Proposal

On marketing strategies
For TEA, I+ SALT and DETERGENT

ISBM, Suresh Gyan Vihar University

Prelude
According to research, there were a total of 6,259 products launched between
January 2010 and November 2010, using tea as an ingredient. Besides beverages,
these include: skincare, haircare, soap and bath products, cosmetics,
confectionery, healthcare, shaving and depilatories, snacks and bakery.

Innovation is a key driving force in today's business. Those companies that are
able to visualize, then create businesses, products and services that are truly
innovative, reap the results first. Innovation can be as simple as a package
change or can require a major capital Investment with a partnership with an allied
company or purchase.

Making and using a marketing strategy has a strong positive impact on

profitability. This is because firms that employ a marketing strategy tend to focus
on their customers and markets, integrate their marketing responses and work out
in advance where their profits will come from.This briefing answers a range of
questions people in small business often ask about marketing strategy:

• What is a marketing strategy?

• What’s the difference between marketing strategy and business strategy?
• Where does the marketing mix fit in?
• What is a marketing plan?
• What information do I need and where do I get it?
• What should my marketing strategy consist of?
• How do I get started?
For tea manufacturers and retailers, the pyramid shaped silk teabags has
revolutionized tea by providing opportunities in packaging and giving consumers
more education. Teaosophy calls its bags "tea pods." Revolution tea introduced
the bag in small variety packs with several flavors that consumers could buy and
try on impulse. Miriam Novalle, tea expert/consultant and owner of the T Salon in
New York, loves these bags, using them to package high-end selections to
export back to Japan and other countries.

Another version is from Tea Forte, which uses a pyramid infuser on top of the
cup. How about a teapresso or teacchino? Affinitea has produced a machine
that's based on espresso technology the delivers individual servings that add
new opportunities for baristas and revenues for retailers.

Care Competency

The best thing about adhering to your core competency is that once
management is focused on it, that feeling of frustration described in the opening
paragraph will no longer be an issue. While veering into other segments such as
Starbucks' new Hear Music venture, the company's core competency is
enhanced because music is and has always been about lifestyle. Specialty tea is,
in itself, a core niche. Consequently, all products, accessories, branding and
support material must also be "specialty" oriented. Take for example the
following companies: Numi, with its exotic presentation using bamboo and jute
boxes, positions itself as high end. using graphics and artistic printing that reflect
color and texture from tea producing companies: Rishi teas are positioned as
very exclusive, hard to find, products for connoisseurs who appreciate quality
and are willing to pay for it.

Quality
Degree of quality must be attained for the markets served. Without quality, there
isn't any repeat business. Creating a RTD tea won't involve the same tea as
Rishi sells loose, yet, even concentrates must live up to high quality standards.
Customers purchasing Lipton or Nestea are looking for a consistent taste. If
quality isn't there, the other four tips don't matter.

Brand Personality

Acceptance of a brand is not just the product, but what comes with it. A brand
becomes memorable when customers continue to buy or use it. What makes it
memorable is its staying power; its ability to fill its customers' needs and stay
"current."

In his column on BevNet, beverage writer/market watcher Greg Prince recently

addressed the problems brands are having with so many products in every
beverage category. He refers to this problem as "brandnesia," the inability to
remember them. One issue is that brands no longer have the same identifiable
labels, such as loyalty and reputation. Big brands like Coke and Pepsi were
pervasive in postwar America, said Prince, but in today's environment other
beverages, manufactured all over the world are part of the competition. Choice is
the big issue. Studies show that consumers all over the world want choice and
they want it during all parts of the day.

Pepsi and Coke continue to provide new beverages for all age groups, yet
maintain their core cola products. On the other hand, with all their new beverage
introductions and limited or seasonal drinks such as Pepsi Holiday Spice, one
might question how much of each company's core brands are being
cannibalized.

Tea and coffee have a larger opportunity to produce line extensions. Even if RTD
teas fail for companies like Republic of Tea or Tazo, each has a cadre of
products that target more distribution channels than liquid beverages.

Customer Service

Support for the products: no matter the channel, customer service provides the
catalyst for ongoing innovation and brand awareness.
As a company grows, customer service often suffers. Take Dell computers and
Ford Motor Company as examples. As an owner of products from both
companies I can give first hand knowledge of growth flaws that we in the south
refer to as "gotten too big for their britches."

Showcase

While there are many companies to highlight that have grown through applying
these five principles, China Mist is one that first came to my attention in 1992, 10
years after it came on the market. A colleague gave me a sample of peach tea to
try, giving me the recipe on how to convert the foodservice package for home
use. I tried it and today, still think it's the best interpretation of peach flavor I've
tasted. As iced tea specialists, consumers have learned to remember the brand
"China Mist" from dells and foodservice outlets. Shoppers can even purchase
gifts baskets from the China Mist website.

While iced tea has been the core product, quality and the company's quality
assurance program has enable growth and an extension of products. China Mist
iced teas come with a signature "Tea-Loving Care" program which is the
cornerstone of the company's commitment to customers. According to Tiffanie
Hawkins, marketing coordinator, this registered program provides an assurance
that the same tea taste and quality is consistent no matter whether it's Chicago or
New York.

Many foodservice coffee/tea providers offer equipment with programs. China Mist
does provide equipment as part of their iced tea program. Having made its mark
as the vendor of quality iced teas, China Mist created another name for its hot
tea program. Leaves Pure Teas offers customers the same quality assurance
program and support for hot tea customers as the iced tea program. Equipment,
of course, varies and so do vendors.

