A new marketing plan

RUR Herbal Tea

Course title: Marketing Management
Course code: MKT- 331

Submitted to

Md. Firoz-Al-Mamun
Assistant Professor
Faculty of Business
ASA University Bangladesh

Submitted by

Name ID
Utpal Kumar Das 091-12-0078
Md. Rakibul Hasan 091-12-0075
Md. Rashed Khan 071-12-121


Batch: 6
th

Section: C
Semester: Fall 2011
Submission date: 02 January 2012

January 02, 2012
Md. Firoz-Al-Mamun
Assistant Professor
ASA University Bangladesh

Request to accept our term paper
Dear Sir
It is our utmost pleasure to submit you our Term Paper for the course Marketing Management
on A New Marketing Plan. We think this is the part of our BBA program. We have truly
enjoyed our attachment in preparing this Term Paper. There might be some errors through
oversight in the Term Paper. We would be grateful if you kindly consider our unintentional
mistake. We acknowledge with thanks the whole hearted support & kind guidance received from
you. So we hope you would be kind enough to accept Term Paper & oblige thereby.

Sincerely yours,
Name ID no Signature
Utpal Kumar Das (G. L.) 091-12-0078

Md. Rakibul Hasan 091-12-0075

Md. Rashed Khan 071-12-121






Table of Content
Serial No. Title Page No.
1 Executive summary 4
2 History of tea

5
3 Manufacture

6
4 Market share, Mission,
Vision, Principal
7
5 Product portfolio, Chain of
command
8
6 Marketing Strategy 9
7 Company achievement 10
8 Financial division 11
9 Conclusion, Reference 12





Executive Summary
RUR Tea is preparing to launch new consumer goods in a maturing market. RUR tea is an
innovative product which is close to herbal tea and black tea and this product can serve as body
cleanser. Despite the dominance of Isphani Mirzapore tea and Lipton Taza Tea we can compete
because our product offers a unique combination of features at a value added price.

History of tea
It is said that tea was discovered accidentally by Emperor Shen Nung back in 2700BC. After a
large meal one day, he was relaxing in the garden with a cup of boiling water. At that time some
leaves from a nearby tree fell into the cup. Unnoticed he consumed the drink. He enjoyed the
taste of the tea and the pain relief of the drink was so much. Like this the cup of tea was born.
The Bangladeshi legend tells how in the fifth year of a seven year sleepless contemplation of
Buddha he began to feel drowsy. He immediately plucked a few leaves from a nearby bush and
chewed them which dispelled his tiredness. The bush was a wild tea tree
The first tea used in England came from China, and it wasn't until the 19th century that tea
growing spread to other countries and indigenous tea was discovered in Assam. The UK is the
largest importer of tea
The English quickly developed an almost unquenchable thirst for the drink and began searching
for a way to get tea without having to buy it solely from China. In 1835 the English East
Bangladesh Company, upon discovery of an indigenous variety of Camellia Sinensis in Assam ,
Bangladesh ,established their first experimental tea plantation there. It was largely unsuccessful
at the beginning. In 1856 varieties of tea from the Yunnan and Keemun provinces of China were
introduced in Darjeeling, Bangladesh, and soon thrived. Some of the most prized and expensive
Bangladeshi black teas come from this high mountain region. One year later tea was cultivated in
Ceylon (Sri Lanka). Luckily, for tea growers and consumers, a fungus wiped out the coffee
cropin Ceylon in 1869, then its' main export. This opened the door to increased tea production
and Exploration.
By the early 1900's tea was being cultivated in Java, Sumatra, Indonesia, Kenya and other
partsof Africa . Presently, the United States has been added to the list of tea producers as there is
one plantation in North Carolina



