An Introduction Bogawantalawa Tea Marketing Essay

Published Date: 23 Mar 2015

We are one of the foremost tea exporters who manufacture a diversity of own label and private label products from the teas manufactured in own estates situated in the Golden Valley of Bogawantalawa.

We control some of the premium High Grown and Low Grown Tea estates in the world manufacturing over 11 million kg per year. We present garden fresh teas at a cost efficient price and every consumer who works with us will have a exceptional occasion of dealing direct without going through middle men.

In Sri Lanka Bogawantalawa is a tiny city in (Central province). It is situated at 1514 m elevation higher than sea level in the country. Located Bogawanthalawa is very well-known for its Tea estates among the country. a lot of key companies operate around the tow

Majority of tea estates of the area is managed by a company called Bogawantalawa Tea Estates Ltd. Bogawantalawa Tea Estates is the largest Sri Lankan supplier.

There's a sense of mystique when talking about this valley. Known well over for 100 years, this mist enshrouded, mountain valley is known for its tea of outstanding purity and taste. Sought after by connoisseurs the world over, Bogawantalawa produce a unique blend of tea of unparalleled fragrance, flavor, aroma and sourced from this one single valley, it is meticulously handpicked, and comes to you fresh, from tea leaf to teacup.

The Bogawantalawa Valley is a miracle of nature. On one side it is surrounded by one of the world's most beautiful national parks and wilderness reserves, on the other side it is bordered by verdant mountains shrouded in mist. The ancient name of the Valley, Boghavanthalawa, literally means "the plain of the gods". But it was not beauty alone that attracted the first Scottish planters to the Valley, way back in the year 1869. These first generation planters found that the extremely fertile soil and the high elevation were conducive to the production of high quality tea - very high quality tea. High mountain winds and the abundant monsoonal rains induce a slower, more concentrated growth in the tea bushes. This in turn brings out a tea that is rich in its flowery bouquet and refreshing in its warm taste.

2.0 Mission Statement

Bogawantalawa is a company of resourceful people who share a responsibility and commitment to attain excellence in managing the resource of the company by providing customers with high quality products.

2.1 Current market position

In below chart we can identify who are the main competitors for Bogawantalawa Company and what is the current market situation of the company in Sri Lanka.

High Price

Low Price

High Quality

Low Quality

Watawala Tea

Cylonta Tea

Lipton Tea

Dilmah Tea

Bogawantalawa Tea

Competition Vs Price

2.2 Four P's for Bogawantalawa Company

Products

Currently Bogawanthalawa Company has been mainly produced six major products. Such as Black tea, Green tea, White tea, Herbal tea, Single Estate tea, flavored tea. These products are successfully marketed in the local market and it has started to construct profits. So the company has taken a decision to enter in to a new market with their existing products. By looking at the above positioning chart we can identify Bogawanthalawa has a High quality product for medium price when compared in to the local competitors.

Place

The company is looking forward to move to India as their new market. So company has identified two main competitors from existing market such as TATA Tea and Hindustan Unilever Limited (HUL).

Bogawantalawa Company has sold their product through their own outlets near to factory and also they have in to retail business also through supermarkets and retail shops.

Price

When comparing to other good brands and existing brands locally we can say that company have priced fairly for the customers. Because company have using high technology to produce the product for high quality. As an impact of using latest technology price has gone little bit up. It will be a advantage, when entering to new market to capture a potential customers company can go for a attractive pricing strategy.

Promotion

Tea is a product has to promote in different ways than other product. So we can use the media for give publicity first. And also we can use newspapers to give an idea what is this product and quality standards to gain customers trust. And also can have promotional campaigns in that outlets (buy two and get one free) to attract customers first into the brand.

(Refer appendix 01 for more details page No 17)

2.3 SWOT analysis for Bogawantalawa Company

Once the forces affecting rivalry have been recognized, the company will be in a position to identify its strengths, weakness to overcome threats and cash on the opportunities. Under the SWOT factors I have discussed about the key issues and the opportunities that company can use.

