Table of Contents

1. SITUATION ANALYSIS

1.1 The Company: Wissotzky

1.1.1 Marketing concept

1.1.2 Corporate Mission

1.1.3 Current product portfolio

1.1.4 The product: a Wissotzky Tea Bar

1.2 The Tea Shop Industry in Tel Aviv

1.2.1 The competition

1.2.2 The competitive environment

1.2.2.1 The threat of intense segment rivalry

1.2.2.1.1 Number of competitors

1.2.2.1.2 Type of competitors

1.2.2.1.3 Growth rate

1.2.2.1.4 Fixed costs

1.2.2.1.5 Attractiveness is high

1.2.2.2 The threat of new entrants:

1.2.2.2.1 Entry barriers

1.2.2.2.2 Exit barriers

1.2.2.2.3 Attractiveness is medium now and has the potential to be higher later

1.2.2.3 The threat of buyers’ bargaining power:

1.2.2.3.1 Number of customers

1.2.2.3.2 Number of possibilities

1.2.2.3.3 Switching costs of customers

1.2.2.3.4 Attractiveness is high

1.2.2.4 The threat of suppliers’ bargaining power

1.2.2.4.1 Number of Suppliers

1.2.2.4.2 Quality of suppliers’ products

1.2.2.4.3 Attractiveness is high

1.2.2.5 The threat of substitute products

1.2.2.6 Overall attractiveness

1.3 The Market

1.3.1 Healthy adults

1.3.2 Singles

1.4 The Macro Environment

1.4.1 Demographic environment

1.4.2 Technological environment

1.4.3 Political/Legal environment

1.4.4 Cultural/Social environment

1.5 SWOT Analysis

1.5.1 Strengths

1.5.2 Weaknesses

1.5.3 Opportunities

1.5.4 Threats

2. Marketing Objectives

3. Marketing Strategy and Plan

3.1 Target Market

3.2 Differentiation and Positioning Strategies

3.2.1 Differentiation strategy

3.2.1.1 Product

3.2.1.2 Channel

3.2.2 Positioning strategy

3.3 Marketing Mix

3.3.1 Product

3.3.2 Price

3.3.3 Place

3.3.4 Promotion

3.3.4.1 Communication mix

3.3.4.1.1 Advertising broadcast

3.3.4.1.2 Advertising print

3.3.4.1.3 Sales promotion

3.3.4.1.4 Personal selling

3.3.4.1.5 Direct marketing

3.3.4.1.6 Events and experiences

3.3.4.1.7 Interactive marketing

3.3.4.1.8 Product placement

3.3.4.1.9 Word of mouth marketing

3.3.4.2 Design of the communication

4. Marketing Control

1. SITUATION ANALYSIS

1.1 The Company: Wissotzky

Wissotzky is an international tea company founded in 1849 in Russia and based in Israel since 1936. Its headquarters are located in Tel Aviv and its production plant is located in the Galilee. Wissotzky employs about 400 workers and has a 76% hold on the local market.

1.1.1 Marketing concept

Wissotzky uses multiple marketing concepts, including the production concept, the product concept, the marketing concept, and the holistic marketing concept.

Wissotzky uses the production concept (marketing 1.0) because it makes sure that their products are widely available and inexpensive. Their products are marketed directly to chain stores, retail shops, and grocery stores. In addition, Wissotzky supplies tea to large customers such as the army, the security forces, and El Al airlines. An exclusive system supplies catering companies, hotels, restaurants, coffee shops, kiosks, and factory canteens. Wissotzky has at least 7,000 B2B customers. Wissotzky concentrates on achieving high production efficiency, low costs, and mass distribution.

Wissotzky also uses the product concept by providing quality teas. This is also part of their corporate mission. Wissotzky writes, “We’ve been choosing teas, blending them, cupping, and blending them again until they’re teas we can truly love. This unwavering commitment to quality has been driving us for over five generations, and we do it all so every customer’s cup tastes remarkable.”

Wissotzky additionally uses the marketing concept (marketing 2.0) by being customer-centered. Wissotzky recently included the Nana Mint flavor into their Signature Collection. By adding glocalized flavors, Wissotzky is proactively answering consumers’ needs.

Wissotzky uses the holistic marketing concept (marketing 3.0) in its relationship marketing with its consumers. Relationship marketing is about looking outside at what consumers need and want in order to forge a good relationship with them. One way that Wissotzky does this is through their social campaigns. Wissotzky’s recent social wellness campaign lets fans post pictures of themselves doing healthy activities and offers the winner a free box of green tea. Fans receive recognition of their active lifestyles by having an outlet to post these pictures and are further incentivized by the reward. Wissotzky also edits people’s photographs to design a green W on their face, symbolizing Wissotzky Green Tea. While Wissotzky gains interaction on its social sites they are serving their customers as well.

1.1.2 Corporate Mission

Wissotzky has two messages. One is about the quality of their teas and the second is about the wellness factor. Wissotzky writes “since 1849” and that they have “built a tradition for uncompromising devotion to producing the highest quality tea and this is evident from the selection of the ingredients and throughout the production process. Our teas are designed to satisfy the local tastes and our continual innovation of new teas serves to promote customer satisfaction.”

