An Advantages Bogawantalawa Tea Marketing Essay

We are one of the main tea exporters who create a diversity of own label and private label products from the teas made in own estates located in the Golden Valley of Bogawantalawa.

We control some of the high quality High Grown and Low Grown Tea estates in the world developing over 11 million kg per season. We present garden fresh teas at a price successful price and every consumer who works together with us will have a exceptional occasion of coping direct without going right through middle men.

In Sri Lanka Bogawantalawa is a little city in (Central province). It is situated at 1514 m elevation greater than sea level in the country. Located Bogawanthalawa is very famous for its Tea estates among the country. a whole lot of key companies operate throughout the tow

Majority of tea estates of the region is managed with a company called Bogawantalawa Tea Estates Ltd. Bogawantalawa Tea Estates is the largest Sri Lankan distributor.

There's a sense of mystique when discussing this valley. Known more than for a century, this mist enshrouded, mountain valley is known for its tea of outstanding purity and preference. Sought after by connoisseurs around the world, Bogawantalawa create a unique blend of tea of unparalleled fragrance, flavor, aroma and sourced from this one single valley, it is meticulously handpicked, and involves you fresh, from tea leaf to teacup.

The Bogawantalawa Valley is a miracle of nature. Using one aspect it is surrounded by one of the world's most beautiful countrywide parks and wilderness reserves, on the other side it is bordered by verdant mountains shrouded in mist. The traditional name of the Valley, Boghavanthalawa, basically means "the basic of the gods". Nonetheless it was not beauty by itself that drawn the first Scottish planters to the Valley, way back in the year 1869. These first technology planters discovered 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 considerable monsoonal rains induce a slower, more focused development in the tea bushes. Therefore brings out a tea that is abundant with its flowery bouquet and refreshing in its warm tastes.

2. 0 Mission Statement

Bogawantalawa is a company of resourceful people who promote a responsibility and dedication to attain quality in handling the reference of the company by providing customers with high quality products.

2. 1 Current market position

In below graph we can identify who are the main rivals for Bogawantalawa Company and what is the existing 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


Currently Bogawanthalawa Company has been mainly produced six major products. Such as Black tea, Green tea extract, White tea, Herbal tea, Single Real estate tea, flavored tea. These products are successfully advertised in the neighborhood market and it includes started to develop profits. So the company has considered a conclusion to enter in to a fresh market with their existing products. By looking at the aforementioned positioning chart we can identify Bogawanthalawa has a High quality product for medium price when compared in to the local rivals.


The company is getting excited about proceed to India as their new market. So company has identified two main competition from existing market such as TATA Tea and Hindustan Unilever Limited (HUL).

Bogawantalawa Company has sold their product through their own retailers near to stock as well as have in to retail business also through supermarkets and retail retailers.


When checking 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 merchandise for high quality. As an impact of using latest technology price has truly gone tiny bit up. It'll be a benefits, when joining to new market to capture a potential customers company can go for a attractive costing strategy.


Tea is a product has to promote in different ways than other product. So we can use the multimedia for give promotion first. And also we can use newspapers to provide an idea what's the product and quality expectations to gain customers trust. And also can have promotional promotions in that retailers (buy two and get one free) to catch the attention of customers first into the brand.

(Refer appendix 01 for additional information page No 17)

2. 3 SWOT research for Bogawantalawa Company

Once the forces impacting on rivalry have been known, the company will be in a position to identify its talents, weakness to defeat hazards and cash on the opportunities. Under the SWOT factors I have discussed about the key issues and the opportunities that company may use.

(Refer appendix 01 for SWOT evaluation for Bogawantalawa Company webpage No 17 - 18)

3. 0 Market summary - India and way to obtain information

Company has used a decision to move in to a fresh market. Tea industry in India is old about 169 years. It inhabits a significant place and performing an exceptionally helpful part throughout the market. So the company has chosen India as the market. Tea is an agro-based product and is subjected to vagary of dynamics. When confronted with unfavorable agro climatic situation skilled in tea growing areas in various years, Indian Tea plantation Industry is ingenious to maintain large development in relative to quantity of Indian tea produce during the decade time.

