Executive summary

TWG Tea is an internationally recognized luxury tea brand established in Singapore and targeted toward affluent consumers. Australia is identified as offering strong future growth opportunities for the brand. Australia’s tea-drinking culture is already well established due to their former colonial ties with Britain. High disposable income has lead to luxury items becoming accessible to a large share of the Australian population. Competition within the teashop market also remains relatively low, with no competition currently existing within the luxury market. It is therefore recommended that TWG Tea use a contingency approach to enter the Australian market, making minor adaptations to their product offerings and standardizing other elements of their marketing mix, positioning strategy and target market. It is also recommended that TWG Tea use a push strategy, including personal selling and sales promotions, to help build brand awareness and relationships with their target market. Finally, it is suggested that TWG Tea enter using foreign direct investment, establishing a single store within a densely populated area with high disposable income, such as Sydney.

Contents

1.0 Company background…………………………………………………….. 4

2.0 Marketing Mix………………………………………………………………. 5

2.1 Positioning…………………………………………………………………… 5

2.2 Target market………………………………………………………………... 5

2.3 Marketing mix………………………………………………………………... 5

3.0 Australian marketplace…………………………………………………… 7

3.1 Market environment……………………………………………………….... 7

3.2 Consumer behaviour……………………………………………………….. 7

3.3 Competitors…………………………………………………………………. 8

4.0 Entry strategy……………………………………………………………... 9

4.1 Contingency approach…………………………………………………….. 9

4.2 Push strategy…………………………………………………………….... 10

4.3 Entry mode……………………………………………………………….... 10