David’s Tea
David’s tea has put a fresh, North American twist on tea. The company opened its first store in Toronto in 2008, and has since
expanded its colourful and modern shops to neighbourhoods and communities across Canada and the United States. The brand
strategy is simple—delight customers with great-tasting teas and exceptional customer service. “It seems like a basic idea, but there
wasn’t anyone else that was doing it at the time,” explains owner David Segal.
With over 150 types of tea, including exclusive blends like Read My Lips, a delicious chocolate dessert tea, and Movie Night,
a combination of apple pieces, maple, and popcorn, David’s Tea has built a loyal following. “Our customers come in to sample our
teas and talk to our staff—they feel like they’ve travelled around the world without even leaving the store,” says Segal. Over time,
David’s Tea has expanded its product mix to include a line of innovative tea accessories designed in-house, from spoons and infusers
to tea sets and travel mugs, as a way to help ensure customers are able to make the best cup of tea possible.
David’s Tea makes tea fun and accessible. According to Segal, “Tea had a stereotype for being a bit stodgy, a bit off the
beaten track, either highly British or Asian. If one of our customers hasn’t tried loose-leaf tea before, we take them by the hand and
show them how easy it is.” The company’s branding strategy is working, as tea sales are soaring. And it appears the trend is going to
continue, as Canadians’ tea consumption is expected to rise 40 percent by 2020, according to a government agency report on food
trends published by Agricultural and Agri-Food Canada.
The company is introducing a new product line of international teas, which it is calling “Teas from around the Globe”. Their
first product in this new line is a Darjeeling tea. Darjeeling is an Indian blend from West Bengal that comes in black, green and white
varieties and has a musky spiciness, described as “muscatel”. However, David’s tea is only going to market the black variety, which it
plans to name “David’s Darjeeling”.
Some questions may not tell you exactly how to answer. You need to use the marketing concepts that you know to answer them.
Sometimes there will be one concept required, sometimes two or three.
Note: If not specifically stated, when asked always “explain”, or say “why”, or “why or why not”. Also, always attempt to
provide 2-3 reasons/points/explanations when saying why or why not.
1. Possible exam question: Describe the product.
How you should answer: Describe what kind of consumer product David’s Darjeeling tea is by giving at least two reasons why.
Describe its three levels: describe the level in general, and then the aspect(s) of the product that fits that level.
2. Possible exam question: What does it mean for David’s Tea to increase its share of consumer?
How you should answer: Briefly describe what share of consumer means. Briefly describe how it applies to David’s Tea. Briefly
explain what this would entail for David’s Tea.
3. Possible exam question: Describe three areas of the macroenvironment in terms of David’s Darjeeling tea.
How you should answer: Describe the three macroenvironment forces. For each force, define the force, and provide two factors
within that force that will affect your product. Also, briefly say if these factors will have an overall positive or negative effect.
Also, briefly say how your marketing plan can account for these factors.
4. Possible exam question: Discuss how you would use marketing information.
How you should answer: Discuss the three main types of marketing information. Within each type, describe two specific
kinds/factors/tools that you can use to gather information about David’s Darjeeling tea, and explain why you chose each one.
5. Possible exam question: How do new product characteristics of David’s Darjeeling influence its rate of adoption?
How you should answer: Describe the five characteristics that are especially important to new product adoption. Explain what
role each will play for David’s Darjeeling tea, and conclude whether each one is positive or negative for X.
6. Possible exam question: Describe the product life cycle and relate it to David’s Darjeeling tea.
How you should answer: Briefly describe each stage of the product life cycle. Since yours is a new product, David’s Darjeeling
tea, describe two characteristics and one communication strategy, based on the product life cycle, for the introduction phase.
7. Possible exam question: Describe an ideal target market for David’s Darjeeling tea.
How you should answer: Use at least three categories of segmenting variables, and one or more variables within each category
and apply these to David’s Darjeeling tea. Explain why these are the best segmenting variables to use. Provide a clear and
concise targeting statement.
8. Possible exam question: Describe how you will position David’s Darjeeling tea.
How you should answer: Be sure to begin by saying how this is motivated by your chosen target market.
You should use two dimensions and say how David’s Darjeeling tea differs from two other competitor products along these
dimensions.
This study source was downloaded by 100000858061865 from CourseHero.com on 01-15-2023 15:42:27 GMT -06:00
https://www.coursehero.com/file/75991163/MARK201-FINAL-EXAM-NOTESdocx/
, 9. Possible exam question: Describe your brand development strategy.
How you should answer: Briefly describe the four brand development strategies based the two dimensions of the framework.
Describe which one applies to David’s Darjeeling tea and explain why.