(Refer appendix 01 for SWOT analysis for Bogawantalawa Company page No 17 - 18)

3.0 Market overview - India and source of information

Company has taken a decision to move in to a new market. Tea industry in India is old about 169 years. It inhabits a significant place and acting an extremely helpful part in the economy. So the company has chosen India as the potential market. Tea is an agro-based product and is subjected to vagary of nature. In the face of unfavorable agro climatic situation skilled in tea growing areas in numerous years, Indian Tea farm Industry is clever to maintain large growth in relative to quantity of Indian tea manufacture during the decade time.

In India teas is a major beverage in the country. It also considered as the cheapest beverage among the beverages accessible in Indian market. The tea production provides profitable straight employment to more workers mostly strained from the backward and communally poor part of the community. It is also a considerable overseas replace earner and supply significant quantity of income to the country. In India tea plantations mainly situated in rural hills and diffident areas of North-eastern and Southern States. Kenya is fundamentally a CTC tea manufacturing country. While India is face to the competition from Indonesia and Sri Lanka with look upon to sell abroad of orthodox teas and from China with look upon to green tea export, it faces competition from other African countries and Kenya in exporting CTC teas. For India the foremost competitive countries in tea industry in the globe are Kenya, China, Sri Lanka, and Indonesia. Sri Lanka and Indonesia are producing largely orthodox varieties of tea. China is the foremost producer of green tea to the market. By looking at the factors Bogawantalawa Company has decided to move in to Indian market.

Appendix 02-(SWOT analysis of Tea industry in India and PEST Analysis for Indian Tea industry and source of information page No 19-22)

3.1 Special features of the Indian Tea Industry

High cost due to high input cost.

Low investment in Development Programme.

Huge percentage old tea and Low Productivity.

No main concern for Scientific Cost Management.

Production dependent of agro-climatic conditions.

Labour intensive.

Product Life is for limited period.

Same plant and same agro-practices give variations in quality in different regions.

4.0 Competitor analysis

Looking at the Indian market we can identify two main competitors. Such as TATA Tea and Hindustan Unilever Limited.

TATA Tea

TATA Tea is the biggest perpendicularly integrated tea industry in the globe, from its agricultural estate activity throughout to its packaging and marketing initiatives. Tata Tea Limited, also known as Tata-Tetley, is the world's second largest producer and distributor of tea. It also involves in the farming and produce of instant tea and black tea, tea buying, and trade of tea in bulk or value added form. It offers tea mainly under the many brand names such as TATA Tea gold, TATA Tea premium, TATA Tea Agni, Tetley, Kanan Devan, and Chakra Gold.

(Refer appendix 03 for SWOT analysis of TATA Tea and internal environment analysis page No 23 - 24)

4.1 Assumptions

The company assumes to enter in to the biggest existing market in India. Because of the high quality company assume that can capture a market soon as they go to the market. Sri Lankan tea is the one of the best Tea in the world so Bogawantalawa Company is a part of it. Company is product is high quality so company assumes that their product is better than to Indian tea when comparing to the competitors. Also assume that company can capture working class of the country because mostly rich people in the country looking forward to have coffee than tea. And company assumes their pricing strategy is better than competitor. And also assume to take over a 10 to 20% market share within the five years time period. In India lot of people prefer tea so can assume demand for tea will remain as the same.

4.2 Objectives

Increase the market share 15 to 20% within the five years time.

Generate brand awareness within consumer target market and business target market.

Increase the quality with new technology and reduce the price than competitors.

The corporation is focused on building value around its brands to differentiate it from competitors.

Improve the distribution through best known established dealers, retailers.

Create a publicity operation to build brand consciousness and distinguish products superiority from competitors through emphasizing trade-sales advertising to support delivery approach.

Build a long-lasting affiliation with the buyer and is powerfully positioned in its exacting segment.

To improve market share by 4% in the each year.

Market share as %

1st year

2nd year

3rd year

4th year

5th year

Total Market share

Every year by 4%

4%

4%

4%

4%

4%

20%

5.0 Ansoff's Matrix for Bogawantalawa Tea

Current Product

New Product

Current Market

Market Penetration-

Relationship marketing, industries cafeteria, retail stores, supermarkets.

Product Development -

Re branded, re packaged products, new flavors, and new varieties.

New Market

Market Development -

Open outlets all over the country,

New resellers, new delivery channel, online selling, make popular the brand and the logo.

Diversification-

Partnership activities, campaigns and knowledge exhibitions and workshops.

5.1 Marketing strategies

For product development

Pull strategy.

Brand awareness.

