MKT 460: Strategic Marketing

Section :6
Semester : Fall 2020
Submission Date : 18th January, 2021

Report on Turnaround Strategy of Danish Tea

Submitted to
Sherina Idrish
Lecturer
Department of Marketing & International Business
North South University

Submitted by
SL. No Name ID
9 Anan Arr Rahman 1711524630

18 Muniba Masum Zinnia 1811383030

20 Faria Mehnaz Khan 1811426030

21 Nazia Parveen Nimra 1811492030

23 Abdur Rafeu Yead 1811984030

 Group Contribution list

Sr Contribution/ Topics
Name ID
Number (written/done for the report)
SBU’s current consumer profile,
9 Anan Arr Rahman 1711524630 SWOT-TOWS analysis, App
interface designing.

Introduce the industry, introduce

the company, introduce the SBU,
18 Muniba Masum Zinnia 1811383030
SBU’s present 4PS, SWOT-TOWS
Analysis.
PESTEL Analysis,
Porters 5-forces,
Relationship Marketing,
20 Faria Mehnaz Khan 1811426030 Survey Questionaries
Focus Group Interview and
Research,
Letter of transmittal.
Part 2.2: Growth Strategies
Part 2(B): Product
Part 2(D): Distribution
Part 2(E):
21 Nazia Parveen Nimra 1811492030 • Visuals and execution of IMC
• Website
Part 2(G): Visuals of Physical
Evidence
Proof Reading
Turnaround Strategies,
Growth Strategies,
Par2(A) Customer,
Part2(C) Pricing,
Part2(E) IMC Campaigns,
( Strategies & Media mix+ Budget)
23 Abdur Rafeu Yead 1811984030
Part2 (G) Physical Evidence,
Part2 (H) Defensive & Offensive
Strategies
Executive summary,
Acknowledgement,
Formatting and Fixings
Letter of Transmittal

18th January, 2021

Sherina Idrish
Senior Lecturer,
Department of Marketing & International Business,
North South University, Dhaka.
Subject: Submission of report on Danish Tea

Dear madam,
With due respect, we present you the final report of MKT460 on Danish Tea. The report has
been compiled as per your requirements. While preparing this report we tried our best to include
all the relevant information and analysis as much as possible. We also tried our level best to
relate our theoretical knowledge with our real-life experience. We hope that you will find this
report satisfactory. However, if any explanation is required, we would be honored to oblige.
We expect your considerable judgment in terms of any accidental error throughout the report.
Sincerely,

Abdur Rafeu Yead

Nazia Parvin Nimra

Faria Mehnaz Khan

Anan Arr Rahman

Muniba Masum Zinnia

 Acknowledgements
It’s our utmost pleasure to finish the work on this report. First of all, we would like to thank
our respected faculty Sherina Idrish for her generous guidance throughout the work. Her
outstanding support for this report, was a tower of strength in putting the pieces together and
an unfailing source of cheer and encouragement and for completing this report. Without her
proper guidance, we could not be able to complete this project successfully.
Last but not the least, we the group members who were working on this report as a team and
we are thankful to each other for being co-operative and sharing ideas.
Finally, a special thanks to the people who participated in our surveys and interviews and
shared their insights. Without their involvement, it would have been hard to assess the market
scenario properly.
 Executive Summary
Danish is a renowned sub-brand of Partex Star Group. They have been quite appreciated among
consumers for their quality of food and beverage products. Few years back, Danish entered
into tea market of Bangladesh, but it did not become a pleasant journey for them. The urban
tea market is largely dominated by few brands like Ispahani and Danish could not compete
them well. As a result, Danish failed to stand out in this competitive market being a late entrant.
After our thorough research on the tea market, we could identify some major issues associated
with Danish tea. We collected data from secondary and primary sources for understanding the
flaws that danish tea is failing to fix. Though Danish is well-known for their other food
products, customers are not well aware of their tea products. They have launched many tea
variants but most of them failed to grab customer’s attention. Danish tea has a veery weak
brand positioning and poor promotional integration. By assessing all these factors, we have
developed turnaround and growth strategies to overcome this situation.

We have planned to bring a new product line under Danish tea for the upper segment of the
urban market named ‘Danish Signature Blend Series’. Initially, the product line will include
five new variants of premium tea made with the finest ingredients and offers outstanding aroma
that stands out of all others. Besides, we have also planned to revamp two of the current product
offerings and upgrade the value proposition. After planning the pricing and distribution
strategies, integrated marketing campaigns have been developed for both new and revamped
product lines. We have included different IMC tools that will help to bring back Danish in the
urban tea market. Finally, it is obvious that Danish tea will most likely face attacks from the
competitors, so we have also mentioned some defensive and offensive strategies for Danish
tea.
 TABLE OF CONTENT

1.Compnay and Industry Overview/ Current Situation

1.1. Introduce the Industry……………………………………………………………….…….01
1.2. Company Introduction…………………………………………………………………….01
1.3. Introduction of SBU……………………………………………………………….……....01
1.4. PESTEL Analysis…………………………………………………………………………02
1.5. Porter’s Six Forces Industry Analysis…………………………………………………….04
1.6. Danish’s Consumer Profile………………………………………………………….…….07
1.7. Present Marketing Mix……………………………………………………………………07
1.8. SWOT -TOWS Analysis of Danish Tea………………………………………………….08
2. Recommended Strategies for Danish Tea
2.1. Table your Turnaround Strategies for Danish Tea………………………………….…….10
2.2. Growth Strategies………………………………………………………………….….…...11
2.2 A Customer:
I. New Customer Profile………………………………………….…………………….12
II. New Target Market Strategy……………………………………………….………...13

