22063801 Royal Tea Complete Marketing Plan for Tea[1]

8/8/2019 22063801 Royal Tea Complete Marketing Plan for Tea[1]

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Dinesh G. Mhatre EMBA Sem III (Brand Management)

THE COMPLETE MARKETTING

PLAN

Dinesh G. Mhatre

Roll No 6

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eMBA Sem III

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Contents1. Executive Summary..........................................................................................3

2. Product Description:.........................................................................................4

3. Situation Analysis..............................................................................................8

4. Market Trends & Growths...............................................................................13

5. Market Needs:.................................................................................................17

6. SWOT Analysis................................................................................................18

7. Explanation of the 7 Ps..................................................................................19

8. Competition.....................................................................................................20

9. Marketing Objective........................................................................................2210. Issue Analysis.................................................................................................23

11. Assumptions....................................................................................................23

12. Marketing Strategy:........................................................................................24

13. Product Policy..................................................................................................25

14. Marketing Mix of Royal Tea.............................................................................27

15. Action Plan......................................................................................................30

16. Financial Projection:........................................................................................31

Financial Projection:

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1.Executive SummaryThe marketing plan includes the fundamental for the introduction of newcomer in the Indian Teamarket known as Royal Tea. The Internal & External analysis of the organization, competitiveenvironment enables the team to propose dynamic & competitive strategy for Royal Tea. RoyalTea is an innovative product which is close to herbal tea and black tea and this product canserve as body cleanser.

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2.Product Description:

Intestinal wellbeing is essential to sustain a healthy body and should be preserved andmaintained daily. This is the only product that does that safely and effectively. While not aneasy topic to address, Colon and Intestinal cleansing is a subject that needs to be dealt with inthe quest for weight management, vital health and longevity. Royal Tea is a safe, natural, andpowerful means of promoting the healthy elimination of potentially harmful toxins and wastewhile opening the pathway to superior assimilation of important nutrients. It promotes the healthand longevity of many organs, systems, glands and metabolic processes that are dependent onthe condition of your digestive system.

The use of Royal Tea has many additional benefits: it improves overall digestion, strengthens theimmune system, reduces mucus congestion, makes the skin more emollient and flexible, clearsthe eyes and provides an overall boost to the energy of your system. It aids in cleansing anddetoxifying the blood, kidneys, liver and lymph. As well, it helps to eliminate parasites, badbacteria, viruses and fungus on a daily basis by releasing heavy metals and increasing the pH ofthe body. Royal Tea is a safe and gentle cleanser that also helps reverse the aging process.During the digestive process, moisture is extracted from consumed materials. As a result, thematter becomes gluey and coats the walls and fills the pockets of the colon and intestines. Thiswaste becomes stagnant and is no longer able to pass through the digestive tract. Layer uponlayer of this rubbery substance begins to block the walls of the colon and small intestine,preventing your body from absorbing the nutrients you need. These stagnant layers, usuallyblack in color, are potentially dangerous and are referred to by doctors as "mucoid plaque".

The average individual is carrying between 7 and 25 pounds of old, hardened waste within hisdigestive system. Worse still, this vile matter quickly begins to rot, creating foul odors, andgases. This cesspool of decomposing material permits an immense number of bad bacteria anddeadly fungus to thrive within the human body. During the decaying process, these substances

can enter the bloodstream and affect every part of the body. Unfortunately, the averageindividual does not commonly recognize the effects of the mucoid plaque because what isabnormal has become normal to the majority of the population.

This waste (along with the overuse of antibiotics) disrupts the delicate balance of power in ourbowels between the bacteria and fungus. The average person now has the ratio of goodbacteria to fungus reversed; 15% good bacteria, 85% fungus. When the small intestine fills withfungus, the organs and glands are deprived of their building blocks and systems begin to fail.Bad digestion and poor assimilation of vital nutrients is the result.Any undigested food (no matter how healthy) left in the digestive track is poison to your bodyand will cause numerous health issues. The easiest and safest way to remove the undigestedfood from the digestive track and to clean off the plaque from the intestinal walls is to drinkRoyal Tea each and every day with your meals. Good intestinal health is important and should be

preserved and maintained daily.

Royal Tea is a unique blend of all natural ingredients. Persons who suffer with Acid Reflux,Constipation, Indigestion, Bloating, Excess Gas and Belching should use Royal Tea. People whowould like to take inches off their stomach, clean out Nicotine & second hand smoke and keepthe Liver, Lungs and Colon healthy and clean will benefit from this product. Royal Tea helpsdetoxify chemicals created by a Spastic Colon, Parasites, Fungus, Bacteria and Toxins from theentire digestive system. It may also be used as an element of a Weight Management Program.

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With continued use of Royal Tea, you will experience clearer, healthier, younger looking skin,increased energy and a happier outlook.