In India teas is a significant beverage in the country. It also considered as the cheapest drink among the beverages available in Indian market. The tea production provides profitable in a straight line occupation to more staff mostly strained from the backward and communally poor area of the community. It is also a considerable abroad replace earner and offer significant quantity of income to the country. In India tea plantations mainly located in rural hills and diffident regions of North-eastern and Southern State governments. Kenya is fundamentally a CTC tea developing country. While India is face to your competition from Indonesia and Sri Lanka with look upon to sell in another country 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 primary competitive countries in tea industry in the globe are Kenya, China, Sri Lanka, and Indonesia. Sri Lanka and Indonesia are producing basically orthodox types of tea. China is the primary producer of green tea to the market. By looking at the factors Bogawantalawa Company has decided to move around in to Indian market.

Appendix 02-(SWOT analysis of Tea industry in India and Infestation Evaluation for Indian Tea industry and way to obtain information site No 19-22)

3. 1 Special top features of the Indian Tea Industry

High cost due to high insight cost.

Low investment in Development Programme.

Huge percentage old tea and Low Productivity.

No priority for Scientific Cost Management.

Production based mostly of agro-climatic conditions.

Labour intense.

Product Life is for limited period.

Same vegetable and same agro-practices give variations in quality in several regions.

4. 0 Rival analysis

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


TATA Tea is the biggest perpendicularly designed tea industry in the globe, from its agricultural house activity throughout to its product packaging and marketing initiatives. Tata Tea Limited, also known as Tata-Tetley, is the world's second major company and distributor of tea. In addition, it consists of in the farming and produce of instant tea and dark-colored tea, tea buying, and trade of tea in bulk or value added form. It includes tea mainly under the many brand names such as TATA Tea gold, TATA Tea high quality, TATA Tea Agni, Tetley, Kanan Devan, and Chakra Yellow metal.

(Refer appendix 03 for SWOT examination of TATA Tea and inside environment analysis webpage No 23 - 24)

4. 1 Assumptions

The company assumes to enter in to the largest existing market in India. Due to the high quality company expect that can catch a market soon as they go to the marketplace. Sri Lankan tea is the one of the better Tea on the globe 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 opponents. Also presume that company can get working school of the country because mostly rich people in the country getting excited about have coffee than tea. And company assumes their rates strategy is preferable to competitor. And also assume to take over a 10 to 20% market show within the five years time period. In India whole lot of people prefer tea so can believe demand for tea will stay as the same.

4. 2 Objectives

Increase the marketplace show 15 to 20% within the five years time.

Generate brand recognition within consumer target market and business marketplace.

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

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

Improve the circulation through most widely known established dealers, stores.

Create a publicity operation to create brand awareness and distinguish products superiority from opponents through emphasizing trade-sales advertising to aid delivery way.

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

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

Market talk about as %

1st year

2nd year

3rd year

4th year

5th year

Total Market share

Every year by 4%







5. 0 Ansoff's Matrix for Bogawantalawa Tea

Current Product

New Product

Current Market

Market Penetration-

Relationship marketing, business cafeteria, retail stores, supermarkets.

Product Development -

Re brand name, re packaged products, new tastes, and new kinds.

New Market

Market Development -

Open outlets all over the country,

New resellers, new delivery route, online selling, make popular the brand and the emblem.


Partnership activities, promotions and knowledge exhibitions and workshops.

5. 1 Marketing strategies

For product development

Pull strategy.

Brand consciousness.

Heavy adverts.

To gain bargaining electric power of suppler.

Pricing strategy

Premium costing strategy.

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

High price will be improved, with a 30% increase when compared with the leading rival.

Product marketing strategies

Massive campaigning using the concept of pull strategy.

Allocation of advert budget at 5%

A product focusing on the top quality at a high price, thus a creating a distinct segment market section.

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

Media campaigning regarding decaffeinated.

Free samplings.

Slowly but surely open up outlets in other parts in the united states.

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

5. 2 Focus on market

Daily tea drinkers

Offices (government and privet sector)

Retail outlets, resellers and supermarkets

Restaurants, hotels and guesthouses

Target market - Profile Matrix for Bogawantalawa tea



Business strengths

Industry/ Market Attractiveness



Hotels, Restaurants

Daily tea drinkers

Retail retailers & Supermarkets


6. 0 Porter's Five Forces

Industry rivalry ˜ [High]

Low switching costs.