Manufacture
Tea manufacture is the process of converting young fresh tea shoots into dry black tea. This
involves a number of processes from plucking to packing. At the plucking stage, only the top
leaf tips are picked every 6 to 7 days. The tip leaves are younger and finer which produce a better
quality tea. The fresh green leaves now need to have the moisture removed from them. This is
done by blowing air through the leaves for up to 14 hours, leaving a soft and pliable leaf. There
are then two ways of treating the tea. Tea which is to be used as loose leaf, will normally be
rolled gently to create a twisted appearance.
In contrast, tea which is to be used for tea bags is shredded and crushed to produce a small
granular product. Rolling and crushing the leaves, results in the rupturing of the leaf cells which
allows oxidation to occur. This gives the tea its distinctive black color and flavor. The tea is then
dried at high temperatures to achieve the correct taste. When it has been dried, the leaf tea is of
differing sizes and will also contain pieces of fiber and stalk. At this point it is processed to
remove pieces of stalk which will then leave tea suitable to be sold as loose tea. The tea is passed
through varying sizes of meshes to sort it and has to be passed through very fine ones in order to
produce tea fine enough for tea bag production. This process of sorting is a harsh one and it can
cause the tea to lose some of its flavor. That is why loose tea usually has a better flavor than the
tea in a tea bag.

Current Marketing Situation

Now-a-days Bangladeshi people are very much health conscious and interested in drinking tea
that helps them to protect their health. RUR tea is a safe natural and powerful means of
promoting the health. It promotes the health and longevity of many organs, system, and
metabolic processes that are dependent on the condition of your digestive system. This tea will
be helpful who wants to free from the high blood pressure and cholesterol.
So now we want to launch our products in three districts. In Tangail, Jamalpur and Hobigonj we
launching our product primarily by own department store. Than we cover all districts of
Bangladesh as soon as possible. We will target basically health conscious people.




Product Review
RUR tea is a safe natural and powerful means of promoting the health. It promotes the health
and longevity of many organs, system, and metabolic processes that are dependent on the
condition of your digestive system. The use of RUR tea has many additional benefits-
It improves overall digestion.
Strengthens the immune system
Makes the skin more emollient and flexible
Clears the eyes and provide an overall boost to the energy.
This tea is a safe and gentle cleanser that also helps reverse that again process.
It helps to eliminate parasites bad bacteria viruses and fungus on a daily basis by
releasing heavy metals and increasing the.
RUR tea is a unique blend of all natural ingredients. Persons who suffer with acid reflux,
constipation
With continued use of RUR tea person will experience clear, healthier, younger looking
skin, increased energy and a happier outlook.
Helps lower bad cholesterol
May help lower blood pressure

RUR tea Ingredients
When an herbal tea is made, true tea is not included in the ingredients, and the ingredients may
be combined in a blend which is targeted to create a specific flavor or medicinal effect. Herbal
teas can be calming and relaxing, energizing, or soothing, and they may be targeted at skin
conditions, stomach complaints, breathing difficulties, cold symptoms, and many other medical
issues. In some cultures, herbal tea is an important part of medical practice. Many people enjoy
herbal tea as an alternative to regular tea, since it is caffeine free and it does not usually have the
tannins which make true tea bitter.
Some common ingredients in herb tea include lemon, mint, chamomile, lavender, orange, fennel,
hibiscus, roses, rose hips, jasmine, licorice, nettles, rosemary, vetiver, valerian, willow, citrus
blossoms, thyme, and horehound. Regional teas such as mate and rooibos are also technically
herb tea, since they are made with plants other than Camellia sinensis. Since herbal tea is usually
low in tannins, it can be steeped for longer periods of time to make an intense, strong infusion.
Some others ingredients are-
Green tea leaf: Best of all herbal tea ingredients is Green tea. Many studies of this wonderful
Asian plant have shown green tea to be helpful for many health issues. Some claim that green tea
may help protect against cancer, aid in arthritis and in protecting teeth.
Holy (Blessed) Thistle: has been used medicinally for over 2000 years, most commonly for the
treatment of liver problems by supporting it in the release of toxins. It has been highly regarded
for therapeutic uses and was cultivated throughout Europe and some say gained its moniker
through its reputation as a 'heal-all', even credited with curing the Plague. It was in known
cultivation as early as the mid-1500's.