It is important that Wissotzky expanded their slogan to include a wider range of activities than just quality. Their next slogan is “Wissotzky. For Better Living.” Not only is this mission statement short and memorable, but it is meaningful and it defines the major competitive spheres within which the company will operate (health and wellness).

1.1.3 Current product portfolio

Wissotzky sells tea in bags, as loose tea, in keurig capsules, chests, and as iced blends.

Wissotzky has also acquired Zeta Olive Oil, a leading Israeli olive oil company in the Galilee and Lahmi, and Elsastory, a leading home baked goods company in Israel.

1.1.4 The product: a Wissotzky Tea Bar

The product for this marketing plan is a Wissotzky Tea Bar in Tel Aviv. Israel is flooded with cafes and kiosks but does not have many tea houses. With the rising trend of health and wellness, it is an opportune time to offer a tea bar that serves our large selection of teas. We will also serve cold teas for the summertime, coffee, fresh juices and blends, and alcoholic beverages including artisan craft beers. Our snacks will include plant-based and unprocessed baked goods to be served alongside our beverages.

By the time the tea bar opens we will have a new app that scans teas and products within the tea bar (e.g. by QR Code). We will decorate the walls with shelves of our scannable and aromatic tea shop items. When scanned, the teas are sent to order for the customer’s table or to be saved in a favorites list to order later.

Our shop inside the tea bar will offer our current side products, such as Zeta Olive Oil and our current tea portfolio. New side products will include nespresso capsules, cup warmers, temperature changing thermoses, and aromatic beauty products made with natural tea herbs. When side shop items are scanned, they are added to the customer’s cart and may be purchased with their bill.

1.2 The Tea Shop Industry in Tel Aviv

1.2.1 The competition

On the product form level, brand competition for a Wissotzky Tea Bar in Tel Aviv include competing tea shops around the Tel Aviv area:

• Palais Des Thés is a non-sit down artisan tea shop in Sarona, Tel Aviv.
• Halitatea has teas from all over the world and has sit-down shops on Hillel 10, Jerusalem, and on Raoul Wallenberg 31, Tel Aviv.
• Lippi’s Tea House is a sit-down tea shop outside of Tel Aviv toward the Ramat Gan area on Derech Hashalom 125.
• Daniel’s Tea is a sit-down tea shop located south of Tel Aviv at Hasderot 84, Holon.
• Ocha is an online tea shop that has a store for shop items on the Ayalon highway in Tel Aviv.
• iTea is also an online tea shop that has a store for shop items on Levinblum 23, Tel Aviv.

On the product category level, category competition includes places that offer drinks. These may include cafes, juice bars, restaurants, bars, kiosks, and vending machines throughout the Tel Aviv area.

On the generic/form level, form competition includes any place for hanging out or that addresses a health-conscious issue. These places include concerts, djs, the movies, parks, the beach, sports games, health food shops, sporting goods stores, etc.

1.2.2 The competitive environment

Porter’s five competitive forces model helps analyze the competition and determine how attractive is the Tea Shop industry that Wissotzky wants to enter. The five competitive forces are the threat of intense segment rivalry, the threat of new entrants, the threat of buyers’ bargaining power, the threat of suppliers’ bargaining power, and the threat of substitute products.

1.2.2.1 The threat of intense segment rivalry:

1.2.2.1.1 Number of competitors

Wissotzky has few competing tea shops in comparison to the amount of cafes in Tel Aviv. The Wissotzky Tea Bar would stand out as a tea shop.

1.2.2.1.2 Type of competitors

Wissotzky has weak competitors. Its strongest competitors are not located in the center of Tel Aviv where the Wissotzky Tea Bar will find most of its customers, and also most of them do not provide a sit-down environment.

1.2.2.1.3 Growth rate

The growth rate of a Wissotzky Tea Bar is estimated to be high. Wissotzky will be starting out with over 70% of the market share in Israel: the tea bar will open with customers knowing their name. Most health-oriented people in Tel Aviv buy their tea in restaurants and cafes rather than trekking out to find non-centrally located tea shops. The tea shop industry in Tel Aviv is weak and potential customers for a centrally-located Wissotzky Tea Bar are many.

1.2.2.1.4 Fixed costs

The fixed costs of a Wissotzky Tea Bar in central Tel Aviv will be relatively low after rent and inspection costs. Growth force costs would be low. Service does not require professional workers, although we will have trainings in our teas. Non-processed bakery goods will require one top chef and the rest may be su chefs. Tea, coffee, and kitchen machinery is relatively inexpensive. Marketing costs will be relatively low as the industry has weak competition.

1.2.2.1.5 Attractiveness is high

Overall, the threat of intense segment rivalry is low, and attractiveness is high.

1.2.2.2 The threat of new entrants:

1.2.2.2.1 Entry barriers

Entry barriers for a Wissotzky Tea Bar are low. Capital needs are low and employees need not be professional experts. While restaurant laws and regulations are onerous they are negligible compared to regulations for entering other types of industries.