The objective is to regulate your bowel movements to two or three each day in order to keep thewaste flowing and not sitting in your digestive system, which will cause numerous chronic healthconditions. You may adjust the amount of tea you consume daily to suit your bodys needs but

make sure to drink enough vitalized water daily. (Take your body weight in pounds. Divide thatby 2. The number you come up with is the amount in ounces of vitalized water that you shouldbe consuming during the day. For example, if you weigh 150 pounds you should drink 75ounces.) This is recommended for everyone.Many people mistakenly believe that a two to four week cleanse is sufficient to restore theirhealth. They are wrong. Daily maintenance of the digestive tract is imperative and necessary tore-establish and preserve your wellbeing.

Alternative two to four week colon cleanses that are available are simply band aids, resulting in ashort term solutions without addressing the underlying intestinal disorders. The mechanismbehind these cleanses involve the removal of waste from the intestinal tract; however, they donot work long or deep enough for cell rejuvenation to occur. Results are short lived with a 3week cleanse exhibiting only 3 weeks of relief. One can look at the short term cleanses as aholiday for the colon, but once the holiday is over, the colon returns to the recurrent mal-

absorbsion, bloating and gaseous problems.

The average colon needs only weeks to clean out waste products, but our objective, with the useof Royal Tea, is change at the cellular level to restore the tone and vitality of the digestive tract.It takes one to two years to undergo cellular detoxification that results in proper peristaltic actionin the removal of waste and an increase in nutrient absorption. Once the intestinal tract isrestored we suggest the use of a daily dosage of Royal Tea to maintain colon integritythroughout your life.

Royal Tea works on constipation to colitis. It not only cleanses and heals the intestines; it alsohelps in the removal of parasites, viruses, fungus and bad bacteria. As well, it reduces acidity,not only from the digestive tract but from other organs and tissues. Royal Tea tastes good andcontinues to cleanse and rejuvenate, deeper and more effectively, the longer it is used. Overall it

is an incredible product that will continually protect your health and rejuvenate your body forless than the cost of a cup of coffee a day.

The Royal Society of Medicine has stated that over 85% of chronic illnesses stem from DigestiveDisorders and are reversible and preventable. Digestive Disorders and their related illnessesneed not be experienced. Royal Tea not only cleanses and rejuvenates the digestive tract butalso supports the health and wellbeing of the entire body; a formula with positive results that issafe to take on a daily basis for a lifetime of protection. Live a full and healthy life.

Ingredients are a special blend of: Persimmon leaves, Malva leaves, Holy Thistle, Marshmallowleaves. It is a special blend that allows for the gentle cleansing of the whole body with continueduse.ROYAL TEA IS A TOTAL BODY CLEANSE FOR TOTAL HEALTH AND WELLNESS.

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Royal Tea Ingredients

Holy (Blessed) ThistleHoly (Blessed) Thistle has been used medicinally for over 2000 years,

most commonly for the treatment of liver problems by supporting it inthe release of toxins. It has been highly regarded for therapeutic usesand was cultivated throughout Europe and some say gained itsmoniker through its reputation as a 'heal-all', even credited withcuring the Plague. It was in known cultivation as early as the mid-1500's.In "Much Ado About Nothing", Shakespeare praises its medicinal

prowess: "Get you some of this distilled Carduus Benedictus and lay it to your heart; it is theonly thing for a qualm.... I mean plain Holy Thistle... Therefore I counsell all that have Gardensto nourish it, that they may have it always to their own use, and the use of their neighbours thatlacke it."Mattheolus and Fuschius wrote of Carduus benedictus, saying "It is a plant of great virtue; ithelpeth inwardly and outwardly; it strengthens all the principal members of the body, as the

brain, the heart, the stomach, the liver, the lungs and the kidney; it is also a preservativeagainst all disease, for it causes perspiration, by which the body is purged...therefore, give Godthanks for his goodness, Who hath given this herb and all others for the benefit of our health."Holy thistle products are still popular in Europe and the United States for various types of liverdisease. Holy thistle is believed to have great power in the purification and circulation of theblood. It is such a good blood purifier that drinking a cup of thistle tea twice a day will curechronic headaches. It is also used for stomach and digestive problems, gas in the intestines,constipation, gallbladder disorders, lack of appetite (not feeling hungry) and on the skin fortreating infected wounds or ulcers. As well it is very effective for dropsy, strengthens the heartand is good for the lungs and kidneys. Some claim that the warm tea, made from Holy Thistle,given to mothers will produce a good supply of milk. That is why it is also called Milk Thistle. It isalso said to be good for girls entering womanhood as a tonic.In herbal medicine today, Holy Thistle is used to treat cancer as well as infections, heart and

liver ailments, and fevers.

