MARKETING OF LUXURY PRODUCT

AS-2. TEAM PROJECT

COMPANY-TWG TEA
TOPIC-FIELD BASED EVALUATION OF
RETAIL OUTLET AT DLF EMPORIO

TEAM MEMBERS:
Juhi Chakravertty-69
Akash Chaubey- 123
Soumya Chakraborty-161
Taran Singh-168
Vijaya Pathak-177
SUBMITTED TO:
Dr. Nimit Gupta
 Table of Contents

1.1 An Introduction To History, Culture, And Values Pg.No.3

1.2 Distinctive Features Pg.No.5

1.3 Bestselling Products Pg.No.6

1.4 Customer Handling Pg.No.9

1.5 4p’s Analysis Pg.No.10

1.6 Story Telling Pitch Pg.No.18

1.7 Observations And Findings Pg.No.19

1.8 Recommendations Pg.No.20

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The TWG Tea brand strategy is based on our commitment to providing high-quality tea
experiences and education to identify tea consumers worldwide. Launched in 2008, the product
has been fascinated by how TWG Tea has been successfully and quickly expanding worldwide
and has established a unique identity as the world's first luxury tea brand. It's an amazing
experience for everyone and everyone who has entered every TWG tea shop around the world.
Before the launch of the TWG Tea brand, unlike coffee, tea and tea were not a luxury. TWG
Tea, the world's first luxury tea brand, has succeeded in harvesting the best tea, creating an
impressive collection of products and creating an incomparable in-store experience to create
connoisseurs in the eyes of consumers.

HISTORY
TWG Tea Company is in August 2008 every month. Co-founded by Taha Bouqdib, Maranda
Barnes and Rith Aum-Stievenard. Taha Bouqdib has 20 years of experience in the perfume
industry. But find the best tea in the world. The logo has a history of 1837. Representing a
wellness group, TWG Tea is an advanced concept that combines original retail stores, stylish
tearooms and a professional international distribution network. TWG Tea has successfully
established a tea system by sharing its tea expertise and knowledge and innovating tea varieties
seasonally. TWG Tea's premium professional Tea tasters travel thousands of miles a year, taste
hundreds of cups of tea and find the best yields directly from the source garden. Currently,
TWG Tea offers more than 1,000 single attributes, premium teas and exclusive sales with sales
of $ 90 million per year.

The brand launched its first Tea Salon & Boutique in Republic Square in Singapore on August
2008. The interior design of the salon is very focused on the brand, allowing customers to enjoy
the best luxury while enjoying the tea experience. Luxurious and elegant aroma, in the original
wood tea boutique, brass scales, Italian marble floors, hardwood tea tables, and TWG tea logo
craftsman tin showcases hundreds of teas of gorgeous tea walls. The tea house has 30 unique
and comfortable seats, decorated with warm polished wooden tables, cushioned wicker chairs,
old photos, luxurious bone china, vivid sheets, chandeliers and bright exotic vases. In addition
to impressive luxury teas and exclusive tea mixes, tea dishes include refreshments and other
tea dipping dishes. The food menu offers a delicious and innovative tea breakfast and brunch,
soups, salads, pasta, main course, and sandwiches (think pan roast squid with vanilla bourbon
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tea and butter sauce). This is a great way to showcase a blend of teas and brands, allowing
customers to experience more tea than just a kettle. TWG Tea also offers brunch and lunch
packages and signature teas to help you slow down, relax and taste your life to encourage your
tea experience. The brand does not regard the coffee brand as a competitor. This is because,
unlike the way customers drink coffee, they want to choose the tea they want and enjoy tea at
a slow pace. Today, since the establishment of TWG Tea, Singapore’s tea exports have more
than doubled. Shortly after the launch of the ION Orchard shopping mall in Singapore, TWG
Tea's global expansion was rapid and strategic. In the first decade, the brand has more than 50
tea salons and boutiques in 23 countries, including Asia (China, Singapore, Japan, Korea,
Taiwan, Hong Kong, Macau, Thailand, Malaysia, Vietnam, Indonesia, Cambodia, Russia and
other countries such as Russia, Oceania (Australia), Middle East (Qatar, United Arab
Emirates), Europe (Germany, Britain, Portugal, Morocco), the United States and Canada in
September, it began in the new Maruchi Building in Marunouchi, Tokyo.

