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
• Dilmah’s 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 Dilmah’s achievement. Also, it
demonstrates why Dilmah has thrived over the years, it’s 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.
• Dilmah’s 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 that’s 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.
 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
Dilmah

0
Price Quality Health Benefits Convenience Customer Varity Creativeness Intermediaries
Satisfaction
Four Action Framework

Eliminated Raised

- Conveniences
- Unfair trade
- Consumer awareness
- Selling tea in bulk 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 Dilmah’s Iced Tea

Factor Cost (LKR) (500ml)

Tea powder and fruit flavours 150

Packaging cost 250

Export cost and taxes in USA 110

Distribution commission 45
Total production cost 555
Profit mark up 250%
Selling price 1387.5
Price in US Dollar(US$) 1 $= LKR
10.43
133
Distribution Channels For Dilmah’s Iced Tea

 Five star hotels

 Restaurants
 Tea bars
 Pharmacy’s
 Online
Promotional Strategies For
Dilmah’s 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 Distributors
38000
Commission
Salaries And Incentives 68000

Other expense 28000

Total expense 636,500
 Marketing Activity Implementation
Schedule
Task No People In charge Task
Presenting the proposed project to the
1 Marketing Manager senior management for final approval and
getting approved.
2 Logistics Manager Placing the order with the suppliers .
CEO, Tea Tester and Product Testing the product to see if it has extended
3
Development Manager the standards in texture, taste and balance.
IT Manager and Marketing
4 Designing the attractive pricing strategy
Manager
Hosting an official website and Facebook
5 IT Manager
page.
Marketing Manager and Choosing a video production company for
6
Marketing Director producing Dilmah’s advertisements.
Distributing the final product to the retail
7 Distributors
outlets.
Managing the human capital in the work
8 Human resource manager
process.
Producing and packaging Dilmah’s Iced Tea
Production Manager and
9 and monitoring the quality of the product
Quality Control Manager
throughout the process.
 Connect with freight forwarders and negotiate to
10 Logistics Manager obtain the best rates and send of the first
shipments to distributors in USA.

Providing finalized advertisement banners for

11 Marketing Manager and Sales retailers in USA before 10 days through email so
Manager that there is enough time to get it printed before
the date.
Presenting an introduction, on how to shelve the
Sales Manager and area
12 products in retail outlets and carry out
manager.
promotional activities in a effective way.
13 Marketing Manager Broadcasting the advertisement on YouTube.

Promoting the Dilmah’s iced tea through

14 Events Manager, Marketing
advertising in medias and sponsoring the sports
Manager and Accounts Manager
team of USA.

Events Manager, Marketing Promoting continuously through promotional

15 Manager and Accounts Manager activities and in public events

On the day of the launching day, the managers will

Events Manager and Marketing
16 be present to represent Sri Lanka and introduce
Manager.
the products.
Monitor and review the performance of the
17 Marketing Manager product in the market, carry out 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.