edition bag at Louis Vuitton, TWG Tea wants consumers

CHAPTER 2  Developing Marketing Strategies

to likewise, be willing to pay a relatively higher sum for

Marketing Lesson
gourmet tea. It offers gourmet blends of loose tea leaves
that costs from $4.50 to $4,500 for 50 grams. Its tea bags
are easily three times the price of Twinings or Lipton.
Just like haute couture fashion designers, Murjani and

and Plans
Bouqdib choose their tea leaves very carefully, and spend
lots of time creating various blends. TWG Tea buys its
teas from 36 countries, including places like Zimbabwe,
Mozambique, and Myanmar. They cultivate good relations
with their suppliers. Bouqdib has worked in the tea business
TWG TEA since he was 23 and has fostered strong relationships with
tea gardens and estates worldwide. As an example, the
Da Hong Bao leaves from the Wuyi mountains in China’s
Fujian province are highly coveted by tea aficionados
and are generally reserved for the government. However,
with its good relations, TWG Tea has some quantities of
it. Thus, it is not surprising that even some Chinese tea
73
connoisseurs come to Singapore to buy the Da Hong Bao
from TWG Tea.
The founders travel regularly to sample hundreds of
teas at the source. They choose the best and bring them
back and build blends from them. In blending, Murjani
and Bouqdib live in a world of their own. They create
more than two dozens of flavors each year. They see tea
like fashion, introducing every season with a collection.
Accompanying these exotic blends are equally intriguing
TWG Tea from the Wellness Group is the name in the names like Silver Moon, Magic Flute, Weekend in Moscow,
tea business. Started in 2007 by Hong Kong-born Indian, and Singapore Breakfast Tea. The latter is served on all
Manoj Murjani, and Frenchman, Taha Bouqdib, this Singapore Airlines first and business-class flights. The idea
Singapore-based company is the titan of luxe in the tea- behind these different blends and interesting names is to
drinking industry. In a beverage industry that has seen more create a voyage-like experience when customers walk into
people drinking gourmet coffee, thanks to Starbucks and its boutique. TWG Tea wants its customers to feel that they
other coffee chains, TWG Tea wants to be revolutionary. are traveling to a different place with their palate and that
It boasts the finest and largest collection of tea from every the tea will evoke memories of these different flavors.
producing country in the world. Today, TWG Tea carries more than 1,000 single
It all started when Murjani was strolling in Paris and estate fine harvests and exclusive tea blends, including
was attracted by the display at a teahouse that Bouqdib the first flush of Darjeeling from the best garden in India.
was the charge de mission. The two men hit off immediately Says a Euromonitor International researcher, “TWG Tea is
as they shared their passion for tea. By then, Murjani well positioned to take advantage of the positive health
was already living in Singapore. Bouqdib, of Moroccan associations of fruit and herbal teas.”
descent, and his American wife, visited Singapore and Indeed, sales of tea is on the rise. In the U.S. alone,
liked it. Thus, TWG Tea was born on Murjani’s expertise total sales of tea was almost $7 billion in 2007, four times
in business and branding, and Bouqdib’s knowledge of from 1990. Sales of specialty tea, which TWG Tea is
tea. in, was $1.1 billion in the U.S. that year. By 2009, 1.8
Why Singapore? The city is close to the five tea- million tons of tea are consumed as hot beverages. This
growing capitals of Asia—China, India, Sri Lanka, Taiwan, is expected to increase. In its full year of operation, TWG
and Japan. This ensures that the tea leaves can be quickly Tea sold 650 tons of tea, bringing in sales of $30 million.
delivered for freshness. Moreover, the fact that Singapore It became profitable in 2009.
does not produce tea means that these countries cannot Besides the Singapore Airlines’ coup, TWG Tea is
impose an export duty on their leaves. carried by the upscale Dean & Deluca food chain in the
What strategy does Murjani and Bouqdib have for U.S. and Harrods in London. In Singapore, its tea salons in
TWG Tea? They aim to make tea an affordable indulgence. business area Raffles Place and high-end shopping malls,
Just like spending a large sum on a bespoke or limited Ion and Marina Bay Sands, are elegantly decorated,

MMA 6Ed C2.indd 73 11/14/12 7:02 PM

 offering an intimate and relaxing atmosphere. Set amidst candles. As one observer puts it, “At TWG Tea, you’re
designer shops such as Harry Winston, Louis Vuitton, not just buying tea. You’re buying into the experience of
Cartier, and Giorgio Armani, the TWG Tea salon in Ion the brand that promotes the lifestyle that is evocative of
has been described as a bejeweled showcase of tea luxury.”
and culinary treats. There is a Tea Book that explains the Retail sales make up 66 percent of revenue in 2011.
intricacies of each tea. Besides tea, food and wine are It has 17 salons and boutiques in Japan, Hong Kong,
also served. U.S. and U.K.; and is sold in 34 countries. TWG Tea sees
TWG Tea ensures that tea is woven into different its wholesale revenue expanding and the direction for
aspects of the meal in creative and subtle ways. There’s growth. Besides SIA, TWG Tea also supplies to various
sautéed veal served with asparagus and apples drizzled hotels, including all the 5-star hotels under the Starwood
with a rich sauce infused with Pink Garden Tea. Its Roast chain. TWG Tea is looking for expansion. In 2011, lifestyle
Apricot Cod dish has potato puree sprinkled with Matcha group, OSIM International, better known for its massage
Tea and a Apricot Tea-infused sauce. It even has tea-infused chairs, acquired 35 percent of TWG Tea. The partnership
vinaigrette for the salads and tea-infused chocolates. is to expand to the Asian markets of China, Hong Kong,
Other than food, the salons also sell accessories for Taiwan, and South Korea where OSIM knows well. LVMH
the perfect tea experience. There are teapots insulated with is also said to be interested in having an equity stake in
18-carat gold, tea cups made to ensure that the tongue TWG Tea.
can savor the rich blends without bitterness, tea-infused

Questions
1. Evaluate TWG Tea’s strategy to be a fashion designer tea brand.
2. Do you think the concept of experience can be extended to tea beyond consumption at tea salons?
3. What expansion plans do you think TWG Tea should engage in? What factors might limit its expansion?

74 Sources: Jessica Tan, “TWG’s Ritzy Tea,” <www.forbes.com>, 14 December 2009; “Tea for Two and Me and You,” The Straits Times, 20 October 2009; Grace
Millimaci, “Tea Salon is a Sensory Invitation,” <www.au.news.yahoo.com>, 14 September 2011; “Ron Sim’s Tea Break,” The Business Times, 18 April 2011;
“Interview with Taha Bouqdib,” CNBC Managing Asia, 25 February 2012; <www.twgtea.com>.
PART 1  Understanding Marketing Management

MMA 6Ed C2.indd 74 11/14/12 7:02 PM