Go To Market

Strategy
Need
Gap
Analysis
PORTER’S 5 FORCES
EXTENT INDUSTRY RIVALRY- LOW

HHI CALCULATION Exotic herbal tea market in India is concentrated, less

competitive and more profitable.

COMPANY MARKET SHARE

BARGAINING POWER OF BUYERS- LOW
Less competitors so buyers have less choices. May
50% lead to increase in Profitability.

35% BARGAINING POWER OF SUPPLIERS- HIGH

Less number of suppliers and wholesalers of such
flowers. May lead to decrease in profitability.
10%

5% THREAT OF SUBSITUTES- LOW

HHI=Sum of(market share)^2
=(0.5)^2+(0.35)^2+(0.1)^2+(0.05)^2
= 0.385
Since HHI > 0.3, the market is concentrated, less
competitive and hence, the industry profitability
is high.
Superior sourcing and tea flower quality as
compared to other brands.(Difficult to source
suppliers)
THREAT OF NEW ENTRANTS- HIGH
Some may be able to introduce new caffeine free
beverages in the market.(eg Vitamin water) May lead to
decrease in profitability.
 PESTLE SWOT
STRENGTH OPPURTUNITY
P E
1. Caffeine free beverages.
1. Catering to a rapidly growing
POLITICAL ECONOMICAL
2.Health benefits like relaxation, health and fitness market.
Government regulations on food Economic conditions and currency
safety and import/export may fluctuations can affect costs and
impact operations. consumer spending. weight loss, anti stress, blood 2.Can capture a niche market
where people should consume
pressure regulation.
S T these tea’s or cure.
3.Vibrant colour beverages.
SOCIAL 3.Can serve people with aesthetic
TECHNOLOGICAL
Health trends favouring herbal tea Advancements in production and experience
and cultural preferences influence online platforms impact efficiency
demand. and marketing.

WEAKNESS THREAT
L E
1. Difficult to sell in India, where 1. May reduce purchase
LEGAL ENVIRONMENTAL people prefer milk tea and caffeine inducement.
Compliance with food safety Sustainable sourcing and eco- beverages. 2.May get misinterpreted as an
standards and intellectual propertyfriendly packaging address consumer
protection is crucial. concerns and mitigate environmental 2.Higher price per gram compared to overpriced beverage.
impact.
regular tea.
 1. In today's fast-paced world, the demand for natural wellness solutions is soaring.

AIDA ANALYSIS Consumers are increasingly turning to plant-based remedies to address common
concerns and promote overall well-being. Among these natural solutions, herbal
Evoked Set teas have emerged as a powerful and popular choice.
2.Backed by a growing body of research, herbal teas offer a multitude of well-
documented health benefits. From calming stress and anxiety (blue pea, hibiscus)
to improving sleep quality (chamomile)and natural detox (lemongrass), herbal teas
Awareness
provide a natural way to address various concerns.
3.The popularity of herbal teas stems from their ability to be a natural alternative to
conventional remedies. They offer a gentle and holistic approach to managing
common health concerns, allowing individuals to take a proactive role in their well-
being.
Consideration Set 1. Exquisite Flavor Profiles: Unlike generic herbal teas, ExoteaCity blends offer a truly
unique and delightful taste experience.
Interest 2.Unmatched Quality: We are committed to the highest quality standards. Our teas
are meticulously sourced, ensuring purity and potency. Each blend is free from
artificial flavors, sweeteners, and preservatives, allowing you to experience the
natural goodness of herbs.
3.Holistic Wellness Approach: We offer a diverse range of tea blends designed to
cater to specific needs and preferences. Whether you seek stress relief, improved
Selection Set sleep, enhanced digestion, or a boost to your immune system, ExoteaCity has a
perfect blend to support your holistic well-being.
ExoteaCity elevates herbal tea into a mindful experience. Our blends, crafted with
Desire
ethically sourced ingredients, go beyond taste. They soothe, invigorate, and rejuvenate
- a sensory escape for mind, body, and soul. Ethical Sourcing: We prioritize ethical
sourcing and sustainability, ensuring the best for you and the planet.
Purchase Set
Introductory Offers: Embrace the switch with our special offers! Enjoy exclusive
Action discounts or free shipping on your first purchase. Mentioning a specific limited-time
offer to create urgency. Sample the Difference: Uncertain? Request a free sample or
starter pack and discover the world of ExoteaCity's exquisite flavors firsthand.
STP ANALYSIS
Variables: 1) Level of Tea Consumption, 2) Susceptibility to Change, 3) Aesthetics (Visual Display), 4) Value, 5) Purpose, 6) Lifestyle

SEGMENTS

Immunity builders Drunkards Regular Tea Lovers

Cluster Description Cluster Description Cluster Description
(Demographics): (Demographics): (Demographics):
Finances