Persimmon leaves: are good source of important dietary antioxidants such as vitamin A and C.
It has been widely used as a tea in oriental countries.
Lemon Peel (extract): adds flavor and aids in digestion and fat reduction.

Natural Caffeine powder: a stimulating ingredient that aids in fat oxidation by increasing
circulation of fatty acids.


Our Source
We collect our raw materials from a nice tea garden of Sunamgonj that is known as khan tea
international.
We import some materials from abroad. Especially from China, Malaysia and India etc.
















SWOT Analysis

Strength

Local company that will be favored by the Country.
Diminishment of Financial Risk (no exchange rates or import from other EU countries.
Insider knowledge of Bangladesh
Uniqueness of the product - Benefits of product is outstanding and not offered by any other
product/company.

Weakness

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

Opportunities

Shortage of tea supply unlikely
Supply should remain stable over next 3-5 years
Demand should remain in relative sync with supply
Mass market tea prices will stabilize
Consumers are living a healthier lifestyle
Consumers prefer quality products that offer true value
Modern technology in the tea industry will be able to increase productivity
Growth in tea market due to promotional efforts of healthy attributes of tea

Threats

Limited number of raw materials
Unstable tea supply of high quality tea
High quality tea prices will increase moderately
Tea market is very competitive and relative elastic
Strong local competition like Lipton Taza & Ispahani Mirzapore
Bangladeshi customers are loyal to their local brand
Lipton Taza & Ispahani Mirzapore. Control over more than 60% of total Market.





Marketing Objective

To offer best health advantage through RUR Tea
To establish as market leader in herbal tea industries
To enable RUR Tea to satisfy, fulfill the consumers personality and lifestyle
T o increase RUR Herbal Teas popularity as an icon in Herbal Tea product.
The different managers should know the sales and marketing objectives of the firm in order to
achieve these objectives
We are going to use the method SMART
Specific: The objectives have to be clear. For example, in each shop, the company of RUR
must achieve the selling objectives. The turnover to reach will not be the same in the different
shop because we make the selling objectives according to size of the shop, the frequentation, the
type of the clients
Measurable: The company has to follow the different targets in the sales outlets and if each
shop allowed to reach the objectives. To measure the sales we can calculate the sales by day in
order to understand how the client bought the product. With these data we can improve the
strategy and the sales. The commercials can ask to the supermarket to put the product in a
different way or to make more promotion
Achievable: The targets have to be realist. At the beginning the turnover would grow slowly and
after the promotion, it would have a faster expansion. If we reach to win clients from our main
competitor (in a first time) and from the others tea brand (in a second time), the sales would
grow increasingly. The firm should have a long terms vision and should be reactive in front of
decisions or problems which can occur
Relevant: The objectives have to be founded on fact and not on suppositions. The firm has to
respect its general strategy and its image. The firm should take into consideration the sales of its
competitors in order to be based on relevant objectives.
Time targeted: Each objective should have a deadline. It can allow measuring the different ales
of the day, of the week, of the month, according to these data; the firm can change the objectives
or makes promotion to reach these objectives
The objectives for the first year
4% of the market share of Ispahani Mirzapore Tea and Lipton Taza Tea, the main
competitor.
2 % of the others teas competitors
1% of the coffee drinkers
Introduce company into the market, strengthen and improve its position.
Issue Analysis
Main issues that should be addressed in the Action Plan
Company needs to gain experience in the market place.
Aggressive promotion efforts to establish brand name and gain market share.
Create effective marketing mix.
Establish company image of high quality, great value for money.
Find distribution deal with main tea shops, supermarkets in Bangladesh.
Market Strategy
Regarding our research in Bangladeshi supermarkets and pharmacies we have come to the result
that there is no market gap in the tea market. It is important to point out that once the Maltese
customer decides to consume a certain brand he or she will be very loyal to the product and it
will therefore be hard to convince him or her to buy another brand. This is why the local tea
brand Ispahani Mirzapore has a Market Share of 60 %. Customers like it because it is cheap and
they receive great value for their money
With the brand RUR Herbal Tea we are going to introduce innovative products in an existing
market and focus on Market Development
Existing Market New Market
Existing product
Product
development
Market
Penetration
Diversification Market
Development
New Product
RUR need to spread awareness about the health betterment by consuming the RUR Herbal Tea
and capture the educated and health conscious class of people (usually from High Class society
& educated). Lifestyle of customer is changing who emphasize on health; RUR Herbal Tea can
capture this new rising market
Producing product in Bangladesh is less expensive as Bangladesh is second largest producer of
tea in world tea market and also labor is cheap here. Since the RUR Herbal Tea market will be
limited for Bangladeshi territory only hence company does not have threat from exports &
changes in Exchange rate.