Heavy advertisements.

To gain bargaining power of suppler.

Pricing strategy

Premium pricing strategy.

Skim price in Order to gain the cream from the top of the demand curve.

High price shall be changed, with a 30% increase as compared to the leading competitor.

Product marketing strategies

Massive campaigning using the concept of pull strategy.

Allocation of advertisement budget at 5%

A product focusing on the high class at a high price, thus a creating a niche market segment.

Co branding through installation of finlays tea machine at different places in corporate sector or other business.

Media campaigning regarding decaffeinated.

Free samplings.

Slowly but surely open outlets in other parts in the country.

(Refer appendix 04 for more details on marketing strategies page No 25)

5.2 Target market

Daily tea drinkers

Offices (government and privet sector)

Retail shops, resellers and supermarkets

Restaurants, hotels and guesthouses

Target market - Portfolio Matrix for Bogawantalawa tea

High

High

Business strengths

Industry/ Market Attractiveness

Low

Low

Hotels, Restaurants

Daily tea drinkers

Retail shops & Supermarkets

Offices

6.0 Porter's Five Forces

Industry rivalry ↑ [High]

Low switching costs.

There are approximately700 tea companies in India hence there is intense rivalry amongst them.

Market is dominated by a large number of unorganized players.

Industry growth is slow.

Bargaining Power of Buyers ↑ [High]

Not much product demarcation in terms of taste also low switching cost.

There are a large numbers of buyers purchasing the manufactured goods.

Buyers purchase a huge quantity of the industry's total production.

The bargaining power of buyers is extremely high as the buyers have numerous options on hand.

Bargaining power of suppliers ↓ [Low]

There are substitute like coffee available.

Supplier's product creates low switching cost.

There are a large number of produces of tea in India.

Threats of substitute's → [Moderate]

Substitutes - coffee, cold drinks, fresh juices

Existing customers are loyal

The existing products quality and performance may be better.

Substitute's price may be lower. As there are so many players in the industry a price war is unavoidable.

Threats of new entrant's ↑ [High]

Encouraging government policies like food and beverages act.

Large untapped rural markets for branded tea segment in rural India and Indian tea in global markets.

6.1 Porter's Strategic Matrix

Low cost

High cost

Narrow

Broad

Competitive Scope

Source of competitive advantage

Cost Leadership

Differentiation

Bogawantalawa Company

Cost Focus

Differentiation Focus

Bogawantalawa Company chooses the Differentiation strategy because it involves creation company goods unlike from and more smart from competitors. Company do this depends on the accurate nature of tea industry and of the products and services themselves, but will naturally involve durability, also brand image, functionality, support and features that company's consumer's value. To make a winner of a Differentiation strategy, companies require,

Good research, development and innovation.

The ability to deliver high-quality tea products.

Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings.

7.0 Branding Strategy

Make Your Global Brands Local

Use Local Brands to Establish a Market Presence

Grow Your Own Local Brands When Possible

Recognize That Brands May Mean Something Completely Different

Address the Liabilities of Global Brands

Increasing customer loyalty

Contribute to unproductive expenditures in operational areas that contradict what company brand stands for

Company can modify ads, but the fundamentals of slogan, logo, and color need to basically look the same. Make small changes over time so that consumers won't get puzzled and lose the product. After all, if company change ad too much and consumers don't recognize it, then company just lost all of the good will, appreciation, and trust that company have built up with branding strategy over time. If company does want to make huge changes all at once, then company wants to tell consumers about it. Company will need to momentarily increase advertising budget so that company can keep consumers educated, and not lose them. Company might consider a direct mail campaign, or television advertisements etc. company will want to change them regularly because if not it will get really bored with the branding strategy. Until the consumer is serious about making a purchase, they won't really pay close concentration to ads. Company will feel familiar to them because they have seen ads 100 times, but only when they are ready will they really read it. Same old boring advertisement will not bore customers. Do not change the overall look and feel of ads unless you don't get the sales as company expected.

(Refer appendix 05 for Brand Positioning Matrix page No 26)

7.1 Positioning Statement

A brand's position refers to its place in the customers' minds. Positioning creates a unique space for a brand, and succinctly articulates the position to the brand's core target audience. The company wants to make customers mind if goes to make a tea, that time remember what the tea there is using. Bogawantalawa Company theme is "quality tea for everyone" they have target the audience who loves the tea can use Black tea and who willing to reduce the weight can use green tea.etc.