VALUES
TWG tea tasting travels thousands of miles around the world each year, tastes hundreds of teas
and finds the best yields directly from the source garden. TWG Tea is known worldwide for its
true innovation and works with the world's most famous real estate developers to produce new
varieties of tea every season. The TWG Tea team takes pride in shaping the aesthetics of all
branded products and constantly updating the concept of TWG Tea while respecting the
elegance and beauty traditions of Asia and Europe, which are full of pride and originality.

CULTURE
The unique culture of TWG Tea is to maintain exclusive rights in each country. This is starting
Signature Teas in every country. The brand constantly produces a new kind of tea every season,
so it is considered a true innovation in the market. Various production processes apply to green
tea, black tea, green tea, black tea, white tea, and yellow tea. By mixing and adding other
ingredients such as fruits, flowers and spices to the tea leaves, the company has successfully
harvested a unique range of tea. For TWG tea, understanding consumer tastes and preferences
is a top priority. Frontline managers regularly collect feedback from consumers and forward it
to the brand's global suppliers and tea gardens, and then incorporate the feedback into the
original TWG tea production, which can only sell the highest quality tea in the store.

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CLASSIFICATION AND PACKAGING
TWG Tea offers them a range of six Colors: red, white, yellow, green, blue and black. The
company sells about 800 different teas around the world and is being packaged as "White
House Tea", "Singapore" and "Breakfast Tea". The most expensive tea of TWG, Jinyinzhen is
sold at NT$250,000 per kilogram.

CUISINE
The tea-related cuisine sold by TWG Tea uses the same menu in all of their stores. The menu
includes afternoon tea set menus and other dining options. In addition to tea, the store also sells
other drinks, which includes alcohol.

LOOSE LEAF TEAS

They have selection of more than 800 different varieties of single estate boutiques and
exclusive tea blends!

TWG TEA ACCESSORIES

Elegant tea tins, handmade glass, porcelain, stoneware and cast iron chaff, fine bone china
tusks, saucer, creamer and sugar bowl, as well as tea filters and all kinds of tea scoops can be
found in the TWG Tea collection. The transformation of gold reflective crystals - a hand-
painted primer - and silver, platinum and gold glitter lend their defining features to a pair of
TWG accessories to delight the eyes and illuminate the taste.

TWG TEA GASTRONOMY

At the forefront of Tea Gastronomy, TWG Tea draws from its vast collection of superb fine
fruit teas and exclusive blends, combining an unlimited number of these signature teas as
valuable ingredients in fun recipes, towing with taste buds, tantalizing the palate, and tweaking
the tasting. And one full of sensations and tastes to the tea lovers Tun been introduced around
the world. Breakfast, lunch, lunch, lunch and dinner specials, as well as trendsetting tea drinks
and cocktails, are woven into every area of tea food - an involuntary benefactor that enhances
each meal deliciously.

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Design Orchid Teapot in Gold

Emperor Sencha Scented

Candle

Grand Golden Yin Zhen

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The customer service and handling at TWG Tea store (DLF Emporio) was up to the mark as
they portrayed professionalism which consistently raise the trust of the customer towards their
brand. The TWG Tea consultant was knowledgeable about the products that is being offered
by the brand and also about the business processes.

The representative explained about the product in relation with the story about the brand in a
very well-standard and detailed manner. The customer representative recommend the product
according to the taste and preference of the customers with an ease of high-end product and
service. Exceeded the expectations in a much higher way. At the time of selling of the products,
they have associated the brands story with its astounding success as well.

The representative also incorporated the concept of their unique and original retail outlets, tea
rooms with an exquisite interiors, and their strong distribution network all over the world. The
concept of the luxury tea experience was generated because of their fine harvest teas and
exclusive blends with the service of customization to customers as per their requirements. Over
the period, the customers are getting cautious for drinks which also comprises of tea drinkers
who are looking for an experience with more exciting and new concept.

TWG Tea urges customers to experience tea drinking as a habit of unwinding and savouring
life. The brand has been offering high symbolic value to a selective segment of buyers that are
more focused on high-status relations than the factor of pricing. The representative try to build
a long-term relationship which feel like they are more than transactions. Rightly said, “TWG
Tea have implemented the high-end customer service and provide a fragmented experience
which helped them to build an iconic name in the market of luxury”.

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PRODUCT
The brand has been seen as a real innovator in the tea market as it is consistently and constantly
varieties of tea for every season. Different production methods are implemented to their various
product ranges and assortments of blue, black, green, red, white, and yellow tea. With their
added ingredients and components such as fruits, flowers, and spices to its teas, the brand has
succeeded to harvest its distinctive and unique collection of teas. The brand offers a variety
from loose teas, packaged teas to tea bags and tea collections.

