Marketing Plan

for Dilmah

S. Anushan
Batch 20
 Introduction to Dilmah
Current industries :- Beverage industry (both hot
and cold)
Dilamh is a family owned business which was Founded in 1988
The Founder :- Merrill J. Fernando

Headquarters :- Sri Lanka

Operates in Over 100 countries

Total employees :- 1,300 (approximately)

philosophy : - Business is a matter of human service.

Main Competitors :- Lipton, Teavana,Tata Tea, Starbucks,

Nesta
 Vision and mission statement of
Dilmah
Dilmahs mission statement visibly states that they must to give
back to those who have helped out them develop this significant
product as they are the ones behind Dilmahs achievement. Also, it
demonstrates why Dilmah has thrived over the years, its because
they have always kept in mind to satisfy their stakeholders and
work together with them to reach mutual benefit and also that they
are carrying out their business in a principled manner.
Dilmahs vision is to be a brand that will restore tea to its
reputation, and also believe that Dilmah should give back to those
who helped Dilmah to build this significant brand and this is why
Dilmah has the MJF charitable foundation. Likewise Dilmah wants to
protect the environment and thats why they also have the Dilmah
conservation project. Therefore, their vision is to turn into a
business that is favourable for both the community and the
environment.
SITUATIONAL
ANALYSIS
Tea Market in United States
A very few competitors
2nd tea importer in the world.
Four out of five people consume tea
85% of US people consume iced tea
Political
Steady political environment.
Consumers are protected under Consumer Protection Law.
Imports law is flexible.
Economic
USA is placed 10th in the world in per capita income .1st
largest economy in the world. Human development index
is very high.
Stable inflation which is 2%.
Social
USA has a tea drinking culture for centuries. 80% of people
drinking tea.
90% people like strawberry flavor.
Technological
Technology literacy is high in people who live in USA.
Promotions can be done through social networks.
75% US peoples own smartphones.
 Strength Weakness
Highly diverse product Dilmahs products are
portfolio. premium priced .
Well established brand in Exporting cost high when
over 100 countries. imports to USA.
Highly innovative and Dilmah is not a strong
acts fast to market competitor in the country
demand . of origin.

Opportunity Threat
USA is placed 10 in the Lipton dominate the USA
per capita income in tea market
world. Coffee is also emerging
85% people consumed the market in USA.
iced tea while 90% people
like strawberry flavour.
2nd largest tea importer in
the world.
 Porters Five Forces
Threat of substitute - Direct substitute coffee

Indirect substitute Carbonated soft drinks

Wine and
Coffee
Overall high

Threat of new entrant - trade barriers & large capital required

Coffee drinking culture
Overall low

Bargaining power of suppliers - Differentiated products

Many tea suppliers
Overall moderate

Bargaining power of buyers- Choice of other brands

Few players in the industry
Overall low

Industry rivalry - Two main competitors

Mature market
Overall moderate
MARKETING
OBJECTIVITY
Objectives
To enter the USA tea market with a product of ice tea and expanding the
business by 2015 first day of summer.
To create advertisements for Dilmah iced tea and launching it 1 week after
product introduction to the USA tea market.
To increase the current market share of Dilmah in USA by 5% in the end of
2016.
To aiming to achieve sales of 50,000 Dilmah iced tea units to the market
within the year of 2016 June.
To increase awareness about the health benefits of tea by sending Dilmah
agents to schools, offices, universities and health clubs. And thereby
promoting Dilmah tea and the benefits of choosing Dilmah iced tea instead
of other varieties of iced beverages.
To set up Dilmah iced tea vending bottle machines in all schools,
universities and football club grounds in the Southern and Northeast states
by July 2016 and thereafter expanding the vending bottle machines systems
in the whole country.
 Porters
Generic

Differentiation
Single origin tea
Dilmah iced tea is a unique brand
Health conscious
Capture young market
Ansoff Matrix

