Case Study (CS) Question 1.
How does Zealong position itself as a high quality tea brand?
(note: within your answer make sure to discuss why stressing health benefits as product attributes has negative effects for the tea's taste perceptions)
CASE STUDY S. I Perceptions and development With respect to consumers' perceptions Zealong faces a number of challenges. First, internationally, New Zealand is not (yet) associated with growing tea. At the same time, China, India, Japan, Korea, Indonesia and other Asian countries have been heavily involved in tea for centuries, with a passion for teas of all sorts ranging from green, oolong, white and black teas. Tea from those regions may be perceived as superior, simply because those areas are more established, On the other hand, atmospheric and water pollution, land degradation and questionable farming practices are combining to make it increasingly more difficult to grow safe tea in traditional markets. Hence, the first challenge for Zealong is changing the perceptions of foreign consumers and inform them about the high quality of New Zealand grown tea. Second, because Zealong was a new product on the market, it was crucial to design packaging and marketing communications so that the consumer's first impression would be of high quality. Packaging is particularly important in the tea industry because industry competitors are known to add value to their product only through exquisite tea packaging. The primary marketplace, Asia, also perceives premium teas as prestigious gift items. For this market, packaging means everything. Hence, the packaging of Zealong had to be distinctly different, special and highly appealing Branding Being a New Zealand producer competing against rising economies and understanding consumer perceptions across markets is crucial to focus branding efforts optimally and to establish a reputable product portfolio. To fit in the top niche of premium teas, be able to compete with other boutique tea producers from Asian countries, and ensure economic viability in being a New Zealand producer, Zealong has diversified its branding. The key goal was to facilitate the perceptions of luxury products through brand name, elegant package designs (which have won multiple awards), and special tea ware items. The brand name, Zealong, refers to New Zealand oolong'. In direct translation, oolong means 'black dragon' tea-a perfect match for a New Zealand grown and manufactured product since the colour black in New Zealand is reflective of national pride, The choice to go for black was both simple and difficult since the colour black in New Zealand has been associated with the country's successful rugby stars 'All Blacks' team and is seen as a symbolic colour that represents the very best of what New Zealand has to offer. However, at the same time, the colour black in various other cultures has had negative associations, such as the colour of passing in Western societies. The bold decision to go black was to represent the best of New Zealand and ensure that Zealong stand out in global markets. The three-leaf emblem also represents the finest pluck and Zealong's quality (since only the top three leaves are hand-picked from the tea plant to ensure the best quality product). To enhance tea quality perceptions, Zealong has also created special tea ware items. For example, a glass mug with an in-built filter allows for an easy steeping process and further enhances the quality perceptions to consumers through the sensory receptor of sight. Namely, one can observe how the tea balls completely unfurl to their original shape of the top three leaves upon infusion. The lid also doubles for the appreciation of the aromas to build on the hedonic perceptions of smell. Further, the inbuilt filter reinforces product perceptions of value because consumers can continue to use the same tea a number of times, with consistency in taste, colour and aroma maintained, along with full sensory exposure and build on quality perceptions. The more traditional, non-transparent cups are made from high-quality china. Positioning Due to research stressing that different attributes can change actual taste perception, Zealong has conducted research to investigate what product features highlighted in marketing communications led to the best product perceptions across different countries