PersimmonPersimmon leaves are a good source of important dietaryantioxidants, such as vitamin A & C and flavonoids. It has been widelyused as a tea in oriental countries. In particular, several tannins andflavonoids isolated from persimmon leaf were recently found to haveantihypertensive, anticarcinogenic and antimutagenic actions. It ishighly possible, therefore, that persimmon leaves may be developedinto potential sources of natural antioxidants and therapeutic drugs.Persimmon leaf is anti-allergic and anti-pruritic in composition; in

other words, an allergy or itching preventive food. No need for antihistamines again.Furthermore, research has proven the therapeutic effect of persimmon leaf extract on thosesuffering from dermatitis. The preventive effect of persimmon leaf extract on the dermatitis wasdose-dependent and a continuous intake of persimmon leaf extract significantly decreased itsonset and development. There were no significant adverse reactions observed.As well, studies have shown that supplementation of persimmon leaf improves lipid profiles andsuppresses body weight gain in animals that were fed high-fat diets. It is also used topically insome beauty products to help to clarify the skin and eliminate dull and dark areas.

Marshmallow LeafMarshmallow Leaf has been traditionally used to soothe and support the intestines. Herbs high in

mucilage (a natural gummy substance that does not dissolve in

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water) such as Marshmallow, are often helpful for symptomatic relief of coughs and irritatedthroats. Marshmallow root and, to a lesser extent, marshmallow leaf both contain significantpercentages of mucilage; Like other mucilage-containing substances, marshmallow swells up andbecomes slick when it is exposed to fluids. The resulting slippery material coats the linings of themouth, throat and stomach to relieve irritation.Marshmallow has expectorant and demulcent properties, which accounts for this herbs historical

use as a remedy for the respiratory tract, particularly in cases of irritating coughs with bronchialcongestion and to alleviate heartburn. Marshmallow leaf relieves irritation by coating inflamedsurfaces. Its primary use in modern herbal medicine is to relieve sore throat, but it also relievesperianal inflammation (when taken orally) caused by severe diarrhea. It also has mildantibacterial, anti-allergy and immune-boosting properties. Topically, marshmallow is used tosoothe and soften irritated skin. Marshmallow leaf is completely non-toxic.

Malva LeafThis plant is one of the earliest cited in recorded literature and was considered a perfect plant.

Dioscorides extols it as a remedy, and in ancient days it was not onlyvalued as a medicine, but was used, especially the Musk Mallow, todecorate the graves of friends. Pliny said: 'Whosoever shall take aspoonful of the Mallows shall that day be free from all diseases thatmay come to him.' All Mallows contain abundant mucilage, and the

Arab physicians in early times used the leaves as a poultice tosuppress inflammation.Many species are edible as leaf vegetables. As an herbal mixture, it is

commonly used for its colon cleansing properties and as a weight loss supplement. As well, thisherb can help soothe inflammation in the mouth and throat and is helpful for earaches.The seed contains mucilage, polysaccharides and flavonoids. It is demulcent, (soothes andsoftens irritated tissues, especially the mucus membranes) diuretic, emollient, (softens the skin)galactogogue (increases milk flow in nursing mothers) and is a gentle stimulator of the bowels.The seeds which have a sweet and astringent taste are used in Tibetan medicine. They are usedin the treatment of renal disorders, the retention of fluids, frequent thirst and diarrhea.

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3.Situation Analysis

Market SummaryHistory of TeaIt is said that tea was discovered accidentally by Emperor Shen Nung back in 2700BC. After alarge meal one day, he was relaxing in the garden with a cup of boiling water. At that time someleaves from a nearby tree fell into the cup. Unnoticed he consumed the drink. He enjoyed thetaste of the tea and the pain relief of the drink was so much. Like this the cup of tea was born.The Indian legend tells how in the fifth year of a seven year sleepless contemplation of Buddhahe began to feel drowsy. He immediately plucked a few leaves from a nearby bush and chewedthem which dispelled his tiredness. The bush was a wild tea tree.

The first tea used in England came from China, and it wasn't until the 19th century that teagrowing spread to other countries and indigenous tea was discovered in Assam. The UK is thelargest importer of tea.

The English quickly developed an almost unquenchable thirst for the drink and began searchingfor a way to get tea without having to buy it solely from China . In 1835 the English East IndiaCompany, upon discovery of an indigenous variety of Camellia Sinensis in Assam , India ,established their first experimental tea plantation there. It was largely unsuccessful at thebeginning. In 1856 varieties of tea from the Yunnan and Keemun provinces of China wereintroduced in Darjeeling , India , and soon thrived. Some of the most prized and expensiveIndian black teas come from this high mountain region. One year later tea was cultivated inCeylon ( Sri Lanka ). Luckily, for tea growers and consumers, a fungus wiped out the coffee cropin Ceylon in 1869, then its' main export. This opened the door to increased tea production andexportation.

By the early 1900's tea was being cultivated in Java, Sumatra , Indonesia, Kenya and other partsof Africa . Presently, the United States has been added to the list of tea producers as there is one

plantation in North Carolina.