2.2 B Product:
I. Changes in current product offerings…………………………………………………13
II. New product value proposition……………………………………………………….14
III. Innovation Adoption Curve………………………………………………...…………15
IV. Chasm Strategies……………………………………………………………………...15
V. Positioning Statement………………………………………………..….…………….16
VI. Array of Brand naming strategy……………………………………….…………..….17

2.2 B Pricing:
I. Pricing Strategy ……………………………………………….………………………17
II. Pricing change……………………………………………………….………………...19
III. Price vs Perceived Quality position…………………………………………………...19

2.2 D Distribution:
I. Distribution Structure……………………………………………….………………...20
II. selected Distribution Strategy………………………………………………………...21
III. 4-point Navigation Model………………………………………….…………………21
2.2E New IMC Campaign
I. SMART IMC Objective Table…………………………………………………….…...22
II. Media Mix Table………………………………………………………………….……23
III. Interactive Static Content Marketing…………………………………………………..24
IV. B2C sales promotional keys……………………………………………………………25
V. Digital Marketing Strategies…………………………………………………………...26
VI. PR Strategies………………………………………………………………….……..…30
VII. Mobile app feature table…………………………………………………….………….32
VIII. Website……………………………………………………………………….……..…33

2.2F. Relationship Marketing Process………………………………….……………………...35

2.2G. Physical Evidence…………………………………………………….…….…………….37
2.2H Offensive and one defensive strategy…………………………………..………………...39
Part 1: Company and Industry Overview
1.1 Industry Analysis
Bangladesh is a small country with huge population and diversification. People of every
religion, ethnicity, gender, culture love tea here. Bangladesh used to be one of the top tea
exporting nations earlier. Even Bangladesh was in 9th position when it came about exporting
tea. But people from here started loving and consuming it more and more. This consumption
resulted us to import less in other countries due to fulfill the demand of our own country. Tea
is a go to drink for Bangladeshi people and there is no specific time to have it. Also, the
lifestyles are changing and people are getting busier day by day. So, they have found out the
tea bag as an alternative of making it in a long process. These changes have made the process
easier and also increased the consumption. Tea is comparatively healthier than coffee and other
beverages also helpful for headaches and pain. There is a data of tea consumption and
production for 4 years which will make it more understandable.
Production Internal consumption Export
Year
(million kg) (million kg) (million kg)
2007 58.19 46.27 10.56
2008 58.66 52.12 8.39
2015 67.38 77.57 0.55
2016 85.05 81.67 0.47
We can see in the chart that tea market is growing for both the production and demand. In 2007,
Bangladesh had produced 58.19 million kg tea and exported 10.56 million kg tea. And now in
2016 Bangladesh had produced 85.05 million kg tea and exported 0.47 million kg tea only
because we had to fulfill the demand of our country first. This data clearly shows the increasing
amount of consumption of tea in Bangladesh. Top three brands of tea industry are Ispahani
Mirzapore, Taaza and Seylon tea.

Company Background
Partex Group was established in 1962 by M.A Hashem. They are leading all the sectors
including food and beverages, plastic, fabric, telecommunication, logistic, logistic, fisheries
and many more. It has different two groups which are Partex Holding and Partex Star Group.
Almost 70000 employees are working there. Partex group is a private sector enterprise with a
huge diversification. Their main vision is to make Partex diversified, sustainable and world
Class Company to satisfy both customers and their shareholders. Also, their mission is to
deliver top quality products and services through innovation and efficiency. They have more
than 70 factories in Bangladesh. They have a food division which is Danish. Here they have
biscuits, ghee, chanachur, herbs, semai, snacks, spice, tea, water, milk powder, noodles and oil.
Danish is one of the leading market companies of Bangladesh which is a part of Partex Star
Group. Partex Group is more into team working. They like to take care of their employees and
customers. They do have a very clear vision and mission which is helping them to lead the
Bangladeshi market. They have a committed and motivated group who works to deliver
outstanding performance to their customer with their corporate strategy.
1.3 SBU Overview of Danish Tea
Partex Star Group is one of the leading groups of Bangladesh. Danish Tea is one of their
products and they are currently offering eight variants. Among those, two of them are currently

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available in the market but not in a large extent. Rest of the variants couldn’t stay in a
competition and significantly failed to grab the attention. When it comes about Danish Tea, it
couldn’t do pretty well than others. People prefer other brands for tea more than Danish Tea.
Even the availability of their tea is low in market also there is a lack of awareness of this
product. That’s why they couldn’t achieve that market in Bangladesh where people from here
are fond of tea. So, they can go for some competitive advantage which will help them to come
back to the tea market of Bangladesh again. Their main vision is to provide the tastier, healthier
foods and beverage for all stages and ages. So, they must work according to that to catch the
tea market again. Tea market is one of the most profitable businesses in Bangladesh and few
strategies can bring Danish Tea in the competition again.
1.4 Pestel Analysis of Danish Tea
Source Description Implication Certainty Impact
P1. Political condition is P1. +Ve because stable
quite stable with a few political situation=smooth 5 5
unrest situations that are operation= increase in business
mostly unrecognized. growth
P2. Bangladeshi P4. +Ve because brand will 4
government Allows open get more freedom to run 5
economy businesses according to their
P3. The current corporate wish.
P olitical tax rate is 25% (Bangladesh
Corporate Tax Rate, 2020)
P3. -Ve because it will impact
negatively on the revenue 4
4