There are about700 tea companies in India hence you can find intense rivalry amongst them.

Market is dominated by a large number of unorganized players.

Industry progress is slow.

Bargaining Vitality of Purchasers ˜ [High]

Not much product demarcation in conditions of preference also low switching cost.

There are a big numbers of potential buyers purchasing the made goods.

Buyers buy a huge quantity of the industry's total development.

The bargaining electricity of buyers is incredibly high as the buyers have numerous options on hand.

Bargaining ability of suppliers " [Low]

There are substitute like espresso available.

Supplier's product creates low turning cost.

There are a big volume of produces of tea in India.

Threats of substitute's ' [Average]

Substitutes - caffeine, cold refreshments, 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 conflict is unavoidable.

Threats of new entrant's ˜ [High]

Encouraging government insurance policies like food and beverages act.

Large untapped rural market segments for top quality tea section in rural India and Indian tea in global market segments.

6. 1 Porter's Strategic Matrix

Low cost

High cost



Competitive Scope

Source of competitive advantage

Cost Leadership


Bogawantalawa Company

Cost Focus

Differentiation Focus

Bogawantalawa Company selects the Differentiation strategy because it entails creation company goods unlike from plus more smart from rivals. Company do that is determined by the accurate aspect of tea industry and of the merchandise and services themselves, but will obviously involve longevity, also brand image, operation, support and features that company's consumer's value. To make a winner of a Differentiation strategy, companies require,

Good research, development and creativity.

The ability to provide high-quality tea products.

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

7. 0 Branding Strategy

Make Your Global Brands Local

Use Local Brands to determine 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 expenses in operational areas that contradict what company brand stands for

Company can adjust ads, however the basics of slogan, logo design, and color need to fundamentally look the same. Make small changes as time passes so that consumers won't get puzzled and lose the merchandise. After all, if company change advertising too much and consumers don't realize it, then company just lost all the good will, understanding, and trust that company have developed with branding strategy over time. If company does want to make huge changes all at once, then company would like to share consumers about it. Company should momentarily increase advertising budget so that company can keep consumers educated, rather than lose them. Company might look at a direct mail marketing campaign, or television adverts etc. company would want to change them regularly because if not it'll get really uninterested in the branding strategy. Before consumer is serious about making a purchase, they won't really pay close concentration to advertising. Company will feel familiar to them because they have observed ads 100 times, but only when they are ready will they really read it. Same exact boring advertisement won't bore customers. Usually do not change the entire appear and feel of ads unless you don't get the sales as company expected.

(Refer appendix 05 for Brand Setting Matrix web page No 26)

7. 1 Setting Statement

A brand's position refers to its devote the customers' brains. Positioning creates a distinctive space for a brandname, and succinctly articulates the positioning to the brand's core target audience. The business desires to make customers head if would go to make a tea, that point remember the actual tea you can find using. Bogawantalawa Company theme is "quality tea for everyone" they have goal the audience who is in love with the tea can use Black colored tea and who willing to lessen the weight can use green tea. etc.

7. 2 Product Strategy

Product strategy predicated on the most up to date company and product perspective. Product differentiation strategy when company and rivalling firms provide a product that fulfills the same need. Inside a product-differentiation strategy, company goal is to put distance between your product and competitor's product. Essentially, competitor offers tea A, but you Sell tea B, in company strategy, company need to create tea B so that tea fans find Bogawantalawa tea to be more advanced than companies' competitors. price-based product strategy, the goods is designed relating to such things as cost-plus costs that where company placed the price of the product at the production cost and also a specific profit margin, value-based prices that where the price comes from according to the product's value with regards to competitor's products, and target-return prices that where you established a price to be able to receive a certain profit margin.

Market share

Market expansion rate





Product strategy - Boston Matrix


Question symbol ?

Cash Cow $


By doing a market survey will get how products come to the BCG matrix. After looking at the matrix cash cow products and superstar products will be advertised.