ManufactureTea manufacture is the process of converting young fresh tea shoots into dry black tea. Thisinvolves a number of processes from plucking to packing. At the plucking stage, only the top leaftips are picked every 6 to 7 days. The tip leaves are younger and finer which produce a betterquality tea. The fresh green leaves now need to have the moisture removed from them. This isdone by blowing air through the leaves for up to 14 hours, leaving a soft and pliable leaf. Thereare then two ways of treating the tea. Tea which is to be used as loose leaf, will normally berolled gently to create a twisted appearance.In contrast, tea which is to be used for tea bags, is shredded and crushed to produce a smallgranular product. Rolling and crushing the leaves, results in the rupturing of the leaf cells whichallows oxidation to occur. This gives the tea its distinctive black colour and flavour. The tea is

then dried at high temperatures to achieve the correct taste. When it has been dried, the leaf teais of differing sizes and will also contain pieces of fibre and stalk. At this point it is processed toremove pieces of stalk which will then leave tea suitable to be sold as loose tea. The tea ispassed through varying sizes of meshes to sort it and has to be passed through very fine ones inorder to produce tea fine enough for tea bag production. This process of sorting is a harsh oneand it can cause the tea to lose some of its flavour. That is why loose tea usually has a betterflavour than the tea in a tea bag.

Types of Tea

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There are several ways of classifying tea like the country or region of origin. The tea is divided inthree types: Black teaBlack teas are produced by withering, cutting, rolling, fermenting and drying the tea leaves.The infusion can be light or dark in appearance, varying in color from orange to brown andwill usually have a strong taste.

Green teaGreen teas are teas that have been picked and rolled before firing. This stops the veins on theleaves breaking, preventing the fermentation process, so that the leaf does not turn brown. Thebrewed tea is pale yellow or green in color. Oolong teaOolong teas are semi-green teas, produced by stopping the fermentation process just as theleaves start to turn brown. The leaves are then fired or dried and deliver a yellowish infusion.

The different tastes of teaThere are nine main tastes of tea in the world: Original tea (from specific countries or regions)

Standard teas Medicinal teas Organic teas Hot or cold teas Perfumed teas Seasoning teas Decaffeinated teas Exotic teas.

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Indian Tea Market Demographics

India: the largest tea consumer in the world

India consumes the largest quantity of tea in the world, accounting for nearly 14% of globalretail volume sales. Geographically, tea is widely consumed in the North, East and West of India,and is popular with a wide variety of social classes and consumer age groups.However, it ranks 7th in value terms, due to relatively low unit prices. Black standard teaconstitutes nearly 80% of value sales, although green tea has seen its popularity rise

Indian Tea MarketThe tea industry in India is about 170 years old. It occupies an important place and plays a veryuseful part in the national economy. Tea plantations in India are mainly located in rural hills andbackward areas of North-eastern and Southern States. Major tea growing areas of the countryare concentrated in Assam, West Bengal, Tamil Nadu and Kerala. The other areas where tea isgrown to a small extent are Karnataka, Tripura, Himachal Pradesh, Uttaranchal, ArunachalPradesh, Manipur, Sikkim, Nagaland, Meghalaya, Mizoram, Bihar and Orissa. Tea is an essential

item of domestic consumption and is the major beverage in India. Tea is also considered as thecheapest beverage amongst the beverages available in India.

The major competitive countries in tea in the world are Sri Lanka, Kenya,China and Indonesia. China is the major producer of green tea while Sri Lanka andIndonesia are producing mainly orthodox varieties of tea. Kenya is basically aCTC tea producing country. While India is facing competition from Sri Lanka andIndonesia with regard to export of orthodox teas and from China with regard togreen tea export, it is facing competition from Kenya and from other Africancountries in exporting CTC teas.

Indian tea industry is having (as on 31.12.2006 ) 1655 registered Tea Manufacturers 2008 registered Tea Exporters

5148 number of registered tea buyers Nine tea Auction centers

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Estimated internal consumption and per capita consumption of Tea in India

YEARDomestic Consumption

(M.Kgs)Per Capita Consumption

(Grammes Per Head)

1951 73 202

1961 140 319

1971 221 403

1981 360 527

1991 511 600

1992 524 606

1993 537 606

1994 550 608

1995 562 610

1996 580 617

1997 597 625

1998 615 633

1999 633 642

2000 653 652

2001 673 6542002 693 663

2003 714 672

2004 735 681

2005 757 691

2006 771 693

2007 786 696

2008 802 701

Above Line graph clearly indicates that till 1991 Tea consumption grew at the phenomenon rateof 32.2% where as in recent past few years the average rate of consumption growth is 0.7%.Tea being the only beverage which is consumed at the largest following Water hence there is notrouble to India tea market future in India with growing population.

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1.Market Trends & Growths

Above Pie-Chart clearly shows that it is CTC Tea which contributes the major market share(82%) in Indian Tea Market.

CTC Tea Market Share

Above CTC Market share pie-chart displays that Tata is having biggest market share of 24.53%followed by Hindustan Unilevers Red Label

Above pie-chart of Top Markets and their share indicates that West India accounts to

approximately 30% plus of tea sales rest is distributed between North & East Markets according

to stores located in various parts of country.