7.2 Product Strategy

Product strategy based on the most current company and product vision. Product differentiation strategy when company and competing firms offer a product that fulfills the same need. In a product-differentiation strategy, company goal is to put distance between your product and competitor's product. Essentially, competitor sells tea A, but you Sell tea B, in company strategy, company need to produce tea B so that tea lovers find Bogawantalawa tea to be superior to companies' competitors. price-based product strategy, the goods is designed according to such things as cost-plus pricing that where company set the price of the product at the production cost plus a specific profit margin, value-based pricing that where the price is derived according to the product's value in relation to competitor's products, and target-return pricing that where you set a price in order to receive a certain profit return.

Market share

Market growth rate

Low

High

Low

High

Product strategy - Boston Matrix

Star

Question mark ?

Cash Cow $

Dog

By doing a market survey can find how products come to the BCG matrix. After looking at the matrix cash cow products and star products will be marketed.

7.3 Pricing strategy

The point is here Bogawantalawa Tea Company cannot set a price that is too high because competitors will attract by potential profits and will follow by a lower price. After having taken all the important factors into consideration, there five price level fixing seem appropriate.

(Refer appendix 06 for more details on pricing strategy page No 27)

7.4 Distribution strategy (Place)

Tea will be distributed by these channels; supermarkets, independent food stores, convenience stores, multiple grocers, Bogawantalawa outlets and direct sales.

(Refer appendix 07 for more details on distribution strategy and the action plan for five years page No 28)

7.5 Promotion strategies

Promotional activities will convey that the clear massage of Bogawantalawa Tea is a healthy drink for daily tea drinkers, sporty and young and any generation who simply enjoy taking care of the body and the pure taste of a tea. There are some product promotional strategies such as TV advertisements, Radio, Magazines, outdoors, personal selling, public relations and publicity.

(Refer appendix 08 for more details on promotional strategies page No 29)

8.0 Assumed budget and Risk management

Risk management involves assessing and quantifying business risks, then taking measures to manage or reduce them. Its purpose is to generate ideas and promote good practice for those involved in the business of managing risk. All too often assessments of risk are crudely made and the consequences of getting things wrong can be serious, including lost opportunities, loss of business and loss of reputation. Administration the competitors in the market also will be an additional risk. This can be prevented by providing different and more quality products to the customers. Then the customers will not try to move towards the competitive companies in the market. And also Market Risk includes interest rate risk, foreign currency risk, and investment portfolio risk. Interest Rate Risk is the risk of financial loss from changes in market interest rates. As strategic risks we can say that, Governance Risk is the risk of having an inadequate structure or body to make effective decisions.

Budget

By having a budget companies can allocate the resources as they wanted. And also budget will help for the company to have an idea about potential expenses and fast expenses of the company.

(Refer appendix 09 for assumed Budget page No 30)

9.0 Conclusion

In this report included a five years marketing plan for Bogawantalawa Company. In this report, I have discussed about how Bogawantalawa Tea industry willing to move to new market in India and how to use suitable strategies and how to market the product in very competitive environment. For get to know about environment I have done a research on competitor SWOT, PEST analysis to get a better understanding about the environment. Also I have use some theoretical matrixes to get a clear idea how the markets moves and what are the products that we should market. And also I have discussed about pricing and better promotional strategies that company will find comfortable at last I have given some recommendations that would help the Bogawantalawa Company for potential achievement and capture market share in five years time.

10.0 Recommendations

As recommendations for potential success we can suggest that Increase number of service outlets, In recent times there have been numerous tea and coffee shops bounce up in cities like Mumbai, Delhi, Bangalore etc Tea house shpul beset up in a similar fashion and premium quality tea's should be served at these outlets. And also strategic alliance, Tie up with own range of five star hotels to supply premium quality tea also with lower end three star hotel and also local eateries. Tie-up with airlines, caterers etc to promote Bogawantalawa tea to the market. By tie up with these companies it will easy to build relationship with corporate customers and build a good customer relationship and also make popular the tea through them.