P4. We have extreme level P4. –Ve because corruption

of corruption (Bangladesh leads to unfair distribution 5 5
Country Report 2020, 2020). practice in the business
Ec1.The current GDP Eco1. Eco1. +Ve because GDP
5 5
growth rate is 8.2% which increase will increase
has increased from the last purchasing power and it will
year (Last year 7.9%) generate more sale for Danish
(Bangladesh Economic tea.
5 5
Outlook, 2020) Eco2. +Ve because it’ll
Eco2. our per capita has increase the purchasing power
increased from USD-1650 of people. So, Danish has
(Bangladesh Economic opportunity to capture the

E conomic
Outlook, 2020)
Eco3. Current inflation rate
is 5.6% (Decreased)
growing market of premium
tea.
Eco3. +ve because the
5 5
(Bangladesh Economic decreasing inflation rate will
Outlook, 2020) increase the purchasing power
Eco4. Current interest rate is of the consumers.
4.75% (Bangladesh Eco4. +Ve Customers will be
5 5
Economic Indicator, 2020) more interested to purchase tea.
S1. People are very price S1. +Ve because Danish tea
sensitive. will be affordable for every 4 4
S2. Tea culture is an class of people
inevitable part of social S2. +Ve because it will help to

S ocial
interaction
S3. People from every
market segment like to
increase tea sale
S3. +Ve because everyone can
afford to buy tea which might
5

5
5

5
consume tea. generate more profit.
S4. In Bangladesh, tea 5 5
considered to be the second-

Page | 2
 best drink after water (Ovi,S4. +Ve because customers are 5 5
2018) dependent on drinking tea and
S5. The tea consumption has it will generate more money
increased in our country by S5. +Ve because more
7% since 2009 (Wing, 2019) consumption will lead to more
sale and more profit generation.
T1. +Ve because it will help to
T1. Emerging technological make tea more efficiently
advancement with new which will increase number of 5 5
equipment sales
T2. according to BTRC the T2. +ve because it is easier to
total number of Internet reach more potential customers
Subscribers has increased to through social media 5 5
99.984 Million promotions
(Commission, 2020) T3. +Ve because it creates
T3. Increasing number of opportunities for digital media 5 5
T echnology smartphone users promotion
T4. Increased growth of e- T4. +ve Danish tea has
commerce industry over established value delivery
recent years in FMCG network over e-commerce 4 4
sector (business, 2017). platforms which will generate
more money.
Env1. CSR activities run by Env1. +Ve because it will
the corporate brand “Partex create positive image and 4
5
star”. increase the brand loyalty
Env2. Carbon enforcement Env2. +Ve -65% reduction in
tax of our country (Sadiq CO2 from energy per ton of 4
5
Ahmed, 2018). production since 2008
E nvironmental Env3. Effective waste Env3. +Ve Waste impact on
3
management each consumer use has reduced 4
by around 32% since 2010

L1. Our country has L1. –Ve because consumer

Consumer rights protection right protection allows to fine 5
law 2009 the brand that may reduce 5
L2. Bangladeshi brand image
government’s Policy on L2. +ve because customers 5
labeling on product will get to know about the 5
information on the ingredients and health value in
packages. details
L3. Application of Labor L3. +Ve Business is conducted 4 4
Act, 2006 for private with implementation of
sectors. mandatory requirements
L egal L4. We have poor
intellectual property right
lawfully according to the Act-
2006 which ensures a better
(Sultana, 2019). workplace for employees
L4. –ve because other brands 3 4
can copy most of the features of
the product and mislead
customers

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Scenario Analysis Graph Based on PESTEL Analysis:
Ec1, Ec2, Ec3, Ec4
S2, S3, S4, S5
T1, T2, T3
Certainty P2
L1, L2
Env1, Env2

5 (5,4) (5,5)

P3
S1
T4 Ec5
L3
4 (4,4) (4,5)

L4
Env3

Not Important
(3,4) Important
1 2 3 4 5

Uncertainty

Political Economical Social Technological Legal Environmental

P1 (5,5) Eco1(5,5) S1 (4,4) T1 (5,5) L1 (5,5) Env1 (5,4)
P2 (5,4) Eco2(5,5) S2 (5,5) T2 (5,5) L2 (5,5) Env2 (5,4)
P3 (4,4) Eco3(5,5) S3 (5,5) T3 (5,5) L3 (4,4) Env3 (3,4)
P4 (5,5) Eco4 (5,5) S4 (5,5) T4 (4,4) L4 (3,4)
Eco5 (4,5) S5 (5,5)

1.5 Porter’s Six Forces Industry Analysis

Threat of new entrants Value Bargaining power of suppliers Value
Supply-side economies of scale: -2 Differentiation of Inputs: +2
Danish tea has been in the market for Danish has their own factory in
a while, it hasn’t reached to its Narayanganj. Also, they have
growth stage and has a long way to separate factory for tea which
reach economies of scale. Although they collect from the local
they have offer almost similar price suppliers of their tea garden.
like the market leader, Ispahani
Mirzapore tea, they are still not well
accepted.
Brand Identity: Despite of Danish -2 Switching Costs: Due to the -1
being quite popular as a parent specific manufacturer/supplier
brand, their tea hasn’t been and high investment, the
successful to capture the tea market. switching cost for Danish tea to
The market is still very strongly other manufacturer might be a bit
dominated by Ispahani Mirzapore high which an unfavorable
with 50% market share (Wing, situation.