Tea Producing States in India

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The East & Noth East Region of India

Assam valley and Cachar region in Assam parts if the states of Tripura, Arunachal Pradesh,

Sikkim, Meghalaya, Mizoram, Nagaland, Manipur, Orissa and Darjeeling, Dooars, Terai regions of

West Bengal.

The North Region of IndiaKangra valley in Himachal Pradesh, Dehradoon region in Uttar Pradesh

The South Region of India

The hilly regions and plains (Annamalai) of Tamil Nadu, parts of the states of Kerala and

Karnataka.

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2.Market Needs:The India is the worlds second most populated country contributing 17.23% of worlds

population. The health related issues in India also increasing day by day due to the lifestyle and

inclination of the generation towards fast food or junk food which generally responsible for health

hazards. Being Inda as developing country the more and more people in India are getting literate

and educated. The education in turn brings awareness in the people and they understand what

dos and donts. There is class of people who are health cautious most of them fall under high

class societies. India is predicated to be the number one in terms of diabetes and heart disease

in the world in coming decades. It is difficult to change the lifestyle of people all of sudden and

hence people look for better product which can keep them healthy and offer resistance or

meditate their health for long life and better health. Tea is hot beverage consumed by people all

over the world at highest after water. So it is a great idea if tea can prove as tea as well as

medicine and offer better health & immunization as it is consumed twice to thrice a day. If teacan provide halth benefits it will be surely welcomed by the class of health conscious people.

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3.SWOT AnalysisStrength

Local company that will be favored by the Indians. Diminishment of Financial Risk (no exchange rates or import from other EU countries. Insider knowledge of India

Uniqueness of the product - Benefits of product are outstanding and not offered by any other product/company.

Weakness

New company - needs to establish its position in the market place Brand name is little known

Opportunities

Shortage of tea supply unlikely Supply should remain stable over next 3-5 years

Demand should remain in relative sync with supply Mass market tea prices will stabilize Consumers are living a more healthy lifestyle Consumers prefer quality products that offer true value Modern technology in the tea industry will be able to increase productivity Growth in tea market due to promotional efforts of healthy attributes of tea

Threats Limited number of raw materials Unstable tea supply of high quality tea High quality tea prices will increase moderately Tea market is very competitive and relative elastic Strong local competition like Hindustan Uniliver & Tata tea Indian customers are loyal to their local brand

Hindustan Uniliver & Tata tea. control over more than 50% of tea market

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1.Explanation of the 7 PsThe traditional marketing mix contains of four major elements, the "4-Ps of marketing". As

defined by Kotler et al. (1999):Product: "Anything that can be offered to a market for attention, acquisition, use orconsumption that might satisfy a want or need. In includes physical ob-jects, services, persons,places, organizations and ideas."Price: "The amount of money charged for a product or service, or the sum of the values thatconsumers exchange for the benefits of having or using the prod-uct or service."Promotion: "Activities that communicate the product or service and its merits to targetcustomers and persuade them to buy."Place: "All the company activities that make the product or service available to targetcustomers."In the context of services marketing, Booms and Bitner (1981) have therefore suggested anextended "7-Ps" approach that contains the following additional "Ps":People: All people directly or indirectly involved in the consumption of a service, e.g. employees

or other consumers.Process: Procedure, mechanisms and flow of activities by which services are consumed.Physical Evidence: The environment in which the service is delivered. It also includes tangiblegoods that help to communicate and perform the service.

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2.CompetitionTop 10 Tea Companies in India Hindustan Unilever Ltd.

Tata Tea Ltd. Duncans Industries Wagh Bakri Ltd. Private Label Goodricke Group Ltd. Golden Tips Tea Pvt. Hasmukhrai & Co Girnar Food & Beverages P ltd Sapat Packaging Industries

Hindustan Uniliver (32.50%) & Tata Tea (22.50%) are two major competitors in India Teamarket and contributes around 55% of Indian Tea market share.

Unilever: the clear market leaderThe packaged tea market is highly consolidated in India, with Unilever and Tata Tea accountingfor almost half of retail value sales. Unilever (Brooke Bond and Lipton) is the clear leader,holding over 30% of the market share, while Tata Tea (Tata) trails it with almost 20%. Theremainder of the market is far more fragmented and shared between numerous small playersBoth Unilever and Tata Tea saw a fall in retail sales as a direct result of the drop in the price oftea between 2000 and 2003. These mainstream players also saw their margin squeezed in theface of increased advertising spends and competition from unpackaged tea.