And also own depots, To start own depots of Bogawantalawa Tea so that they can sell loose tea thus reducing cost of packing which will also reduce the Vat & additional charges. Thus masses from lower income group would be effectively targeted. And also Launching of flavored teas bamboo cups in china bring it to India too. Launching of more flavors in India. And also Increase profit margins for retailers to achieve higher sales volume as they are the main influencing factors in lower income group people. And also providing a bundle pack like a small tea sachet free with 100 grams pack of biscuits.

11.0 Reference

Johnson, G, 2008. Exploring Corporate Strategy. 5th ed. Prentice Hall: Financial Times.

Bohlander, Snell, 2007. Human Resource Management. 4th ed. USA: Thomson Higher Education.

Jordan, Roass, 2006. Corporate Finance Fundamentals. 5th ed. Singapore: McGraw Hill.

Global tea industry. 2011. Globa tea industry. [ONLINE] Available at:

http://www.scribd.com/doc/28455965/Study-into-the-tea-industry-of-India. [Accessed 03 January 12].

India tea. 2011. India tea. [ONLINE] Available at: http://www1.american.edu/TED/indiatea.htm. [Accessed 04 January 12].

Four P's for Bogawantalawa Company. 2011. Four P's for Bogawantalawa Company. [ONLINE] Available at: http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=BOPL:SL. [Accessed 06 January 12].

Bogawantalawa Company. 2011. Bogawantalawa Company. [ONLINE] Available at: http://www.bplteas.com. [Accessed 06 January 12].

swot analysis india. 2011. swot analysis india. [ONLINE] Available at: http://www.indiadairy.com/ind_swot.html. [Accessed 07 January 12].

PESt analysis india. 2011. PESt analysis india. [ONLINE] Available at: http://www.scribd.com/doc/29980456/PESTLE-Analysis-of-India. [Accessed 09 January 12].

Competitor analysis . 2011. Competitor analysis . [ONLINE] Available at: http://tutor2u.net/business/strategy/competitor_analysis.htm. [Accessed 10 January 12].

Ansoff's Matrix . 2011. Ansoff's Matrix . [ONLINE] Available at: http://www.slideshare.net/sethaphat/starbucks-presentation-presentation. [Accessed 11 January 12].

BCG Matrix. 2011. BCG Matrix. [ONLINE] Available at: http://www.slideshare.net/prasadshahane/hul-final. [Accessed 11 January 12].

12.0 Appendix 01

Current market position

Promotion

Insistent Marketing Strategy - Bogawantalawa can take benefit of the encouraging force down on the health repayment on tea to enhance the sales of its ice tea product line. Foundation of its media releases and promotion campaigns Company can exercise current studies on the health repayment on tea.

Improve Packaging - The Bogawantalawa flavored Tea are available locally in two sizes, the 500g packet and 1Kg packet. Bogawantalawa can come up with additional wrapping sizes to make sure that customers will have additional choices and that Bogawantalawa flavored Tea will be simply and willingly accessible to customers.

SWOT analysis for Bogawantalawa Company

Strengths

When we looking at the strengths of Bogawantalawa Company we can identify that company has a old industry record, long experience, new technical and man power skills, good research and development support, mostly they pick tea from their own estates so cost advantage, assets leverage, effective communication, innovations through experience in the company, loyal customers from long time because of the image of the company and the high quality, also market share leadership, strong management team, strong brand equity, every company should have financial sustainability so this will be great advantage for the Bogawantalawa company, strong supply chain, and having fair product price among the competitors. And also the quality control within the company is good. Company having a strong image in the local market, so it will be advantage when moving into new market.

Weakness

Basically min development investment, stagnant production, less effective cost management, declining exports are major weakness can see from the Bogawantalawa Company but there are some more such as diseconomies of scale, low R & D, less online presence, less diversified, weak real-estate, the facility for the production of the tea have become obsolete. The growing stock is old and has lost productivity. Factory modernization is slow and there is an imbalance in the production ratio of orthodox. The productivity is low when comparing to the international players. Above mentions the main and weaknesses of the Bogawantalawa Company.

Opportunities

As opportunities we can see that quality and brand equity, export potential, big domestic market, financial institutional support, acquisitions, financial markets, emerging markets and expansion abroad, innovation, go through online selling and online marketing, takeovers, world demand is for black tea expected grow rate is 3.2% per year. The substantial part of demand coming from the developing counties, particularly middle east and CIS countries which has preference of orthodox tea. Also CIS counties willing to buy who providing good and quality product so this will be potential opportunity for the company. The future consumption potential in other markets is so high. Company produces a wide array of tea, from high quality light tea to strong dark tea. It can exploit this ability to expand the product line and diversify into related products. These are the major opportunities that company has identified.

