MA HUILING-IMC plan (YSP524 Capstone Professional Project)

SCHOOL OF COMMUNICATION
YSP524 INTEGRATED MARKETING COMMUNICATION

CAPSTONE PROFESSIONAL PROJECT

TITLE:

New-style tea beverage customer loyalty and its influencing factors:
A case of Createa around China Guiyang

NAME:

MA HUILING

SUPERVISOR:

Dr. Sharifah Nadiah Syed Mukhiar

Acknowledgement

The process of completing the IMC Capstone Professional Project has been full
of ups and downs, and I have received a lot of guidance and help from people during
the writing process. First of all, I would like to thank my supervisor, Dr. Sharifah
Nadiah Syed Mukhiar, who has been not only my academic but also my spiritual
mentor. With Dr. Nadiah's guidance and help, I was able to complete my research and
IMC plan, and it was Dr. Nadiah's encouragement that allowed me to complete the
IMC Capstone Professional Project with a relaxed mindset. Each and every one of
their responses means a lot to me. Finally, I would like to thank my dear family and
friends for their continued support and assistance.

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Executive Summary

New-style tea beverages are becoming increasingly popular among consumers as
they have been improved to be more health-conscious and use fresher ingredients. A
local new-style tea beverage store in Guiyang, China, called CreaTea, was selected as
a case study to examine the impact of a large chain of new tea beverages on CreaTea's
business, the challenges and opportunities it faces, and the factors that affect customer
loyalty, thus helping CreaTea retain loyal customers. A questionnaire survey was
conducted to obtain the results of the study, and 235 responses were collected. Based
on the survey data collected, some key insights were summarized: brand image, price,
service quality, and product quality all had an impact on customer loyalty. In order to
retain existing customers, CreaTea had to focus more on the satisfaction that comes
from giving the consumer experience. As a result, an integrated marketing plan was
developed that focused on enhancing consumer customer loyalty, increasing brand
awareness, and strengthening consumer engagement in problem solving. In order to
promote consumer spending, increase brand stickiness and make consumers aware of
CreaTea, there are strategies to reach consumers' main senses, such as sight, touch and
smell. In addition to this, strategies such as outdoor media and social media are highly
recommended to increase brand awareness by targeting only the right audience. For
brand loyalty, consumer engagement is also very important.

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Table of Content

Acknowledgement.............................................................................................................................１
Executive Summary.......................................................................................................................... ２
1.0 Introduction................................................................................................................................. ４

1.1 The Case in Study............................................................................................................... ４
1.2 New Style Tea Beverage Industry.......................................................................................６
1.3 Research Problem...............................................................................................................８
1.4 Research Objectives........................................................................................................ １１
2.0 Research Method & Design.................................................................................................... １２
2.1 Conceptual Model and Hypothesis................................................................................. １３

2.1.1 Conceptual Model................................................................................................ １３
2.1.2 Literature review.................................................................................................. １３
2.1.3 Hypothesis............................................................................................................１４
2.2 Survey Design................................................................................................................. １５
2.2.1 Survey Population and Sampling.........................................................................１５
2.2.2 Survey Instrument................................................................................................ １６
3.0 Discussion............................................................................................................................... ２０
3.1 Hypothesis results........................................................................................................... ２０
3.2 Factors Affecting the Customers Loyalty of CreaTea................................................... ２１
3.3 The Impact of Customer Loyalty on Consumer Behavior............................................. ２２
3.4 CreaTea Increases Customer Loyalty............................................................................. ２３
4.0 Strategies & Tactical Plan....................................................................................................... ２６
4.1 Strategic Objectives........................................................................................................ ２６
4.2 Target Customer.............................................................................................................. ２７
1. Enhance Customer Loyalty.......................................................................................２８
 "CreaTea Tea Tasting Party" Offline Event........................................................... ３２
 Live streaming on Weibo....................................................................................... ３５
 Brand Image Design...............................................................................................３６
2. Enhance brand awareness......................................................................................... ３７
 Outdoor Advertising...............................................................................................３７
 Baidu Advertising.................................................................................................. ３７
 WeChat Friend Circle Advertising.........................................................................３８
3. Enhance consumer engagement................................................................................３９
 Xiaohongshu Advertising.......................................................................................３９
 Design Website.......................................................................................................４０
5.0 Timeline & Budget............................................................................................................... ４１
6.0 Conclusion...............................................................................................................................４１
7.0 Reference.................................................................................................................................４２
8.0 Appendix................................................................................................................................. ４５

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1.0 Introduction
1.1 The Case in Study

In 2000, CreaTea was established as a representative local tea beverage brand in
Guiyang. After years of operation, it has developed into an important brand in
Guizhou and even in southwest China, forming a unique CreaTea culture in Guiyang.
It not only represents a part of Guiyang's local food tastes but also has derived a very
localized, characteristic consumer space culture in the 21 years since its creation.

Figure 1: CreaTea Store
The new-style tea beverage made from the finest tea leaves, supplemented with
concentrates extracted by different extraction methods as raw materials and
modulated with milk, cream, cheese, fruits, nuts, and various small ingredients
according to consumer preferences. It's neither the monotony of original leaf brewed

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tea nor the sweetness of pearl milk tea.
The new-style tea beverage offers more types of choices, and the menu options

offered by CreaTea include fine tea, fresh milk tea, iced tea, bubble tea, traditional tea,
and tea snacks. CreaTea's hot products, such as Wheat Steamed Milk Tea, Jasmine
White Peach, and Chengdu Three Cannon Ice Swirl, all combine regional
characteristics and fresh ingredients from their respective regions. That is why
"health" is one of its most popular keywords; it is especially popular with the MZ
generation, which is the most health-conscious generation in history.

Upgrades and innovations have been made in raw material selection, production
processes, and brand operations to become a drink that consumers enjoy consuming.
The brand opened social media accounts to interact with customers and released some
online and offline activities, such as new product release, May 1st Labor Day
discount.

