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    A new marketing plan

    RURHerbal Tea

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    Course title: Marketing Management

    Course code: MKT- 331

    Submitted to

    Md. Firoz-Al-Mamun

    Assistant Professor

    Faculty of Business

    ASA University Bangladesh

    Submitted by

    Name IDUtpal Kumar Das 091-12-0078

    Md. Rakibul Hasan 091-12-0075

    Md. Rashed Khan 071-12-121

    Batch: 6th

    Section: C

    Semester: Fall 2011

    Submission date: 02 January 2012

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    January 02, 2012

    Md. Firoz-Al-Mamun

    Assistant Professor

    ASA University Bangladesh

    Request to accept our term paper

    Dear Sir

    It is our utmost pleasure to submit you our Term Paper for the course Marketing Management

    on A New Marketing Plan. We think this is the part of our BBA program. We have truly

    enjoyed our attachment in preparing this Term Paper. There might be some errors through

    oversight in the Term Paper. We would be grateful if you kindly consider our unintentional

    mistake. We acknowledge with thanks the whole hearted support & kind guidance received from

    you. So we hope you would be kind enough to accept Term Paper & oblige thereby.

    Sincerely yours,

    Name ID no Signature

    Utpal Kumar Das (G. L.) 091-12-0078

    Md. Rakibul Hasan 091-12-0075

    Md. Rashed Khan 071-12-121

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    Table of content

    Part Description Page

    A Title Fly

    Title page

    Letter of Transmittal

    Table of content

    Executive summary

    C Concluding Remarks

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    Executive Summary

    RUR Tea is preparing to launch new consumer goods in a maturing market. RUR tea is an

    innovative product which is close to herbal tea and black tea and this product can serve as body

    cleanser. Despite the dominance of Isphani Mirzapore tea and Lipton Taza Tea we can compete

    because our product offers a unique combination of features at a value added price.

    History of tea

    It is said that tea was discovered accidentally by Emperor Shen Nung back in 2700BC. After a

    large meal one day, he was relaxing in the garden with a cup of boiling water. At that time some

    leaves from a nearby tree fell into the cup. Unnoticed he consumed the drink. He enjoyed the

    taste of the tea and the pain relief of the drink was so much. Like this the cup of tea was born.

    The Bangladeshi legend tells how in the fifth year of a seven year sleepless contemplation of

    Buddha he began to feel drowsy. He immediately plucked a few leaves from a nearby bush and

    chewed them 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 tea

    growing spread to other countries and indigenous tea was discovered in Assam. The UK is the

    largest importer of tea

    The English quickly developed an almost unquenchable thirst for the drink and began searching

    for a way to get tea without having to buy it solely from China. In 1835 the English East

    Bangladesh Company, upon discovery of an indigenous variety of Camellia Sinensis in Assam ,

    Bangladesh ,established their first experimental tea plantation there. It was largely unsuccessful

    at the beginning. In 1856 varieties of tea from the Yunnan and Keemun provinces of China were

    introduced in Darjeeling, Bangladesh, and soon thrived. Some of the most prized and expensive

    Bangladeshi black teas come from this high mountain region. One year later tea was cultivated in

    Ceylon (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

    and Exploration.

    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

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    Manufacture

    Tea manufacture is the process of converting young fresh tea shoots into dry black tea. This

    involves a number of processes from plucking to packing. At the plucking stage, only the top

    leaf tips are picked every 6 to 7 days. The tip leaves are younger and finer which produce a better

    quality tea. The fresh green leaves now need to have the moisture removed from them. This is

    done by blowing air through the leaves for up to 14 hours, leaving a soft and pliable leaf. There

    are then two ways of treating the tea. Tea which is to be used as loose leaf, will normally be

    rolled gently to create a twisted appearance.

    In contrast, tea which is to be used for tea bags is shredded and crushed to produce a small

    granular product. Rolling and crushing the leaves, results in the rupturing of the leaf cells which

    allows oxidation to occur. This gives the tea its distinctive black color and flavor. The tea is then

    dried at high temperatures to achieve the correct taste. When it has been dried, the leaf tea is of

    differing sizes and will also contain pieces of fiber and stalk. At this point it is processed to

    remove pieces of stalk which will then leave tea suitable to be sold as loose tea. The tea is passed

    through varying sizes of meshes to sort it and has to be passed through very fine ones in order to

    produce tea fine enough for tea bag production. This process of sorting is a harsh one and it can

    cause the tea to lose some of its flavor. That is why loose tea usually has a better flavor than the

    tea in a tea bag.

    Current Marketing Situation

    Now-a-days Bangladeshi people are very much health conscious and interested in drinking tea

    that helps them to protect their health. RUR tea is a safe natural and powerful means of

    promoting the health. It promotes the health and longevity of many organs, system, and

    metabolic processes that are dependent on the condition of your digestive system. This tea will

    be helpful who wants to free from the high blood pressure and cholesterol.

