being merely tea. It is a hot drink to intend to maintain you warm. This is its basic functionality. The following is the emotional values will be to the consumer that tea makes you healthier, experience refreshed and relaxed. The added services or instead experience of the consumer with the merchandise will be the odor, looks and tastes that is lovely spring spirits.

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