CreaTea has 16 stores in Guiyang and, since 2007, has opened stores in Zunyi,
Chengdu, and Chongqing. In the 2019 brand upgrade, CreaTea launched the
sub-brand QUCHASHAN, with the concept of "Drinking Traditional Chinese Tea",
adding Chinese tea elements to fully demonstrate the cultural atmosphere of the new
Tea house, which mainly focuses on promoting traditional tea, complemented by
developing some special tea beverage to make people fall in love with tea.

These two brands have opened social accounts on Weibo, WeChat Public
Account, Xiaohongshu and DouYin. Weibo has a high number of followers, and
WeChat's public account has a large number of views. The WeChat public account not

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only pushes out information about special offers and activities but also provides smart
phone ordering, so customers can place orders on their smart phones in advance,
which is very convenient and time-saving, both for dine-in and packing.

1.2 New Style Tea Beverage Industry

New style tea beverage (2012 to present): The product innovation of "cheese
milk cap + original leaf tea foundation" led to the creation of a new-style tea beverage.
Xi Cha was founded in Jiangmen, Guangdong Province, in May 2012, and released its
unique cheese milk cap tea, which quickly became famous among consumers. Other
tea brands have since followed suit, and the new tea industry has entered a time of
development boom, with Park Tea's healthy concept of hand-made tea, the traditional
Chinese tea in the Tea of the Palace, a little bit of boba, and so on.

China's consumer market has seen significant changes as the country's economic
status has improved, as has consumption. The consumer's perception of consumption
has shifted dramatically. The selection of beverage is no longer limited to quenching
thirst. The importance of health and wellness has risen to the top of the priority list.
Drinks with additives are no longer popular. As a result, traditional tea drinks were
given a "new" meaning in accordance with the times, resulting in the birth of new
Chinese tea beverage. High-quality tea, fresh milk, fresh fruit, and other natural
components are used in new-style tea beverages. Chinese beverage have become a
portal for young people to experience traditional tea through a more diverse
combination of tea base and ingredients. New-style tea beverage, as opposed to

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traditional tea drinks, place a greater emphasis on upgrading and innovation in raw
material selection, R & D manufacturing, shop operations, and space experience in
order to develop a distinct brand culture and increase brand value. As a result, China's
thousand-year-old culture, as well as the long history of "tea" in the younger
generation's market, has been revitalized.

As a result, the new tea drink may be described as a heritage and innovation of
Chinese tea culture, which mixes and innovates on the basis of the original leaf tea
and offers the traditional tea drink a new connotation.

In recent years, a slew of new tea brands have sprung up, blending Chinese tea
with bubble tea to create something unique. The organic combination has captivated a
huge number of consumers, resulting in a new consumer windfall for which capital is
competing. The popularity of new-style tea beverage has exploded in recent years,
partly due to the emergence of youthful consumer groups. The post-90s and post-95s
account for more than 60% of users of representative brands of new-style tea
beverage(iimeida research,2021), and the younger generation has emerged as a
veritable main force of consumption, with their focus on face value, willingness to
pay for pleasing themselves, pursuit of experience, courage to embrace national trends,
and other consumption habits that are redefining the new-style tea beverage market.

According to the China New-Type Tea Beverage Industry Research Report
(iimeida Research, 2021) The market size of China's new-style tea beverage market
was 184.03 billion yuan in 2020, which was affected by the COVID-19 and declined
by 10% year-on-year, and is expected to exceed 300 billion yuan in 2022. China's

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new-style tea beverage industry has been developing at a rapid pace after rapid
expansion in the past few years, and the growth rate of the first and second-tier
markets in the new-style tea beverage market has slowed down, showing a trend of
sinking to third and fourth-tier cities. This indicates that there is still a lot of room for
growth and development in the new-style tea beverage business in China.

1.3 Research Problem

In recent years, the popularity of new-style tea beverage has exploded, partly due
to the emergence of younger consumer groups. The MZ generation for more than 60%
of users of representative brands of new-style tea beverage (iimeida research, 2021),
and the younger generation has become a veritable main force of consumption,
focusing on face value, willing to pay for pleasing themselves, pursuing experience,
and bravely embracing national Consumption habits such as trends are redefining the
new-style tea beverage market.

COVID-19 marks a turning point in the new-style tea beverage industry, which
brings obstacles as well as new prospects. During the outbreak, some customers gave
up their habits - purchased new-style tea beverage, but some customers retaliated by
drinking new-style tea beverage upon returning to work and school, leading to an
increase in demand for new-style tea beverage.

In terms of the impact of the 2020 epidemic on the prices of the new Chinese tea
brands, 47% of the brands raised prices for a few products, 18% raised prices for most
products, and 28% raised prices for all products. The cost of branded goods has

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remained the same. Furthermore, 2% to 5% of brands cut prices on a small or large
portion of their products. However, an increase in disposable income pre-epidemic
can effectively encourage social consumption, and as people's purchasing power
increases, so does their consumer demand for variety, personalization, quality,
branding, and portability of consumer goods and services. Sensitivity to price factors
will eventually decrease with continued improvement. The new style tea beverage
have a good overall environment as a "consumer upgrade" product.

At present, China's new-style tea beverage industry has a low entry barrier, high
competitive pressure, and an extremely low industry survival rate. Under the impact
of COVID-19 in 2020, a large number of long-tail businesses went out of business,
while head brands began to expand rapidly, gradually sinking to second- and third-tier
cities, and the advantages of the brand became more prominent in fourth-tier cities.
Data shows that as of December 2020, the number of new stores opened by Xi Cha
increased by 20% compared to the same period last year. Xi Cha started to build a
membership system at the end of 2019, and as of December 2020, the number of Xi
Cha members has exceeded 30 million, with an average monthly growth of 2 million.
As of December 2020, the number of new stores opened by Xi Cha has increased by
31% compared with the same period last year.

