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UMe Tea background image

UMe Tea

Role

Student Research

Designed for

Market Analysis

Duration

6WKs

Tools

Canva, Google Sheets, & Notion

Team

Olivia Xie, Jenny Le,

Ariel Chen, and Edison Ho

Understanding Market Spaces

Pinpointing areas of risk and devised a guide to the development of a new marketing campaign with tactics to enhance the buyer journey, optimize value-based pricing, and refine promotional strategies.

Over six weeks, we identified key barriers to conversion and developed research-backed strategies to improve retention by targeting UMe Tea’s strongest customer segments. This project resulted in clear marketing recommendations, guided by customer behavior insights.


⚙️ UMe Tea struggled with low retention and unclear product value among college-aged consumers.

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Gathering Data

We conducted a focus group with 12 participants to explore why customers choose to buy, or not buy, from the brand, and to uncover what aspects of the experience are working well or need improvement.

In addition, a survey with 26 participants was distributed to identify the target audience, quantify key purchase drivers, and assess brand performance relative to competitors, helping to highlight any problem areas.

Customers segmentation

To better understand our audience, we segmented UMe Tea’s consumers based on frequency of visitation and purchase.



Segmentation 1

11.54%

Always goes to UMe

Segmentation 2

7.69%

Often goes to UMe

Segmentation 3

38.46%

Sometimes goes to UME

Segmentation 4

42.31%

Rarely goes to UMe



After careful analysis, we chose to focus on Segment 3, which offered the most actionable insights. Shifting these customers to Segment 2 promised greater impact than moving Segment 4 to 3, as increasing visit frequency aligned more closely with our business goals.

User Persona

UME User Persona

Diving Further


Why the target audience within the segmentation buys based on Important vs. Most Important values gathered by customer wants and needs.

Customer Service

Wait time and ease of order

Drink Quality

Taste of teas, smoothies, toppings, etc.

Menu Variety

Options of flavors provided

Value

Quality of product compared to price

Aesthetics

Comfortability and Cleanliness of the environment


why cutomer buys

Why You May Win or Lose Segment 3 as a Customer

We asked participants to rate how satisfied they were with UMe Tea’s performance in the area of importance, using a likert scale. Based on competitive product and competitive gap analysis.


why win/lose a customer

The analysis reveals that Aesthetics is UMe Tea’s standout strength, achieving performance within the target performance range and aligning closely with customer expectations. In contrast, Quality, Value, Menu Variety, and Customer Service fall below the benchmark, indicating a gap between what customers expect and what they experience. While UMe’s visual identity effectively attracts its target audience, the findings show that critical areas like product excellence, meaningful value, and service consistency present key opportunities for enhancement. Addressing these deficits could drive higher satisfaction, stronger loyalty, and a more competitive market position.

Competitive Product Analysis

This comparison chart evaluates how three competitors (UMe Tea, iTea, and T%) perform across five attributes ranked by customer importance. A rank of 1 indicates best performance, while 3 reflects the weakest.

Customer priorities center on Value, Quality, and Menu Variety.

iTea

Aligns best with these top-ranked attributes, indicating strong market alignment.

UMe Tea

Performs well in Customer Service and Aesthetic, though these are lower-priority areas.

T%

Shows balanced performance but could improve its visual appeal. UMe Tea’s gap in high-priority categories suggests an opportunity for strategic realignment.


Competitive Product Analysis

Gap Analysis

Customer Satisfaction vs. Importance Gaps

We analyzed customer satisfaction ratings across three tea brands, UMe Tea, iTea, and T%, alongside the gap between perceived importance and actual satisfaction.


customer ratings

ume customer ratings
iTea customer ratings
T% customer ratings

Our gap analysis revealed that UMe Tea had the largest satisfaction gap (-2.1), signaling a major mismatch between customer expectations and delivery. Competitors like T% and iTea showed greater consistency, suggesting stronger alignment with customer needs.

UMe's SWOT Analysis

Strengths

The brand’s strengths include a visually appealing store design that resonates with younger audiences, engaging plushie promotions that drive foot traffic, and a streamlined ordering process that ensures convenience and a smooth user experience.

Weaknesses

The brand struggles with inconsistent drink quality, a perceived lack of value compared to competitors, and a limited menu, all of which hinder customer satisfaction and repeat visits.

Opportunities

The brand can grow by leveraging TikTok and Instagram to reach younger audiences, using its unique “surprise” element to stand out, and capitalizing on minimal competition in North Davis to capture market share.

Threats

The brand faces strong competition from established shops like iTea, Teaspoon, and T%, while rising consumer expectations around quality and customization demand constant improvement to stay competitive.

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Final Analysis

Report

Pain Points

Price

60% of customers are concerned about the price of the drinks and the value they are willing to pay “UMe’s drinks are too expensive for their worth compared to other places such as iTea or T%.”

Promotion

80% of the customers said they have never seen a promotion from UMe (social media, ads, flyers, etc.). Most customers said they only knew of UMe from word of mouth or from unexpectedly coming across the store.

Product

40% of customers are not satisfied with the drink quality they get for the price that they pay for the drink. “drinks are very average and taste watered down.” “There is nothing that stands out about UMe’s drinks.”

Place

80% of the customers said they enjoy the aesthetics of the store, as well as the surprise plushies that come with certain drinks. These were the main reasons on why customers enjoy the store so much and why they would go back.

Marketing Challenges

Illustrates attributes evaluated for leverage, opportunity, and risk, benchmarked against targeted performance ranges derived from customer insights and comparative rankings with UMe's local competitors.


performance vs attributes diagram

The evaluation of UMe’s performance against key attributes indicates a concentrated set of improvement areas. Aesthetics is the only attribute meeting the Target Performance Range, reinforcing it as UMe’s strongest competitive advantage. Quality and menu variety underperform slightly, suggesting moderate gaps relative to customer expectations. Value presents the largest deficit and represents the most urgent area for strategic adjustment. Customer service scores above competing brands but still does not achieve optimal performance criteria. These findings outline targeted priorities for enhancing UME’s competitive positioning and customer satisfaction.

Marketing Weaknesses

Based On The Buyer’s Journey

Awareness

The boba market in Davis is highly competitive, with nearby shops like iTea, T%, Raretea, and Sharetea all offering similar drink menus. This overlap raises a key question for consumers: which shop delivers the best value without requiring them to spend too much?

Consideration

When considering options, most boba shops offer a similar variety of drinks, and currently, nothing at UMe particularly stands out. This leads to an important question: what truly differentiates UMe from its competitors?

Purchase

Customers want to feel satisfied knowing their hard-earned money is well spent at UMe. This raises the question: are there sales or promotions that motivate customers to choose UMe over other options?

Retention

Ensuring UMe is always reliable and consistent, through fast service, attentive staff, and great-tasting drinks, is key to keeping customers coming back. The question is: do customers feel satisfied every time they spend their hard-earned money at UMe?

Loyalty

Customers want a go-to boba shop that delivers a perfect experience every time. The question is: do customers receive incentives or rewards for continuing to spend their money at UMe?

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Key Achievements

Strategic Insights and Learning

Gained valuable insights into consumer behavior, market trends, or competitive dynamics through the research and analysis conducted for the case study.