Global Shared Feature: Product Differentiation

Dilmah is credited for halting the trend towards commoditization in Ceylon tea and has
revitalized this category through the high quality, innovation, and assurance of freshness of
their product. Today, Dilmah tea is exported to more than 82 countries and has overseas
presence in ew !ealand, "ustralia, #oland, $ussia, %&raine, and the 'iddle (ast. )t has come
out with exotic flavors to satisfy tea connoisseurs through continued focus on quality and
investment in $*D.
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)n response to the decline in the quality of tea sold as Ceylon tea, 'errill +. ,ernando
esta-lished the Dilmah -rand, a single.origin pure Ceylon tea, with emphasis on quality and
freshness. The -rand was started with the o-/ective of reversing the commodity culture of
Ceylon tea where multinational companies were selling multi.origin Ceylon -lends, thus
creating consumer dependence on -rand names instead of quality. ,or providing a distinctive
character, Dilmah pioneered the concept of a single.origin tea where only Ceylon tea was
0pic&ed, perfected and pac&ed1 at origin, thus guaranteeing consistency in quality.
Dilmah presented a collection of teas which has -een tasted and selected -y tea.tasters who
have decades of experience in tea. ,or ensuring uniform quality to the consumers, the tea.
tasters taste 233348333 samples every wee& and pic&ed the -est teas availa-le which
matched with the quality standards set up -y the founder. This is important as the availa-ility
and standard of tea leaf changes at different times of the year. The selected tea was processed
in the production facilities of company that had won recognition for manufacturing excellence
and had )56 7338, )56 2233, and 9"CC# accreditation. The Dilmah -rand was -lended from
pure Ceylon tea produced and pac&ed in 5ri :an&a, and complied with the quality standards
set up -y the 5ri :an&a Tea ;oard.
Dilmah Tea was processed and pac&aged within a short span of days to preserve the
freshness, aroma and appearance of tea leaves and reached the supermar&ets in different
geographical mar&ets within 8 to 83 wee&s of fresh tea leaves< pluc&ing. To communicate
freshness, the logo 0Dilmah ,resh1 was carried in all pac&ets. Dilmah mar&eted different
collections of -lac& tea, such as #remium, =ourmet, and ;outique, as well as natural green tea
infused with her-s and spices, and teas with fruit flavors.
6ne of the product innovation of the company is the introduction of Dilmah<s >hite Tea. This is
one of the costliest teas in the world. This tea is made from -uds pluc&ed -efore sunrise and
specially processed. ,or the health.conscious tea connoisseurs, the company mar&ets organic
and decaffeinated tea. )t is then pac&ed in special tea -ags and wrapped in aluminum foils.
The company has also introduced the 0masala chai1 mix where Ceylon spice are mixed with
the tea to provide the taste of traditional chai ?tea@ favored -y "sians.
Dilmah recognized that there are significant differences in the appearance, taste, and quality
of tea preferred in different countries. ,or example, the "ra- nations en/oy low. grown, large.
leaf tea renowned for its -lac& appearance and strong taste. Consumers in %A en/oy strong
tea in tea -ags, while many western countries prefer a light tea in tea -ags. "ccordingly, the
company introduced various -rands in multiple pac&aging such as tag.less tea -ags, tea -ags
with strings, tea -ags with strings and tags, individually.wrapped tea -ags with strings and
tags, and loose.leaf tea in foil pouches to cater to different target segments. The company
also tested various parameters of pac&aging materials to ensure high quality of the final
product for the consumers.
8. ;ased on the understanding of case, list the different dimensions on which the Dilmah
tea has tried to differentiate from its competitors.
2. (xplain how Dilmah has utilized pac&aging as a mar&eting tool.