International Marketing: Analysis of Teas.Com.Au - Case Study Example

Executive Summary The ability to reach different target markets through e – commerce is one that is important while selling different products. In analyzing “teas.com.au” there are several aspects that can be considered with the e-commerce strategy used. The features, design and content offered through this site all show several strengths and weaknesses in the implementation of this business. The concepts included with this specific site provide a different understanding of how the website can be enhanced to change the way in which the website is able to offer different aspects of e – commerce. Introduction The ability for a corporation to reach a global market is not only reliant on brick and mortar strategies, but also requires an e-marketing strategy that applies the main concepts of the brand (Fiore, 2000). When looking at specific websites, it can be seen that there is an implementation of different marketing strategies to ensure success within the corporation, specifically through the marketing strategy. One company which shows a specific relation to this is “Teas.com.au,” an Australian site that specializes in teas and specialized drinking products. When looking at the different aspects of this company and the products offered, it can be seen that there are certain strengths and weaknesses that help to identify the company while providing a specific image on a global basis. Identifying the strengths and weaknesses of the e- marketing design provides the website with more opportunities for growth within the online market. E-Marketing Mix Strategy The first concept seen with the “Teas.com.au” website is the products offered through the company. The strength of the products is seen with the design incorporated into the website, specifically because the consumer has identifiable graphics that show the basis of the tea. The menu as well as the main images promote the tea and give the viewer a sense of health with the tea, as well as a taste that the company defines as refreshing, healthy and fulfilling. For the product, this is able to define a high sense of quality. The images and graphics available through websites are known to instantly create a stronger presence and sense of professionalism among websites, making this one of the highest strengths of the website (Sheth, Sharma, 2005). This is followed by the content that is a part of the site. The content is kept to a minimum and doesn’t provide information about the uniqueness of the tea. For viewers, this doesn’t provide them with enough information about what sets the products apart as well as how it is able to move against the competition of teas from other regions as well as through the global competition. While the main presentation of the product is easily incorporated into the site, the lack of information makes one question whether the product has the quality desired. The second aspect of the website that is used is based on the branding and promotion of the company. The branding of the site is not seen. There is no logo on the site and there isn’t anything to distinguish the site by a brand company name. Even though the colors and images are able to grab the attention of those that are looking at teas, the lack of a logo as well as brand identity on the site makes the website look as though it is a template. The lack of personalized brand identity doesn’t provide the viewer with a stable basis for building trust and a specific reputation among the company. Without this component, there is the inability for the corporation to overcome other competitors on the Internet. When there isn’t a specific image to remember the company by, consumers are less likely to come back to the site and it will be difficult to promote the brand (Levy, 2004). To change this into a strength, the corporation would need to incorporate a logo as well as a more specialized design that sets apart the company. The promotion is enhanced through not only basic information, but also with setting the business apart with a personalized name, logo and features of the company that consumers can remember. Some of the areas that suffer from the lack of business identity include development of the company and promotions. If a consumer wants to recommend the teas to another individual, they would have to remember the website name. More important, if the business wants to begin an advertising campaign, they won’t have an identity to use as a foundation, which won’t draw in new customers. Since there is not a business name, logo or any type of brand identity, the promotions are limited only to linking to the website. The price of the website is the third aspect of this company. The advantage that the company has built through the website is to have different pricing available for individual products. The low end prices are at $5 while the high end prices are at $20. This is dependent on how much one wants to order as well as the type of tea ordered. This is competitive with the other pricing that is within the market for high end teas and for most consumers that aren’t familiar with the company, is the ability to provide samples to those that are not familiar with the product, while offering lower prices that are competitive in the market. The higher end products offer the same options for promoting a gourmet tea that can last for a longer time and which becomes a worthy investment to those that are interested in the specific teas. By incorporating a diversity of prices, there are more advantages to the e-commerce and the sales that are taking place. The main component that the website is using is known as a process – value matrix. The matrix includes different levels of consumer values that relate to the product available. The less value of certain products aligns with lower prices while those with higher value align with higher prices. Consumers then can choose the value they want for the teas (Wan, 2000). Another aspect considered with the website is based on the concept of place that is incorporated into the site, as