Threats

Threats for the company such as open global competition, low cost in some countries (Kenya), uncertain price, cheaper technology, economic slowdown, external changes (governments, Tax and regulations, politics.etc), exchange rates fluctuations, maturing categories - products, price wars and also product substitution such as soft drinks and coffee. Kenya has overtaken the Sri Lanka as the world's largest exporter of tea, the technology development and product development is low when comparing to the competitors because of the cost factor. Stagnant infrastructure development may decrease the industry's ability to compete internationally. These are the main threats that Bogawantalawa Company has been facing on.

Appendix 02

SWOT analysis of Tea industry in India

Strengths

We can see that main Strengths are such as Technical & Manpower Skill- Due to a huge population base in India Technical and manpower Skill is available in plentiful. And also Demand for tea has been growing at some 2% per annum and should accelerate further. And good Research Support by tea growers has will help industry grow further.

Weaknesses

Major weaknesses are such as Supply from more efficient players like Kenya, China, Sri lanka. And also Labor intensive industry- The second generation labors is unwilling to join this industry therefore it could pretense a problem of skilled manpower in the near future. And also No efficient Cost Management system adopted by industries and other regulatory bodies, and Declining Export of India over the years.

Opportunities

It will be benefit for the companies who exist for achieve future opportunities. The main opportunities are to come up with new flavors and formulation of the tea, tea houses to popularize the impression of tea in India, also Export Potential if India can increase its production capacity, and To make tea more acceptable and fashionable like coffee and Large untapped rural market for branded tea companies lile Hul and Tata Tea. These are the main opportunities can gather from the environment.

Threats

When we look at the environment of the India we can see that there are four main threats for the tea industry such as Low Cost in some countries like China, Sri Lanka and Kenya, Cost escalation on account of increase in the cost of production, Import of Tea from other countries and also global competition.

PEST Analysis for Indian Tea industry

Political factors

Trade Agreements

Employment laws

Tax policy

Trade restriction and Tariffs

Political stability

Environmental regulations

Industry - specific regulations

Economic factors

Demand for food and beverages

Customers buying power

Exchange rate and taxation

Economic growth

Foreign Investment

Foreign Investment

Interest Rate

Raw material Availability

Social factors

Population growth rate

Health Consciousness

Social cultural changes

Trend of Buyers

Career attitude

Consumer preference

Change in life style and occupation

Education

Technological factors

Advances in manufacturing

IT developments

Research and development activities

Industrialization

Characteristics of the Indian Tea Industry

Commodity nature

Organized industry

Domestic competition

Inconvenient but healthy drink

Long gestation

Labor intensity

Productivity and quality

Commodity nature

Tea prices rise and fall widely with demand supply imbalances. The product is unpreserved and demand is comparatively inelastic to price. While demand has a worldly growth rate, supply can differ depending on climatic circumstances in the major tea growing countries.

Organized industry

When we looking at the organized industry tea manufacturing is an organized agro industry. This implies that employment laws subsist and while the foremost mode of tea trade is throughout auctions, huge number of small producers gets fair prices through these auctions.

Domestic competition

The main contribution of tea market is conquered by unorganized companies. There are about 900 of tea brands in India, of which 90% of the brands are participated by local companies whilst the stability of the 10% is conquered by, Hul, Tata Tea, Godrej, Sapat, Wag Bakri Chai International and others.

Inconvenient but healthy drink

In many countries people starting their day by having a tea. Tea is an inopportune drink to make. The propensity to form a smooth layer of caffeine-tannin adds to the trouble. Tea in addition having properties of exhaustion amelioration has chemicals, which help in preventing cancer and also maintain the cholesterol levels.

Long gestation

Tea scrub grown-up for profitable development in 4 to 6years and remain industrious for a standard 40 to 50 years. Most important part of capital expenses is to be incurred in first four years, which then yields come back over the next 100 years.

