Teavana case study: capitalizing on the rising demand for tea in the US

Teavana case study: capitalizing on the rising demand for tea in the US

Introduction

This report on Teavana forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at how the tea shop chain is capitalizing on the rising health and wellness trend, which has helped the tea market to achieve growth in the last few years.

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*Gain insight into the methods used by important industry players to give them a competitive edge

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DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Tea growth in the US is strong and, unlike coffee, is yet to peak 2
Companies are capitalizing on tea's growth potential with a rising number of US launches 2
Teavana has exploited the rising demand for premium teas through its growing tea chain 4
Teavana was established in the late 1990s, finding a gap in the market for the sale of quality teas 4
The company targets a younger demographic than traditional tea drinkers 4
The company shows a strong desire to link its product to health and wellness trends 5
The company does not use conventional marketing, but attempts to connect with its customers both in-store and online 6
Stronger distribution could be encouraged in future 7
APPENDIX 8
Case study series 8
Methodology 8
Secondary sources 8
Further reading 8
Ask the analyst 8
Datamonitor consulting 8
Disclaimer 9
List of Tables
Table 1: Tea is forecast to have stronger annual growth than coffee in the US from 2007-11 2
Table 2: Teavana customer review of Roobios Chai Roobios Tea 7
List of Figures
Figure 1: Tea launches in the US have risen strongly over the past five years 3
Figure 2: The majority of US tea launches in 2007 were packaged in a box format 3
Figure 3: Teavana sells a wide variety of tea blends through its website and in-store 5