In terms of local brands in Guiyang, the Guiyang people are more familiar with
CreaTea, but along with the benign development of the new-style tea beverage market,
domestic consumers are becoming more and more fond of new-style tea beverage
brands such as Xi Cha and Nai Xue. New products from major brands are emerging,

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and competition inside and outside the industry is fierce, not only in terms of product
innovation but also in terms of consumer groups. Major brands understand the
importance of the fan economy, so they have opened membership systems for
consumers. For example, at the end of 2020, "Xi Cha GO" had more than 35 million
registered members and had added more than 13 million new members for the year.
To build the brand's loyal consumers, whenever a new product is launched, registered
members will naturally discuss it after seeing the publicity.

Figure 2: Consumer purchase factors, brand loyalty of new tea drinks in China
in 2021

According to the research data released by iiMedia Consulting, more than half of
the consumers of new-style tea beverage brands chose between the purchase
principles of quality and safety, taste, price, and convenience. The brand as the
purchase principle accounted for only 20.7%. Brand loyalty: 40.9% of consumers
have some awareness of the brand; 16.1% of consumers do not value the brand.

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Therefore, brand products need to be upgraded and improved with customer loyalty as
the core.

Customer loyalty is a hot issue in modern marketing research and is an important
indicator to measure the degree of customer loyalty to a brand. In recent years, more
and more companies are focusing their strategies on "customer-center" instead of
"product-center", emphasizing that developing and maintaining a group of loyal
customers is a necessary condition for the sustainable and healthy development of
modern enterprises.

Therefore, CreaTea needs to hold on to its existing customers as one of the
countermeasures in order to improve its brand competitiveness, and customer loyalty
and its influencing factors are the focus of this case study.

1.4 Research Objectives

The new style tea beverage from well-known chains are constantly expanding
and are already squeezing CreaTea's living space. The integrated marketing
communication model creates value for the company not only from its own quality
products but also from the trust of customers and the establishment of customer
loyalty. Customers' loyalty to the quality of the company's products will inevitably
lead to sales growth. What's more, the increasing profits and sales of enterprise
products prompt enterprises to consciously overhaul and optimize their sales
processes, management models, and service mechanisms, thus improving their
operational efficiency and thus affecting their long-term performance and

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development.
The purpose of this case study is to explore the brand's customer loyalty and its

influencing factors; to understand the extent, type, and way consumers consume the
product; and to summarize and initially analyze the findings to develop a distinctive
marketing plan and give CreaTea some development suggestions to help CreaTea take
its place among other new-style tea beverage brands. Through market research, we
help brands stay sharp in the market, continuously update quality products, upgrade
consumer experience, and proactively meet the changes in the market.
The following three objectives of the case will be used to achieve.
1. Understand and investigate the factors that influence customer loyalty at CreaTea
2. Explore the impact and significance of customer loyalty on consumer behavior
3. To investigate what aspects or factors CreaTea uses to enhance customer loyalty

2.0 Research Method & Design

This case study will use a quantitative research approach. The purpose of the
quantitative study is to test the hypothesis and examine the direct causal relationship
between the variables. The quantitative study will use questionnaires to collect data.
In the study, both theoretical overview and descriptive survey methods are again used
separately. The goal of the theoretical overview technique is to establish a theoretical
foundation that will guide and assist any brand research and analysis. By analyzing
the current state of research and the SWOT analysis model, a theoretical foundation
will be laid for the selection and development of the following strategies. In the

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descriptive study, the China Platform-WenJuanXing questionnaire will be used to
collect data.
2.1 Conceptual Model and Hypothesis
2.1.1 Conceptual Model

2.1.2 Literature review
Customer Loyalty

Customer loyalty is determined by overall satisfaction with the brand, the
customer's expectations, and the customer's overall performance on the desired
product. The more consumer loyalty, the more committed they are to keeping the
brand alive. As a comprehensive appraisal of the consumer experience, cumulative
satisfaction should be considered a theoretical or latent variable. Brands should
concentrate on fostering client loyalty, which is beneficial to the brand's long-term
growth and the cultivation of consistent repeat customers (Oliver, R. L, 1999).

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Brand Image
Brand image is the customer's perception of a brand. It can be defined as the

perception of the brand in the mind of the customer. This image evolves over time.
Customers form an image based on their interactions and experiences with the brand.
These interactions occur in many forms and do not necessarily involve the purchase
or use of products and services (Aaker, 2011).
Product Quality /Service Quality /Price

Many studies in marketing suggest that the variability in product/service
performance across different consumption experiences increases customer uncertainty.
This uncertainty leads to decreased reliance on prior expectations of the
product/service. In this situation, from the customer’s point of view, price is often
used as a cue in their expectations of the product/service performance (Dodds,
Monroe, & Grewal, 1991; Mattila & O’Neill, 2003). Furthermore, customers tend to
use price as a cue in evaluating their experiences with a product/service and in
shaping their attitude toward a provider (Bolton & Lemon, 1999; Varki & Colgate,
2001). The role of the price in influencing customer behaviors would be more salient
to the restaurant industry because customer experiences will not be identical; high
human involvement while delivering services ensures differences in experience. This
variability in restaurant services may foster the use of price as a cue of expectation,
evaluation, and decision making.

2.1.3 Hypothesis

H1: The brand image of "CreaTea” has a positive significant influence on customer

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loyalty.
H2: The service quality of "CreaTea" has a positive significant influence on customer
loyalty.
H3: The products’ price of "CreaTea" has a positive significant influence on customer
loyalty.
H4: The product quality of "CreaTea" has a positive significant influence on customer
loyalty.