While at the beginning with one location entry barriers are low, long-term, if Wissotzky opens a chain, entry barriers will be high.

1.2.2.2.2 Exit barriers

Exit barriers for a Wissotzky Tea Bar are low. Investment capital lost will not ruin the company, and it would be easy to sell the shop: regulations and government demands to exit are negligible.

1.2.2.2.3 Attractiveness is medium now and has the potential to be higher later

A Wissotzky Tea Bar would have low entry barriers and low exit barriers. While low exit barriers is attractive, low entry barriers make it easy for competitors to enter the industry. A Wissotzky Tea Bar would be moderately attractive in this sphere. Later, if Wissotzky opens a chain of Tea Bars around popular areas in Israel, entry barriers will increase and the attractiveness of entering the tea shop industry in Israel will be high.

1.2.2.3 The threat of buyers’ bargaining power:

1.2.2.3.1 Number of customers

If customers have the numbers, ability, and drive to collaborate they have more power. The Wissotzky Tea Bar will have many potential customers but they may not collaborate against a tea shop for bargaining power. Despite having enough power to group, it is unlikely that they will do so because tea shop goers would come to our product as individuals (and not as a group). Further, our product is not against the environment or health, two main reasons that advocates may protest. Attractiveness in this area remains high.

1.2.2.3.2 Number of possibilities

The number of possibilities in the competitive marketplace for tea and tea-related products is low. Israel has few tea shops and none of them offer the technological capabilities that Wissotzky Tea Bar will offer, such as a scanning app and ipads for customer use. Attractiveness in this area remains high.

1.2.2.3.3 Switching costs of customers

There are not many financial switching costs to go from one tea shop to another. This would give customers more power. But going to another place takes time and effort, which is a switching cost, and lowers customer power. The other tea shops around the Tel Aviv location are far from the Allenby/North Florentine area where we will place the Wissotzky Tea Bar, and many do not offer a sit-down environment. Attractiveness in this area remains high.

1.2.2.3.4 Attractiveness is high

The threat of buyers’ bargaining power is low, and the attractiveness of entering the tea shop industry in Tel Aviv is high in this area.

1.2.2.4 The threat of suppliers’ bargaining power:

1.2.2.4.1 Number of Suppliers

The number of tea suppliers is high, and many options gives Wissotzky more power to choose among them. Also, Wissotzky has the power of economies of scale: we will buy a lot at a time and be in a position to receive discounts.

1.2.2.4.2 Quality of suppliers’ products

Tea suppliers do not have unique knowledge about tea. High quality, professional, and unique tea products would give suppliers more power, but this is not the case for a Wissotzky Tea Bar. Even though the tea bar will sell novel items on shelves within the tea bar, such as cup warmers and temperature changing thermoses, these unique side items would not be the main focus of the tea bar.

1.2.2.4.3 Attractiveness is high

The threat of suppliers’ bargaining power is low, and the attractiveness of entering the tea shop industry in Tel Aviv is high in this area.

1.2.2.5 The threat of substitute products:

From the product form level of brand competition, the threat of substitute products is low. Other tea bars are not nearby or they do not offer sit-down seating.

From the product category level of category competition, the threat of substitute products is high. Cafes and bars and kiosks, most of which sell tea, are prevalent around Tel Aviv.

From the generic/form level of form competition, the threat of substitute products is high. Every other place in Tel Aviv that offers an area to hang out or be healthy competes with the Wissotzky Tea Bar.

The threat of substitute products is high, and the attractiveness of entering the tea shop industry in Tel Aviv is low in this area.

1.2.2.6 Overall attractiveness

The overall attractiveness of entering the tea shop industry in Tel Aviv is mostly high. Wissotzky is a strong company and can invest money to bring a unique experience and overcome the competition. Also, with our financial power we may become a well established chain, and other business will have a harder time keeping up.

1.3 The Market

Two potential markets for a Wissotzky Tea Bar would be Healthy Adults and Singles.

1.3.1 Healthy adults

The segmentation level for healthy adults is segment marketing. Healthy adults share a similar set of needs and wants: healthful living. The base of segmentation would be psychographic segmentation for those who are vegan or live a healthy lifestyle. This target audience may include healthy business people; freelancers, students, and those who use cafes as their workplace; and a healthy club and meeting space. Additionally, the Wissotzky Tea Bar would have a flexible market offering for healthy adults and give them the ability to choose different attributes of their order according to their likes and needs: we will provide various teas and tea concoctions and other healthy drinks, a variety of vegan milks and healthy sweeteners, and a variety of non-processed vegan snacks to their order.

1.3.2 Singles

The segmentation level for singles is local marketing, as the Wissotzky Tea Bar will be a meeting place for dates in Tel Aviv. The base of segmentation is geographical. The tea bar will be a quiet place, a romantic environment with herbs and flowers inside shared tea pots, and will have an option for alcoholic beverages. It will offer wintertime (hot teas, hot sangria) and summertime (cold teas) options. The atmosphere will be optimal for dating and will be easy to get to for local singles in the Allenby/Northern Florentine areas.

1.4 The Macro Environment

The relevant macro forces include the demographic, technological, political and legal, and cultural and social environments.