Labor intensity

Employment charge is normally fixed and therefore lower manufacture would effect in higher unit cost of manufacture. The amount of variable rudiments in labor cost depends on labor legislation and amount of informal and impermanent workers in employment. If the manufacture suffers on explanation of bad conditions or pests, the per unit cost of manufacture goes up considerably. So this business is very labor concentrated.

Productivity and quality

Tea production can be calculated as per unit of man year (Labor) and per unit of hectare (land). Automatic plucking, when manual labor is in petite supply or expensive. Enhances output, but with concession on quality, as uncouth leaves also get plucked. When tea is in petite deliver, some producers boost output by allowing plucking of uncouth leaves with new ones. When finest for quality rises, producers advance the quality by compromising on output.

Appendix 03

SWOT analysis of TATA Tea

Strengths

The main strengths we can see that TATA is the Market Leader With a share value of 22.6% in December, Tata Tea is now the marketplace leader in the Rs8, 000-crore recognized teas marketplace, having overtaken per Hindustan Unilever which has a value share of 21.3%.and also the Capabilities and assets, Tata Tea company owns roughly 49 tea estates in the states of West Bengal, Assam and Kerala in India.. The harvest at every of these plantations absorb the uniqueness of the region where it grows. In that esteem, tea is much like wine. Having plantations in diverse agro-climatic zones enables Tata Tea to farm separate tealeaves. And by using the image of the brand company have been successfully market the product. Tata tea Brand is ranked the 2nd most trusted beverage brand in brand impartiality. And also Tata Tea has been one of the oldest organizations in India and has the benefit of skill and knowledge on their side.

Weakness

There are three main weaknesses that we can identify such as No manufactured goods separation, one of the major problems Tata Tea faces is the lack of much manufactured goods discrimination therefore faithfulness of customers is a foremost area of concern. And also due to need of branding activities by the organized companies and slow switching cost of customers retaining customers becomes confront as they swap over to cheaper brands. And also the delivery network of Tata Tea comprises on 1.30 lakh distributers this is not much when you contrast to Hindustan Unilever Limited who have the strongest merchant network among India.

Opportunities

The corporation can amalgamate into fruit & herbal teas. This section has not yet been touched by any of the tea organization yet and this could give Tata tea the first mover's benefit if they choose to enter this part. Also there is a huge untouched countryside market which needs to be oppressed. Even though Tata Tea has made its occurrence felt in the countryside markets this sectors is characterized by a big unorganized segment and local companies rule the rusts of the day in these markets. And also Tata tea is current in 40 countries around the globe. There are many chances it can utilize if they can boost their manufacture capability to develop these untouched world markets all over the globe. And also it will be great opportunity for Tata tea if Tata tea enlarges its market share and diffusion by acquiring these small and medium industries and forming mergers with other big MNC's like it did for Tetley Tea; there are more than 1000 tea companies in India, if Tata will try to acquire or merge with any company it will be advantage for their distribution.

Threats

There are not too many doorway barriers put by guidelines makers this makes the Indian Tea market very disjointed and unorganized. There are lots of regional companies who hold small chunks of markets. By impressive Entry barriers the accessible companies will be in a enhanced situation to develop the existing condition.

TATA Company Internal environment analysis

Recourses

Manufactures about 60 million kg of black tea annually.

49 tea estates in states of Assam, West Bengal, Tamil Nadu, Kerela.

Area of 25,000 hectares under tea farming.

Subsidiaries and connected industries.

in a foreign country business

Core competencies

Brand image

Capabilities

Trusted and strong management

Marketing recourses

Improved research and development

Distribution system

Appendix 04

Marketing strategies

Marketing plan and its strategies makes goods contest in aggressive place and executes brand representation, which gives trustworthy consumers to the organization. It helps the goods to make its self-governing individuality offer various brands after taking local tastes into account. Bogawantalawa goods vary in terms of blend, pricing and packaging formats to provide to the exclusive needs of each section. Strategy is to invest in long-term brand construction for continued expansion to the company.

In nastiness of a worldwide presence, the brands are distributed in a different way depending on the place. As Bogawantalawa tea is far better known in Sri Lanka and a powerful brand there, it is pushed on this Indian market and countries with a huge Sri Lankan population. Consequently Bogawantalawa is the company's universal face and the major markets focus on the Bogawantalawa brand. Where both brands co-exist in one market, Bogawantalawa Black tea is positioned as the premium brand.

