1.

Ceylon Tea – The Symbol of Quality

The Ceylon Tea symbol has being endorsed in all teas, be it Value Added or Bulk, which are
exported out of Sri Lanka. The symbol today is limited to a label to communicate the fact
that the product it is a product of Sri Lanka and not the actual symbol of quality that it should
be.

In the Bulk tea category, fresh pure Ceylon tea is mixed with older teas and lower quality teas
such as those from Kenya and China in order to increase the capacity. This makes the tea
inconsistent and destroys the true value of pure Ceylon tea.

Hence there is a need to develop the Ceylon Tea symbol into a Brand from a mere label. It
should be a symbol that communicates trust and a consistent quality standard that consumers
can depend on. This will empower the consumer to purchase Ceylon Tea products with
confidence for containing the best Quality in terms of Taste, Aroma and Colour.

Hence, the Quality Symbol should be endorsed only in our Value Added Teas and should be
taken off our Bulk Teas in order to set a standard that pure Ceylon Tea deserves.

The shift from Label to a brand will enable us to charge a price premium for the teas that
endorse the Symbol of Quality.
2. Development of the Symbol of Quality

 Product features/ attributes (Physique):

Tea and its nutrient components promote healthy living. Its sensorial appeal created
via its aroma, taste and colour gives refresh and energize the consumers. Its
purifying ability makes you look good and feel good both internally and externally.

 Character & Attitude (Personality):

Ceylon Tea is one upwardly mobile youth that is full of energy and vitality and has a
positive outlook towards life. He/ she is fun loving and open minded, friendly and
enjoy life.

 Beliefs and Associations (Relationship):

The best quality teas in the world and is unmatched for its taste, aroma and colour
since inception.

 Set of Values (Culture):

Energetic, Fresh, Fun loving, Positive outlook, Explorer

 Customers view of the brand (Reflection):

A brand that nourishes one’s life and adds life to life

 Internal mirror of customer as user of brand (Self image):

 The use of Ceylon tea will make the user feel refreshed, energetic and lively.

3. Taking the Brand to the global arena

Once a brand is developed as a concept or in paper, it needs to be brought to life.

1. User of Opinion Leader

In order to personify the Brand, it should be endorsed with an opinion leader that can relate to
the values of the Brand. Further this opinion leader should be a person from Sri Lanka, as
Ceylon tea is a country Brand, and should be one that has global awareness, appeal and
acceptance.

This is a tough challenge as there isn’t an appropriate endorsement of this caliber in Sri
Lanka. However, from the available, a person such as Sangakkara of the Sri Lankan cricket
team would be a suitable to a certain extent. He fits in well with values such as young,
upwardly mobile, healthy, fit, fresh and energetic.

A female endorsement is also required, however, this is a daunting task, and needs to be
done after careful research and analysis being carried out, in order to ensure the endorsement
and its fit with the brand and its values.

2. Branding on Tea Cups

The Ceylon Tea symbol need to be endorsed in the tea cups served at Tea Bars and all other
experiential teas. The government can encourage top Brands such as Dilmah to do so in
order to promote Ceylon Tea.

Government needs to encourage local suppliers, by providing a subsidy or a tax relief on their
export incomes.

3. Diplomatic ties

Ceylon tea brand should represent Sri Lanka in the world events. This way we can obtain our
self a global share of mind as the country of the Best Quality Teas. Activities such as gifts
given by our diplomats, politicians, etc., can be tea based value added gifts.

This will develop very positive and credible endorsement towards both the Ceylon Tea Brand
and also the teas from Sri Lanka. As these events will be captured and communicated via
Public Relations such as the media, and with global coverage, this will build credibility
towards Ceylon Tea. Further, this will be cost effective as coverage is via public relations.
This will aid develop the image of Ceylon Tea as a first class product and one that is of high
quality that can be considered as exclusive and exceptional among its audiences.

4. Sponsorships

Ceylon Tea need to tie up with other country Brands such as the Sri Lankan Cricket Team.
The Ceylon Tea logo can be endorsed by them during matches. This way the brand will have
global reach cost effectively as the matches will be automatically covered by mass media.

4. Customer Segments

When observing recent statistics (Refer Table ), it is understood that the global tea
consumption has being fairly constant over time and hence new streams of revenue
generation is required in order to make better margins and sustain in the industry.

The global industry can be segmented as follows:

As shown in the above graph, we can identify tea as not only a mere beverage that quench
thirst, as currently addressed by the bulk tea products, but one that will give an experience
that everyone can relate to.

The varying customer characteristics can be identified as below.

1. The Habitual Consumer

This is the current tea consuming customers in the world that currently consume tea for its
qualities well known and understood by them. They are relatively product driven as opposed
to being brand driven. Hence, we can expect this segment to show continuous consumption
of tea. Currently the majority of this segment is from the Arabian countries and Russia.

The development of Ceylon Tea and strengthening of it as a Brand will enable current
customers that specifically ask for Ceylon tea to remain loyal with us. It will also give them
an emotional sense of satisfaction for consuming the best in the world.
2. Health & well being conscious consumer

As stated above, tea is well known for its various medicinal properties that enhance the health
of consumers. Green tea especially has being identified for its fat burning characteristics and
purifying ability. Today the global demand for green tea is on the rise among those interested
in maintaining their outlook, health and physical fitness.

Green tea is very popular in the spas of Japan, and is currently used for its ability to clean the
skin, nourish and remove impurities.

Sri Lanka is having a relatively low market share, compared to China and Japan, under the
Green Tea segment. However, Sri Lanka being the fastest growing country in the world
today and with increasing tourist arrivals, extends the opportunity to develop green tea based
experiences, targeting the health focused consumer.