    So now we want to launch our products in three districts. In Tangail, Jamalpur and Hobigonj we

    launching our product primarily by own department store. Than we cover all districts of

    Bangladesh as soon as possible. We will target basically health conscious people.

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    Product Review

    RUR tea is a safe natural and powerful means of promoting the health. It promotes the health

    and longevity of many organs, system, and metabolic processes that are dependent on the

    condition of your digestive system. The use of RUR tea has many additional benefits-

    It improves overall digestion. Strengthens the immune system Makes the skin more emollient and flexible Clears the eyes and provide an overall boost to the energy. This tea is a safe and gentle cleanser that also helps reverse that again process.

    It helps to eliminate parasites bad bacteria viruses and fungus on a daily basis byreleasing heavy metals and increasing the.

    RUR tea is a unique blend of all natural ingredients. Persons who suffer with acid reflux,constipation

    With continued use of RUR tea person will experience clear, healthier, younger lookingskin, increased energy and a happier outlook.

    Helps lower bad cholesterol

    May help lower blood pressure

    RUR tea Ingredients

    When an herbal tea is made, true tea is not included in the ingredients, and the ingredients maybe combined in a blend which is targeted to create a specific flavor or medicinal effect. Herbalteas can be calming and relaxing, energizing, or soothing, and they may be targeted at skin

    conditions, stomach complaints, breathing difficulties, cold symptoms, and many other medical

    issues. In some cultures, herbal tea is an important part of medical practice. Many people enjoy

    herbal tea as an alternative to regular tea, since it is caffeine free and it does not usually have thetannins which make true tea bitter.

    Some common ingredients in herb tea include lemon, mint, chamomile, lavender, orange, fennel,hibiscus, roses, rose hips, jasmine, licorice, nettles, rosemary, vetiver, valerian, willow, citrus

    blossoms, thyme, and horehound. Regional teas such as mate androoibos are also technically

    herb tea, since they are made with plants other than Camellia sinensis. Since herbal tea is usually

    http://www.wisegeek.com/what-is-chamomile.htmhttp://www.wisegeek.com/what-is-fennel.htmhttp://www.wisegeek.com/what-is-a-hibiscus.htmhttp://www.wisegeek.com/what-is-licorice.htmhttp://www.wisegeek.com/what-is-thyme.htmhttp://www.wisegeek.com/what-is-horehound.htmhttp://www.wisegeek.com/what-is-horehound.htmhttp://www.wisegeek.com/what-is-rooibos.htmhttp://www.wisegeek.com/what-is-rooibos.htmhttp://www.wisegeek.com/what-is-rooibos.htmhttp://www.wisegeek.com/what-is-horehound.htmhttp://www.wisegeek.com/what-is-thyme.htmhttp://www.wisegeek.com/what-is-licorice.htmhttp://www.wisegeek.com/what-is-a-hibiscus.htmhttp://www.wisegeek.com/what-is-fennel.htmhttp://www.wisegeek.com/what-is-chamomile.htm
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    low in tannins, it can be steeped for longer periods of time to make an intense, strong infusion.

    Some others ingredients are-

    Green tea leaf: Best of all herbal tea ingredients is Green tea. Many studies of this wonderful

    Asian plant have shown green tea to be helpful for many health issues. Some claim that green tea

    may help protect against cancer, aid in arthritis and in protecting teeth.

    Holy (Blessed) Thistle: has been used medicinally for over 2000 years, most commonly for the

    treatment of liver problems by supporting it in the release of toxins. It has been highly regarded

    for therapeutic uses and was cultivated throughout Europe and some say gained its monikerthrough its reputation as a 'heal-all', even credited with curing the Plague. It was in known

    cultivation as early as the mid-1500's.

    Persimmon leaves: are good source of important dietary antioxidants such as vitamin A and C.

    It has been widely used as a tea in oriental countries.

    Lemon Peel (extract): adds flavor and aids in digestion and fat reduction.

    Natural Caffeine powder: a stimulating ingredient that aids in fat oxidation by increasing

    circulation of fatty acids.

    Our Source

    We collect our raw materials from a nice tea garden of Sunamgonj that is known as khan tea

    international.

    We import some materials from abroad. Especially from China, Malaysia and India etc.

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    SWOT Analysis

    Strength

    Local company that will be favored by the Country.

    Diminishment of Financial Risk (no exchange rates or import from other EU countries.Insider knowledge ofBangladesh

    Uniqueness of the product - Benefits of product is 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 healthier 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 Lipton Taza & Ispahani Mirzapore

    Bangladeshi customers are loyal to their local brand

    Lipton Taza & Ispahani Mirzapore. Control over more than 60% of total Market.

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    Marketing Objective

    To offer best health advantage through RUR Tea To establish as market leader in herbal tea industries To enable RUR Tea to satisfy, fulfill the consumers personality and lifestyle T o increase RUR Herbal Teas popularity as an icon in Herbal Tea product.