Page | 4
2019), Unilever’s Brooke Bond
Taaza and other brands
Capital Requirements: it would be +1 Importance of volume to the +1
quite challenging for new entrants to supplier: A significant
establish in the market since there percentage of revenue of the
are lots of other popular mature retailers & wholesalers comes
brands like Ispahani, Taaza, Finlay from Danish’s products like
etc. Also, to enter in the market, it biscuits, cookies, condensed milk
will require thousands of crores etc. But when it comes to tea, the
which is a favorable condition for retailers are not dependent on
Danish tea. their tea. They have multiple tea
brands to choose. So, in this case
retailers and distributors have the
bargaining power.
Government policy: Bangladesh 0 Impact of input -2
has a quite strict policy for the The supply side input is very
FMCG sector. So, the value is 0 important for Danish tea. So, it’s
which we consider neutral. a bit unfavorable condition.
Expected Retaliation: As a tea -2 Threat of forward integration: +2
brand Danish offer fair pricing but Considering the huge market
below average in quality. They share Danish has in the market,
haven’t successfully reached the there is a very few chances for
consumers yet. So, they face any kind of forward integration
continuous challenges by the mature by suppliers being a competitor.
tea brands
Switching Cost: The switching cost -3 Supplier concentration relative +2
of Danish tea is very low to the to industry concentration:
consumers as there are multiple Danish has several factories
strong tea brands available in the under the corporate brand, Partex
market that are well appreciated by star. they have their specific
the consumers. dedicated manufacturer.
Average (Threat of new entrant is -1.33 Average (Bargaining power of +0.67
moderate) suppliers is not very high)

Competitive rivalry Value Bargaining power of buyers Value

Industry Growth Rate: Although -1 -2
Danish is a mature brand in the Industry concentration relative to
product life cycle, their tea is yet to buyer concentration: In our
be established in the market. The country the tea industry is a
growth rate of this tea brand is much growing industry. Also, the market
is very competitive among the
slower compared to the popular brands available in the market. At
brands like Ispahani, Brooke bond present not only Ispahani Mirzapore
Taaza. It will be pretty difficult to but also other brands are offering
capture the market for Danish tea different varieties and benefits
having so many big players in this compared to Danish tea.
market.
High Fixed Cost: Being a brand -2 Switching costs: The switching -3
under Danish, the investment was cost is quite low as Ispahani
quite high for this tea brand. But captures almost 50% of the
compared to the investment, Danish Bangladeshi tea market share. Then

Page | 5
tea is not doing well in the market. there are competitive brands like
Also brands like Ispahani and Taaza Taaza., kazi & kazi, Lipton and
mostly controls the retailers. many more who also have a decent
market share.
Product Differences: Apart from the -2 Buyers volume: As a tea brand -2
Shimla tea, Danish doesn’t offer any Danish is quite dependable on the
variety or special flavor to the retailers (Buyers) as they are the
consumers. Despite of having 8 types main buyers and if they purchase,
of verities of this brand, often times they buy it on a bulk amount. So, it
they are not available in the stores. is an unfavorable condition.
Brand Identity: The parent brand +1 Differentiation of outputs: As a -1
has a very strong identity in the tea brand Danish doesn’t offer any
Bangladeshi market. But, the product specialty that other tea brand
line of tea is not that recognized in doesn’t in our country. Also, all
the market yet. other brands are very famous
among the consumers compared to
Danish tea.
Switching Costs: There are lots of -2 Threat of backward integration: +2
tea brands with variants and flavors Considering the current market
available in the market. The brands situation, there is a very less chance
also offer very fair reasonable of any kind of backward integration.
The buyers are not in a situation to
pricing. So, the switching cost is
threat to backward integration to
quite low. force down the price yet.
Concentration and balance: -1 Presence of Substitutes: The -2
Number of competitors in this market share of Danish tea is quite
industry is very vast and they are low. In our country the tea industry
coming up with new variants and is mainly dominated by Ispahani
Mirzapore. They cover almost 97%
flavors. It’s a bit negative situation.
of the retail stores. Apart from that,
Danish tea doesn’t have shortage but Lipton Taaza is also sold on almost
their demand is quite low in the 25.7% retailer points and the rest
market. covers other tea brands like Finlay
Diversity of competitors: Our tea -2 kazi and many more. Brands are
industry is booming and it is getting bringing new variants with different
more diversified day by day. Since, flavors day by day. So, there are
Danish tea does not have diversified lots of substitutes available in the
variants market. In that case, buyers have a
favorable situation which goes
against the brand.
Average (Moderate competitive -1.28 Average (Moderate bargaining -1.33
rivalry) power of buyers)

Bargaining power of Intermediaries Value Threat of substitution Value

Intermediaries Profitability: As a -2 The relative price performance -2
tea brand Danish is not the market of substitutes: There are many
leader or challenger. Often times, all popular brands of tea in the
of their variants are nor even market who offer very reasonable
available in the retailer stores. So, price with good quality &
Danish tea don’t have the bargaining variants. So, it is not a favorable
power over them condition for Danish tea
Importance of volume to the +1 Switching costs: Tea is generally -3
retailers: As a corporate brand in the considered a low involvement