well as how this affects the main promotions and product life cycle. The place is important not only for the treatment of the site but also how it creates responses from e-communities (Lei, Wang, 2005). There are two main strengths with this particular aspect of the site. The first is based on the ability to offer a diversity of teas that can’t be found in other regions. The website provides both teas as well as accessories for tea making, both which offer better placement in the market. The main way in which this is placed and designed within the website is able to further the promotions that are a part of the website. This is also furthered with the placement of using health as a main benefit of drinking the teas. The website promotes health as well as the ability to assist those who want natural remedies to different ailments. Placing these two aspects in the marketplace is one of the best ways to reach different customers and targets those that are interested in the teas. Even though the internal placement of the website is strength of the site, the placement of the site on other areas is a weakness. The website is presented as a static site. There isn’t a link to a blog, social networking sites or communities that would enhance the site. For the e-marketing strategy to be conducive, a map needs to be created that allows the website to branch into several online portals. The weakness will then move into a stronger position by moving outside of the competition, finding new consumers on the web and communicating with others on the web. Until the website is able to provide higher levels of relationship building with the website, there will be the inability to meet the competition with the website (Daniel, Wilson, McDonald, 2003). The different promotions used are able to create a different product life cycle for the teas while providing a unique product to the market. The product life cycle easily continues because of the diversity of drinks that are offered to those that are interested in the flavored teas. More important, there is the ability to enhance the product life cycle through the health aspects as a part of the tea. By having the right target market, there is the ability to create a longer product life cycle while creating more opportunities for those interested in the teas. If the product life cycle of one of the teas begins to falter, then another approach and different types of teas can be used to diversify the products while enhancing the corporation. By doing this, there is the ability to create more opportunities within the market space while continuing to expand the company. The main aspects of the web design are further analyzed through the use of the 7 Cs and the way in which they promote the website. The strategy that is used with the 7 Cs is based on knowledge management required. Instead of a brick and mortar association with the products, information and relationship building through communication on the website is required (Oppong, Yen, Merhout, 2005). The first C is the consistency of the site. The strength of this is the ability to promote individual teas while using the different pages to show how each of the teas can work effectively. The design enhances this with the menu items, which provide categories and sub-categories as well as enhanced options for those that are interested in finding specialized teas. The consistency also has an advantage with the menu items, which promotes health and well – being. This is ahead of other types of tea industries because of the promotion of health and the division of teas according to specific needs. The second aspect that can be seen is the credibility that is a part of the market. This is one of the weaknesses of the website. Even though the tea promotes health as well as quality, there is nothing to determine whether this is correct or not. Finding credible sources, looking at different options for credibility and building reputation by direct consumer reviews would help to build the credibility of the site. The consistency would then combine with the advertisement of quality teas that are a part of the website. More information and content given on the site will build the credibility of the site. This would help with further promotions as well as direct responses from consumers. Costs and counter marketing also provide consistency in the site. The costs are seen when one clicks on the individual types of teas, which allows one to decide what they want. However, there is not information that supports the cost or the different types of tea. Many consumers may begin to think that this is a main disadvantage of buying the tea and wouldn’t understand why the costs are divided. Making sure there is a combination of content with features that explain what the tea is for, which would combine more counter marketing, would provide more options to sell the teas instead of to only list what is a part of the cost. For the industry sector, this would help to enhance the unique features of the tea, instead of being a part of the other concepts within the site. The customer needs and the compelling parts of the website are the last aspect. The customer needs are met by promoting health; however, this is limited by the information that is provided and which is not consistent. In order for consumers to get the correct types of tea, they will need to look on other sites to understand what some of the teas are. For instance, Ayurvedic medicines, fruit infusions and green teas all have specific flavors as well as identifiable options for helping with health, all which are available on the site. Consumer needs are not met because of the lack of information that is taken over by images and the overall design, which only links to the buying area. To change this, the website would need to begin moving toward providing more information and needs to combine this with other forms of multimedia that are more consistent with the website. Porter’s Five Force Analysis The different aspects of the site relate directly to the tea industry and Porter’s Five Analysis. For the company