Abstract

The case “HeyTea – Redefining Tea in China” talks about the factors that led to the success of Chinese beverage start-up and social media sensation, HeyTea. The case starts out with a look at the history of the company and the way its young founder Nie Yunchen went about developing innovative tea concoctions. The case explains in detail the role played by e-word-of-mouth marketing through social media in creating a buzz around the company’s tea concoctions. The case also discusses in depth the feeling of scarcity that HeyTea created in the minds of millennials about its unique tea concoctions that spawned serpentine queues at its various stores. A critical view is also taken about the phenomenon of perpetual long queues at HeyTea and questions are raised about the possibility of their being sustained in the long term. The case ends with a look into the future prospects of HeyTea and the possibility of its emerging as a leading beverage brand in China.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Recognize the importance of social media in the lives of millennials
• Study the targeting strategy of a new company
• Understand how social media used in the right way can influence a brand’s popularity
• Analyze the effectiveness of social media as a marketing tool
• Examine the role of opinion leaders in social media marketing

Keywords

China; Branding Strategy; Thirst Marketing; Scarcity Marketing; E-word-of-mouth Marketing; Millennials; Brand Loyalty; Market Positioning; Social Media; Opinion Leaders; Targeting Strategy; Marketing Mix; 4Ps; Brand Hype; Product Diversification