Page | 6
FMCG industry, a significant number product since there is very risk
of sales generates from Danish associated while buying it. So,
product. But right now, only the tea is the switching cost of Danish tea
failing to generate profit. So, it’s a is also quite low here unless the
neutral condition consumer is completely
dependent on this brand which is
quite unlikely to happen with
Danish.
Switching Cost: For Danish tea, the -1 Buyer propensity to substitute: -2
switching cost for the intermediaries In our country customers are
is quite low in the market extremely price sensitive in this
Threat of Backward integration: +3 market. They tend to switch to
The chances of backward integration alternatives for better value &
in this market is extremely low since pricing. Lots of closely priced
it requires a lot of money. So, it is alternatives are available in the
favorable for Danish tea industry. consumers can
Number of Retailers: Number of 1 switch to alternatives so easily as
retailers is higher compared to the it is very low involvement
number of manufacturers. So, it’s a product.
favorable condition
Average (Low bargaining power of +0.3 Average (Higher threat of -2.33
intermediaries) sbstitutons)

Forces High Medium Low

Threat of new entrant 0

Bargaining power of supplier 0

Bargaining power of Buyers 0

Threat of substitution 0
Competitive rivalry 0
Bargaining power of Intermediaries 0

1.6 Overview of the SBU’s Current Consumer Profile

Danish Tea’s current consumer profile
Geographic Demographic Persona
Area- Urban, Sub- Age- 25-45 Psychographic-
urban Gender- Male & Attitude- Positive
Location- Dhaka, Female Personality traits- Ambitious, Gregarious.
Chittagong, Income- 35,000 and Preference- Affordable yet good quality.
Khulna, Sylhet, above Values- Conservatism, Harmony.
RajShahi, Family size- Nuclear Lifestyle- Outgoing Socializers,
Mymensingh. and extended Unexcited Romantics.
Occupation- Students, Behavioral
Government officials, Purchase behavior- regular
Service job, Benefits sought based- Affordable and
Entrepreneurs available
Loyalty based- Brand loyalty

Page | 7
1.7 OVERVIEW OF THE SBU’s PRESENT 4P’S
PRODUCT: Danish Tea has different types of flavor and packaging. Available product of
Danish Tea is Danish Anytime Tea, Classic Tea, Diamond Leaf Tea, Simla Tea, Simla Tea
Bag, BOP, Churamoni Dust, Tea Dust, PD, and Classic Tea Bag. But they are not producing
all flavors anymore. Danish Simla Premium Tea Bag, Danish Simla Tea are available in the
market and Danish Classic Tea is available but not in a broad way.

PLACE: Danish Tea is currently using two channels for their distribution. They mainly
manufacture and distribute it to different physical shop like Agora, Meena Bazaar, Swapno and
also supplying in local physical stores. Also, they distribute their products in rural areas besides
urban areas. They distribute it in local grocery shops of rural areas. Also, they are using E-
commerce as their 3rd party. Danish Tea is available in Daraz, Chaldal, E-VALY Limited,
PriyoShop and few more. But they need to increase the channel of distribution for more
customers.

PRICING: Mainly the target of Danish is lower middle class to upper class. Price is pretty
much affordable. Danish Simla Premium Tea Bag is 80 taka which is 100 gm. Danish Simla
Tea is 110BDT for 200 gm and 200BDT for 400 gm.

PROMOTIONS: Danish Tea is lacking behind for their promotion strategy. They are not
promoting their products in effective way where there is a huge market for this in here. People
from here are fond of tea but Danish Tea couldn’t promote their product in efficient way. Most
of the people are aware of Partex but not aware of their Danish Tea because of their promotion.
They only have one TVC which even not casting anymore in television. They are active in
Facebook and post regularly there. That means they only have used TVC and Facebook to
promote their product. So, they need to come with better strategy for promotion to come back
in the competition.
1.8 SWOT-TWOS Analysis of Danish Tea
Strengths Weaknesses
Internal 1. Brand reputation of parent 1. Distribution channel of
brand. Danish tea is not up to the
2. Have their own production mark in urban market.
system. 2. Higher price compared to
3. Situated in a highly quality.
productive tea growing 3. Lack of proper promotion.
area of surma river valley. 4. Very less interactive
4. Enriched with resources to website.
expand production and 5. Lack of products in the
External distribution. market.
5. Very large installed 6. Only two product variants
capacity of tea factory are available in urban
6. Careful monitoring of market.
products using electronic
sorting.
Opportunities S/O Strategies W/O Strategies
1. People’s demand for tea is S1S5O1O2- Use the W2W3O2- Increase
upward shifting. reputation of parent brand, promotion and develop
Partex group and influence market position of danish tea

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2. Positive attitude toward the market of by expanding so that customers perceive
parent brand in the market product line. more value in the price.
can help to perceive value S2S4O4O5- Use potential to W6O3O4- Growing tea
propositions easily. supply enough tea for with market can be a possibility
3. Demand for new tea proper promotion to fulfill for Danish to gain the market
flavors is increasing. growing needs of urban share back by bringing new
4. Domestic tea consumption consumers. products according to the
is growing rapidly. S1S4O6- Introduce premium customer demand.
5. Possibility to obtain tea product line and use the W5O3O5- Assess the
significant market share in brand recognition to grab customers preferences and
urban area. market share. launch product lines that can
6. Opportunity to enter in the S1S2O5- Use parent brand’s be perceived by urban
premium tea product reputation to influence market customers.
market to serve upper and increase danish tea sales.
segment of market
Threats. S/T Strategies W/T Strategies
1. Highly competitive market S1S3T2T4T5- Develop W2W3T1T2T5- By
2. Ispahani holds more or integrated promotional increasing the promotion and
less 90% of the tea strategy to increase customer customer engagement
market. engagement and maintain the programs we will position
3. Increasing production market competitive price danish tea strongly among
cost. range by utilizing production the urban consumers. People
4. Arrival of new products capability. are less price sensitive for
and change in customer S1S4S5T2T4- Using efficient tea so if more value is
preferences. and disciplined production perceived, price will not be
5. Low price alternatives system and promote the an issue and market share
product’s positive aspects will grow.
developing proper W6T3T4- We will cut down
communication channel with the production of other
customers and interactive variants which are not
approaches. gaining profitable market
share. We will also introduce
new premium product line
for smaller yet more
profitable niche.