Tata Tea: ambitions in international markets(Worlds second largest branded tea company)Tata Tea is the largest vertically integrated tea firm in the world, from its plantation activitythrough to its packaging and marketing initiatives. Although Tata Tea is overshadowed byUnilever in its domestic market, the company has been the star performer in the global teaindustry in recent years.Its high profile acquisition of the global Tetley brand in 2000 effectively consolidated its positionin the international tea market. The company is now seeking to leverage the brand as aspringboard to new markets. In 2003, Tata Tea started retailing its flagship brand Tata Tea inthe US.The company closed a factory in Australia in the same year in order to increase the capacity ofits Sri Lankan joint venture packaging company, which serves the Australian, Polish and Russiantea markets. It is currently looking into marketing Tetley in the Chinese market.

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In above BCG Matrix1. Hindustan unilever2. Tata Tea& Others

Hindustan Unilever is main player in Indian tea market with market share of approximately 33%.Tata Tea is right behind Hindustan Unilever experiencing good market share as well as goodmarket growth as of it is leading the world tea market. Other tea brands are at relative smallmarket share as well as slow growth rate.Under No 5 we need to project Royal Tea. We need to develop it as Star Developing to Cash

Cow.

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1.Marketing Objective To offer consumer best health advantage through Royal Tea. To establish as market leader in herbal tea industry To enable Royal Tea to satisfy, fulfill the consumers personality & lifestyle

To increase Royal Teas popularity as an icon in Herbal Tea product.

The different managers should know the sales and marketing objectives of the firm inorder to achieve these objectives.We are going to use the method SMART: Specific: The objectives have to be clear. For example, in each shop, the company of Royal

Tea must achieve the selling objectives. The turnover to reach will not be the same in thedifferent shop because we make the selling objectives according to size of the shop, thefrequentation, the type of the clients.

Measurable: The company has to follow the different targets in the sales outlets and if each

shop allowed to reach the objectives. To measure the sales we can calculate the sales by dayin order to understand how the client bought the product. With these data we can improvethe strategy and the sales. The commercials can ask to the supermarket to put the product ina different way or to make more promotion.

Achievable: The targets have to be realist. At the beginning the turnover would grow slowly

and after the promotion, it would have a faster expansion. If we reach to win clients from ourmain competitor (in a first time) and from the others tea brand (in a second time), the saleswould grow increasingly. The firm should have a long terms vision and should be reactive infront of decisions or problems which can occur.

Relevant: the objectives have to be founded on fact and not on suppositions. The firm hasto respect its general strategy and its image. The firm should take into consideration thesales of its competitors in order to be based on relevant objectives.

Timed targeted: each objective should have a deadline. It can allow measuring the different

sales of the day, of the week, of the month, according to these data, the firm can change theobjectives or makes promotion to reach these objectives.

The objectives for the first year: 4 % of the market share of Hindustan Unilever & Tata Tea, the main competitor.

2 % of the others teas competitors. 1 % of the coffee drinkers Introduce company into the market, strengthen and improve its position Penetrate the black tea market and achieve revenue of 3 million INR p.a.

Penetrate health market with fruit and herbal teas achieve revenue of 1.5 INR p.a.

We expect to hit 25% of Hindustan Unilever & Tata tea because it is our main competitor byconverting their royal customers. With the strategy, the promotion 7 novelty of our brand we can

expect to attain lots of customers.

We look forward to hit 8% of other competitors To reach this objective we will make a lot ofpromotion in order to attract new clients, because we know that the population like and expectthe promotional events to buy food and drink.

We also expect to hit 2% market share of coffee and convert royal customers.

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1.Issue AnalysisMain issues that should be addressed in the Action Plan: Company needs to gain experience in the market place Aggressive promotion efforts to establish brand name and gain market share Create effective marketing mix Establish company image of high quality, great value for money Find distribution deal with main tea shops, supermarkets in India

Start aggressive promotion (e.g. free gifts included in purchase) to win customers of LionBrand

Try to gain market share of Hindustan Unilever & Tata Tea by converting their royalcustomers.

1.AssumptionsWith respect to the tea market climate it is assumed that: Strong competition in the market place will force price levels of products down Royal Tea will only be able to differ from its competitors by introducing aggressive

promotion tactics for their innovative product. Tea supply will remain relatively stable Demand should remain in sync with supply Prices for high quality tea will increase moderately Prices for mass market tea will stabilize

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1.Marketing Strategy:A. Market Gap

Regarding our research in Indian supermarkets and pharmacies we have come to the result thatthere is no market gap in the tea market. It is important to point out that once the Maltesecustomer decides to consume a certain brand he or she will be very loyal to the product and itwill therefore be hard to convince him or her to buy another brand. This is why the local teabrand Lion Brand has a Market Share of 60 %. Customers like it because it is cheap and theyreceive great value for their money.With the brand Royal Tea we are going to introduce innovative products in an existing marketand focus on Market Development.

Existing Market New Market

Existing

products

Market

Penetration

Product

Development

New

Products

Market

DevelopmentDiverification

Royal Tea need to spread awareness about the health betterment by consuming the Royal Teaand capture the educated and health conscious class of people (usually from High Class society &educated). Lifestyle of customer is changing who emphasize on health, Royal Tea can capturethis new rising market.

