yerba mate · 2017-12-14 · yerba mate is a distinct leaf, native to the south american forests;...

YERBA MATE

Selling Yerba Mate to China

Contributors: Keeshawn Nicholson and Joshua Reynolds

Yerba Mate Marketing Plan

Table of Contents

Table of contents ………………………………………………………….……….. 1

Analysis ……………………………………………………………………………….. 2

SWOT ………………………………………………………………………………..... 5

Goals and Objectives ……………………………………………………………... 6

Marketing Strategy ………………………………………………………………… 7

Segmentation ………………………………………………………………….……. 8

Positioning ………………………………………………………………………….... 9

Defining the Marketing Mix: Product, Place, Price, Promotion ……... 10

Projected Sales and profits ……………………………………………………... 12

1


Analysis: Internal and External Analysis (market research)

Product: Yerba Mate

Yerba Mate is a distinct leaf, native to the South American forests; predominantly of

Argentina, Uruguay and Paraguay. It has a long history in which it became known

as the miracle drink. Upon visiting Argentina, one can find many people sitting

together and sharing what is called a Mate Gourd, filled with the plant. Mate

encourages social interaction, happiness, and a sense of nostalgia because of its

long predisposed roots in the Southern American culture.

Who normally drinks Yerba Mate?

Mate is shared between friend groups amongst the age of adolescence and into

friend groups around on their late thirties. We noticed that as one gets older Mate

becomes less social. In addition, it is widely known to help students during their

study.

What is the big deal?

Mate’s history begins far into the days of the native peoples of Argentina. Natives

drunk Mate to concentrate and focus on work and to get more done. It contains as

much caffeine as a cup of coffee and is believed to have many benefits and an

ample amount of nutrients; vitamins, minerals, theophylline, theobromine, and

antioxidants.

Taste

Mate has a strong, deep, distinct taste and every producer cultivates different

tastes. Mate, like tea, is bitter when no sugar is added.

2


Where?

Mate has roots in Argentina, Paraguay and Uruguay but can also be found in middle

eastern countries.

How is it cultivated?

Mate is planted in the shady forests of South America, it grows as leaves and is

picked then air dried. Mate tastes according to where it is cultivated.

Google Search: Yerba Mate

During a google search for Yerba Mate, the main highlights are its health benefits.

Quoted here as being “better than coffee” and having more or less 10 health

benefits. A picture on the right shows the preparation of Yerba Mate. With the Mate

3


Gourd, Mate Straw and loose leaf Mate. Beneath the picture are the plant

specifications; scientific name, species and conservation status.

Guayaki Brand YERBA MATE

Guayaki brand is the first brand to appear when searching Yerba Mate. This brand

hosts a website that includes all the health benefits and highlights of Mate. Their

slogan for Mate appears “Strength of Coffee, Health Benefits of Tea, Euphoria of

Chocolate”. They are located in shops across the United States and Canada. Thus,

their Target Market are the health conscious people of North America.

4


SWOT Analysis: Yerba Mate

Strengths >10 Health

Benefits

Caffeinated,

helps focus

New way to

drink, exotic

Euphoric

Weaknesses Bitter tasting Can get

messy

Preparation

time for loose

leaf Mate

Opportunities Gourds can be

aesthetically

pleasing and

fun to drink

from

Students

need focus

aids

Preparation

can encourage

socializing

People need

something to

relieve their

stress after a

long day of

work

Threats The Mate leaf

is nearing

endangerment

Bitter taste

might be off

putting to

some

There are

many other

tea options

Resistance to

change; China

is a collective,

communist

country,

selling outside

product may

be difficult

5


Goals and Objectives

● To solve the need for Yerba Mate in a Foreign Market

● To understand the unique values and characteristics of the Chinese People

● To adapt Yerba Mate to the likes of the Chinese People

● To price product accordingly; based on income level of Market, Pricing by

competition and production development costs

● To successfully sell and make a profit introducing Yerba Mate to Chinese

Market

Our overall goal is to solve the need for Yerba Mate in a foreign market by

appealing to the basic needs and internal desires of the Chinese people. In addition,

our main objectives are to convey an affective message as well as to find the best

possible price point to sell Yerba Mate, according to our customers, competitors and

production development costs. Finally, our goal is to be successful, through market

research, in the conveyance of Yerba Mate as a need, and to make a profit from the

success of our marketing strategy.

6


Marketing Strategy

“Given China’s breadth, its unpredictability, and the diversity of regional tastes, a lack of

understanding of consumer preferences could seriously stymie marketers.”