    The different managers should know the sales and marketing objectives of the firm in order 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 RURmust achieve the selling objectives. The turnover to reach will not be the same in the different

    shop because we make the selling objectives according to size of the shop, the frequentation, 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 day in

    order to understand how the client bought the product. With these data we can improve the

    strategy and the sales. The commercials can ask to the supermarket to put the product in a

    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 our main

    competitor (in a first time) and from the others tea brand (in a second time), the sales would

    grow increasingly. The firm should have a long terms vision and should be reactive in front of

    decisions or problems which can occur

    Relevant: The objectives have to be founded on fact and not on suppositions. The firm has to

    respect its general strategy and its image. The firm should take into consideration the sales of its

    competitors in order to be based on relevant objectives.

    Time targeted: Each objective should have a deadline. It can allow measuring the different ales

    of the day, of the week, of the month, according to these data; the firm can change the objectives

    or makes promotion to reach these objectives

    The objectives for the first year

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    4% of the market share of Ispahani Mirzapore Tea and Lipton Taza Tea, the maincompetitor.

    2 % of the others teas competitors

    1% of the coffee drinkers

    Introduce company into the market, strengthen and improve its position.Issue Analysis

    Main 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 Bangladesh.

    Market Strategy

    Regarding our research in Bangladeshi supermarkets and pharmacies we have come to the result

    that there is no market gap in the tea market. It is important to point out that once the Maltese

    customer decides to consume a certain brand he or she will be very loyal to the product and it

    will therefore be hard to convince him or her to buy another brand. This is why the local teabrand Ispahani Mirzapore has a Market Share of 60 %. Customers like it because it is cheap and

    they receive great value for their money

    With the brand RUR Herbal Tea we are going to introduce innovative products in an existing

    market and focus on Market Development

    Existing Market New Market

    Existing productProduct

    development

    Market

    Penetration

    DiversificationMarket

    Development

    New Product

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    RUR need to spread awareness about the health betterment by consuming the RUR Herbal Tea

    and capture the educated and health conscious class of people (usually from High Class society

    & educated). Lifestyle of customer is changing who emphasize on health; RUR Herbal Tea can

    capture this new rising market

    Producing product in Bangladesh is less expensive as Bangladesh is second largest producer oftea in world tea market and also labor is cheap here. Since the RUR Herbal Tea market will be

    limited for Bangladeshi territory only hence company does not have threat from exports &

    changes in Exchange rate.

    Marketing Mix of RUR

    Product

    RUR Herbal Tea will be a high quality product offered as specially blended black herbs tea.

    Content of the RUR Herbal 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 image

    presented by the package largely determines success or failure of a tea line. Appearance

    stimulates memories and emotions inside the purchaser, who oftentimes is female, often buying

    for an entire family. Color, image and slogan all combine to facilitate customer allegiance.

    Target

    We want to touch the target group in a progressive way. At the beginning, it is important to

    convert the RUR consumers of black tea & touch fruit tea and health tea consumers. In second

    time, we should attract the consumers of the main competitor Lipton Taza & Ispahani Mirzapore.The next step will be to touch the tea drinkers in general and at the end, the consumers of coffee.

    We can argue for the coffee drinkers that the RUR Herbal Tea is as strong as the coffee and good

    for the health.

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    Place

    High quality for a reasonable price can be bought from Assam & Darjeeling and will then be

    blended and packed. The final product will be distributed to Retailers such as Supermarkets and

    main tea shops so the end consumer has easy access to it.

    Price

    Reasons for pricing policy: RUR Herbal Tea is competing against the main player on the

    Bangladeshi Tea Market Lipton Taza & Ispahani Mirzapore by setting a higher price but offering

    more value for it. Various promotion activities, giveaways and advertising on radio and

    television will help to establish the brand and gain market shares.

    Promotions

    The promotion is the most important point to launch our products because we want to be able to

    compete with our biggest competitor Lipton Taza & Ispahani Mirzapore. We want to focus onthis point because the Bangladeshis like to purchase bargains or buy products that offer free gifts.

    Other brands do not offer as many promotion and free gifts. This is why it is important to focus

    especially on the Promotion activities of the marketing mix. We are going to set up original

    events in order to attract new customers and consumers of other tea brand

    People

    The employees and the consumers are very important for the products development. They

    represent 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 to

    know the product and to can sell it properly. Moreover, in the other hand, the clients are

    important because they passed a message to the potential clients. To allow this, the hostesses at

    the beginning and the employees after have to explain the quality, the taste of the product.

    Process

    We have seen that the selling process is vital in the decision making process. In the shops, the

    selling is making by the advice. The clients like to feel reassured in front of making process. So

    we conclude that one time per three months, commercials and hostesses will give advices to the

    consumers in order to make him more confident the product.

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