1.4.1 Demographic environment

Tel aviv is a young hipster-, vegan- and gay-friendly health conscious city. The demographic environment is positive for a Wissotzky Tea Bar. Further, as men are influenced more by positive advertising and women are influenced more by negative advertising, male healthy adult targeting will involve the health benefits of tea, while female healthy adult targeting will involve the negative health factors of replacing tea with other caffeinated drinks that are high in sugar.

1.4.2 Technological environment

Tel Aviv is one of the top startup cities in the world, and Tel Aviv rises high in the technological marketplace. Startup companies and tech conferences are trending around the globe and it is good timing for the Wissotzky Tea Bar’s technological aspects, including their smartphone app and free-to-use tablets that will be strung to the tables. Customers can use the app to scan loose teas whose aroma they enjoy as they walk around the tea bar. Customers may save the tea to a favorites list and have the option to add it to their order as a cup, tea pot, or part of a tasting tray. The tablets will be free to use throughout one’s stay, and will also have menu items from which customers may order.

1.4.3 Political/Legal environment

Because of the Wissotzky Tea Bar’s location in Tel Aviv it would be open on Shabbat. Demand would be affected less than if the tea bar would have opened in Jerusalem, so Wissotzky will pay the fee for being open on Shabbat.

1.4.4 Cultural/Social environment

Health and wellness values are trending across the globe. Further, the Israeli culture views sitting in cafes and sit-down restaurants with friends as an important way to spend leisure time. Israel values hard work as well as valuable and healthy leisure activities. Wissotzky Tea Bar will be a sit-down work environment and meeting place where customers have healthy options.

Tel Aviv also has a large vegan subculture that would enjoy the vegan options at the tea bar.

Additionally, Tel Aviv has a hipster subculture that may enjoy the healthy and alternative drink options.

Technology is also a trend in Israel and much of the world. The Tel Aviv startup city has many entrepreneurs and freelancers that would use the Wissotzky Tea Bar as a nice place to plug in, and the Wissotzky Tea Bar scanning app and tablets may be welcome additions to the ordering process.

Family and children are another Israeli value. Among Wissotzky’s line of teas, Wissotzky Tea Bar will offer decaffeinated teas with pictures of cartoon characters on them for children. Families can encourage their children to enjoy a healthy drink and non-processed snacks while they catch a cup themselves.

1.5 SWOT Analysis

1.5.1 Strengths

A Wissotzky Tea Bar’s strengths would be as follows. First, the location would be in the heart of Tel Aviv, home to an increasing population of health conscious individuals. It would also be located in the land of a sit-down service-oriented restaurant and cafe culture. Another reason that Tel Aviv would be a good location is because its population density is high. Further, Wissotzky has over 70% of the market share in Israel. Their reputation precedes them and opening a tea bar would be a strength.

1.5.2 Weaknesses

Weaknesses of this marketing plan are that Wissotzky does not have previous experience in opening a cafe style boutique. Further, rent prices are high in Tel Aviv.

1.5.3 Opportunities

Wissotzky Tea Bar’s opportunities come from taking advantage of the health and wellness trend. Also, a Wissotzky Tea Bar would not have huge competition, as there are few tea shops in Tel Aviv and in Israel in general.

1.5.4 Threats

Threats to a Wissotzky Tea Bar include war and terror attacks because people may stay inside and tourism may decrease. Second, the other tea shops in Israel could gain a larger market share over time through their products, marketing, and opening new shops. Last, even though the Wissotzky Tea Bar would offer iced teas for the summer, customers may either be more interested in hot teas and frequent the shop only in winter, or weekend customers may drop during the summer because potential customers would be at the beach. (However, part of our marketing plan involves campaigns for lower sales times, as well as the potential for further chain tea bars to open up around Israel, including on the Tel Aviv boardwalk.

2. Marketing Objectives

Marketing objectives for a Wissotzky Tea Bar would be to maintain our mission and to correctly identify and target our core consumer group. Our mission includes developing quality teas and supporting healthy lifestyles. The Wissotzky Tea Bar will enable us to user test new flavors on our customers, as well as offer a place to find healthy drink options.

The consumers we would like to target are current and future tea drinkers. People may be interested in a healthy lifestyle but not have all the information or opportunities to pursue one. A Wissotzky Tea Shop with healthy drink, snack, and tea- and health-related product options may attract new health conscious customers to our product.

3. Marketing Strategy and Plan

3.1 Target Market

With reference to competing tea shops around Tel Aviv, both the healthy adult and singles markets are strong targets for a Wissotzky Tea Bar.

Both targets require a clean sit-down environment. Free wifi and large tables with outlets, along with the option of ordering cups, pots, and tasters of tea, (along with the other drink options,) would enable entrepreneurs, freelancers, and students to work during the day. And the artistic set up, evening lighting, alcoholic options, and herbal loose teas creating aromatic decorations along the walls would enable a stage for the singles market after working hours. Among the Wissotzky Tea Bar’s competition, only Halitatea and Palais Des Thes incorporate a nice atmosphere, and only Halitatea offers seating. While Halitatea offers cups and pots of tea, Palais Des Thes only offers tea tasters. No tea shops offer alcoholic options.