3. The experiential tea consumer

Different forms of tea, such as iced tea, the flavoured teas and the gift teas are developed to
target this segment. The product variations such as these enable to get this segment of
consumers to use more, keep them excited and associated with tea. Thus is a form of
generating more revenue from existing customers.

The experiential tea segment of consumers are those equipped with relatively high disposable
income and hence expects a total sensory experience from their tea cup.

This was identified by Dilmah, one of the most innovative Ceylon Tea Exporters in Sri
Lanka.

Dilmah with the introduction of the novel Tea Bar concept, drew a path for Ceylon Tea to
cater to this segment of experiential tea consumer through the delivery of an exclusive total
sensory experience that is expected by this segment.

Tea Bars is the tea version of a coffee shop such as Star Bucks, Coffee Bean or a Barista.
However the consumers slightly changes due to the different product characteristics of Tea
over Coffee. When observed, it is understood that tea is associated by more of a nature lover
that consume what is good for the body, whilst the coffee drinker is more associated for stress
relief and quick recovery.

This unique novel concept has enabled Dilmah to achieve thick margins as opposed to the
very thin margins of bulk tea.

The expansion of the tea bar concept to the world will enable Dilmah to expand their profits
and generate substantial export earnings for the country.

In the Americas and Europe it will enable Ceylon Tea to tap into the Youth and Young Adult
segment that is not only highly profitable, but is also of great lifetime value.
5. Product based developments

1. Product variations

Variations in taste will continue to keep the excitement among the Ceylon tea drinker. The
option of choice will keep them engaged with the brand and enable to try out different
flavours.

It will not only to get the existing customers to spend more but will also keep them satisfied.
It will get them to associate the Brand more often and continue to enjoy a fresh cup of Ceylon
Tea.

2. Different product forms

Tea which was traditionally in the leaf or powdered form today has taken the shape of Tea
bags. This fits in well and makes preparation fairly easy. Other forms of packaging include
Tins/ Cartons, Gift packs, Tetra packs for iced tea, etc.

The very recent innovation from Sri Lanka is the Tea Pod. This is a form of a tablet (Refer
Appendix) that can be dropped into a hot cup of water in order to make the tea.

Tea pod should be promoted for the innovator and early adopter audiences of the global
market (people with sufficient disposable income and like to try out the latest offerings in the
market). Their positive comments about the tea pod should be endorsed and given publicity.
These Word of Mouth endorsements will be highly credible and will be regarded positively.

This will also build awareness of Ceylon Tea’s Tea pod as the first mover of its type. If it
permits, we can also look into obtaining patent rights for the product.

3. Tea Spas

Tea Spa is another different concept all together and needs to be developed with partnerships
with local spas. The Tea Spa experience is presently done only in Japan. The development
of this and using Green Tea for its purification properties will enable us to promote Ceylon
Tea – Green Teas among the global spa industry. This can be effectively positioned in order
to engage the wealthy consumer by providing a spa experience.

6. Development of association and loyalty

Keeping your customers happy and getting them to continuously associate your brand is
important, as this is far more cost effective and profitable for a brand. Thus continuously
increasing our market share in the Value added Tea segment which is currently stands at 41%
for Sri Lankan Brands.
Development of a Customer interacting Ceylon Tea website will enable the customers to
enhance their knowledge on tea and its various usages. The following activities need to be
carried out:

1. Tea Hotline/ chat site

This one to one or group based online chat will enable consumers to enhance their knowledge
on brewing a cup of tea on their own. They can also educate themselves on other variations
and value additions that can be done for raw tea.

2. Tea Recipe’s/ Cocktails

The tea recipes will enable the customers to cook their favourite dishes or prepare an
innovative homemade cocktail for a special occasion. This will have appeal especially
among the health conscious consumer segment.

3. CSR Initiatives

The Ceylon Tea logo should show its presence when global CSR initiatives are carried out.
For example, natural disasters such as the Haiti quake would have being an opportunity for
Ceylon Tea to show its presence. This would build awareness and also generate credibility
towards the brand in the eyes of a global audience.

Ceylon tea is a country brand, that represents Sri Lanka and its quality tea, and since there is
no such distinctive other tea based competing country brand, we can expect our Ceylon Tea
brand to show its presence quite prominently. It is very unlikely that a private brand will
show up and want to compete for share of voice; as this will be very costly.

4. Virtual Factory Visits

The virtual factory visits will enable consumers to enhance their knowledge about tea. This
should communicate on the growth of the tea tree, the plucking of the sprout, the various
processing methods, packaging, etc.

It should also communicate the impact Ceylon Tea is making on the economy of Sri Lanka
and on the lives of the poverty and lower class segments of the society. This should generate
emotional engagement and make the consumer feel content that he is also giving back to the
society.
7. Conclusion

Ceylon tea currently produces the best quality teas in the world. 95% of the produce is
exported and currently holds 21% of the global export market share. In the value added tea
segment Ceylon tea is holding its leadership with a 41% share and is growing. India is
currently the Market Challenger in this segment.

Due to the unique quality of Ceylon Tea, development of it as an exclusive tea brand will
enable us to charge a premium from our customers. This can be done with ease as our teas
are exceptional compared to others. The development of the Brand will carry the message to
the world.

For example, other successful country brand positioning includes; French wines, Belgium
Chocolates, etc.

This will provide Sri Lanka with a unique market opportunity and will leave the competing
brands to bulk and other non value added forms of tea.

On the much longer term diversification (over 3years), Ceylon Tea can look at moving into
Health care and Beauty care industries with its unique range of herbal teas.