Marketing Essay

4594 words - 19 pages

Report Title:
Written Case Study –
“Dilmah Ceylon Tea: Market Development in Australia”

Lectures: Ms. Haslinda Mohd Yunus
Ms. Racheal Louis Vincent

Student: Gip Soong Wing Wayn (4511090)
Tan Quan Rui (4511472)

Date of Submission: 9 October 2014

Tutorial Group: Tutorial 5

Executive Summary

This report is analyze the strategies for Dilmah to restore market share of the Ceylon tea and raise awareness about Ceylon quality tea by introducing Dilmah Pure Ceylon Tea. Firstly, SWOT Analysis is way to understand business situation and further make suitable strategic decision. Next is marketing environment consist of internal and ...view middle of the document...

3.3 Customer-Driven Marketing Strategy.....................................................11-12 3.4 Marketing Mix.............................................................................................13-14
4.0 Recommendations..........................................................................................15
5.0 Conclusion.....................................................................................................15
List of References..........................................................................................16-19

1.0 Introduction
The purpose of writing this report is to analyse the case of “Dilmah Ceylon Tea: Market development in Australia” by using the theories and concepts for example SWOT analysis, marketing environment, Customer-Driven Marketing Strategy and marketing mix.
Dilmah Pure Ceylon Tea is popular brand and full of quality in the Australian Tea Market. The brand started during 1984 and it slowly develops from there. During the 60’s and 70’s, Ceylon tea experiences their highest peak because tea from Sri Lanka was exporting to Australia. During the early 80’s, Ceylon market share started to decrease because of price competition from a cheaper new tea source and the development of new technologies which is cut-tear-curl (CTC) while Ceylon tea still using orthodox method. However, Ceylon tea was able to be brought back to Australian Market due to Dilmah effort .Dilmah was able to spot the opportunities and take the lack of quality tea in Australia market into its advantage. Currently, Dilmah is top 3 global tea brands now.
SWOT analysis is to measure the internal and external factors of the business such as strengths, weaknesses, opportunities and threats. Marketing environment are categorize as internal environment and external environment which consist of micro-environment which is impinge directly and macro-environment which is no direct relationship. Customer-Driven Marketing Strategy is market segmentation, targeting and positioning. Lastly, marketing mix consist of price, place, products, promotion (Sharp 2013).
2.0 Problem Statement
The main issue or problem indentified is the decrease of volume and value of Sri Lanka tea in the Australia market where quality of an tea is replace with other factor . One of the factor of the decline is caused by demographic and cultural change where it affects consumer preference for example consumer might switch tea consumption to coffee. Besides that, Dilmah also face threat from competitors which dominates Australia tea market such as Unilever and AB Food & Beverages. The appearance of a cheaper source of tea attracts purchases from business which further decrease the popularity of Ceylon tea as it require higher production cost. Another factor for decreasing demand of Ceylon tea is the new Cut-Tear-Curl technology which promotes convenience instead of taste causes Ceylon tea to loss its competitive advantage which is its good...

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