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How-HYPE-Tea-Used-Market-Intelligence-to-Gain-Competitive-Edge

How HYPE Tea Used Market Intelligence to Gain A Competitive Edge

HYPE TEA is a new brand of healthy tea oil that has been used for cooking in many Asian dishes.…

  • Company
    HYPE Tea
  • Industry
    Retail

HYPE TEA is a new brand of healthy tea oil that has been used for cooking in many Asian dishes. As part of the initial rollout, HYPE is looking to launch a brand-new type of Camellia-based cooking oil for the US market.

2021 - Camellia oil: what can the beauty elixir do?

Overview

Since the market is new, they wanted to depend on a third party. Emphasis should be on alternative data and giving insights into things that are not readily compiled and fit into reports by traditional research firms.

Traditionally with western cooking, consumers use olive, sesame, and/or peanut oil to cook most of their dishes. In our research, we found that the west had limited exposure to camellia oil for cooking. This is interesting to note, as unlike the other oils mentioned above, Camellia oil — also known as tea oil — has a light flavor and does not overpower other ingredients in the same dish. This makes Camellia oil a great alternative for cooking simple dishes and at the same time, highlighting the delicate flavors of other ingredients.

With that being the case, HYPE engaged Chain of Demand for market intelligence into the current state of the edible oils market, as they are confident that in the next few years, there will be an increasing demand for Camellia Oil in the US.

Analysis

Using their advanced data analytics technology, we conducted market research on the current state of the market with their suite of alternative data solutions. Traditional sources to scrape this data would fall short in providing insights to HYPE.

To better understand the market, we built a customized data-mining system to collect and analyze millions of data points from e-commerce, search, and social media platforms to conduct a granular analysis for the tea company.

In the analysis, we examined data from the following:

  • Amazon
  • eBay
  • Instagram
  • Google Trends
  • D2C websites

As part of the research, we looked at various elements of the market for HYPE, from understanding what was driving the market, to optimal sales channels for this novel product. Leveraging our proprietary data and accurate predictions, we were also able to recommend the best position for the new product, giving clearer insight into how the item would perform.

The Result

In this analysis, we had scraped and examined over 100 gigabytes of data, providing our predictive models a lot to work with to better understand the market.

The global camellia oil market was worth US$38 billion in 2019, and is expected to reach US$190 billion by 2026, with a CAGR of 25.4%. When it came to the US market, we found that the vegetable oil market accounted for 70% market share, or estimated to be worth US$18 billion in 2019, expected to grow to US$27 billion by 2026.

Camellia In the US

While ‘Camellia Tea Oil’ may not be very well-known amongst consumers, our data shows us that interest in Camellia oil for healthier cooking is not far gone. In fact, according to our data, the number of households with an average income of US$85K+ searching for ‘tea oil’ has been on the rise.

When it comes to the top cooking oil products under the ‘cooking and baking’ category, data shows that the top 5 products to be coconut, olive, sesame, avocado, and vegetable oil.

hype-case-study_graph

Drivers of Growth

We found that the main drivers of growth in the market could be broken down into threefold:

  • Camellia is made up of healthy monounsaturated fats, making it a much healthier choice in terms of what you put into your food.
  • There are various applications for Camellia tea oil, with the leading use in the US being health and beauty.
  • There are numerous ways that Camellia tea oil can substitute what is already being used. For example, we found that you can substitute butter with this tea oil, using 20% less. You can also substitute it for olive oil.

There are also several health benefits to using Camellia oil, as it is known to lower cholesterol levels & blood pressure, improve hair health, heal wounds, and reduce cancer risks, among many other health benefits.

hype-case-study_drivers-of-growth

Product Positioning and Patterns

When it comes to how to position the product, out of all the platforms we looked at, Amazon was far by the best. It is also better to focus on the keyword ‘tea oil’ when marketing, as the term ‘Camellia oil’ and ‘Tea seed oil’ were not recognized well in the US.

Based on the data, we also noticed a spike in the search term ‘tea oil’ around the end of November. Looking into the data deeper, we see that this spike pattern is visible on the week of Thanksgiving, which indicates an opportunity to market Camellia oil.

hype-case-study_product-positioning-1

Considering that Camellia oil contains fewer calories per tablespoon compared to the more commonly searched ‘Peanut oil,’ there is a ripe opportunity to market this tea oil for healthy meals, especially for Thanksgiving dinners.

hype-case-study_product-positioning-2

This would be perfect for the US market as top search keywords by attribute demonstrate that US consumers are most interested in healthy cooking oils with high smoke points. Out of all a list of search keywords by the attribute of cooking oil, the keyword ‘cooking oil healthy’ ranked second, with about 8,000+ searches.

Furthermore, we found that US consumers are most interested in using cooking oils for high heat cooking and deep-frying, according to the top search keywords by application. In this find, the term ‘best oil for high heat cooking’ came out to have the greatest number of searches out of different keyword combinations.

hype-case-study_product-positioning-3 hype-case-study_product-positioning-4

Facing Competition

The data mined was not limited to understanding search trends. We also examined what were the top competitors and provided HYPE insight into the types of a market opportunity there were in relation to what those competitors were doing.

The top competing brands for Camellia oil were the following:

  • Brightland
  • Pineapple Collaborative
  • Truff

hype-case-study_search-interest

Based on what we saw from various spikes in sales and search keywords for each of those brands, we noticed that product bundles led to higher search interest. We found this to be insight HYPE should take into consideration when marketing their own products, as this indicates US consumers may be more interested in buying bundle packages rather than single products.

hype-case-study_search-interest-2

Moreover, when naming the product, it would be good for HYPE to consider using descriptive product names versus novel ones, as 3 of 4 of the competing brands did exactly that.

Takeaways

From market positioning to competitor analysis, our deep dive into the data provided HYPE with an ample amount of market intelligence for their next business venture. Through the 100 gigabytes of data analyzed, we were able to take away the following:

  • The keyword ‘tea oil’ has been on the rise in the US (especially for people with an average income of US$85K+ searching for)
  • Thanksgiving is a great time to market Camellia oil as a healthy alternative, as there was a lot of opportunities to market the item during the end of November.
  • Amazon was far by the best platform to position the product in.
  • It’s important to focus on the keyword ‘tea oil’ when marketing, as the term ‘Camellia oil’ and ‘Tea seed oil’ are not recognized well in the US.
  • US consumers are most interested in using cooking oils for high heat cooking and deep-frying.
  • Product bundles led to higher search interest than single packaged items.

They did it with Jumpstart

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