Page | 9
Part 2: Strategy Recommendations for the SBU

Key problems identification in current SBU

Danish is a well renowned name under the corporate brand Partex Group. Few years back they
launched a new SBU, which is Danish Tea. Though Danish is well appreciated for the other
product lines in the food and beverage market, Danish tea is still struggling to gain traction in
the tea market of Bangladesh. The market is still dominated by few big competitors and Danish
tea failed to compete any of them successfully in the urban market. Before moving forward to
the turnaround strategies, here are some key issues associated with Danish tea found from our
secondary research and consumer surveys:

➢ Lesser awareness about the Danish tea: In spite of Danish being a well-known name, their
tea products are not much recognized in the urban market. They have a total of eight tea
variants but most of the potential customers can not name any of them other than ‘Simla
Tea’. on the other hand, the competing brands are well known for tea products among the
customers even if they don’t purchase them all.
➢ Poor urban distribution: Danish Tea has 8 different tea variants but only a few variants
are available in the urban market which are, Simla Tea and Danish Classic. Even though
these variants are not available in the physical stores most of the time.
➢ Low point of differentiation: Available variants of Danish Tea are almost similar. So, the
target group is unable to differentiate between them hence only Simla tea performing better
in the market. They also fail to offer unique attributes compared to leading brands through
which their products can be differentiated.
➢ Quality and pricing error: Danish has recently approached to turn Simla tea into a
premium product by rebranding but quality remained the same as before. Customers could
only see upward changes in pricing and increase in price does not represent increased quality
of the product. Moreover, packaging is not even closer to premium offerings by competitors.
They basically failed to align the TG properly by keeping up with their taste in the urban
market.
➢ Lack of marketing communication: We have found significant gaps in their marketing
communication. Their current advertising and other promotional activities seem insufficient
to reach and engage the urban target market. Their advertising contents need renovation
along with their product lines to turnaround.

2.1 Turnaround strategies for Danish Tea

Danish Tea is struggling to sustain in the market with most of the current variants of their tea.
They failed to grab the attention of urban customers and gain sustainable market share. So, they
need turnaround approaches to bring back Danish tea in the battle. We are going for both
contraction and consolidation strategies to overcome the scenario.

Contraction strategy for Danish Tea: Danish Tea SBU currently offers 9 variants. Among
those 2 current variants seem feasible to go forward with, which are Simla Tea and Classic
Tea. Rest of them drastically failed to grab any attention from the urban customers and do not
look profitable to continue with. So, we are planning to cut these product lines off from Danish
Tea SBU and will emphasize on rebranding these three categories after cutting cost

Page | 10
Consolidation strategy for Danish Tea: After the contraction and closing down of the
unprofitable product lines from the SBU, we will revamp the selected two variants for the
currently targeted urban market by improving quality and packaging of those products.

We will also extend to a new product line in Danish Tea SBU, named ‘Danish Signature
Blend Series’. This signature blend series will include 5 premium tea blends developed by
experts with the top-notch quality of ingredients. This new line will be targeted to the socio-
economic class A+, A, B+ in the urban market. Signature series will be specialized on aroma
and unique tastes for the customers for whom tea is not just a regular drink, but an experience
as well. The crafted flavor experiences from the finest organic ingredients will be capable to
become a part of their urban delicacy.

Justification

We have selected Danish Simla Tea and Classic Tea to continue with. Because, the middle-
class segment of the urban market is dominated by very similar categories of tea from the
market leader. Classic and premium black tea are well perceived tea variants in the urban
segment. Also, competitors with similar price tags have more premium product offers. So, if
we can revamp the similar categories with better exposure and upgraded quality within their
affordable range, Danish tea has the opportunity to get on the track in the urban tea market.

Moreover, With the growth of GDP, the domestic tea market is growing simultaneously. Not
only the number of consumers increasing, but also demand for premium tea products are also
growing at pace. So, there is an opportunity to offer premium tea which will satisfy the demand
with outstanding aroma and tea experience. Our new product line up will target this premium
market segment and offer affordable yet specialized tea items to compete in the upper segment
of the urban market.

2.2 Growth Strategies

To achieve growth, increase market share for the long term and attract the customers to our
brand we will upgrade the two old variants to keep up with the current market and also bring
new organic tea variants with premium quality at an affordable price.

2.2.1 Concentration

Market Penetration: The current two variants of Danish Tea 'Simla' and 'Classic Tea' don't
have much to offer compared to the other competitors. Also, on scale of 1 to 5, to describe its
quality and packaging it will get or fall under below 3. Majority of its consumers belong to the
middle-class section and in terms of taste, they prefer the regular simple tea. So, when Danish
tea announced Simla as their premium blend tea it didn’t made any positive impact, neither
increased the sell. Their packaging is still very poor and for middle class segment, good
packaging plays an important role. So, to overcome this negative impact, we will upgrade the
packaging of Simla along with the Classic Tea which will help these products to stand out from
the other competitors in the market and ensure good quality of packaging.