Producing product in India is less expensive as India is second largest producer of tea in worldtea market and also labor is cheap here. Since the Royal tea market will be limited for Indianterritory only hence company do not have threat from exports & changes in Exchange rates.

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2.Product PolicyName of the local brand that is to be introduced in Indian Market

Royal Tea

Reasons for choosing Brand NameRoyal Tea is strong name, easy to remember and refers good brand because the associationswith royalty are master, the best, the strongest, luxury.The crown represents the power because we want to be the no 1 on the marketIt can be associated with quality, a luxury brand that is available & customers are receiving agood value for their money.There is also a name-game the brand name Royal Tea resembles the word Royalty givingassociations that our tea is made for the nobility.

Slogan

It is more than a teaRejuvenating Body Cleanse

Reason for choosing slogan:The slogan It is more than a tea indicates that the Royal Tea is mere a tea but is somethingmore than that giving more values and benefits than any other tea in the market.

In the next line Rejuvenating Body Cleanse here we exactly try to explain in one line what itis other than just a tea. Rejuvenating tells that its develop youthfulness upon regularconsumption by slowing down the aging process of body. Body Cleanse clearly tells that it helpsto revive the body and clean the body from inside with help of its medicinal properties extracted

from various herbs which are ingredients of this tea.

The Logo

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Explanation for different choicesGolden Crown: It is a common symbol that refers to the royal Kings and Queens; it is easy toremember and catches the eye of the customer. The modernity represents a new birth for thetea because the young people believe that the tea is a beverage for old people. With thismodernity it will attract a new

Segment (youth).

Golden Background: Golden color proves purity, wealth of the ingredients, the recipe, and thetaste & power. The power is linked with the crown which represents the status and thesovereignty of the king.

Our focus is on converting black tea market and focusing on new immerging health market.

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3.Marketing Mix of Royal Tea1. Product

Royal Tea will be a high quality product offered as specially blended black herbs tea.Contents of the Royal Tea are:40 bags, 80 bags, 150 bags, 250 bags (Family pack)The amount of bags refers to different target groups. 40 bags for singles, 80 bags for couples,150 bags and 250 bags are Family Packs. (250 bags is the most famous)Packaging:Customer perception of a package creates brand equity and purchaser loyalty. The imagepresented by the package largely determines success or failure of a tea line. Appearancestimulates memories and emotions inside the purchaser, who oftentimes is female, often buyingfor an entire family. Colour, image and slogan all combine to facilitate customer allegiance.

Top Left

Right

Left Half Right Half

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Target:We want to touch the target group in a progressive way. At the beginning, it is important toconvert the royal consumers of black tea & touch fruit tea and health tea consumers. In secondtime, we should attract the consumers of the main competitor Hindustan Unilever & Tata Tea.The next step will be to touch the tea drinkers in general and at the end, the consumers ofcoffee. We can argue for the coffee drinkers that the Royal Tea is as strong as the coffee andgood for the health.

2. PlaceHigh quality for a reasonable price can be bought from Assam & Darjeeling and will then beblended and packed. The final product will be distributed to Retailers such as Supermarkets andmain tea shops so the end consumer has easy access to it.Place in supermarket:On the middle and lower levels the Royal Tea should be placed according to the content of teabags. 40 bags should be placed higher than the ones containing more bags.

3. PricePrices for the tea should be as the following:

Reasons for pricing policy: Royal Tea is competing against the main player on the Indian Tea

Market Hindustan Unilever & Tata Tea by setting a higher price but offering more value for it.Various promotion activities, giveaways and advertising on radio and television will help toestablish the brand and gain market shares.

4. PromotionThe promotion is the most important point to launch our products because we want to be able tocompete with our biggest competitor Hindustan Unilever & Tata Tea. We want to focus on thispoint because the Indians like to purchase bargains or buy products that offer free gifts. Otherbrands do not offer as many promotion and free gifts. This is why it is important to focusespecially on the Promotion activities of the marketing mix. We are going to set up originalevents in order to attract new customers and consumers of other tea brands.Our objectives:

Promotion in the supermarkets:Set up a stand: we want to set up a stand in the supermarket in order to make tasting to thesupermarkets clients. The stand should be placed between the fresh food and the food with theaim to attract all the consumers. The stand should represent the brand with the color of thecompany, the logo, the environment of royalty. For example, the stand could be shaped like acrown. Moreover, the hostesses can give some presents to the children like plastic crowns,balloons with the logo of the brand and pens with the logo.

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During the launch of our product (one week), all the customers at the supermarket will

receive a sample of Royal Tea for free at the cashiers including a voucher which explainsthe game to win a trip to London.

Promotional offers during the year: If a client buys a box of 150 bags, he will get a free cup

or a spoon or a little kettle. During two months, we can organize a game: when you buy Royalty, you win some points

and with certain numerous of points, you can get a present which represents the brandimage.

