Ireland; tea-drinking nation

Ireland is typically a tea-drinking region. The tea properties have been offering up tea, in every its exotic types over 100 of years. The globalisation and change in customer's flavour and personal preferences has made a severe change in consumer's flavor and buying behaviour in Irish market. Life-style alternatives and changes has made the tea industry to lose its value than before, but continues to be well-liked by many people regardless of age and intimate distinctions. The absolute traditional varieties of tea will maintain the enduring acceptance of tea over caffeine in Irish homes.

It is observed that the web sales of the tea industry is declining when compared with coffee. Likewise, sales of renewable and fruit/herbal tea trounced dark standard tea handbags in conditions of growth during the last five years. Despite this, standard formats continue steadily to characterise the industry, with dark standard tea accounting for almost all total off-trade tea amounts.

Tea market in Ireland has witnessed a negative impact for last some years even though the utilization rate for tea remains high. It really is highly argued that the introduction of coffee chain retailers and the stimulation effect of espresso has been the primary cause of decrease for the demand of tea in Irish market segments. Some other arguments were about the prep process for tea. [Reuters. com, 2007]

Designing a plan to launch a new product into the market and its own justification

A "campaign" is a complex group of interlocking, coordinating, a whole plan or a series of different but related marketing communication work that appear in a different mass media and marketing communication areas across a specified time frame. Companies that induce one ad at a time and constantly change the core concept are not involved in campaign process. A plan should end up like an umbrella theme that stretches across time, different stakeholder viewers and different marketing communication opportunities. This examination of backdrop information is the research foundation that provides the foundation for figuring out the audience, costs, targets, strategy and insurance policy. One should have thorough knowledge of market economies, competition activities, consumer's romance with specific brands and consumer's romance with deals.

ј Trade Oriented

The basis of trade oriented Sales promotion is the 'Thrust strategy' corresponding to that your maker directs its marketing activities towards channel members to generate them to carry the product and promote it to the final consumers. (Gerwin 2001, )

ј Organisational Examination: What are company's sales and profits, mission and targets, product and services?

ј Competitor Analysis: Who are immediate and indirect rivals of the brand, resources they have, real and recognized distinction between brands.

ј Consumer Research: Who will be the market, their profiles, urge to buy, their buying and ingestion pattern.

ј Market Examination: What's the sales circulation pattern, which inhabitants segment(s) are most likely to react to the business, market opportunities, Significant changes occurring with regard politics, regulatory, economic, cultural and technological causes.

ј Product Evaluation: Does the product have the ability to give consumers what they need, will the delivery of product match consumer's expectations, does indeed the product's total offering offer to provide or address what consumers want.

Target Audience- Who were speaking with?

Customers should be considered a focus but every once in awhile, share should be increased through changing the audiences. Many groups like the media, friends, colleagues, opinion market leaders may be strong influencers in purchase decision. Decision making communities may need to be considered as part of targeting work.

Setting Budget Allocations, making resources available- What resources do we need?

The total financial budget, specific budgets need to be allocated to the various components of a plan.

ј Targeting a particular Market segment: To get more market talk about company concentration should be specific market sections (Geographic, demographic, psychographic and ethnic market segments) and are always researching to reach market ( user position group non users)

Introduction of the new product: Pearl Dairy Tea

Pearl Milk Tea is developed to obtain a new market share with its unique characteristics: healthy, variant, high quality yet economical.


Pearl Milk Tea is a variety of evaporated milk, dark tea, sugars, and fruit juice or other materials. Evaporated milk is a shelf-stable canned milk product with about 60% of this particular removed from fresh milk, that may go on for weeks, calendar months, and sometimes years on the shelf with respect to the brand. Based on the U. S. Administration, the vitamin chemicals within evaporated dairy are the following: Vitamin D - Each liquid ounce of the food shall contain 25 International Items (IU); Supplement A - is optional, but if added, each substance ounce of the meals shall contain no less than 125 IU. (Wikipedia, 2008). Matching to a report by UK Tea Council, black tea, which symbolizes about 72% of total consumed tea on the globe, is rich in flavonoid, a material which is well proved to be able to prevent heart disease, cancer and keep maintaining oral health. Stand 1 provides average beliefs for the various constituents within black tea (Harold 1992; 334-350).


Pearl Milk Tea can either be produced with iced or hot milk, depending on consumers' personal preferences. Sweets, one of the essential ingredients, can even be added by the customers themselves. Different sorts of juice or other kinds of substances like coffee or mint can even be added to meet consumers' various requirements, which feature the normal consuming development in Irish tea market today.


The two main elements to make the Pearl Milk Tea, evaporated dairy and dark-colored tea, are chosen from renowned making companies. All other substances are also purchased from other relevant famous processing companies so the consumers of the new product will love a top-standard quality from ingesting it.


The materials are purchasing in large amounts from major companies such that it would be made sure that the costs and product prices of the new products will be retained at a low level to compete with other types of refreshments.

With its healthy substances, various and attracting tastes, top-quality materials and its own competitive prices, Pearl Milk Tea will definitely declare a substantial share in the future tea market.



The sales focus on of the company in the initial calendar year is 3500 models each day for the first six months and a sales goal of 5500 products per day is expected for another six months thus contributing a complete of 1620000 systems per annum at the expense of 1. 50 euros. The sales focus on will be a total of 2430000 euros per annum. At the end of the fifth season, the sales concentrate on would be 25000 items per day, where the average sales would be 50 Cannes per store.


The amount of stores by which the milk tea is sent out is approximately 250 stores across Ireland. Within the consecutive years; it is likely to increase the amount of stores and by the end of fifth calendar year, the number of stores will are 500 across Ireland.