10. Possible exam question: Describe pricing strategy.
How you should answer: Be sure to begin by saying how this is motivated by your chosen target market. Briefly describe your
major pricing approach, and why you chose this. Briefly list two important internal and two important external factors that
will affect your pricing decisions. Briefly describe your new product pricing strategy, and why you chose this.
11. Possible exam question: Describe your channel strategy.
How you should answer: Be sure to begin by saying how this is motivated by your chosen target market. Describe whether you
will use a single- or multi-channel strategy, and explain which channels you will use and why you selected each one. In this
description, be sure to explain whether the channels you select will be direct or indirect, and explain why. Also, define channel
conflict and explain whether you will have channel conflict, and why or why not.
12. Possible exam question: Describe your promotion strategy.
How you should answer: Be sure to begin by saying how this is motivated by your chosen target market. Describe each
component of the promotion mix. After you describe each, say whether you will use it or not, and explain why. When you
explain why, you should provide at least two reasons. Then briefly describe how you will use each one.
13. Possible exam question: How can David’s tea use relationship marketing to increase brand equity?
How you should answer: Briefly describe what relationship marketing is. Briefly describe what brand equity is. Then explain
how David’s tea can use relationship marketing to increase brand equity.
14. Possible exam question: Describe the benefits and challenges of digital marketing for David’s Darjeeling tea.
How you should answer: Be sure to begin by saying how this is motivated by your chosen target market. Choose one medium
(e.g., one social media platform; a website) that would be most appropriate for David’s Darjeeling tea, and explain why. Then,
describe three benefits and three challenges to that medium for the launch of David’s Darjeeling tea.
15. Possible exam question: Identify important marketing criticisms that David’s Darjeeling tea might contribute to.
How you should answer: Identify three socio-environmental criticisms against marketing and explain how your product can
potentially contribute to these criticisms.
16. Possible exam question: Describe an international strategy for marketing your product in Mexico.
How you should answer: Briefly describe three major macroenvironment factors that will affect your decision to go
international in Mexico. Explain which market entry strategy you will use and why. Explain which of the two types of global
marketing programs you will use, and why.
This study source was downloaded by 100000858061865 from CourseHero.com on 01-15-2023 15:42:27 GMT -06:00
https://www.coursehero.com/file/75991163/MARK201-FINAL-EXAM-NOTESdocx/
David’s tea has put a fresh, North American twist on tea. The company opened its first store in Toronto in 2008, and has since
expanded its colourful and modern shops to neighbourhoods and communities across Canada and the United States. The brand
strategy is simple—delight customers with great-tasting teas and exceptional customer service. “It seems like a basic idea, but there
wasn’t anyone else that was doing it at the time,” explains owner David Segal.
With over 150 types of tea, including exclusive blends like Read My Lips, a delicious chocolate dessert tea, and Movie Night,
a combination of apple pieces, maple, and popcorn, David’s Tea has built a loyal following. “Our customers come in to sample our
teas and talk to our staff—they feel like they’ve travelled around the world without even leaving the store,” says Segal. Over time,
David’s Tea has expanded its product mix to include a line of innovative tea accessories designed in-house, from spoons and infusers
to tea sets and travel mugs, as a way to help ensure customers are able to make the best cup of tea possible.
David’s Tea makes tea fun and accessible. According to Segal, “Tea had a stereotype for being a bit stodgy, a bit off the
beaten track, either highly British or Asian. If one of our customers hasn’t tried loose-leaf tea before, we take them by the hand and
show them how easy it is.” The company’s branding strategy is working, as tea sales are soaring. And it appears the trend is going to
continue, as Canadians’ tea consumption is expected to rise 40 percent by 2020, according to a government agency report on food
trends published by Agricultural and Agri-Food Canada.
The company is introducing a new product line of international teas, which it is calling “Teas from around the Globe”. Their
first product in this new line is a Darjeeling tea. Darjeeling is an Indian blend from West Bengal that comes in black, green and white
varieties and has a musky spiciness, described as “muscatel”. However, David’s tea is only going to market the black variety, which it
plans to name “David’s Darjeeling”.
Some questions may not tell you exactly how to answer. You need to use the marketing concepts that you know to answer them.
Sometimes there will be one concept required, sometimes two or three.
Note: If not specifically stated, when asked always “explain”, or say “why”, or “why or why not”. Also, always attempt to
provide 2-3 reasons/points/explanations when saying why or why not.
1. Possible exam question: Describe the product.
How you should answer: Describe what kind of consumer product David’s Darjeeling tea is by giving at least two reasons why.
Describe its three levels: describe the level in general, and then the aspect(s) of the product that fits that level.