Future

Companies mentioned here are just a sampling of those that apply the five
principles of tea marketing. Each has demonstrated the ability to stay focused on
its core brand and grow within it. Tea, more than any other product, is the most
versatile product on earth. Is there an industry you can think of that would not be
open to using tea as an ingredient?
Prelude
In this globally competitive environment, there's only one certainty: change. Fast
change is more like it.

Innovation is a key driving force in today's business. Those companies that are able
to visualize, then create businesses, products and services that are truly innovative,
reap the results first. Innovation can be as simple as a package change or can
require a major capital Investment with a partnership with an allied company or
purchase (Starbucks and Tazo).

Authentic innovation doesn't copy; it invents. According to research, there were a

total of 6,259 products launched between January 2010 and November 2010, using
tea as an ingredient. Besides beverages, these include: skincare, haircare, soap and
bath products, cosmetics, confectionery, healthcare, shaving and depilatories,
snacks and bakery.

Any business' success depends on how effective its marketing strategy is. We
know of many brands that do not offer the best products in their industry, yet they
continue to grow and become a strong market force. On the other hand, there are
those which, after having offered excellent quality to their customers, simply fail
on their marketing efforts and end up not earning enough patronage to propel them
to success.

Every business has to work upon following 3 major cornerstone of the marketing :

1. Target Market :WHO will it focus on? You have customers who will take up
your time with a lot of questions about your products, but will rarely buy anything.
And then there are those who will not take five minutes to give you a sale. Qualify
your customer list and spend more time with those who are likely to be productive,
instead of giving everyone the same amount of attention.
2. ,Benefits to the customer : WHAT will it offer? You may have a long line of
products, but you won't always have all the time to pitch them to everyone. Focus
on your main product because it's the most proven element of your business
success. Your chances of making a sale with your main product is always more
important than the ancillary sale you lose in the process.

3. Communication of benefits: HOW do you implement it? When implementing

your marketing plan, you need to find a method that takes up the least of your time
and effort and produces the most results. This is no longer difficult to do these
days, with the various technologies that make you reach more people faster and
manage your team more efficiently. The Internet is only one of these technologies
that can bring you a multitude of benefits at a very little cost. With the rise of e-
commerce, you can even make millions on the Internet alone.

Thus we in association of ou will MarkOUT, strive to identify the

relevant marketing interventions at different stages (as mentioned
above) for your growth..
TEA
Prioritize old over new customers.

Every customer, old or new, is valuable to any business. But when you have to
choose, prioritize your old customers because the chance is greater for them to give
you another sale by two hundred percent than a for new customer to give you a
first. Of course, no business grows with a stagnant customer base, and you will
always need to attract new customers. But remember that your success with those
new clients will still be affected by how happy you've keep your old ones.

Learn to break the rules.

The rules you need to break are only those that keep you from achieving your full
potential. For example, if your competitor is trying to strike you off by offering
their products at a price way lower than yours, your instant reaction might be to go
even lower. This may be considered to be a rule, but you can always make your
own rules by exploring newer and fresher strategies. Instead of adjusting on price,
you can adjust on quantity. If you sold a 150-gram detergent bar for this much,
offer it at the same rate but make it heavier.

Invest in good people.

Needless to say, if you want your marketing plan to work, invest in a few good
leaders who can spearhead its implementation and actually deliver on the goals that
you have set. Marketing is not just about going out and propagating news of your
products or services. It is about clear-cut and effective marketing strategies that are
anchored on a solid knowledge of market behavior, employed over a definite
timeline and sustained over the course of the campaign.
The audit will cover:

• raw materials
• production
• sales trends
• advertising and
promotion
• product/service
development (new or
existing)
• pricing policies
• sales administration
Detailed company
• marketing administration
audits by MPC form the
• distribution channels
basis of strong business
• profit trends by
planning
product/service

• SWOT analysis

Getting to know your

competitors -
RESEARCH

MPC will identify

opportunities and trends
within your existing markets,
and examine the potential of
new markets.

MPC will survey competitors,

and analyse:

• products
• services
• prices
• margins
• marketing methods
• market penetration
• sales performance UK
and overseas
• financial stability
• turnover

• profitability
• new products
• pricing policies
• sales administration and organisation
• improved distribution
• improved advertising, public relations, design, direct mail
• additional consumer quantitative and qualitative market research
• increased sales and profitability
.1.ifferentiated Product Concept

2. Product Development

a. Creating Product Differentiation

b. Product Specifications: Product ingredients, Nutritional facts

c. Patent: Scope for patenting a product concept

3. Manufacturing: Manufacturing process/ competence with respect

to the product

4. Packaging Development
a. Packaging specifications as per packaging and Commodities Act
b. Packaging structures for your product
c. Packaging graphics/ aesthetics for your brand

5. Branding Strategy

a. Brand Name Identification

b. Brand Concepts to create differentiation in the mind of the consumers
6. Business Planning (Will get revised at different stages)

a. Detail Business Plan after considering all costs (fixed and variable)
and other investments

b. Finalize the markets to launch as per profitability (basis on potential

business)

7. Channel/ Distribution Development

a. Distributor Identification: We will identify the right distributors for

your target markets. We have a team of people in different markets.
b. Wholesaler/ Retailer Identification

8. Marketing Strategy

a. Consumer Activities/ Promotions

b. In-store merchandising for your brand

9. “Sharper the Saw”: Ongoing Marketing Interventions required after

your brand is in the market. It may be expanding your distribution,
availability drives, consumer excitement, increasing your product
portfolio, to grow your business

We at MarkOUT, strive to identify the relevant marketing interventions

at different stages (as mentioned above) for your growth. You can share
with us your product/ service details along with the MARKETING
NEEDS to markoutindia@gmail.com. We will get back to you.