7. 3 Costs strategy

The point is here now Bogawantalawa Tea Company cannot establish a price that is too much because competitors will entice by potential revenue and can follow by a lower price. After having taken all the critical indicators into consideration, there five price level mending appear appropriate.

(Refer appendix 06 for additional information on pricing strategy web page No 27)

7. 4 Circulation strategy (Place)

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

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

7. 5 Promotion strategies

Promotional activities will communicate that the clear therapeutic massage of Bogawantalawa Tea is a healthy drink for daily tea drinkers, sporty and young and any technology who simply enjoy caring for your body and the real taste of a tea. There are a few product promotional strategies such as TV advertisements, Radio, Publications, outdoors, personal selling, public relations and publicity.

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

8. 0 Assumed budget and Risk management

Risk management includes assessing and quantifying business risks, then taking measures to control or reduce them. Its goal is to create ideas and promote good practice for those mixed up in business of taking care of risk. Frequently assessments of risk are crudely made and the results to getting things incorrect can be serious, including lost opportunities, lack of business and lack of reputation. Administration the rivals on the market also will be yet another risk. This can be prevented by providing different plus more quality products to the clients. Then your customers won't make an effort to move for the competitive companies in the market. And also Market Risk includes interest risk, forex risk, and investment profile risk. INTEREST Risk is the risk of financial damage from changes in market interest levels. As strategic risks we can say that, Governance Risk is the chance of experiencing an inadequate composition or body to make effective decisions.


By developing a budget companies can allocate the resources as they wanted. And in addition budget will help for the business with an idea about potential expenses and fast expenses of the company.

(Refer appendix 09 for assumed Budget site No 30)

9. 0 Conclusion

In this record included a five years marketing plan for Bogawantalawa Company. In such a report, I have discussed about how precisely Bogawantalawa Tea industry eager to go to new market in India and the way to use appropriate strategies and how to market the merchandise in very competitive environment. For become familiar with about environment I've done a research on competition SWOT, PEST examination to get an improved understanding about the surroundings. Also I've use some theoretical matrixes to get a clear idea the way the markets movements and what exactly are the products that people should market. And also I have mentioned about costs and better promotional strategies that company will find comfortable at last I've given some advice that would help the Bogawantalawa Company for potential success and record market show in five years time.

10. 0 Recommendations

As tips for potential success we can claim that Increase number of service outlets, In recent times there have been numerous tea and coffee shops bounce up in metropolitan areas like Mumbai, Delhi, Bangalore etc Tea house shpul beset up in an identical fashion and premium quality tea's should be offered at these outlets. And also proper alliance, Tie up up with own range of five star hotels to provide superior quality tea also with lower end three celebrity hotel and also local eateries. Tie-up with airlines, caterers etc to promote Bogawantalawa tea to the market. By connect up with these companies it will easy to build relationship with corporate and business customers and build a good customer romantic 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 minimizing cost of packaging which will also decrease the Vat & additional charges. Thus masses from lower income group would be effectively targeted. And also Starting of flavored teas bamboo mugs in china bring it to India too. Starting of more tastes in India. And in addition Increase income for retailers to accomplish higher sales level because they are the main influencing factors in lower income group people. And also providing a package pack like a little tea sachet free with 100 grams pack of biscuits.

11. 0 Reference

Johnson, G, 2008. Discovering Corporate and business Strategy. 5th ed. Prentice Hall: Financial Times.

Bohlander, Snell, 2007. Human being Resource Management. 4th ed. USA: Thomson ADVANCED SCHOOLING.

Jordan, Roass, 2006. Corporate Finance Basic principles. 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] Offered by: http://www1. american. edu/TED/indiatea. htm. [Utilized 04 January 12].

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

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

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

PESt examination india. 2011. Infestation research india. [ONLINE] Offered by: http://www. scribd. com/doc/29980456/PESTLE-Analysis-of-India. [Accessed 09 January 12].

Competitor evaluation. 2011. Competitor examination. [ONLINE] Offered by: http://tutor2u. net/business/strategy/competitor_analysis. htm. [Reached 10 January 12].