2.2 Survey Design

This study used an online questionnaire to examine the factors influencing
CreaTea's customer loyalty. The study involved a total of four independent variables:
brand image, service quality, price, and product quality; and the dependent variable,
customer loyalty. In order to ensure the reliability and validity of the measurement
instrument, this study tried to use scales that have been used in existing foreign
literature and then modified according to the purpose of the study as an empirical tool.

2.2.1 Survey Population and Sampling
In this study, the sample for the survey will be selected based on a simple

random sampling method. As part of the probability sampling method, in a simple
random sample, each member of the total population has an equal chance of being
selected, and the sampling frame should include the entire population. The primary
target of data collection will be the consumers of CreaTea in Guiyang, and the survey
questions will be about the consumer experience related to CreaTea.

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According to Tabachnick & Fidell (2007), it is not possible to determine how
many CreaTea consumers there are in Guiyang. To determine how many CreaTea
consumers there are, they determine the sample size of the unknown population, N =
50 + 8 (m). and a 5% margin of error based on the Krejcie & Morgan table referenced
by the volume of CreaTea XiaoHongShu followers. The minimum number of
respondents was expected to be 200. In this study, this sampling method will help to
draw unbiased conclusions from the findings.

2.2.2 Survey Instrument

The respondents' feedback helps to validate the conceptual research model of
CreaTea's new-style tea beverage customer loyalty, constructed and hypothesized
earlier, and the respondents' feedback helps to explain what consumers value most in
CreaTea consumption. A survey questionnaire is an ideal choice in order to achieve
this goal. Due to the epidemic and the development of social media, an online survey
will be conducted. Online surveys are cost and time-efficient and can provide data
that is sufficiently measurable. The questionnaire is based on Likert's scale of 1 - 5,
which focuses on the influence of price, service quality, product quality, brand image
and other influencing factors on the loyalty of CreaTea's new tea drink customers, as
shown in Table 1.

Section Question Type Item

Demographic & Classification & -Gender
Psychographic Behavioural Question - Age
(Close-ended Questions) - Occupation
- Income Level

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Brand Image Attitudinal Questions - Frequency of purchasing
Service Quality (Likert Scale Options) new-style tea beverage
Price - What to focus on when
Product Quality Attitudinal Questions buying new style tea
Customer Loyalty (Likert Scale Options) beverage
- What problems will
Attitudinal Questions impact the purchase of
(Likert Scale Options) CreaTea

Attitudinal Questions Construct development
(Likert Scale Options) for items that cover
Visibility, logo, CreaTea
Attitudinal Questions brand image, new
(Likert Scale Options) products, understanding
store information, slogan

Construct development
for items that cover
Service level, service
attitude, problem solving
ability, after-sales service,
recommendation ability

Construct development
for items that cover
average price, price
discount, whether to buy
over budget, whether
CreaTea's price is
reasonable

Construct development
for items that cover Taste,
menu variety, type of
preference, quality of the
product

Construct development
for items that cover
Whether they would
recommend others to buy,
how much they like
CreaTea, the effect of
agreeing with the 4

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variables

Table 1 : Survey Questions

The questionnaire was divided into six main sections, as shown in Table 1:
composition of the survey questions

According to Choi (2018), the first part was to determine the profile of the
respondents and their behavior and opinions about CreaTea consumption. Purchase
frequency, purchase preferences, and reasons for purchase help to understand
consumer spending habits, which in turn makes target marketing easier and more
accurate by dividing respondents into several homogeneous groups with similar
interests, needs, and desires.

The second - fifth sections focus on the four independent variables that influence
customer loyalty. The Likert scale works well on the attitude questions, better
indicating the likelihood of behavior and showing the tendency of the customer's
consumer psychology. Each question will be measured using a Likert scale: 1 -
Strongly Disagree, 2 - Disagree, 3 - Neutral, 4 - Agree, 5 - Strongly Agree.

The second part focuses on brand image, aiming to study customer satisfaction
with several aspects of CreaTea's brand image. How satisfied CreaTea's logo, store
design, packaging design, and cup design are in customers' minds helps the brand to
upgrade its brand image. This step is to share with CreaTea about consumer
psychology and ensure that marketing strategies are planned according to customers'
needs. The third part focuses on service quality. The service staff is the most intuitive
part for consumers to feel when they consume, which can affect consumers'

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willingness to buy and mood, so focus on service quality from order to
recommendation, after-sales service, and other aspects to understand to help improve
customer satisfaction. The fourth part is the price, a major influencing factor of
whether consumers are willing to repurchase is the price, only consumers who think
the price is reasonable or value for money will continue to buy, if the price soars,
customers will also turn to buy other brands. From CreaTea's price, customers like the
price because it is more affordable than their purchase budget. The fifth part is
product quality. To understand the customer's opinion of the product, as well as
satisfaction with the taste, variety, and other aspects to help brands improve their
products,

The sixth part is to measure customer loyalty, based on repeat purchases,
willingness to recommend, etc.

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3.0 Discussion

This section will discuss the findings of the data collected from the questionnaire
to address the study objectives.

3.1 Hypothesis results

In the previous paper, exploratory factor analysis and regression analysis were
used to verify the influence relationship between CreaTea brand image, service quality,
price, product quality, and customer loyalty by detailed data analysis. Each hypothesis
proposed was tested and given a description, and the specific test results are shown in
Table 10. Therefore, it can be seen that the hypothesis models all passed the
verification.

Table 10: Summary of test results

Number Hypothesis content Test results
Accepted
H1 The brand image of "CreaTea” has a positive Accepted
significant influence on customer loyalty. Accepted
Accepted
H2 The service quality of "CreaTea" has a positive
significant influence on customer loyalty.

H3 The products’ price of "CreaTea" has a positive
significant influence on customer loyalty.

H4 The product quality of "CreaTea" has a positive
significant influence on customer loyalty.