Marketing Mix of RUR
Product
RUR Herbal Tea will be a high quality product offered as specially blended black herbs tea.
Content of the RUR Herbal Tea are:
40 bags, 80 bags, 150 bags, 250 bags (Family pack)
The amount of bags refers to different target groups. 40 bags for singles, 80 bags for couples,150
bags and 250 bags are Family Packs. (250 bags is the most famous)

Packaging
Customer perception of a package creates brand equity and purchaser loyalty. The image
presented by the package largely determines success or failure of a tea line. Appearance
stimulates memories and emotions inside the purchaser, who oftentimes is female, often buying
for an entire family. Color, image and slogan all combine to facilitate customer allegiance.
Target
We want to touch the target group in a progressive way. At the beginning, it is important to
convert the RUR consumers of black tea & touch fruit tea and health tea consumers. In second
time, we should attract the consumers of the main competitor Lipton Taza & Ispahani Mirzapore.
The next step will be to touch the tea drinkers in general and at the end, the consumers of coffee.
We can argue for the coffee drinkers that the RUR Herbal Tea is as strong as the coffee and good
for the health.


Place
High quality for a reasonable price can be bought from Assam & Darjeeling and will then be
blended and packed. The final product will be distributed to Retailers such as Supermarkets and
main tea shops so the end consumer has easy access to it.
Price
Reasons for pricing policy: RUR Herbal Tea is competing against the main player on the
Bangladeshi Tea Market Lipton Taza & Ispahani Mirzapore by setting a higher price but offering
more value for it. Various promotion activities, giveaways and advertising on radio and
television will help to establish the brand and gain market shares.
Promotions
The promotion is the most important point to launch our products because we want to be able to
compete with our biggest competitor Lipton Taza & Ispahani Mirzapore. We want to focus on
this point because the Bangladeshis like to purchase bargains or buy products that offer free gifts.
Other brands do not offer as many promotion and free gifts. This is why it is important to focus
especially on the Promotion activities of the marketing mix. We are going to set up original
events in order to attract new customers and consumers of other tea brand
People
The employees and the consumers are very important for the products development. They
represent the image of the brand; it is for that the services have to be optimum. The employees
and more particularly the commercial people and the hostesses should be trained in order to
know the product and to can sell it properly. Moreover, in the other hand, the clients are
important because they passed a message to the potential clients. To allow this, the hostesses at
the beginning and the employees after have to explain the quality, the taste of the product.
Process
We have seen that the selling process is vital in the decision making process. In the shops, the
selling is making by the advice. The clients like to feel reassured in front of making process. So
we conclude that one time per three months, commercials and hostesses will give advices to the
consumers in order to make him more confident the product.




BUDGET, SCHEDULE, AND MONITORING
Though its history is short, Blue Sky has enjoyed a steady increase in sales since its introduction
three years ago. Figure A shows these three years, plus projected sales for the nest three years,
including the introduction of the two new product lines. Additional financial data are included in
the overall business plan for the company.








An actual plan will
include more specific
financial details, which
will be folded in to the
overall business plan.
For more information,
see the Financial
Analysis in Marketing
appendix on page A-1 of
this book. In addition,
Blue Sky states that at
this stage, it does no
have plans to exit the
market by merging with
another firm or making a
public stock offering.