Source of information

For gather data for the research we should have truth worthy and use full and up to date data. The information should be snap shot of the organization. There are two ways of gathering data such as primary data and secondary data. Through business magazines, annual reports of competitors, Indian budget report, and from the market expertise can gather valid data. In now a days it is possible that through research agency gather the data. It is a one of the best method which is available because they prepare the information rock soiled and current and also by doing a fully marketing analysis. These are the main ways that gather the data for this project.

Appendix 05

Brand Positioning Matrix

High Relevance to small Business

Low Relevance to small Business

High Quality

Low Quality

Watawala Tea

Dilmah Tea

Lipton Tea

Bogawantalawa Tea

Cylonta Tea

Appendix 06

Pricing strategies

Cost base pricing

One of the middle objectives of this venture being to turn into the market leader in efficient drinks, Bogawantalawa is enthusiastic to keep on among the peak competitors if not becoming the better, by gaining a positive objective profit. This could be obtaining by launch a price that will mainly cover changeable and permanent costs while bringing marvelous profits.

Value added pricing

Competitors and possible substitute's prices can also be element of the approach. By comprise an advanced price could create consumers conscious of the extra reimbursement and the superior quality of tea.

Value based pricing

The organization sets its intention price based on consumer perceptions of the product price. The beleaguered value and price then make decisions about manufactured goods design and what expenditure can be incurred. As a consequence pricing begins with analyzing customer requirements and value perceptions, and value is set to equal customer's supposed price.

Market penetration pricing

The Bogawantalawa organization can set a small price for a innovative goods in order to magnetize a huge number of consumers (buyers) and a large market share.

Break-even pricing

The Bogawantalawa industry has to create some strategies for break-even prices, setting prices to break even on the expenses of creation and marketing a (goods) product, or setting prices to make a objective profit.

Appendix 07

Distribution strategy and the action plan for five years

Step

Out put

Period of time

Argument

01

Personal selling

1st year

To make Indian retailers and customers aware of Bogawantalawa tea.so they can order it time

02

Radio spots

1st and 2nd year

Radio is the most listened media by drivers, students, and people on the go.

03

Magazine adds

2nd year

Target markets will then mach an image with the name of the product easily. The recognition of Bogawantalawa tea will be faster.

04

Television spots

3rd year

To send a wide massage over India that Bogawantalawa tea from Sri Lanka available in the market.

05

Point of purchase

3rd year

Making a special section for the Bogawantalawa tea in retail store will facilitate the latest possible buyers to search the product faster & more easily.

06

Outdoors

3rd and 4th year

Putting ads in specific places where generation Y will hangs out will generate an enlarged attentiveness of Bogawantalawa Tea.

07

Public relations

4th year

We will use special events to promote tea (sports and other occasions) also get in touch with our potential market. It will allow Bogawantalawa company to interact with our generation Y consumers.

08

Contest

4th and 5th year

Company will apply competition to give a 2nd push to the sales of the Bogawantalawa tea.

09

Publicity

1st to 5th year

Use of TV ads and newspaper ads make the common community conscious of the existence of Bogawantalawa Tea.

Appendix 08

Promotion strategies

TV Advertisements

Mainly watched channels in now days are Local channels, Geo, discovery and mostly MTV, ect. Television communicates with spectacle sound and movement, which is wanted for tea. It is the simply medium that can achieve 97% of houses at once. But for this method it will cost for the company unpredictably.

Magazines

Company must take the benefit of the reality that magazine have turn out to be a very particular medium. There are a lot of customers' magazines in India. Good color production also as benefit that creates powerful descriptions which is the intention of the Bogawantalawa Company with its tea product. Each magazine reader often symbolizes a unique profile.

Online - through internet

Online advertising is smaller to the publish promotion in that it offer a visual meaning. It also has supplementary compensation; it also can use the aural and the video capabilities. As we are focusing our ads to youth out going community, sound and movement may draw additional concentration from audience and has the exceptional characteristic being interactive.

Outdoor

Billboards in exact environmental part would tolerate us get a good contact and incidence. It is small charge and elastic option.

Other

In succeeding years, appoint in manufactured goods residency in Television programs and films.

Allowance and discounts

This approach will be use so it can give confidence to retailers to purchase further of the product to obtain convinced quantity free of charge.