TWG Tea has been offering more than 1000 different varieties of tea which comprise of 800
unique tea blends to 200 tea varieties and also dealing with quality tea accessories which are a
delight to the eyes of customers in the market. In the store, each product is available and has
been placed nicely which appeals to a customers’ mind. The tea service has been designed
carefully which includes Luxurious Tea Salon with European and Asian blend décor.

The product packaging has been taken into consideration very seriously for each of its product
and is designed precisely by its in-house designers, and the designs are being customized
accordingly to seasons and trend. This practice of customization also manifests the
commitment of the brand to innovation and variation in its products in the luxury market.

Picture 1 Loose leaf teas selection of over 800 different variants.

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 Picture 2 Gift sets offerings.

Picture 3 Packaged loose leaf teas.

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Picture 4 Packaged loose leaf teas .

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 Picture 5 Tea Accessories .

Picture 6 Candle offerings .

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 Picture 7 Gourmet Delicacies.

Picture 8 Offering of Cakes & Pastries.

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 Picture 9 Cool off the summer product variants.

PRICE

The pricing of TWG Tea goods needs to be a significant part of TWG Tea’s strategy. The
brand’s target group are the consumers who appreciate and looking for a high-quality tea
experience and are amenable to spend for the high-value and the high-price offering. Luxury
pricing has its potential snares in businesses due to the subsequent reasons:

Only a particular sub-segment of the population is the target market, which in many instances
are niche segments, who perform to present behavioral patterns that meet the psychological
behavior of the target consumer.

Besides, in developing markets or countries the quality tea drinking experience has not been
established yet, it is important to strike a balance on the right pricing vs. targeting the right
consumer. Luxury brands have a heightened need to identify their niche segment to which they
design their offering.

India’s Price Catalogue-

https://www.ourawesomeplanet.com/myfiles/TWGTeaList.pdf

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PLACE
The focus is on highlighting and representing symbolic value through overall brand exposure
and by exclusivity in its product offerings, pricing strategies, and availability. The target
segment of TWG Tea’s are the consumers who value, appreciate, and seek an esteemed tea
experience, and ready to spend for the brand’s high-value and high-price offering. With a
distinct niche segment, the strategy and execution instantly heightened sharper in focus.

TWG's distribution strategy is designed across countries furthermore targeting its precise
consumer base. With their approach of quality and exclusivity, TWG Teas are categorized at
connoisseur and fine department stores across countries, such as Harrods Knightsbridge, up-
market department store David Jones in Australia, The Oberoi, DLF Emporio, and TWG Tea
Boutique at IGI Airport. The Emporium in Thailand, IFC Mall in Hong Kong, Dubai Mall in
UAE, Pavilion Kuala Lumpur in Malaysia, and GUM in Moscow. In the US, the brand has tea
counters at the upscale grocery store brand Dean & DeLuca. Going ahead, the brand is
contemplating to expand further into the Middle East with the same distribution strategy. TWG
Tea is extremely cautious in selecting and choosing their distribution channels.

The distribution channels also include five-star hotels, airlines, and fine dining restaurants and
positioned itself as a luxury tea brand. In five-star-hotels they have defined their world-class
service excellently with the finest dining experiences, a huge assortment of 164 TWG Teas is
being offered in their menu of its lounge. TWG Tea also gets served to business class
passengers in Singapore Airlines, and further, the customization service is also available as per
the customers' needs with the wider range.

PROMOTION
At the point of its commencement, TWG Tea faced communication challenges – being the first
mover in the luxury market, it ought to launch ad drive its brand in a market which was not yet
ready to perceive and discern tea as a luxury product. To build the brand favourably, it was
crucial to accurately position and communicate its offering and promise. The initial stage of
business centered on launching the brand in Singapore on the first basis before running out a
campaign internationally to build equity in different global markets. The initial strategy with
the launch focused on product offerings, outlet launches, and the unique food offerings, with
an importance on the brand story and its alignment to values of luxury, origin, and quality.
Over the period, its communications strategy has been developed which includes all features
of the brand comprises of Food & Beverage, Lifestyle, Business, and Technology, but

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essentially it relies on word-of-mouth strategy and customer retention for its progress and
success.

Like other tea companies, TWG Tea didn't advertise and promoted with discounts. TWG Tea
decided to emphasize and maintain luxurious aspects by offering high quality and variety of
tea products. In India, the brands' outlets are located in New Delhi and the places are The
Oberoi, DLF Emporio, and TWG Tea Boutique at IGI Airport. Rather than spending resources
on advertising, they invest and spends in its locations of store and displays as key components
of its strategy. The brand ensures and assures that its subsidiaries are established at attractive,
engaging, and strategic units. The TWG Tea stores are designed exceptionally.