The results showed that all the hypotheses were valid. The customer loyalty of

the new tea drinks from the brand "CreaTea" can be measured by the likelihood of

repurchase and willingness to recommend, and the variable test questions were based

on a Likert scale with results close to 4 (satisfactory) for 5 variables. The factors

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influencing it are obvious from the brand image, the product logo, the comfort of the
store design and social media interaction. The better the service quality, the better the
service attitude of the milk tea store staff. The higher the product price, the better the
product's cost performance. product quality, the materials used in the drinks, product
taste, product innovation. The easier it is for the consumer group to form customer
loyalty to the brand.

3.2 Factors Affecting the Customers Loyalty of CreaTea

By analyzing the data, it can be seen that the main audience of new-style tea
beverage is women, and women prefer sweet-tasting new-style tea beverage, so
new-style tea beverage should spend more time in the future studying the female
market and understanding the needs of female customers. Multiple linear regression
analysis shows that brand image, service quality, price and product quality have a
significant effect on customer loyalty. which are important for CreaTea to implement
customer loyalty programs. Moreover, the questionnaire survey also understands that
factors such as quality and safety, taste and flavor, brand reputation, and purchasing
convenience are also current customer concerns when purchasing, which also yields
certain insights about enhancing customer loyalty programs.

The brand should start with the product itself, while ensuring high quality
products, reasonably set the price and improve the cost performance of the product;
secondly, attract people with the appearance of the product, add innovative elements
to the packaging design, and also consider the convenience of consumers when

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drinking and packing. Furthermore, CreaTea should strengthen staff training and
improve the staff's own quality so as to serve consumers with a good service attitude;
in addition, CreaTea should emphasize the rationality of the location of the store;
finally, in terms of publicity and promotion, enterprises should focus on the income of
consumer groups and targeted development sales programs.

3.3 The Impact of Customer Loyalty on Consumer Behavior

Complex buying behavior means that consumers need emotional protection
when they are highly involved in buying a product. When there are significant
differences between processes and brands, different buying behaviors occur. In some
marketing practices, we use customers as drivers of brand loyalty. According to
research, consumer behavior is indirectly related to customer loyalty, and the concept
of loyalty is related to more specific brand factors. Although there is no direct
relationship between customer engagement and brand loyalty, it is a necessary
condition for true loyalty. This is because a company's brand promise can only be
formed and true brand loyalty achieved when customers are highly involved in
purchase decisions. A high level of engagement led by the company's consumers will
deepen the feeling of using the product and thus form an emotional attachment to the
brand. Customers with high loyalty will repeatedly buy CreaTea products, but it does
not mean that customers will not give up buying CreaTea. When CreaTea does not
meet customers' expectations and competing brands launch new products and
activities, consumers will still turn to other brands.

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At a time when brand consumption is increasingly prevalent, brand has become
one of the important factors for customers to measure whether an enterprise's products
or services can be purchased and whether they are worth buying. On the one hand,
brand is the weight of product quality; the higher the brand awareness, the higher the
reputation of the enterprise, the higher the quality of the products or services provided,
the more comprehensive after-sales protection, the stronger the customer's propensity
to consume; on the other hand, the brand highlights the customer's self-image,
self-worth and the "third space" of consumption and leisure. On the other hand,
brands reveal customers' self-image, self-values and the "third space" of consumption
and leisure; groups with the same or similar brand consumption are more likely to
form circles; and brand consumption can enhance customers' sense of social identity
and integration. From the above two aspects, we can see that brand awareness and
reputation determine the level of customer loyalty to a certain extent. The higher the
brand awareness and reputation, the more likely customers will buy and the more
frequently they will buy. CreaTea has a high reputation in the local area and is the
"third space" where customers often go for leisure and consumption.

3.4 CreaTea Increases Customer Loyalty

CreaTea has been in existence for 22 years and has certain brand equity, positive
perceptions, associations, and emotional connections with the brand. CreaTea has a
superior inter generational brand equity base among younger consumers, who have
positive emotional memories of CreaTea and through which they can recall the good

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old days of being a student. Based on this, CreaTea can organize some offline and
online communication activities around older consumers' memories of CreaTea. On
the one hand, it is possible to report on and promote the event, but on the other hand,
the focus is on gaining the initiative of consumers' self-promotion, with the company
taking the lead. Based on this, some wonderful and moving short stories or clips can
also be selected as effective materials for the company to further disseminate in public
media or self-media.

The fierce competition in the new tea industry and the increase in other costs
such as labor and storefronts are constantly diluting corporate profits, so milk tea
companies are generally adopting a price increase strategy, and the unit price of
products is on the rise. However, as product prices continue to rise, milk tea
consumption gradually becomes a burden. Therefore, the development of CreaTea's
product positioning and product pricing needs to be in line with consumer
consumption levels, reasonable price setting, and high product cost performance.

CreaTea currently does not have a large number of stores. Compared to other
chain stores, CreaTea only has stores in major areas and has a smaller sales territory.
Compared to chain brands, CreaTea needs to focus more on the product itself. The
brand should start with the product itself to ensure high quality products. Secondly, to
face the complex and diversified needs of consumers, innovation means that the
retailer or organization creates new and unique products or services that are different
from their competitors. These innovations have the effect of directly stimulating
consumption for the new generation of consumers, providing a positive consumer

２４

experience as a way to increase consumers' loyalty to the company. For example,
customers are becoming health conscious. Many customers choose to reduce the sugar
level of new teas, including "0 calorie sugar". Concern is high that consumers want to
buy a better tasting but lower calorie product.