2. Possible exam question: What does it mean for David’s Tea to increase its share of consumer?
How you should answer: Briefly describe what share of consumer means. Briefly describe how it applies to David’s Tea. Briefly
explain what this would entail for David’s Tea.
3. Possible exam question: Describe three areas of the macroenvironment in terms of David’s Darjeeling tea.
How you should answer: Describe the three macroenvironment forces. For each force, define the force, and provide two factors
within that force that will affect your product. Also, briefly say if these factors will have an overall positive or negative effect.
Also, briefly say how your marketing plan can account for these factors.
4. Possible exam question: Discuss how you would use marketing information.
How you should answer: Discuss the three main types of marketing information. Within each type, describe two specific
kinds/factors/tools that you can use to gather information about David’s Darjeeling tea, and explain why you chose each one.
5. Possible exam question: How do new product characteristics of David’s Darjeeling influence its rate of adoption?
How you should answer: Describe the five characteristics that are especially important to new product adoption. Explain what
role each will play for David’s Darjeeling tea, and conclude whether each one is positive or negative for X.
6. Possible exam question: Describe the product life cycle and relate it to David’s Darjeeling tea.
How you should answer: Briefly describe each stage of the product life cycle. Since yours is a new product, David’s Darjeeling
tea, describe two characteristics and one communication strategy, based on the product life cycle, for the introduction phase.
7. Possible exam question: Describe an ideal target market for David’s Darjeeling tea.
How you should answer: Use at least three categories of segmenting variables, and one or more variables within each category
and apply these to David’s Darjeeling tea. Explain why these are the best segmenting variables to use. Provide a clear and
concise targeting statement.
8. Possible exam question: Describe how you will position David’s Darjeeling tea.
How you should answer: Be sure to begin by saying how this is motivated by your chosen target market.
You should use two dimensions and say how David’s Darjeeling tea differs from two other competitor products along these
dimensions.
This study source was downloaded by 100000858061865 from CourseHero.com on 01-15-2023 15:42:27 GMT -06:00
https://www.coursehero.com/file/75991163/MARK201-FINAL-EXAM-NOTESdocx/
, 9. Possible exam question: Describe your brand development strategy.
How you should answer: Briefly describe the four brand development strategies based the two dimensions of the framework.
Describe which one applies to David’s Darjeeling tea and explain why.
10. Possible exam question: Describe pricing strategy.
How you should answer: Be sure to begin by saying how this is motivated by your chosen target market. Briefly describe your
major pricing approach, and why you chose this. Briefly list two important internal and two important external factors that
will affect your pricing decisions. Briefly describe your new product pricing strategy, and why you chose this.
11. Possible exam question: Describe your channel strategy.
How you should answer: Be sure to begin by saying how this is motivated by your chosen target market. Describe whether you
will use a single- or multi-channel strategy, and explain which channels you will use and why you selected each one. In this
description, be sure to explain whether the channels you select will be direct or indirect, and explain why. Also, define channel
conflict and explain whether you will have channel conflict, and why or why not.
12. Possible exam question: Describe your promotion strategy.
How you should answer: Be sure to begin by saying how this is motivated by your chosen target market. Describe each
component of the promotion mix. After you describe each, say whether you will use it or not, and explain why. When you
explain why, you should provide at least two reasons. Then briefly describe how you will use each one.
13. Possible exam question: How can David’s tea use relationship marketing to increase brand equity?
How you should answer: Briefly describe what relationship marketing is. Briefly describe what brand equity is. Then explain
how David’s tea can use relationship marketing to increase brand equity.
14. Possible exam question: Describe the benefits and challenges of digital marketing for David’s Darjeeling tea.
How you should answer: Be sure to begin by saying how this is motivated by your chosen target market. Choose one medium
(e.g., one social media platform; a website) that would be most appropriate for David’s Darjeeling tea, and explain why. Then,
describe three benefits and three challenges to that medium for the launch of David’s Darjeeling tea.
15. Possible exam question: Identify important marketing criticisms that David’s Darjeeling tea might contribute to.
How you should answer: Identify three socio-environmental criticisms against marketing and explain how your product can
potentially contribute to these criticisms.
16. Possible exam question: Describe an international strategy for marketing your product in Mexico.
How you should answer: Briefly describe three major macroenvironment factors that will affect your decision to go
international in Mexico. Explain which market entry strategy you will use and why. Explain which of the two types of global
marketing programs you will use, and why.
This study source was downloaded by 100000858061865 from CourseHero.com on 01-15-2023 15:42:27 GMT -06:00
https://www.coursehero.com/file/75991163/MARK201-FINAL-EXAM-NOTESdocx/