The healthy adult target requires nutritious drink and food options, while the singles target requires alcoholic drinks and snacks. The Wissotzky Tea Bar will offer hot teas in cups, teapots, and tasting platters, cold and infused teas in cups, teapots, and tasting platters, fresh juice and blends, coffee, and alcoholic beverages including artisan beers and hot and cold sangrias. It will also offer vegan milk and sweetener options, and unprocessed vegan snack options. Among the Wissotzky Tea Bar’s competition, only Halitatea offers food menu items but their snacks are unhealthy, and no competing tea shop offers alcoholic beverages. Further, Halitatea is on Raoul Wallenberg Street, and nowhere near the location that the Wissotzky Tea Bar will be. The Wissotzky Tea Bar would dominate the singles and healthy adult market among tea shops in central Tel Aviv.

The technological options, including the scanning app, tea bar tablets, wifi, and table outlets target the healthy adult daytime market. Entrepreneurs, freelancers, students, and those who need a place for work meetings in Tel Aviv may enjoy the ease at which they may order, sit, and go online, so that they can focus on their work or meeting. None of the Wissotzky Tea Bar’s competitors offer scanning technologies, and the gimmick may work in Wissotzky’s favor as a point-of-difference.

We will focus on the healthy adult market for this marketing plan. Targeting would use market specialization. Even though the Wissotzky Tea Bar is an expert in tea, they will also be an expert at healthy living for adults. The tea bar will offer a wider product mix than only tea. Complementary health products will include unprocessed vegan snacks, tea shop items for sale on the shelves such as mugs, cup warmers, self heating thermoses, and herbal seasonal creams.

Growth opportunity will relate to diversification growth, specifically horizontal diversification where the Wissotzky Tea Bar will not only be a new product but it will additionally offer other new products on its shelves, while targeting its current customer base of healthy living adults. The other products will be unrelated to tea, and include the aforementioned shop items.

3.2 Differentiation and Positioning Strategies

3.2.1 Differentiation strategy

Wissotzky’s differentiation strategy would be Differentiation. Healthy adults in Tel Aviv is a broad target, and Wissotzky prides itself on having a unique product.

3.2.1.1 Product

Wissotzky prides itself on the reliability of its tea flavors, the quality of its teas, and its various tea flavors. Wissotzky has been around since 1849 and prides itself on its years of creating quality teas. Furthermore, the Wissotzky Tea Bar will do additional unique things such as place highly decorative flowers and herbs in loose leaf tea pots, as well as use new technologies to integrate a Wissotzky showrooming app and provide tablets for in-bar use. Lastly, the central location and large seating area is unique to tea shops in Israel which tend to have little seating.

3.2.1.2 Channel

In terms of encompassing a broad target, Wissotzky has over 70% of the “share of throat” in Israel, with Lipton coming in second at 8%. Wissotzky teas are seen all over Israeli cafes, makolets, and groceries, and the entire country knows its name and buys its teas. Wissotzky’s Israeli Facebook page has 58,000 likes while its Instagram page has 2,000 and growing. Wissotzky’s closest competition has fewer fans or is less competitively situated: Palais Des Thés has 15,000 facebook fans and 2,700 Instagram follows, but it is situated in north Tel Aviv with no branches in the center and it also does not provide seating. Halitatea has 3,600 Facebook fans on its Jerusalem page and 300 Facebook fans on its Tel Aviv page, having branches in in Jerusalem and east Tel Aviv, but it has no branches in the center of Tel Aviv. Ocha has 1,000 Facebook fans and 20 Twitter followers, but it is situated in east Tel Aviv with no branches in the center. Lippi’s Tea House has less than 100 Facebook fans and is located outside Tel Aviv. Daniel’s Tea has almost 1,000 Facebook fans but it is located outside Tel Aviv in Holon. Itea has 2,000 Facebook fans but sells their tea out of other shops (as Wissotzky does currently). A Wissotzky Tea Bar may have little trouble gaining attention and customers if situated in the center of Tel Aviv.

3.2.2 Positioning strategy

The Wissotzky Tea Bar will determine their category membership by mentioning attributes, benefits, and showing a consumer. Attributes will include the tea bar’s prime location, open and connected work area, the quality of their teas, and the variety of their milk, sweetener, and other drink options. This attribute positioning will show the quality and diversity of the Wissotzky Tea Bar’s offerings. Benefits will include health benefits of drinking tea and negative health effects of drinking other drinks that are high in sugars. This benefit positioning is a consequence of its health attributes and concentrates on the consumer. The consumer that the Wissotzky Tea Bar will present as representing the target market of healthy adults will be a healthy, good looking male who is enjoying a pot of tea or a tray of tasters over a work-covered table with a business partner. He will be shown using the Wissotzky Tea Bar scanning app to pick his order and using a table-strung tablet as another screen to look something up. This user positioning will position the Wissotzky Tea Bar as the best product for the healthy adult work-oriented target market.