２５

4.0 Strategies & Tactical Plan

4.1 Strategic Objectives

1. Improving consumer loyalty is extremely important for the survival and
development of a brand and expanding its market share. Consumer loyalty is a
reflection of the depth of consumers' feelings towards a brand. The lower the
consumer loyalty, the greater the possibility of consumers switching to another brand;
the higher the consumer loyalty, the less the possibility of consumers switching to
another brand. After the case study, consumers will give up buying CreaTea because
of the activities of other brands, so there is also a need to improve the customer
loyalty of CreaTea. From the research, it is known that price, service quality, brand
image, and product quality will affect customer loyalty, but product quality is part of
brand development, so IMC plan will plan marketing activities to improve customer
loyalty in terms of price, service quality, and brand image.
2. The case study found that when large chain new-style tea beverage stores compete,
CreaTea not only needs to improve customer loyalty but also needs to attract more
consumers and expand market share. And according to the data analysis of CreaTea's
customers' gender and age distribution, which is uneven, CreaTea's main audience is
female, and females prefer sweet new tea drinks, so CreaTea should spend more time
studying the female market and understanding the needs of female customers. And
through customer touchpoints to influence customer experience and brand awareness,
so that consumers form positive brand associations and stimulate the desire to buy.

２６

3. Brand awareness and reputation, to a certain extent, determine the level of customer
loyalty. The higher the brand awareness and reputation, the more likely the customer
will buy and the more frequently he/she will buy.
4. The questionnaire shows that it is difficult for consumers to get information about
CreaTea, and CreaTea only does some content marketing on social media, such as
new product recommendations. According to the analysis of CreaTea's social media
platforms, CreaTea publishes more content, updates more frequently and has more
views on WeChat public account, while Xiaohongshu, Weibo, and Douyin(TikTok)
platforms are still in the initial stage and the update frequency is not fixed.
5. Consumer engagement is as important as brand marketing. Consumer engagement
pages influence customer loyalty, and only when customers are highly involved in
purchase decisions can a company's brand promise be formed and true brand loyalty
be realized. A high level of consumer-led engagement deepens the feeling of using the
product, resulting in an emotional attachment to the brand. CreTea needs to increase
its content marketing and communication channels.

4.2 Target Customer

Through the questionnaire, we know that CreaTea's target customers are 18–25 years
old and 35–55 years old, among whom the main consumers are 18–25 year old female
school students and newly employed young people, and 35–55 year old professional
women and freelancers.

Therefore, we will recommend three tactical strategies to address the above

２７

research gaps.

1. Enhance Customer Loyalty

 "超级会员-Super VIP" Campaign
Campaign Objective: "Super VIP" is a paid membership campaign, a system in

which consumers pay for membership status. In this system, CreaTea has developed a
membership program in which consumers pay a membership fee and receive
exclusive benefits, which are mainly price discounts.

At present, the new style tea drink brands are updated rapidly, and there are
numerous chain brands and creative small stores for consumers to choose from. In
order to retain CreaTea's customer loyalty, catering to the consumption habits of
younger groups will require some changes. The questionnaire revealed that price is
one of the factors that affect customer loyalty. A price promotion is to give discounts
or increase the number of purchases at the same price, and a price promotion can
attract consumers to buy. The aim of the membership promotion is to attract
customers to become CreaTea members voluntarily, with the aim of contacting them
regularly and providing them with benefit packages with high perceived value.

２８

CreaTea has many offline stores, concentrated in bookstores, shopping malls, and
other crowded places, which have a high degree of overlap with consumers' life
trajectory, and it is convenient to dine in and take away, so there is no consumption
barrier point after opening a membership card. Secondly, CreaTea's drinks and snacks
are suitable for both young and old, so users have a high degree of acceptance, and the
whole family can use them together after opening a membership.

Activity Program Design
Activity Time: August 1 to December 1
Activity content: " 超 级 会 员 -Super VIP" is a kind of paid membership, providing
members with exclusive membership rights and benefits value.
Super VIP benefits design：
When users make a decision to open a membership, the core question is "is it worth
paying to open?" This includes 2 key factors: the membership fee and the value of
benefits.
1）Membership fee/opening card benefits
The membership fee for "Super VIP" is 19.9 RMB, which basically ensures that the
user can get a "single return." The most attractive benefit is to enjoy a free cup of new
products (Chengdu Three Cannon Ice Swirl and Red Bean Matcha Ice Swirl) worth
RMB 38. This eliminates the user's concern about paying the "membership fee" and

２９

easily stimulates the user's desire to open the card.
2) Daily benefits
To stimulate consumers' desire to spend after opening the card, it is necessary to
enhance the value of the benefits through various daily benefits. CreaTea adopts the
membership benefits of giving a single cup of 50% off coupon (not limited to dine-in
and take-out) and enjoying unlimited RMB 5–10 off designated products during the
membership cycle.

Activity Promotion
CreaTea's promotion focused on social media to promote the "Super VIP"

campaign, and since CreaTea's WeChat public account has a high viewership and fan
interaction rate, the "Super VIP" campaign promotion was planned to be launched
using the WeChat public account. Therefore, the promotion plan of the "Super VIP"
campaign was launched by using the WeChat public account, including campaign
details and membership benefits. The WeChat public account features a combination
of long text and graphics, so a continuity poster was designed for the "Super VIP"
campaign (see Appendix 1). Secondly, CreaTea designed a paper flyer (see Appendix
2) to maximize the effect and visual impact of the "Super VIP" campaign, which was
promoted by staff in the store.

Activity Implementation
Firstly, CreaTea adopted the marketing strategy of personal selling in the store.

３０

Personal selling is face-to-face sales, and the staff tried to convince consumers to
participate in the "Super VIP" activity. Secondly, consumers who learned about the
campaign from the WeChat public account could unlock Super VIP through a small
program.

AIDA model
The AIDA model, which stands for Attention, Interest, Desire, and Action, is an

advertising effectiveness model used to identify the stages that individuals go through
in the process of buying a product or service. The AIDA model, where attention leads
to interest, leads to desire, and finally leads to action, the AIDA model It is commonly
used in digital marketing, sales strategies, and public relations campaigns.