to be successful there is the need to work toward a better response for consumer need as well as unique products within the tea industry. Currently, the main concept for e- commerce as well as for the tea industry is to focus on information as well as value added products. The performance that results through the main strategy will be a result of the main components of the website and is enhanced by analyzing a unique product and changing the approach toward the industry. The tea site needs to look more at the barriers that are coming from competitors, new entries and other e- commerce sites. More importantly, there is the need to re-examine the performance of the site and whether there is a demand for different products, as well as an understanding from consumers over the tea products. This would change the abilities of the website to compete within the industry while focusing on specialized products that are more conducive to consumers (Ariyawardana, 2003). Porter’s Five Force Analysis shows how new competition, older competitors and consumer needs all create the end analysis of the product. For e-commerce, this alters according to the system used and the way in which consumers can be reached. The success of a business through the five levels of demand alters because the Internet is located on a different platform. The business model used can no longer be static with basic information provided. Instead, organization and fluctuation with information has to be provided with performance based initiatives on different products that can be enhanced within the business (Joyce, Winch, 2005). For the tea site to remain competitive there is the need to add in information while overcoming barriers through enhanced marketing strategies. These two strategies will instantly change the new competition to the site while creating a high end consumer response. The tea site will also have more abilities to overcome the other competitors that are currently working with selling tea through e – commerce. Discussion and Recommendations Even though the tea site has a strong presence and basis, there is the need to change the way in which it is presented. If one visits the site and leaves, then they may not be able to find the site again. The brand identity as a company and stand - alone entity hasn’t been established with the website. This changes the amount of legitimacy of the website and creates gaps from consumers in believing in the loyalty of the company while relying on the specific products available. There is an inability to build trust from the site, specifically because of the generic look that is a part of the site, as well as the lack of information that is a part of the website. Creating a stronger brand identity would alter the way in which the website is working and would change the alternatives for the company. The second aspect of the site is based on the presentation of materials. The images as well as the division into different teas are one that is a part of the strengths of the site. The layout and design is also simple to follow when one is looking at teas, with notice ability in reading the main aspects of the site and creating a sense of health with the main concepts of the site. However, there is little content that is added and the images are basic in promoting the teas. To enhance this, there is the need to create a different aspect of the tea while providing a specific level of support to the company. To enhance this, video and different moving images can be added. It is also important to add in extra content to the site that is able to enhance the site and show why there is extra quality that is a part of the teas. The more information that is added into the site, the better it will be for the tea product to grow as an enhanced product. This can be combined with building into e-communities to show legitimacy, build trust and to further market the products. Conclusion The concept of the tea website is one that shows different aspects of tea and the benefits of buying the tea. The strengths of this site are based on the strong presence of images, layout and the ability to see the cost of different teas and tea categories easily. However, there is not the ability to gain information and a level of trust about the brand that is being used. More importantly, there is not the ability to create a deeper understanding of the tea and how it is used. Focusing on these aspects first will create a unique presence on the site while creating a different understanding of the teas for the site. More important, by changing into a stronger brand identity while re-examining the products in demand, the site will be able to move against new competitors and those that are already selling teas. References Ariyawardana, Anoma. (2003). “Sources of Competitive Advantage and Firm Performance: The Case of Sri Lankan Value Added Tea Products.” Asia Pacific Journal of Management (20, (1). Daniel, Elizabeth, Hugh Wilson, Malcolm McDonald. (2003). “Towards a Map of Marketing Information Systems: an Inductive Study.” European Journal of Marketing (37), (5). Fiore, Frank. (2000). E-Marketing Strategies. New York: Que. Joyce, Philip, Graham Winch. (2005). “An E-Business Design and Evaluation Framework Based on Entrepreneurial, Technical and Operational Considerations.” International Journal of Electronic Business (3), (2). Lei, Pouwan, Simon Wang. (2005). “Emarketing and Ecommunity.” IADIS International Conference on e-Commerce. Levy, Michael. (2004). “Internet Retailing: Enablers, Limiters and Market Consequences.” Journal of Business Research (57), (7). Oppong, Stephen, David Yen, Jeffrey Merhout. (2005). “A New Strategy for Harnessing Knowledge Management in E-Commerce.” Technology in Society (27), (3). Sheth, Jagdish, Arun Sharma. (2005). “International E-Marketing: Opportunities and Issues.” International Marketing Review (22), (6). Teas. (2010). About us. Retrieved from: https://www.teas.com.au/Black_Tea.aspx?c=BT&i=0. Wan, Hakman. (2000). “Opportunities to Enhance a Commercial Website.” Information and Management (38), (1). Read More