Diversification
Dilmah iced tea
(Lemon and
strawberry)
Targeting a new
market segment i.e.
younger generations.
The new target offers
a new growth
potential.
 Blue Ocean Strategy
Strategy Canvas -Dilmah Tea
8

4
Competitors
3 Dilmah

0
Four Action Framework

Eliminated Raised

- Conveniences
- Unfair trade
- Selling tea in bulk - Consumer awareness
on the health benefits
quantities at low prices
of tea.
- Intermediaries

Created
Reduced
- Value for customers
-- Marketing cost and satisfaction
- Differentiated
products
MARKETING PROGRAM
Product
 Factor Description
Black tea
Strawberry (Lemon)
Vitamin A
Vitamin D
Ingredients Water
Sugar
Citric Acid

Colour scheme White and light green

Material The bottle will be plastic

bottle, it can be recyclable.
The quantity 500 ml and 1l.

Language English
Pricing strategy for Dilmahs Iced Tea

Factor Cost (LKR) (500ml)

Tea powder and fruit 150
flavours
Packaging cost 250
Export cost and taxes in 110
USA
Distribution commission 45
Total production cost 555
Profit mark up 250%
Selling price 1387.5
Price in US Dollar(US$) 1
10.43
$= LKR 133
 DistributionChannels
Distribution ChannelsFor
For
DilmahsIced
Dilmahs IcedTea
Tea

Fivestar
Five starhotels
hotels
Restaurants
Restaurants
Teabars
Tea bars
Pharmacys
Pharmacys
Online
Online
Promotional Strategies
For Dilmahs Iced Tea

Social networking sites

Online advertising (mobile and
internet)
Hyper market and super market
 Marketing Budget

Expense type Budget( $)

Market Research Activities 7500

Promotion Activities 465,000

Social Media Advertising 30000

Packaging And
38000
Distributors Commission
Salaries And Incentives 68000

Other expense 28000

Total expense 636,500
 Marketing Activity
Implementation Schedule
Task
People In charge Task
No
Presenting the proposed project to
1 Marketing Manager the senior management for final
approval and getting approved.
Placing the order with the
2 Logistics Manager
suppliers .
CEO, Tea Tester and Testing the product to see if it has
3 Product Development extended the standards in texture,
Manager taste and balance.
IT Manager and Designing the attractive pricing
4
Marketing Manager strategy
Hosting an official website and
5 IT Manager
Facebook page.
Choosing a video production
Marketing Manager and
6 company for producing Dilmahs
Marketing Director
advertisements.
Distributing the final product to the
7 Distributors
retail outlets.
Human resource Managing the human capital in the
8
manager work process.
Producing and packaging Dilmahs
 Connect with freight forwarders and
10 negotiate to obtain the best rates and
Logistics Manager
send of the first shipments to distributors
in USA.
Providing finalized advertisement
11 banners for retailers in USA before 10
Marketing Manager and
days through email so that there is
Sales Manager
enough time to get it printed before the
date.
Presenting an introduction, on how to
12 Sales Manager and area shelve the products in retail outlets and
manager. carry out promotional activities in a
effective way.
13 Marketing Manager
Broadcasting the advertisement on
YouTube.
Events Manager, Marketing Promoting the Dilmahs iced tea through
14 Manager and Accounts advertising in medias and sponsoring the
Manager sports team of USA.
Events Manager, Marketing Promoting continuously through
15 Manager and Accounts promotional activities and in public
Manager events
On the day of the launching day, the
Events Manager and
16 managers will be present to represent Sri
Marketing Manager.
Lanka and introduce the products.
Monitor and review the performance of
17 the product in the market, carry out
Marketing Manager
further market research and study the
trends.
Marketing
Controlling
Standards
 The GAP analysis

A product life-cycle, BCG and

benchmarking can be used

Regular reviews from the customer

Performance will be evaluated through

analyzing the sales report every three
months.