Figure: AIDA MODEL
Attention: The "Super VIP" campaign has attracted the attention of consumers.
Interest: Consumers are aware of the existence of the "Super VIP" campaign, which
offers unlimited RMB5–10 off select products as part of CreaTea's daily benefits, and
the select products are new products launched by CreaTea.

３１

Desire: The goal is to make consumers desire it, to shift their mindset from "I like it"
to "I want it". The features of the new product will be promoted in the "Super VIP"
campaign on the WeChat public website.
Action: The ultimate goal is to drive consumers to buy the product and to emphasize
the benefits of the "Super VIP" campaign after the new product is recommended.

Recommend New Products
With the arrival of summer and the hot climate, CreaTea has launched 5

refreshing tea drinks suitable for summer. 5 drinks are from the "Shaking Iced Tea"
series, 3 of which are made of Pu-erh tea, green tea, and black tea as the tea base,
combined with seasonal fruits such as plums, grapes, and mangoes to produce the
collision of juice and tea soup. The three tea beverages use Pu-erh tea, green tea, and
black tea as the tea base, and are combined with seasonal fruits such as plums, grapes,
and mango to produce a collision between fruit juice and tea soup. Since the "Super
VIP" campaign was released on WeChat, the subsequent new product
recommendations were also promoted on WeChat (see Appendix 3 for details).

 "CreaTea Tea Tasting Party" Offline Event
Event Objective: After a study, it was found that service quality affects CreaTea's
customer loyalty. The offline activity of the CreaTea Tea Tasting Party was
participated in by CreaTea's staff, so that consumers could feel the orderly and good

３２

service quality of CreaTea.
As some of CreaTea's target consumers are aged 35–55, the key point of their

interest in CreaTea is the traditional tea beverage offered in CreaTea's menu. However,
consumers lack detailed knowledge of tea, and holding offline tea tasting events is
one of the methods of science popularization. Tea tasting usually begins with the
introduction of tea, allowing individuals to identify the differences between different
varieties of tea. Therefore, CreaTea's strategic plan includes a tea tasting event, and
CreaTea's tea tasting event is also a education for consumers about tea, thus
introducing the origin of the tea used by CreaTea and the growing requirements such
as growing climate and humidity. This is to allow consumers to learn more about the
products they are buying so that they are willing to spend more money and time with
CreaTea.

Launch "CreaTea Tea Tasting Party" Offline Event, the first step is to determine
the event name, time, location and other details of the event.
Headline：#CreaTea Tea Tasting Party#
Copywriting: On a hot summer day, we invite you to have a cool cup of tea and learn
together about CreaTea tea origins and different varieties of tea.
Event ： Do you want to know how CreaTea screens tea leaves? How to extract tea
leaves? Come to CreaTea learn about tea culture and make an exclusive tea beverage.

３３

Time: 13.08.2022（Saturday）3-4PM
Place: Guiyang Zhongshan North Road Store: No. 20 Zhonghua North Road, Yunyan
District.

The event was promoted through Weibo and WeChat ads. Since social media
Weibo and WeChat ads have different attributes and characteristics, there are two
different copies and methods applied to the visual effects of Weibo and WeChat ads.
Weibo focuses on graphic information, and the pictures should be beautiful enough to
attract consumers. Therefore, a long poster is designed, beginning with the image of a
tea-drinking woman and tea beverage to attract the target consumers, and the event
time, address, and QR code for participation are attached at the end of the poster (see
Appendix 4). Microblogs focus on text information, so the microblog promotion
design is mainly in introducing the content of the event (see Appendix 5).

Activity Flow
1. Wait for the participants to arrive, and provide welcome drinks and refreshments
when the other participants do not arrive.
2. The whole activity is accompanied by ancient music, and there are professionals
explaining: how to choose tea; how to brew tea; how to taste tea; the benefits of tea to
the human body; and the relevant tea culture. (To attract the attention of participants
and drive the atmosphere to make consumers interested.)
3. Announce the start of the activity, display different varieties of tea, introduce the
efficacy of different teas and tea brewing methods, and distribute tea samples to the

３４

participants to smell and taste.
4. PPT and a video demonstration of the CreaTea tea picking and screening process
by relevant personnel, and a performance of tea art by a CreaTea tea artist to attract
the audience. And the brewed tea was distributed to the customers present, with
CreaTea's logo and event slogan printed on the paper cups (see Appendix 6).
5. Q & A, asking participants to ask questions and having them answered by relevant
CreaTea staff, promoting interaction between customers and CreaTea staff.
6. And at the end of the event, a small gift—a canvas bag with the CreaTea LOGO
was given away (see Appendix 7). When consumers carried CreaTea canvas bags out,
they were also invariably advertising for CreaTea, thus promoting the visibility of the
tea store and attracting new customers.

After the event, a direct sales strategy was adopted, with staff recommending and
introducing the small cans of tea launched by CreaTea, which interested customers
could purchase directly.

 Live streaming on Weibo

The CreaTea tea tasting event is held offline, providing a Weibo live stream for
those customers who can't attend the event in person, so that all interested customers
can participate in the tea tasting event. And on Weibo to preview, CreaTea will draw a
prize at the end of the live stream, so as to enhance the activity of the live stream and

３５

attract other people to participate and pay attention to the CreaTea tea tasting event.
On the day of the event, the live stream will be synchronized on Weibo, and CreaTea
will arrange special staff to be responsible for the live stream on Weibo. Viewers can
directly interact with the staff in the live stream, and participate in the Q&A session to
ask questions. And the link to buy CreaTea small cans of tea will be provided (see
Appendix 5).

 Brand Image Design
Brand image is how customers perceive a brand based on their interactions.

Brands spend time planning the brand personality, voice, and positioning of the brand
in the marketplace, such as having identifiers, marks, logos, etc. Brands use these
elements to differentiate themselves from their competitors. All elements of the brand
contribute to the way customers interact with the brand and perceive it, thus inspiring
brand loyalty through brand image.