1) High income range 1) High income range

The management of large
1) Low to Medium income range
amounts of money,
especially by governments Product & Services

2) Age group 25-60 2) Age group 25-35

or large companies
2) Age group 30-70
Tangible item that is put on
the market for acquisition,

3) Mostly in Tier-1 cities 3) Both in Tier-1 and Tier-2 cities while a service is an

3) In Tier-1, Tier-2 and Tier-3 regions

intangible item

Psychographic Profiling: Psychographic Profiling: Psychographic Profiling:

1) High Level of Tea Consumption
2) Low Susceptibility to Change
3) Favour Aesthetics in beverages (good visual display)
4) Value-Sensitive Customer
5) Improving/Curing Health Purpose
6) Leads a Healthy Lifestyle
1) High Level of Tea
1) Low Level of Tea Consumption
Consumption
2) High Susceptibility to Change
2) High Susceptibility to Change
3) Favour Aesthetics in beverages (e.g cocktails, latte)
3) Do not favour Aesthetics in beverages
4) Focus on cost-effectiveness
4) Price-Sensitive Customer
5) Leisure drinking purpose
5) Casual drinking purpose (for Taste)
6) Not concerned about leading a healthy lifestyle
6) Not concerned about leading a healthy lifestyle

Target Segment
Immunity Builders
 POSITIONING LOGIC
• Drunkards won’t consider drinking herbal tea as they do not
lead a healthy lifestyle and focus more on cost-effectiveness,
rather than seeing health benefits. Also, they have low levels
of Tea Consumption and have High Susceptibility to Change
and therefore, won’t consider drinking herbal tea as an habit.
(No Habit Formation)
• Regular Tea Lovers focus more on taste and are habituated to
drinking milk tea.They are price-sensitive and won’t consider a
higher priced tea for improving their health. Also, they are not
concerned with Aesthetics of the beverage and therefore, our
vibrant and colourful teas won’t appeal to them.
POSITIONING STATEMENT
We will be positioning our brand in the Healthy Beverages category,
by emphasising on the Health Benefits of our teas like Promoting
Weight Loss, Controlling Blood-Sugar levels and Relieving Menstrual
pain. Our tagline will be “Delivering Immunitea”, highlighting our
mission to deliver immunity to every home and symbolising the
connection between our herbal teas and immunity building. We will
also focus on the visual aspects of our teas and embrace them in our
positioning.
POP (Point of Parity) Positioning :
Positioned as a tea brand in the beverage market, refreshing
taste and habit formation.

• Immunity Builders have a high level of Tea Consumption (regular

basis). At the same time, they lead a healthy lifestyle and are
value-sensitive. They will derive value from herbal tea, even if it is
POD (Point of Difference) Positioning :
higher priced than regular tea. They have low susceptibility to Positioned as a healthy herbal tea brand, more health benefits
change and will therefore use our teas for habit-building and than Green Tea, Great Aesthetics and Visual display, Unique
drinking on a regular basis for improving their health or curing
illnesses. Lastly, they favour aesthetics in beverages and will be sourcing
attracted to the vibrant colours of our teas. Therefore, Immunity
Builders are our target segment.
 MARKETING MIX: PRODUCT
Readymade packaged herbal teas (preferably as iced tea)
POTENITIAL like regular Iced Tea in the market. Also, we are planning to
PRODUCT open kiosks where we will prepare the teas fresh and sell
them to customers at the same time.

Embracing and Showcasing the Health Benefits of each kind

AUGMENTED of tea in the packaging (adding Intangible components to
PRODUCT Tangible features) and stating the different recipes (Tea,
Iced Tea, Latte) that can be prepared using it i.e; Quantities
and Directions of Use. (displaying a variety of ways in which
the product can be consumed). (POD positioning)
EXPECTED BENEFIT Colourful Herbal Tea Flowers in zipper pouch packaging, 4
types of Teas - Butterfly Blue Pea Tea, Hibiscus Tea,
Chamomile Tea and Lemongrass Tea. Will have a refreshing
taste and health benefits in the long-run. (POP positioning)

CORE BENEFIT Healthy Sipping, Served as a Tea (Beverages

market)
 Place Distribution Channels

Manoharan Matrix
Online Store - Amazon India - Offline Franchise Stores
• High fixed costs (Store setup, • Low Fixed costs (No domain • High Fixed costs
DIRECT FRANCHISE domain purchase, Shopify and store setup charges, (Franchise Fee, Rent,
High DISTRIBUTION
subscription, Design tools lower brand marketing costs Utilities like electricity,
information/cus
tomisation
subscription, Brand since amazon does its own Licensing and Permits,
Marketing, Product marketing and has a larger Equipment)
Photography cost) customer base, only product • Low Variable Costs
• Low Variable costs (No photography costs involved) (COGS, sales commission,
commission per sale, only • High Variable Costs packaging fees)
COGS, packaging and (Commission per sale to
Low performance marketing Amazon, Higher performance Hence the price of products
information/c
HYBRID
INTENSIVE THIRD
variable cost) marketing costs to eliminate through this channel can be
ustomisation PARTY
competition and improve lowered.
Hence, the price of products in rankings)
this channel can be lowered and
a positive contribution margin Hence, the price of products
can still be maintained. through this channel will be
Concentrated Fragmented
higher to maintain a positive
contribution margin.