The advertising expenses would be saturated in the original years, as it can be an introductory product and may be lowered in the consecutive years as the merchandise gets familiar on the market by the end of fifth calendar year.


The company wouldn't have a profitable 12 months in its first calendar year of operation as the primary bills of new product would make it difficult for the company to gain profits and the company would meet its Chance Even Point in the next year. From the third year, the company would start making money and by the finish of fifth calendar year, it is expected that the company will emerge into a rise stage where in fact the profits will be huge and it paves for the growth.


The product or company wont gain any market show in first two years and from third calendar year, it is expected that the business would acquire a market share which is less than 5% and from fourth calendar year, it might be increased to 10% which is finally expected to 20-22% by fifth year thereby getting a competitive talk about among other brands in the market.


˜ As the merchandise is new to the market, having less consumer awareness may affect the product diversely

˜ The menace from competitors, mainly from tea industry could change their marketing strategies when Milktea gets into the market.

˜ The huge initial expenses that the business needs to set up premises and correcting the profit margin with the stores by which Milktea is sent out.

˜ The cost of training sales individuals so as to make them deliver effectively.

˜ The budget of the company and difficulty in anticipating sales figures for a future period of time.

Marketing Mix

In this part, four sets of variables that influence the demand of product will be reviewed, that is, product, promotion, price and place.


l Actual product, the tangible components of the product, like top features of the PEARL MILK TEA. It really is a mix of evaporated milk, black tea, sweets, and juice or other elements. It could either be produced with iced or hot dairy, depending on consumers' choices.


Basically, there are five promotional tools, advertising, sales campaign, direct marketing, public relations and personal advertising. Based on the top features of the product, the tools of advertising, sales promoting and pr could be chosen.

Advertising: in the introducing period of the product, beneficial advertising should be utilized to get customers aware of the product by advertising in popular newspapers among teenagers.

l Sales promoting: The main places of retailing PEARL MILK TEA are college or university canteens, shopping malls and stands in places of hobbies. Promotional activities like "buy one, get one free" or coupons should be established to stimulate purchases at the retail level.


In order to decide on the programs of product distribution, the following steps will be followed to design the channel.

1. Analyse consumer needs: predicated on the type and the features of product, the customers would like to buy it on a produce-on-the-spot basis.

2. Set channel aims and constraints: product could be considered

3. Identify major alternatives: because the blending rules of the substances of product should be firmly implemented, the exclusive syndication should be kept and the versatility should be placed under control.

4. Evaluate major alternatives on variety of factors: as mentioned above, the profitability and the flexibility of the circulation should be handled.

5. Select route members based on most important criteria: salespeople should be highly experienced. Besides, cooperativeness among different stalls should be encouraged.

6. Motivate route members: since the income could be relatively low, selling contests between staffs could be conducted to encourage channel customers.

7. Evaluate channel members: customer satisfaction, sales quotas, average inventory levels could be utilized to evaluate channel members and they would be honored with the motivating methods talked about above.


l Internal factors:

1. Marketing goals - strategy of the merchandise: according to the aim for marketing part, maybe it's attracted that PEARL Dairy TEA is highly recommended as "low quality everyday item geared to middle to low income" group. That also conforms with the meaning : like a lifestyle that most young and dynamic people enjoy.

As to the financial goals, at the first stage, to attain market share leadership, because of this, a relatively low price should be decided on in order to attract as many consumers as possible. So, the product is introduced at a cost of just one 1. 5 euros, which is relatively cheap and affordable by the clients. When in the maturing level, to be able to fight appearing competitors, lower the price to sustain in the market.

2. Other marketing combination decisions: predicated on the three factors discussed above, a low price should be made a decision since it is a low quality product sold through exclusive suppliers with the help of low-cost promoting methods.

3. Costs: should be fixed low costs in the introducing period to gain market share and adjustable costs in maturing period to struggle with challengers.

4. Organizational factors: this aspect would have to much influence on the purchase price.

l Exterior factors:

1. The marketplace demand: market should be monopolistic competition type so that the price can be improved to some extent.

2. Competitor's costs, prices and will be offering: use a minimal price, low-margin strategy to keep rivals out.

The four elements of the product are determined through the targets of the company and the marketing strategies. As market increases and our product develops, the four elements could be transformed accordingly.


Taking Tea industry all together, for choosing the key competitors. It has been observed that tea industry will lose its value and coffee industry emerging more robust. The main player in tea industry ie, The Barry's Tea and rest of the tea segment all together. Other key players in the industry will be the Lyon's tea and Nestea. I am taking Barry's Tea as main competitor in Ireland.

The Barry's Tea

Barry's Irish tea offers an array of blends which have been perfected after years of skilled tea blending. The business was founded in 1901 by Wayne J. Barry, grandfather of today's chairman, Peter Barry. Before 1960's, the tea was sold mainly from a Cork city shop in Prince's Avenue, but because of it's increasing acceptance your choice was made to broaden the wholesaling and syndication of the brand. The business began selling tea to outlets in Cork City Centre, expanding into the suburbs and then out to all of those other country.


The product, Pearl Milk Tea is a trendy and impressive product. Despite the fact that there might be some complications in marketing the product during the first few years, it would significantly attain a profitable market talk about. Since the product is not used to the market, huge costs need to be incurred during the initial years to achieve the market share. The marketing bills would be high as it would be a difficult job to get the consumers aware of the product. During the initial years, the company is likely to incur deficits or hardly any profit. That is due to expenses in formation of the business and huge marketing expenditures which occur through the primary years. But, as time passes, as the demand for the merchandise increases, the marketplace share would can also increase leading to increased income and growth leads. The company would be able to build itself as a solid player in the market since five many years of the commencement of the operations

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