CreaTea did not yet have its own logo and its packaging was simple, so a logo
and packaging were designed for CreaTea to unify the brand image (see appendix 6).
(See Appendix 7). By using the CreaTea app, we found that the layout of the CreaTea
app was simple and not in line with the simplicity sought by young people, so we
redesigned the layout of the CreaTea app in order to attract consumers' interest (see
Appendix 8).

３６

2. Enhance brand awareness
CreaTea already has a solid consumer base, but in order to improve its

competitiveness and increase brand equity, CreaTea needs to increase brand
awareness and make their brand more memorable. CreaTea is not very active on
social media, does not have much exposure on platforms, The following strategies are
recommended in this section:
 Outdoor Advertising

Outdoor advertising is an advertising campaign in a specific geographic location
that attracts customers who spend time outdoors. CreaTea's outdoor advertising uses
billboards at bus stops, and typically consumers will see CreaTea's ads when they take
the bus on their way home, and about 38% of consumers tend to stop at the store on
their way home (see Appendix 9 for details).

 Baidu Advertising
A large search portal like Baidu Ads can attract consumer attention and

maximize brand exposure. Guiyang is a well-known summer city, and CreaTea is on
the must-eat list of most visitors to Guiyang. Therefore, it is recommended that
CreaTea participate in Baidu ads so that the brand can rank highly in the audience's
search. Searching for "must-eat list for Guiyang travel", the goal of search marketing
is to convert the audience to purchase, but it can also extend the brand's exposure to
Geographically, CreaTea can be searched without being in Guiyang by highlighting

３７

CreaTea's main content on Baidu ads. (See Appendix 10).
 WeChat Friend Circle Advertising

WeChat friend circle advertising is based on the WeChat public account
ecosystem, which is displayed in the friend circle in the form of original content
similar to friends. WeChat has 1 billion+ monthly active users whose ages are
generally between 15 and 40 years old, so it is possible to promote friend circle ads in
WeChat with a larger radiation area, and to precisely target potential customers and
send ads to their friend circle pages. At present, there are three main forms of
advertising in the circle of friends: graphic ads, video ads, and card ads. In this case,
we use graphic ads to advertise in the circle of friends (see Appendix 11 for details).

３８

3. Enhance consumer engagement
According to the observation, CreaTea's existing xiaohongshu and website have

some shortcomings. In order to solve the problems of the platform, the following
strategies are recommended:
 Xiaohongshu Advertising

CreaTea's xiaohongshu platform has low fan interaction, while Xiaohongshu is a
famous UGC (User Generated Content ) platform in China. Xiaohongshu's content
tends to be consumers' own real feelings, and consumers are eager to search for
delicious and fun things on Xiaohongshu. Therefore, CreaTea should publish content
and topics that are easy for consumers to post. CreaTea has become one of the most
acclaimed new tea stores in Guiyang, but consumer recommendations are more
persuasive and credible. Little Red Book Ads will borrow the idea of using Instagram
Carousel Ads to share user-generated content to attract more consumers.

Share user-generated content：
User-generated content can be a brand asset, increasing brand loyalty, brand
reputation, and building a sense of connected community on CreaTea's xiaohongshu
channel. During the "Super Member-Super VIP" campaign, CreaTea encouraged
consumers to share their store experiences on their personal xiaohongshu, and
CreaTea showcased customer posts on their xiaohongshu (see Appendix 12 for
details).

３９

 Design Website
Currently, CreaTea does not have its own website or website, so official

information about CreaTea is not available on search engines. CreaTea should design
an informative website that will help consumers understand the brand. Therefore, the
website is proposed to be divided into 5 main sections: Home, Brand Story, New
Products, Menu, and Store Locator.

The design of the website will keep the official CreaTea brand logo, and the
design of the website will start from the home page, where the consumer will see the
brand logo and the welcome text. The brand story is taken from the story of CreaTea
since its establishment, such as the founder's entrepreneurial journey, the team behind
the brand, and the details of each staff member's work. Secondly, new products are
prominently displayed on the website to attract consumers to buy them.

CreaTea also provides store locations, detailing the location of each store for
consumers to find. Finally, at the bottom of the page, external links to CreaTea's social
media are provided so that consumers can easily jump and browse (see Appendix 13).

业看点

４０

5.0 Timeline & Budget

The estimated media budget for the proposal is approximately RMB 78,000, with
implementation focused on the second half of 2022. If the plan is implemented well,
the "Super VIP" campaign can be recommended for the whole year; the "CreaTea Tea
Tasting Party" offline event can be carried out once every six months. It is
recommended that CreaTea prioritize the construction of its website, as it needs to be
optimized together with Baidu advertising.
6.0 Conclusion

In the midst of the onslaught of large-chain new-style tea beverage stores,
CreaTea still has a presence in Guiyang. A growing brand like CreaTea needs to
attract more consumers while solidifying its loyal customers. Therefore, Integrated
Marketing outlined a communication plan to help CreaTea solve its problems, which
was based on the results of a study and a CreaTea SWOT analysis.

４１

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8.0 Appendix
"超级会员-Super VIP" WeChat public account layout/content plan

Event home page

Detailed
description of

the event,
including
member benefits

Appendix 1

４５

"超级会员-Super VIP" flyer design

Appendix 2 Show New
Recommend New Products on WeChat public account Product

Attention:
Super VIP as
the home page

to attract

４６

New Product Details
Introduction

Appendix 3
CreaTea tea tasting party event WeChat public account design

Appendix 4

４７

CreaTea tea tasting party event Weibo platform design Live Promotion
in Weibo
Event
Promotion in

Weibo

Appendix 5

LOGO & Packaging Design

Appendix 6

４８

Canvas bag design

Appendix 7
WeChat applet page and Super VIP design

Appendix 8

４９