Our marketing strategy focuses on adapting mate to the unique aspects of the

chinese market and culture. Many companies that found success in their own

countries have struggled to prosper in China. One major challenge is the great

variety of regional differences that exist between provinces and cities that are often

difficult to understand by foreigners. Many international companies have also

encountered the difficulty in conducting their own market research in addition to

the unavailability of reliable research on the chinese consumer. Other key aspects

of the market included:

● Majority of population lives in rural areas (64%) but we will be marketing to

highly urbanized area of Shanghai

● Google is heavily censored and for this reason the search engine Baidu is

most often used

● Consumers often seek quality for money spent

● Brand loyalty varies greatly and in some instances chinese consumers are

very receptive to previously unknown brands

In order to address these issues we decided that it would be most effective to

implement the following strategy:

1. Assess potential demand for yerba mate

2. Choose most reachable target market

3. Research (through primary and secondary sources) target market’s

needs and attitudes surrounding similar products

4. Develop an effective digital campaign as a pull strategy: Through

short, eye-catching ads we plan to create curiosity and demand in chinese

consumers who will then seek out the product in local tea shops and

supermarkets

7


a. Digital Marketing

b. Social Media

c. PR

d. Demonstration and Samples

Segmentation: Target market

We will target China’s student population.

China’s student population is probably the hardest working population. Chinese

students are constantly studying for tests that determine their eligibility for higher

education. In addition, they are required to take english tests to leave the country

at any rate. In targeting the student population of China, we have found a need for

a study aid; something that can help students with focusing while completely

benefiting from the health aspects of mate; which should interest parents who buy

groceries as well.

8


Positioning

Chinese people love to have rituals for almost all things that they do, we want to

market as a fun ritual for studying and a way to feel confident in your studies.

Therefore,

1. We have to adapt the gourd to the likes of this market

a. Cute collectable stickers for Yerba Mate cup; ex: Hello Kitty drinking

Mate etc.

b. Smaller cup and straw

c. Packaging should include motivational quotes; ex: “Good things come

to those who work hard” etc.

d. Instructions included in packaging, sticker design examples

e. Links to ritual demonstrations on baidu

2. Utilization of Chinese media: Demonstrations and short videos to be posted

on the Chinese facebook, Wechat and baidu

3. Collaboration with bubble tea culture; Yerba Mate bubble tea at HappyLemon

bubble tea stores.

-- sticker examples

9


Definition of Marketing Mix

Price

Yerba

$10 USD (69 RMB) per 8 oz (227 g)

of loose leaf Mate

This price would be somewhat

expensive in Argentina as it usually

sells for half the amount per kg but

with tea in China there exists the

perception that leaves priced very

cheaply are of low quality.

Gourds

$25 USD (172 RMB)

For cup with stickers and straw

Starter Pack Mate

$20 USD (138 RMB)

Small Gourd, 6 ounces (170 g) of loose

leaf Yerba, and Stickers

Placement

Product will be marketed in traditional

tea shops, popular culture bubble tea

shops, along with supermarkets like

walmart. These are the most common

methods of marketing tea products to

chinese consumers.

Promotion

Product will be promoted by

emphasizing the energy boost

experienced by consuming the plant

and the potential long term health

effects from antioxidants contained in

the plant

We will also use a temporary start-up

deal of -10% off to encourage

consumers to buy and create the

Product

Product Yerba Mate will be packaged

yerba with brand name and messaging

translated into mandarin. Package will

be printed with promotional startup

messaging and images of cartoon and

stickers holding shining mate gourd.

Emphasizing the study aide aspect as

well as the benefits in mate that

improve focus to appeal to age group.

Will include directions on the back,

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impression that they are getting quality

for their money spent.

Collaboration with already popular

bubble tea product

Free product for limited time -

“Buy one get twice the stickers for

limited time”

oriental flower design and chinese

calligraphy.

Product Gourd

Gourds will be blank and simple

promoting elegance. Starting colors

red, white, black, dark blue and pink.

Package will include directions on

the back, oriental flower design and

chinese calligraphy and stickers to

design gourd.

Starter Pack Mate

Packaging will follow same design as

stand alone gourd.

11


Projected sales and profits

Guayaki is a fairy large company with resources to launch an extensive campaign

so it can be expected that sales will increase greatly once the product hits the

Chinese market. Tea products are known to have high profit margins (net

profit/sales revenue) because cultivation and processing costs are low. In addition,

our price point sells at $2 dollars more per ounce than the American product to

cover shipping expenses.

This revenue will be critical in establishing the product as a competitor and allowing

it to increase market share in the following years.

Loose Leaf Yerba Mate production costs <10

Gourd production costs <10

We expect these favorable production and market conditions will allow Guayaki to

cover critical startup costs during the early stages of business development, create

noticeable sales revenues, and lead to sustainable profits during the growth stage

of the product.

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yerba mate · 2017-12-14 · yerba mate is a distinct leaf, native to the south american forests;...

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