Picture 10 DLF Emporio store interior.

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The practice of drinking tea has a long history that dates back over 4000 years. Many sources
indicate that tea was first drinks as a medicinal herb and later became popular as an entertaining
beverage in southwest China. By the middle of the eighth century, only tea drinks were spread from
China to many parts of the world, including Korea, Japan, and Vietnam. TWG Tea's mission is to
supply the finest quality tea leaves around the world and provide a luxurious tea-related experience
to consumers' discretion worldwide. Both European traditions have supplied over 100 types of tea
to its stores.

BRAND STORY

The TWG Tea Company was co-founded by Singaporean Taha Bouqdib, Maranda Barnes, and
Rith Aum-Stievenard on August 27 in Singapore. Taha Bouqdib has more than 20 years of
experience in the perfume industry and is extremely interested in researching tea gardens. In
fact, he often travels around the world in search of the best tea leaves. Its logo dates back to
1837, when the island became a trading post for tea, spices and fine Epicurean products. TWG
Tea offers more than 1000 firms, fine-harvest teas and exclusive. TWG Tea, which stands out
as a Wellbeing Group, is a luxury concept that is unique to professionals and incorporates
original retail outlets, great tea rooms and an international distribution network. It has
successfully built an organization around tea by sharing expertise and knowledge of tea and by
constantly innovating new varieties of tea each season. TWG Extra Specialty Tea Testers travel
thousands of miles a year to sample hundreds of miles of tea by looking for top crops directly
from source gardens.

STORY TELLING PITCH

Since in 1837, TWG Tea has been maintaining its authenticity and exclusivity in this business.
With more than 1000 firms all over the world, TWG Tea takes excessive care about the fine-
harvest of tea and then maintains the flavour and taste of the original tea leaves till it reaches
to our consumers. With over 400 types of tea leaves available, their brand is one of the most
unique brand that provides such a variety of tea leaves in this segment. It successfully built an
organization around tea by sharing expertise and knowledge of tea and by constantly innovating
new varieties of tea each season. Our tea tasters travels thousands of miles in search of that
perfect tea leaf that keeps our brand name. With tea leaves available from almost all the major
tea hubs in the world, we are the sole distributors of luxury tea leaves in India.

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Luxury brands in India enjoy a healthy revenue as the per capita income of almost all the
individuals are increasing and as a result more people are inclined towards buying more and
more luxury products. In the current scenario not only, the super wealthy person buys luxury
products or services, but young hardworking and with high earnings also tend to buy the
products. We found that,

✓ TWG Tea in India leads the luxury tea brands.

✓ TWG Tea has a healthy customer base where people from all over Delhi enjoy their
products.
✓ They have branches only in The Oberoi, Duty Free(IGI Airport), and an outlet in DLF
Emporio.
✓ They have a wide variety of tea flavours for the purpose of both breakfast, brunch,
evening and after dinner.
✓ Store-based retailing maintains its dominance.
✓ The momentum purchasing of luxury tea leaves increases as more and more people are
getting richer day by day and thus the segment is getting more boost.
✓ They have limited editions of each flavours to maintain the exclusivity.

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✓ Open outlet in Palladium mall of Mumbai and UB mall of Bengaluru: In India TWG
Tea have outlets only in Delhi (The Oberoi, DLF Emporio and Airport Terminal). They
should open more outlets in other major cities like Mumbai and Bengaluru where they
can sell more, and their revenue can actually prosper.

✓ Customization of tea bowls and jars for uniqueness: The tea jars and bowls should be
customized because they are dealing in the luxury segment and it is always preferred to
have bespoken products for individual customers.

✓ Attracting clients by showing sample tea near the entrance of the mall: Like mannequins
that are being placed inside the Emporio entrance, TWG tea can also use a small stall
where they would actually demonstrate about their product and which in turn can attract
the customers.

✓ Heightening the senses for creating an emotional connection: It is always preferred to

have an connection while using the brand. So, when any person is using the brand it is
always better that one can relate to the brand while he/she is using it.

✓ Immersing customers in brand atmosphere: Any individual while using the brand must
be in love with the brand. So it is required for the brand to develop such a product that
actually creates interest amongst the customer and he/she fully engrosses in it while
using the product.

✓ Involving customers in events: Every brands has annual events. So, it is necessary to
involve customers in events so that they get to be the part of the brand culture and also
feel special that their brand values them.

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