Product Development Strategy: 5 new premium quality organic tea variants will be
introduced under the name 'Danish Signature Blend series' in the urban area. As a premium
product line these 5 variants will have a higher price than the existing 'Simla' and 'Classic'
variants but It's price will definitely be lower compared to the other competitors premium ones.
Also, these variants will have totally unique taste made with high quality and organic

Page | 11
ingredients so that the consumers can perceive tea as not just a regular stimulant or something
to have at evening snack but something that will complement the lifestyle.

2.2 (A) New Customer Profile Table: PRIZM format

Up and Delight Persona

Psychographic Segmentation:
• Attitude (towards the brand): Positive
• Lifestyle: Interactive Party Animals, Outgoing
Socializers, Unexcited Romantics.
Geography Segmentation: • Personality Trait: Ambitious, Gregarious and
Area: Urban Compulsive personality.
Location: Major divisional cities • Preference: Premium yet affordable
Demographic Segmentation:
• Values: Conservatism, Mastery, Harmony ,
Age: 28-35 years ; Gender: Male, Female ;
Family Income: BDT 60,000 or above ; Intellectual Autonomy.
Education: College/University graduate ; Behavioral Segmentation:
Family Size: Small, Extended, Nuclear • Volume: Regular buyer
family; • Benefit: Stimulating effect and Habit
Occupation: Business, Service, Professional, • Loyalty types: Shifting Loyalty, Brand
House-wife Loyalty

Target Market Strategy and Justification

Domestic tea consumption is increasing with the growth in GDP, as people are not only
purchasing tea to drink more but also choosing more expensive variants of tea products.
Premium teas grown in organic conditions have become popular among younger generations
who seek healthier lifestyles. The consumption in Bangladesh has reached a CAGR of 7.1%
since 2009 (EBL Securities, 2018). With the increased consumption trend, demand for high
end tea products is simultaneously gaining traction in the urban market instead of traditional
black tea.

So, we have chosen the Product Specialization strategy for this market. As the demand for
tea is growing in both regular and premium segments, we will offer different variants of tea
products for different market segments. Price range will be different for regular and premium
products which will be targeted to different socio-economic groups in the urban tea market.
We have targeted urban areas and the new target profile belongs to upper and upper middle
class in the urban society. Selected personality traits are: Ambitious, Gregarious and
Compulsive. Research shows that impassioned and impulsive people have a very positive
correlation with caffeine intakes to maintain a high level of dopamine activation. (KALEIGH,
2019). Gregarious people are more likely to socialize with friends and family and tea is a
frequent addition to this. Moreover, compulsive consumption of tea as a day-to-day activity is
very common. Most of our offerings will be affordable for the mentioned income range,
because people from and above that income group have a growing demand for premium tea
consumption. We have mentioned brand loyalty as danish is already appreciated for their good
quality of cookies and this reputation will help to promote its good quality of tea to the
customers. Also, consumers who are already purchasing premium tea products from other

Page | 12
brands but do not have a very long-term connection with that brand are our potential target
customers. Because, tea is a low involvement product and shifting from another brand to danish
will not incur so much effort.

2.2 (B) Product

Changes we are willing to make in the current product offerings

Existing products:
Simla Premium Blend Tea – We are not willing to change its current ingredients or formula
as for the current consumers its current taste and quality is good enough. So, to attract new
customers we are going to change the name from Simla Premium Blend Tea to Danish Simla
Special Tea and change the whole packaging that will help it stand out in the market/stores and
gain customer’s attention. We will categorize it as a regular one for the upper middle class and
middle class.
Danish Classic Tea – Danish classic tea is one of the underrated products of Danish even after
maintaining good quality. Currently its packaging is very plain and boring. So, we are going to
change its packaging too so that it can instantly grab customers attention and attract them to
buy it.

New Product line:

We will introduce absolutely new premium organic tea variants under “Danish Signature
Blend Series” for which our target customers will be from the upper class. There will be 5
variants under this new line and all of them will be unique and different from the ones that are
currently offered in the market by the competitors.

(i) Mint Splash (PepperMint green tea): A dash of cool and subtly crisp true mint and drizzle
of pepper added to our signature green tea which will not only help you to fuel your body,
soothe your mind but will make you feel refreshed and will satisfy your taste bud too!

(ii) Lime Ginger Snap (Turmeric ginger lemon tea blend): Our Lime Ginger Snap is here
to give you a healthy cup of tea with delicate smooth flavor and aroma combined with a
harmonious blend of turmeric, ginger & lemon!
(iii) Decaf Aroma Infused: The traditional delicious taste of tea but without any caffeine
specially made for those who are looking for something that will satisfy their uncontrollable
thirst for tea throughout the day and at the same time won't hamper their sleep at night due to
the overdose of caffeine. So, for tea lovers, no more sleepless nights as Danish Signature Blend
series brings decaffeinated tea.
(iv) Black Tea: A daring and bold whole leaf master blend of black tea with special aroma
which produces a brew that is strong and enliven at the same time to give you a delightful
surprise!

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(v) Sweet Spice Tea: A robust, uplifting and warming infusion, flavored with aromatic zesty
Desi chilies with a touch of sweetness to deliver you a bold, spicy, great tasting cup of tea.