The aforementioned attributes and consumer shot display the Wissotzky Tea Bar’s points-of-difference, while the quality of their teas are a category points-of-parity for all tea shops. Therefore, the Wissotzky Tea Bar’s tea quality will be given less attention than its points-of-difference.

Further benefit positioning will include performance marketing aspects of the Wissotzky Tea Bar. Wissotzky currently has many campaigns on their social pages but they do not do holistic marketing. So for every cup of tea that customers buy at the Wissotzky Tea Bar, Wissotzky will give 10 agurot to a new fund devoted to supplying the Israeli army with free tea. Combat and high security units do not go home frequently and the army gives them little access to healthy options. A holistic marketing strategy with a focus on helping Israeli citizens will upgrade the benefit positioning of the Wissotzky Tea Bar.

3.3 Marketing Mix

3.3.1 Product

The marketing mix for a Wissotzky Tea Bar in Tel Aviv is as follows. The Wissotzky Tea Bar characteristics and design will be artistic and have soft lighting, hip atmospheric music, large tables with outlets to be used as work areas, quaint tables for socializing, poofs with short tables for socializing, bookshelves on the walls decorated with loose teas in transparent containers for smelling and ordering, a display of artisan beers and fresh cold teas to order, and tea shop items along the walls.

Ordering services at the Wissotzky Tea Bar would include technologies such as a Wissotzky Tea Bar app and ipads that will be able to scan the bar/qr codes of the loose teas on the shelves. When deciding which teas to order one may walk around the shop smelling Wissotzky’s loose teas, and then use the app to scan and save their favorite teas to list to order from. The ipads will also have the kindle app and include popular books and health related material that customers may peruse during their experience. The internet password will be “wissotzky” so that customers learn to spell our name.

The teas offered at the Wissotzky Tea Bar will include the full variety of Wissotzky’s inventory:

The width of the product line will include teas, coffee, beers, snacks, and tea accessories. (Menu items at the Wissotzky Tea Bar would include multiple vegan milk and sweetener options.)

The length of the product line for teas will include hot teas, cold teas, bottled teas, loose teas, tea lattes, and k-cups. The length of the product line for coffee will include drip, espresso, and cappuccino. The length of the product line for beers will include global artisan beers that are available in Israel as well as beers readily available in Israel. The length of the product line for snacks will include non processed sweet and savory snacks, vegan sweet and savory snacks, and combination (vegan+non-processed) sweet and savory snacks. The length of the product line for tea accessories mugs, cup warmers, self heating thermoses, tea pots, tea infuser.

The depth of the product line for hot teas in teabags, in loose teas, and in k-cups, will include the current inventory that Wissotzky offers, including its Leaves Collection, Signature Collection, Journey Collection, chai teas, fruit teas, green teas, magic garden infusions, red tea rooibos infusions, black label teas, classic teas, and caffeine free teas. A chef will decide the specific depth of snacks in each length category.

The product lists for the Wissotzky Tea Bar is slightly consistent in reference to their current inventory of tea flavors and their fixed mix of herbs, tea, and spices for each flavor. The product lists for the Wissotzky Tea Bar lose consistency from the prior Wissotzky brand because of the added shop options: coffee, fresh juice and blends, alcohol options, tea accessories, mugs, cup warmers, and self-heating thermoses.

Packaging of Wissotzky Tea Bar shop items will be artistic. Loose teas will come in graphically designed metal tins and plastic bags of various sizes. Tea bags will come in Wissotzky’s regular boxes, as they are already classic and artistic. Tea kettles and mugs will be displayed without packaging but with Wissotzky written on them in an elegant and unobtrusive way.

3.3.2 Price

Wissotzky Tea Bar will attempt a skimming strategy and introduce its menu at prices on the higher end of their range of possible prices. Wissotzky’s perception is of a high end unique tea blend that has been around since 1849 and has had much time to test and mature its flavors. There is also little competition from other tea bars, as teas in Tel Aviv are generally sold through retailers where consumers may not have a sit-down experience, or in cafes and restaurants that have a different atmosphere than Wissotzky Tea Bar’s aromatic and artsy experience for social meetings and mid-day freelancers and students. Because our investment in a tea bar would not be high, and because consumers can still find tea with our competition, prices can afford to be lowered to a penetration strategy if the skimming strategy fails to find enough customers.

Wissotzky is always on a mission to add quality flavors to its inventory, and these will be included to the Wissotzky Tea Bar as they come to market. The Wissotzky Tea Bar may operate simultaneously as a front for user testing new flavors through free tasters and for a periodic focus group for perception mappings.

Pricing methods will use the perception mapping focus groups for perceived value pricing. Because we have a unique product and because our competitor tea shops ask a high price, we will combine going rate pricing and perceived value pricing methods.

3.3.3 Place

Wissotzky’s Israeli distribution channels originate from their plant in the north and are shipped to their regional centers in all four corners of Israel. Wissotzky has distribution trucks and light vehicles in constant online computerized communication with the headquarters in Tel Aviv which distribute teas B2B - to kiosks, grocery shops, cafes, catering companies, hotels, and large customers - and to the Wissotzky Tea Bar. Because Wissotzky already has their own successful distribution system and have developed relationships with their customers over time, we will continue with direct marketing channels for the Wissotzky Tea Bar.