Ansoff's Matrix. 2011. Ansoff's Matrix. [ONLINE] Offered by: 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


Insistent Marketing Strategy - Bogawantalawa can take benefit for the encouraging power down on medical repayment on tea to enhance the sales of its snow tea products. Groundwork of its media releases and promotion campaigns Company can exercise current studies on the health repayment on tea.

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

SWOT examination for Bogawantalawa Company


When we considering the talents of Bogawantalawa Company we can identify that company has a old industry record, long experience, new technological and man power skills, good research and development support, mainly they opt for tea from their own estates so cost benefits, resources leverage, effective communication, innovations through experience in the company, devoted customers from long time due to image of the business and the high quality, also market share command, strong management team, strong brand collateral, every company must have financial sustainability which means this will be great advantage for the Bogawantalawa company, strong source string, and having reasonable product price among the list of competitors. And also the quality control within the business is good. Company having a strong image in the neighborhood market, so that it will be edge when getting into new market.


Basically min development investment, stagnant development, less effective cost management, declining exports are major weakness can see from the Bogawantalawa Company but there are a few more such as diseconomies of scale, low R & D, less online occurrence, less diversified, weakened real-estate, the center for the creation of the tea have become outdated. The growing stock is old and has lost efficiency. Stock modernization is slow-moving and there can be an imbalance in the creation proportion of orthodox. The output is low in comparison with the international players. Above mentions the main and weaknesses of the Bogawantalawa Company.


As opportunities we can see that quality and brand collateral, export potential, big domestic market, financial institutional support, acquisitions, financial market segments, emerging market segments and expansion in foreign countries, innovation, go through online offering and online marketing, takeovers, world demand is good for dark-colored tea expected grow rate is 3. 2% per yr. The significant part of demand from the developing counties, especially middle east and CIS countries which includes inclination of orthodox tea. Also CIS counties prepared to buy who providing good and quality product so this will be potential chance of the company. The near future consumption potential in other marketplaces is so high. Company produces a wide array of tea, from high quality light tea to strong dark tea. It could exploit this ability to expand the product range and diversify into related products. They are the major opportunities that company has revealed.


Threats for the company such as wide open global competition, low priced in a few countries (Kenya), uncertain price, cheaper technology, economical slowdown, external changes (government authorities, Tax and legislation, politics. etc), exchange rates fluctuations, maturing categories - products, price wars and also product substitution such as carbonated drinks and caffeine. Kenya has overtaken the Sri Lanka as the world's largest exporter of tea, the technology development and product development is low in comparison with the competitors as a result of cost factor. Stagnant infrastructure development may reduce the industry's potential to remain competitive internationally. These are the main hazards that Bogawantalawa Company has been facing on.

Appendix 02

SWOT evaluation of Tea industry in India


We can easily see that main Strengths are such as Technical & Manpower Skill- Because of a huge population bottom part in India Techie and manpower Skill comes in plentiful. And in addition Demand for tea has been growing at some 2% per annum and really should accelerate further. And good Research Support by tea growers has will help industry grow further.


Major weaknesses are such as Source from more efficient players like Kenya, China, Sri lanka. And also Labor intensive industry- The second technology labors is unwilling to join this industry therefore it could pretense a problem of skilled manpower in the near future. And in addition No successful Cost Management system followed by business and other regulatory body, and Declining Export of India over time.


It will be advantage for the firms who can be found for achieve future opportunities. The primary opportunities are to create new flavours and formulation of the tea, tea properties to popularize the impression of tea in India, also Export Potential if India can increase its creation capacity, also to make tea more satisfactory and fashionable like espresso and Large untapped rural market for top quality tea companies lile Hul and Tata Tea. They are the primary opportunities can gather from the environment.


When we go through the environment of the India we can see that there are four main risks for the tea industry such as Low Cost in some countries like China, Sri Lanka and Kenya, Cost escalation due to increase in the price tag on production, Import of Tea from other countries and also global competition.

PEST Evaluation for Indian Tea industry

Political factors

Trade Agreements

Employment laws

Tax policy

Trade limitation 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 progress rate

Health Consciousness

Social ethnical changes

Trend of Buyers

Career attitude

Consumer preference

Change in life-style and occupation


Technological factors

Advances in manufacturing

IT developments

Research and development activities


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 climb and fall greatly with demand source imbalances. The product is unpreserved and demand is comparatively inelastic to price. While demand has a worldly expansion rate, supply may vary depending on climatic circumstances in the major tea growing countries.