Promotional event for Royal Tea launching:During one weekend in a big city in India (preferably Mumbai) we will organize a big event.- In the street, there will be hostesses with special clothes (king and queen clothes) who willdistribute samples and cups with tea to offer the product to passer-by. They will distribute flyers- There will be a show about the theme of British Royalty with flags of our brand. The artists willbe dressed in royal clothes and hold a speech about royalty. After the show, they will hand outflyers the people can fill in so as to win the weekend trip to London.

At the end of the event, it will have a drawing of lots. The winner will receive the present (teaboxes) via post way- For the child, there will be inflatable game in castle shape to jump. The staff will keep an eyeon the children while the parents take part in the competition- In the street there will be a lot of decoration of the brand image

AdvertisementAt the beginning, the strategy is to focus on the Internet, the radio and on daily newspaper(Times of India etc) to reach a lot of customers. These media are noticed by a large target groupwhich will help the firm to be known.After six months or one year, we will begin a campaign on television, in magazines and onairports.

5. PeopleThe employees and the consumers are very important for the products development. Theyrepresent the image of the brand; it is for that the services have to be optimum. The employees

and more particularly the commercial people and the hostesses should be trained in order toknow the product and to can sell it properly. Moreover, in the other hand, the clients areimportant because they passed a message to the potential clients. To allow this, the hostesses atthe beginning and the employees after have to explain the quality, the taste of the product.

6. ProcessWe have seen that the selling process is vital in the decision making process. In the shops, theselling is making by the advice. The clients like to feel reassured in front of making process. Sowe conclude that one time per three months, commercials and hostesses will give advices to theconsumers in order to make him more confident the product.

7. Physical evidenceThe environment should be very clear, clean and attractive because the decision making process

takes into account these elements. Moreover, in the shelves, the products should be storedcorrectly in order to attract the consumers. We have to ask to the staff that we need light inorder to bring out the colors of the product.

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1.Action Plan

Marketing

Strategy

Action Responsibility Control

System

Timing Costs

INR

Marketing

communication

campaign

Advertisement

on TV,

internet, radio,

newspapers,

campaign ad on

the

street

Marketing

Managers

Monthly

sales

figures

Whole year 500,000

Marketing

promotion

campaign

Set up special

stand

for personal

selling

Marketing

Managers, Sales

managers,

Counter staff

Supervisors

Count

customers

and

monitor

sales per

moth

Nov 2009

Feb 2010

20,000

organize

promotional

event in

Mumbai

Marketing

Managers,

Supervisors,

Hostesses

Count

Participants

Feb 2010 50,000

Promotional

offers e.g.

free gifts with

purchase

Marketing

Managers,

Production

Managers

Produced

output

figures

Nov 2010

Mar 2010

10,000

Organize

sweepstake

Weekend trip

Marketing

Managers

Jan 2010

Feb 2010

5,000

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to

London

Loyalty scheme

Point

system

Marketing

Managers,

Customer Service

Customers

taking use

of point

system

Whole year 5,000

Distribution of

free

samples to

customers

at cash point

Marketing

Managers,

Cashiers,

Supervisors

Count

Customers

First week

of Nov 2010

5,000

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2.Financial Projection:Excel Sheet attached with Financial Plan

HQLaunch

SEDistributors ISR ASM

Mumbai Nov-10 3 6 12 1

Delhi Nov-10 3 6 12 1

Pune Jan-11 2 2 4

Bangalore May-11 2 4 4 1

Hyderabad Jan-11 2 4 4

Ahmedabad Jan-11 1 2 2

Jaipur Apr-11 1 2 2

Jodhpur Apr-11 0 1 1

Panjim Jun-11 0 1 1

Mysore Apr-11 0 1 1Baroda May-11 1 1 1

Surat May-11 0 1 1

Rajkot May-11 0 1 1

Chandigarh Apr-11 1 1 1

Ludhiana Apr-11 0 1 1

Jalandhar Apr-11 0 1 1

Amritsar Apr-11 0 1 1

Chennai Aug-11 3 6 6

Total 19 42 56 3

Products MRP PTR NRV

Royal Tea 1500 1200.001080.0

0

B] MARKETING VARIABLE EXP. RATE Units / SE / Qtr QUANTITY AMOUNT

Danglers 3.5 1500 5700 19950

Posters 2.5 1000 3800 9500

TV SPOT 10000 200 200 2000000

Press Add 10000 200 200 2000000

Gifts 15 500 1900 28500

T Shirts 100 1 50 5000

Gondola End caps 7500 1 6 45000

TOTAL Marketting Expense 4107950Cost of Goods 1760550

TOTAL EXPENSE for BreakEven 5868500

Units to be sold for Break Even 5434

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22063801 Royal Tea Complete Marketing Plan for Tea[1]

Documents

Transcript of 22063801 Royal Tea Complete Marketing Plan for Tea[1]