In order to eliminate Intra-brand conflict, we will adopt 2 strategies:

1. Temporary Method : Combos (bundling 2 types of tea flower packets) will only be sold in franchise stores. Starter Kits will only be sold through our website and
Individual tea packets will be available in all 3 channels.
2.Permanent Method : Omnichannel Strategy to avoid Webrooming and Showrooming.
Promotion
Money: Spending on
Mission: To increase brand
Instagram Ad Campaigns
awareness in Delhi and
and Exhibition setup
Gurgaon by 35%.
charges PROMOTION MIX

1) To Increase Awareness : 2) To Increase Purchase

Market: High income range,
located in Delhi and
Gurgaon, Age group 25-60,
value-sensitive customers,
healthy lifestyle and high tea
consumption levels
Message: Exotic Herbal Tea
brand, tagline “Delivering
Immunitea”, focussing on
the health benefits of 4
types of herbal teas we are
selling
• B2C segment : UGC ads Inducement :
(User-Generated Content),
Covet Advertising
(Product Placement),
Influencer ads
• B2B segment : Trade fairs
and Exhibitions, Direct
mails
• Consumer Promotion Tools:
Bundling (Combos),
Sampling, Free Trials.
• Sales Promotion Tools :
Extrinsic Motivation via
increased margins on
particular SKU selling,
Intrinsic Motivation via
salesman of the year award.

Measurement: Tracking
Medium: Instagram and
Conversion Rates, Number
Facebook Ads, Instagram
of online store sessions and
Reels and Trade fairs
CAC
 Pricing
Market Segmentation
Unique Value Proposition
Our target market includes
ExoteaCity offers a range of health-conscious
Early Adopters and
caffeine-free herbal teas with consumers, niche markets Product Differentiation
Enthusiasts
distinct health benefits and focused on wellness, and
vibrant colours. These individuals seeking an ExoteaCity's teas stand out
Price skimming is effective
unique characteristics set enhanced tea-drinking in the market due to their
in attracting early adopters
our products apart from experience. These segments unique flavours, health
and enthusiasts who are
traditional teas and create a are willing to pay a premium benefits, and visual appeal.
eager to try new and
niche market segment.Price for products that align with Price skimming reinforces
innovative products. These
skimming allows us to their values and this differentiation by
customers are typically less
capitalise on this unique preferences. By signalling to customers that
price-sensitive and more
value proposition by setting implementing price our products offer superior
willing to pay higher prices
an initial high price that skimming, we can cater to value and quality compared
for exclusivity and novelty. By
reflects the premium quality, these specific segments and to competitors. Setting a
targeting these early
health benefits, and capture maximum value premium price helps
adopters with premium
aesthetic appeal of our teas. from customers who value communicate the perceived
pricing, we can generate
quality, health benefits, and value of our teas and
significant revenue and
aesthetics. positions ExoteaCity as a
establish ExoteaCity as a
leader in the herbal tea premium brand known for
market. innovation and excellence.
Profitability and Investment
Returns
Price skimming enables us to
maximise profitability during
the initial stages of product
launch and market entry. The
higher margins generated from
premium pricing can be
reinvested into product
development, marketing
efforts, and expanding
distribution channels. Over
time, as market demand
stabilises and competition
increases, gradual price
reductions can attract a
broader customer base while
maintaining healthy profit
margins.
FLAVOURS QUANTITY PRICE
Blue Pea Tea 50g/30 cups Rs 599
Market Perception and Brand
Image Hibiscus Tea 50g/30 cups Rs 399
Premium pricing contributes
to the perception of exclusivity,
quality, and prestige associated Chamomile Tea 50g/30 cups Rs 549
with ExoteaCity's brand.
Customers perceive higher- Lemongrass Tea 50g/30 cups Rs 349
priced products as offering
superior benefits, leading to
increased brand loyalty and
positive word-of-mouth. A
strong brand image as a
premium herbal tea provider
enhances customer trust,
credibility, and willingness to
pay premium prices for
ExoteaCity's teas.
THANK