Organized industry

When we considering the arranged industry tea production is an planned agro industry. Therefore that employment laws subsist even though the foremost setting of tea trade is throughout auctions, huge number of small producers gets good 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 balance of the 10% is conquered by, Hul, Tata Tea, Godrej, Sapat, Wag Bakri Chai International while others.

Inconvenient but healthy drink

In many countries people starting their day insurance agencies a tea. Tea is an inopportune drink to make. The propensity to create a smooth level of caffeine-tannin increases the trouble. Tea in addition having properties of exhaustion amelioration has chemicals, that assist in preventing cancer and also maintain the cholesterol levels.

Long gestation

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

Labor intensity

Employment charge is normally fixed and therefore lower manufacture would effect in higher unit cost of produce. The amount of adjustable rudiments in labor cost will depend on labor legislation and amount of casual and impermanent employees in employment. When the manufacture suffers on reason of bad conditions or pests, the per product cost of production goes up considerably. So this business is very labor focused.

Productivity and quality

Tea creation can be calculated as per device of man calendar year (Labor) and per device of hectare (land). Auto plucking, when manual labor is at petite resource or expensive. Enhances output, but with concession on quality, as uncouth leaves also get plucked. When tea is petite deliver, some providers boost productivity by allowing plucking of uncouth leaves with new ones. When finest for quality rises, producers boost the quality by compromising on productivity.

Appendix 03

SWOT analysis of TATA Tea


The main strengths we can see that TATA is the marketplace Leader Which has a show value of 22. 6% in Dec, Tata Tea is now the marketplace head in the Rs8, 000-crore identified teas market, having overtaken per Hindustan Unilever which has a value talk about of 21. 3%. and also the Capabilities and possessions, Tata Tea company has approximately 49 tea estates in the states of Western world Bengal, Assam and Kerala in India. . The harvest at every of these plantations absorb the uniqueness of the spot where it increases. For the reason that esteem, tea is much like wines. Having plantations in diverse agro-climatic zones permits Tata Tea to farm individual tealeaves. And utilizing 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 advantage of skill and knowledge on their side.


There are three main weaknesses that people can identify such as No manufactured goods parting, one of the major problems Tata Tea faces is the lack of much manufactured goods discrimination therefore faithfulness of customers is a main area of concern. And also credited to need of branding activities by the structured companies and gradual turning cost of customers retaining customers becomes confront as they swap over to cheaper brands. And also the delivery network of Tata Tea includes on 1. 30 lakh distributers this isn't much when you comparison to Hindustan Unilever Small who've the strongest vendor network among India.


The company can amalgamate into super fruit & organic and natural teas. This section has not yet been touched by any of the tea group yet which could give Tata tea the first mover's advantage if they choose to enter into this part. Also there's a huge untouched countryside market which must be oppressed. Even though Tata Tea has made its event believed in the countryside marketplaces this industries is seen as a a large unorganized segment and local companies rule the rusts of the day in these marketplaces. And in addition Tata tea is current in 40 countries around the globe. There are plenty of chances it can utilize if indeed they can enhance their manufacture capacity to develop these untouched world markets around the world. And also it'll be great chance for Tata tea if Tata tea enlarges its market show and diffusion by acquiring these small and medium establishments and developing mergers with other big MNC's enjoy it have for Tetley Tea; there are definitely more than 1000 tea companies in India, if Tata will try to obtain or merge with any company it'll be advantage for his or her distribution.


There are not way too many doorway obstacles put by recommendations manufacturers this makes the Indian Tea market very disjointed and unorganized. There are several regional companies who hold small chunks of marketplaces. By impressive Accessibility obstacles the accessible companies will be in a increased situation to build up the existing condition.

TATA Company Internal environment analysis


Manufactures about 60 million kg of dark-colored tea yearly.

