Retail Sales Strategies for David's Tea

This article discusses the retail sales strategies for David's Tea, including target customers, loyalty strategies, acquisition of new customers, communication strategies, customer relationship strategies, management of sales, space management, and opportunities for growth.

Running head: RETAIL SALES
RETAIL SALES
Name of the Student:
Name of the University:
Authors Note:

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Target customers:
David’s Tea will help in providing the local upper and middle class community an
effective place to socialize. The customers will be facilitated to indulge with different varieties of
fine teas. The people will also find varieties of loose teas to gift their friends and family. This
would be unique present as souvenirs of their holidays. For tourists, David’s Tea will prove to be
a destination centre while being in town. It would be a break from the shopping and also be a
warm-up visit. The potential customers will be glad to pay the premium price for the product in
exchange of great taste, high quality and sense of prestige that they are going to receive.
Higher prices for the few of the teas would definitely lead to increase the sales of the tea.
As customers eagerly accept the idea that higher prices means higher quality of tea. The
customers want to buy only the best (Jaworsk). The audience are highly educated enough to
know the subtle differences. In the recent times, the American tea market is rapidly increasing.
The sales of tea have increased up to 165% since the year 1990. The number of shops selling
loose tea has also increased to about 200 shops.
The interest of American people in the tea business is also to a great extent depending on
the increase in the proliferation of coffee shops. The working segment of America has a common
belief that hot beverages are affordable luxuries. Moreover, fashion within the country is always
on the move (Guèvremont and Grohmann). Fancy coffee drinks is so widely accepted worldwide
that now people in America are looking for more unique and new treat to enjoy. Hence, the
target markets are those consumers, who have been turning towards tea as the more affordable
and natural or original luxury as compared to coffee.

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Loyalty strategies
In the gourmet teahouse segment, competition mostly depends on the skilled tea tenders,
education and cultivation of loyal consumer base. Previously the consumer used to have teabags
and various other low quality and tea dust offerings from the grocery stores. The target
customers are amazed with the range of textures, tastes and fragrance from the high and real
quality tea.
Tea Drinkers: committed tea drinkers always choose quality over convenience and price.
The customers seek out fresh whole leaf as well as tippy varietals in the area. The customers also
drive to a large extent to buy quality loose teas so that they bring home with them (Ruiz and
Kowalkowski).
Comestible gift buyers: in the recent times, the people want something different to gift
their friends and family. In earlier times, peoples used to gift local cheeses and organic meats to
their families and friends. Couples and teenagers looks for unique and different items from
standard boutiques. Instead of some cheap box of chocolates they want something more
indulgent.
Tourists: the tourist has variety of reasons for visiting any particular place. The tourist
often seeks high-quality foods, gifts, beverages and service. The consumer prefers small-scale,
local businesses to larger chains (Gummesson, Kuusele and Närvänen). In addition to this, the
consumers also want to be highly assured about the quality. Once such tourist or visitors tries the
tea from the David’s tea would definitely does not want to return.

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Acquisition of new customers
New tea drinkers who never had nice flavored tea are the other potential customers of
David’s Tea. Moreover, people pursuing healthy lifestyle are also the other potential customers
that are to be acquired by the Company.
Communication Strategies
The communication and marketing strategy of the David’s Tea need to accomplish two
major considerations. This includes making the target customers aware about the David’s Tea
location and secondly educating the potential customers about the company. Through
advertisement in the food sections and “entrée” of all the local papers within the radius of 30
miles will help the people to effectively communicate about the quality of the tea (Nobre and
Silva). Organizing flyers in the coffeehouses and grocery stores is also a very useful idea.
Advertisement in the local magazines also helps Fairfield review and Westchester Magazines.
The socializers should be made the potential customers so that they get appeal by the sense of its
good taste and sense of prestige (Srivastava). In the local market, women are targeted who
organizes social gatherings and other fun loving people.
The tea should be promoted with the help of local churches and women’s organization.
Monthly ‘tea tasting’ campaign should be launched with different kinds of themes each month.
Coupons in the local newspaper for the special tea packages are also useful. Flyers in the local
salons, boutiques and restaurants are also useful. A press release in the local newspaper that
includes gift suggestion is also effective in communicating the local people about the variety of
tea.

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Customer Relationship Strategies
In addition to the extensive menu describing varieties of teas, a ‘tea profile’ card for the
new tea drinkers and customer’s helps in broaden the customer’s tea experience. The card would
include questions related to the consumer taste preferences. Every week ‘tea testing’ plates is
offered to the loyal customers. These plates will therefore allow the customers to taste small cups
of different labeled tea to provide maximum satisfaction to their customers.
Management of Sales
David’s Tea should develop a strong lead so that all the employees clearly understand the
management techniques. It is important for the organization to effectively install a customer
relationship management (CRM) tool. This helps in capturing information about the relevant
interactions with the prospects and customers. People often hear about the company and its
products and services from the advertisements, referrals and some online banners ads. It is
important to develop the campaigns that would provide maximum revenue. Furthermore regular
meetings with the sales staffs would lead to review the lead quality, tracking customer
relationship management as it helps in improving the sales effectiveness.
Space Management:
Space management is the procedure by which managing the space would facilitate the
consumers to increase sale. The store space in the tea company is a limited resource and hence it
should be utilized wisely. Proper space management is highly crucial in the David’s Tea retail
business. The company’s gross profitability and sales volume mostly depends on the amount of
space used to generate the sales of David’s tea.

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Opportunities for growth:
The tea industry in America is lucky to have huge domestic market that annually
consumes around 20% of the tea produced in the country. Tea is one of the cheapest beverages
all over the world besides water. There is ample opportunity to increase the tea consumption in
the domestic market. Tea is both a healthy and lifestyle drink that is served with variety. Tea
especially green tea is becoming popular among all the age group and youngsters of all the age
groups also prefers to take iced tea. Different flavors such as Pepper, cinnamon and mixed fruits
should be promoted to the cola addicted young generation.
The future is also great for all such tea company that deals with the organic certified
handmade tea, green tea, purple tea, white tea and other specialty teas. In the recent times, Small
tea growers have started establishing their own gardens and processing units to generate green
teas. In addition to this the demand for variety of teas has also lead to opening up job
opportunities for various people. Small cold storage also would prevent the tea from quality
degradation. Other area of opportunities for David Tea’s includes value addition. Such as
packaging of the tea with indigenous products like cane, jute and bamboo highly appeals the
target customers.

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