The Wissotzky Tea Bar would be located in central Tel Aviv around the Allenby/Rothschild area, a ten minute walk north of the artsy and hipster Florentine neighborhood and right around a huge working district.The Tea Bar’s competitors are located toward the north and east of this location. Palais Des Thes is in Sarona in northern Tel Aviv; Halitatea is in Jerusalem and near Ayalon highway on the outskirts of Tel Aviv; Ocha and iTea are just online shops; Lippi’s Tea House is toward Ramat Gan area; and Daniel’s Tea is south of Tel Aviv toward Holon. The Wissotzky Tea Bar will not have competitors in the center area.

Wissotzky’s Signature Collection includes glocal Nana Mint flavors for the Tel Aviv marketplace. Nana Mint flavors include Sweet Spiced Nana Mint, Spiced Citrus Nana Mint, Nana Mint with Ginger and Lemon, and Timeless Green Tea with Nana Mint. The Wissotzky Tea Bar will display these flavors pronouncedly and add Hebrew titles to all teas.

3.3.4 Promotion

The promotional plan will include decisions regarding the communication mix and the design of the communication.

3.3.4.1 Communication mix

3.3.4.1.1 Advertising broadcast

Wissotzky will broadcast on YouTube and will target ads to tech, health, drink, and dating websites and apps. We will also broadcast to the lifestyle and food pages of news sites. An example YouTube broadcast is the user positioning ad (3.3.4 Promotion, in Marketing Mix). Another example YouTube broadcast can be a gimmick: High tech workers surrounded by vending machines and looking for a healthy option. They come upon a Wissotzky vending machine, pick the tea flavor they want, the type of milk or healthy sweeteners they want (including none), and receive a steaming mug of tea. When they drink it they are transported to the artistic and calm Wissotzky Tea Bar.

3.3.4.1.2 Advertising print

In the first month of opening, Wissotzky Tea Bar will put ads in the main papers except for the right-wing ones because the tea bar will be open on Shabbat. The ads in the papers will have the QR code to quickly download the Wissotzky Tea Bar app.

Wissotzky Tea Bar will also have a few billboards around Tel Aviv promoting their opening and promoting potential customers to download their app. When possible, billboards will be shaped like a cup of tea. Billboards at ground level will include a QR code to allow passerby to quickly download the Wissotzky Tea Bar scanning app, as well as pictures of signature loose teas to scan using the app so that potential customers can see how the app works without being at the tea bar.

3.3.4.1.3 Sales promotion

Wissotzky Tea Bar will have birthday promotions to those who have downloaded the Wissotzky scanning app and input their birthday. Birthday promotions will be sent out a week before individual birthdays inviting the birthday party to share a free pot of our special celebratory loose teas to be mixed with fresh herbal flowers for a scentual and invigorating experience.

Customers will also have the option to rent out the Tea Bar for birthdays and events.

The Wissotzky app will keep track of Tea Bar orders and every 10th teacup and teapot order will be free. The gamification and freebie may make users want to come back nd may make them tell their friends. The app may send infrequent notifications about how many cups or pots the user has left to order before their freebie.

The Wissotzky Tea Bar will also have 1+1 on orders during slower days to increase clientele.

The Wissotzky Tea Bar will have seasonal discounts (such as winter teas, summer teas, a purim package). For example, wearing a costume on purim will earn the customer a free cup of tea. In summertime, the Wissotzky Tea Bar may blend a few different teas each day to chill for healthy iced teas. During winter, the Wissotzky Tea Bar will offer one or two unique glocal flavors to spice up their offerings.

3.3.4.1.4 Personal selling

The servers at the Wissotzky Tea Bar will have gone through a training where they taste all the teas and learn which herbs are in them and where they come from. They will promote Wissotzky teas through their specialist product knowledge and will inform customers and encourage them to buy a teacup, pot, or sampler tray.

3.3.4.1.5 Direct marketing

The Wissotzky Tea Bar will not only attempt to get customers to download their app, but to sign up for their newsletter. The newsletter will be sent out infrequently and will only post about relevant promotions for the customer’s area. For example, one email may let subscribers know about a 50% off sale the entire week. Each infrequent email will have a new tea bio describing where its herbs are from, a bit about the country, and the best way to steep it (temperature of water, length of steeping time, and possible additions such as milk, honey, cinnamon, another flavor tea bag).

3.3.4.1.6 Events and experiences

Wissotzky Tea Bar can create events or have booths in grocery shops where they have tastings and show how their Tea Bar app works.

3.3.4.1.7 Interactive marketing

Wissotzky Israel’s current campaigns include telling fans to send a picture for them to draw a green W on so that they have a picture of themselves with the Wissotzky logo to post on their own pages and promote Wissotzky’s green tea. Wissotzky Israel also has a campaign asking fans to upload ten pictures of healthy activities that they have done in the past year. In return, Wissotzky sends them a box of green tea.