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


Trusted and strong management

Marketing recourses

Improved research and development

Distribution system

Appendix 04

Marketing strategies

Marketing plan and its strategies makes goods competition in intense place and executes brand representation, which gives trustworthy consumers to the business. It helps the goods to make its self-governing individuality offer various brands after taking local tastes into consideration. Bogawantalawa goods change in conditions of mix, rates and packaging formats to provide to the exclusive needs of each section. Strategy is to purchase long-term brand construction for continued extension 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 robust brand there, it is forced on this Indian market and countries with an enormous Sri Lankan human population. Therefore Bogawantalawa is the company's widespread face and the major markets focus on the Bogawantalawa brand. Where both brands co-exist in a single market, Bogawantalawa African american tea is located as the top quality brand.

Source of information

For get data for the research we have to have truth worthwhile and use full and up up to now data. The information should be snap shot of the business. You can find two ways of gathering data such as primary data and supplementary data. Through business newspapers, annual accounts of competitors, Indian budget statement, and from the marketplace expertise can gather valid data. In more recently it's possible that through research company gather the info. It really is a one of the better method which can be obtained because they put together the information rock and roll soiled and current and also by doing a fully marketing evaluation. These are the main ways that gather the data because of 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 platform pricing

One of the middle objectives of the venture being to carefully turn in to the market leader in efficient drinks, Bogawantalawa is enthusiastic to keep on among the list of peak competitors if not becoming the better, by attaining a positive aim profit. This may be obtaining by release a cost that will mainly cover changeable and long lasting costs while having marvelous earnings.

Value added pricing

Competitors and possible substitute's prices can even be aspect of the methodology. By comprise an advanced price could create consumers conscious of the excess reimbursement and the superior quality of tea.

Value established pricing

The organization sets its purpose price predicated on consumer perceptions of the merchandise price. The beleaguered value and price then make decisions about manufactured goods design and what costs can be incurred. As a result pricing starts with examining customer requirements and value perceptions, and value is set to equal customer's intended price.

Market penetration pricing

The Bogawantalawa business can set a tiny price for a progressive goods to be able to magnetize a wide array of consumers (purchasers) and a huge market talk about.

Break-even pricing

The Bogawantalawa industry must create some strategies for break-even prices, placing prices to break even on the expenses of creation and marketing a (goods) product, or placing prices to produce a objective earnings.

Appendix 07

Distribution strategy and the action arrange for five years


Out put

Period of time



Personal selling

1st year

To make Indian suppliers and customers alert to Bogawantalawa tea. so they can order it time


Radio spots

1st and 2nd year

Radio is the most listened multimedia by individuals, students, and folks on the run.


Magazine adds

2nd year

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


Television spots

3rd year

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


Point of purchase

3rd year

Making a special section for the Bogawantalawa tea in shop will accomplish the latest possible clients to search the merchandise faster & more easily.



3rd and 4th year

Putting advertisings in specific places where era Y will hangs out will generate an bigger attentiveness of Bogawantalawa Tea.


Public relations

4th year

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



4th and 5th year

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



1st to 5th year

Use of Television set ads and newspapers ads make the normal community conscious of the lifetime of Bogawantalawa Tea.

Appendix 08

Promotion strategies

TV Advertisements

Mainly watched programs in nowadays are Local channels, Geo, breakthrough and generally MTV, ect. Tv communicates with spectacle audio and movement, which is needed for tea. It is the simply medium that can perform 97% of houses at once. Nevertheless for this method it will cost for the company unpredictably.


Company must take the advantage of the reality that publication have grow to be a very particular medium. There are a great number of customers' publications in India. Good color creation also as gain that creates powerful descriptions which is the goal of the Bogawantalawa Company using its tea product. Each mag reader often symbolizes a unique profile.

Online - through internet

Online advertising is smaller to the publish advertising for the reason that it give you a visual meaning. In addition, it has supplementary payment; it also can use the aural and the video tutorial capabilities. As we are centering our advertisings to youngsters out going community, audio and activity may bring additional attentiveness from audience and has the exceptional attribute being interactive.


Billboards in exact environmental part would tolerate us get a good contact and occurrence. It really is small demand and elastic option.


In succeeding years, appoint in made goods residency in Television set programs and videos.

Allowance and discounts

This methodology will be use so it can give assurance to retailers to buy further of the merchandise to obtain convinced quantity free of charge.

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