The current Wissotzky Israel social pages will share posts from our new Wissotzky Tea Bar social pages so as to add awareness for the new product. A new campaign that the Wissotzky Tea Bar social pages can start is to ask Tea Bar goers to snap pictures of themselves enjoying their sit-down orders in the Tea Bar. The customers will post these pictures in the comments section of a campaign on the Tea Bar’s Facebook page (which will increase awareness and popularity of the new social pages), and Wissotzky will send back an updated picture with a green W designed on their faces which they can upload to their wall (which will be marketing for the Wissotzky Tea Bar). Another campaign will ask fans to take pictures and videos of healthy activities they do and tag Wissotzky Tea Bar on Instagram. Wissotzky will choose winners to receive free orders for the next time they enter the Tea Bar. A third campaign will be a Twitter link for the Wissotzky Tea Bar app that fans can tweet. The links will be personalized to the fan and the top fans that bring the most app downloads from their posts will receive a box of a new flavor that has not come to market yet so that they will be the first to try it.

Wissotzky Tea Bar marketers will also ask customers if they can snap pictures of them enjoying their sit-down orders in the Tea Bar so as to post on their google maps page and social pages.

3.3.4.1.8 Product placement

Wissotzky will aim to have a scene of an Israeli TV show filmed in the Tea Bar. The celebrities will be shown enjoying the full experience of Wissotzky Tea Bar’s offerings, including tasting trays, special tea pots with flowers and herbs, and using the Wissotzky Tea Bar app to scan the tea flavors they like from the shelves of herbs around the shop.

3.3.4.1.9 Word of mouth marketing

Wissotzky will initiate word of mouth and monitor what is happening in social conversations throughout the internet. For example, the Wissotzky Tea Bar social pages can ask fans what their favorite flavor is or where is their favorite place to sit in the Tea Bar. Wissotzky Tea Bar marketers may intervene when necessary to clarify their offerings or address negative feedback.

3.3.4.2 Design of the communication

In the design of the communication, our message strategy will include our points-of-difference: our central location and our sit-down area. It will also include our points-of-parity: the quality of our tea, a clean and artistic environment, a friendly atmosphere.

Our creative strategy in expressing our message would include one sided informational appeals and transformational appeals. The one-sided informational appeals will include our points-of-parity: the quality of our tea, the clean and artistic and friendly environment, our indoor heating during the winter and our air conditioning during the summertime; and our points-of-difference: our central location and our sit-down area. The points-of-difference may be construed as comparative information appeals but it is important to note that the Wissotzky Tea Bar will not mention the names of other tea shops around Tel Aviv by name. The transformational appeals will be positive and negative. The positive transformational appeals will elaborate on the health image of our product and the people who consume it. Our slogan, “Wissotzky. For Better Living” will function as the vision for our transformational appeals. The negative transformational appeals may elaborate on the negative health effects of other drinks that are higher in caffeine and sugar contents. For example, a campaign may say, “Need a pick me up but still want to fall asleep tonight? Go for tea - or better yet - come to our warm, sit-down tea bar in central Tel Aviv and have a choice of hundreds of varieties of quality tea blends for better living. Some teas are good while conversing; others are the topic of conversation.”

Our message source will be a healthy, attractive, young male who is cool, artistic, and a nutrition major or worker in the tech industry. He will be presented as scanning some loose teas on the shelves and then sitting at the tea bar with similar looking colleagues who are doing work and enjoying a sample platter and artisan beers. He will be presented in another ad as scanning some loose teas on the shelves with his date (in one ad his date will be male because of Tel Aviv’s huge gay population; in another ad his date will be female) and then sitting at the tea bar with his date and they are enjoying a tea pot filled with loose tea and flowers.

4. Marketing Control

In order to see that our marketing objectives were achieved we will look at our internal records. Specifically, we will check internal reports of our channel and service costs, plant and tea bar inventory levels, B2B and tea bar prices, and B2B and tea bar sales. This results data will be gathered automatically as shipments and payments are processed. We will use a big data analyzation software that will identify our sales-to-costs and most popular flavors. It will organize our information into product databases, customer databases, and salesperson databases.

Our Wissotzky app for the Tea Bar will enable us to personalize the Wissotzky Tea Bar experience to each customer according to their scans, favorites lists, orders, and survey answers.

The Wissotzky Tea Bar app surveys will ask about customers’ tea bar experiences. These surveys may also show up on the Tea Bar tablets. The customer will click a sad emoji, a happy emoji, or a vacant face emoji, and the survey will document the time of their experience and the workers on staff. There will also be a text box for qualitative answers. The survey will also ask if they enjoyed their tea order with the same emoji options and text box for a qualitative answer.

App promotions that Wissotzky sends out and that each customer uses will be analyzed for better personalization. Customers will be ranked according to purchase RFM and our best offers will be sent to the highest-scoring customers, while other offers will be sent out to those who need to be encouraged to visit more.

The increase and decrease of our production line will enable us to understand which marketing efforts are most efficient. Also, The Wissotzky Tea Bar may operate simultaneously as a front for user testing new flavors. Last, the Wissotzky Tea Bar will also use the perception mapping focus groups for perceived value pricing.