Mint Splash Lime Ginger Snap Decaf Aroma Black Tea Sweet Spice
Infused Tea
New product value proposition:

Potential/Future
Core Level Tangible Augmented Level
Level
• Variants can be • Yearly gift
• Modern
• Fusion of customized by size, hampers for
Premium
natural ingredients, loyal customers
Packaging
ingredients, packaging • Offers during
• Customer’s
aromatic • 5 different variants different
own
Attributes: soothing variety • Actions taken festivals,
Customized
(Features, of flavours and based on occasions
package
Quality) premium customer’s • Will regularly
quality • Moisture feedbacks come up with
resistant
• Healthy and • Regular answers of new flavors and
and
organic customer’s queries types of organic
Reusable
• Home delivery tea
Packaging
option
Functional:
Functional: • Convenience
Functional:
Strong and • Different options,
• Fair deals
Functional: durable benefits or product
packaging so • Prizes and
Health and taste offerings are
the product benefits
concentrated higher than the
won’t get Emotional:
Benefits Emotional: offered price
• Connected
(F+E) • Meditative spoiled Emotional:
feeling towards
experience Emotional: • Freedom of
• Attractive the brand
• Satisfaction customization
• Stylish feel • Positive customer • Winning
experience
• Hassle free experience
experience • Reliability
• Trustworthy

Page | 14
Innovation Adoption Curve

Techies Visionaries Pragmatics Conservatives Skeptics

TGs under Techies, Visionaries, Pragmatics and Conservatives:

Techies Visionaries Pragmatics Conservatives
• Urban • Urban • Urban • Urban
• 18-23 • 24-32 • 28-35 • 30-35
• Upper Class • Upper class • Upper Middle Class • Upper Middle Class
• College graduate • University • University graduate • University graduate
• Interactive Party graduate • TV opposing • Lazy Opportunists
Animals • Interactive Party Moderates • Compulsive
• Gregarious Animals • Compulsive Personality
• Shifting Loyalty • Ambitious Personality • Brand Loyalty
• Shifting Loyalty • Brand Loyalty

Chasm Strategies
Bowling-Alley Strategy
(i) Innovators: As we
want to show “Danish
Signature Blend Series”
as a sophisticated choice
for a healthy lifestyle, we
will choose Bangladeshi
renowned photographer
Ishrat Amin. She is one
of those influencers who
regularly tries new
things and is not afraid to
take risk. Majority of her
followers are from upper
class and upper middle
class. So, it will be a wise
choice to choose her as
she has a positive image

Page | 15
and a lot of impact on early adopters. With the help of her we will show how the new Danish
Tea series has made a positive impact on her daily life while also sharing the healthy aspects
of it(ii) Early Adopters: Iftekhar Rafsan who is widely known as ‘Rafsan the Chotobhai’ is
one of the trends setting influencer currently in Bangladesh who is also famous for bringing
justice to people by giving honest reviews of mostly food items. So his followers strongly trusts
him thus we will choose him to attract the potential target customers. He has a huge fan base
and majority of them are not price sensitive. He will be a perfect influencer to promote our
product to our potential customers.
Invasion Force
Currently among our target customers, North End Coffee Beans are very famous and they are
regular consumer of it. So, we have chosen North End as our partner brand. As we want the
customers to try our Danish Signature Blend Series at least for once, we will give free mini
packs of our product with each 450gm pack of North End Coffee Beans. By which we will be
able to let the regular consumers of North End Coffee beans have a taste of our premium series
tea. Also, North End is quite famous brand for high quality and great taste, so by having a
partnership with them it will be easier to convince people that our new tea series is also made
of high-quality ingredients with unique taste. As partners, we both will promote our brands in
Social Media Platforms from which our Danish Signature Blend Series will also get a decent
amount of reach.

New Positioning Statement

Customer profile: For Bangladeshi people of urban area which includes students, housewives,
corporates whose main priority while choosing a product is quality and its variety.
Contexts: Danish Signature Blend Tea Series not only ensures a premium quality but also
ensures gratifying experience along with satisfying unique taste while keeping the health or
wellbeing in mind.
USP: Super aromatic tea with fusion of different organic ingredients in variety of flavors

Action components: Infused aroma and taste, home Delivery, organic ingredients, fusion of
flavors, soothing, healthy, premium packaging

“Danish Signature Blend Series are especially made for spirited urban people of Bangladesh
to give them a fresh, soothing experience with unique taste while drinking our aromatic
flavorful tea blends made with care by mixing organic ingredients.”

Page | 16
Array of Brand
Branded House: For Danish Tea category they used their old traditional Danish red logo with
different ‘Tea’, ‘Anytime’, ‘Classic’ and ‘Simla’ keywords added below the red logo in each
package and did not make any particular logo separately for the Tea variant. Danish is already
an established parent brand of variety of popular food products and for our new premium
segment we need that recognition and power of the name to gain trust of the customers.
Moreover, if we go with a new logo it will incur additional cost for designing and heavy
promotional activities which also requires extra efforts. So we will not change the popular,
traditional logo. We will just add “Signature Blend Series” text below the logo just to
differentiate our new premium product line.

2.2 (C) Pricing

We are planning to introduce a new premium product line under Danish tea which is our
signature blend series. We will adapt the following pricing strategies for our new product line:
New Product Line Pricing
Products Small Pack Medium Pack Large Pack Customized
1. Mint Splash 140 BDT 270 BDT 400 BDT Will vary based
2. Lime Ginger Snap 135 BDT 265 BDT 395 BDT on different
3. Decaf Aroma Infused 145 BDT 275 BDT 410 BDT customization
4. Black Tea 150 BDT 285 BDT 415 BDT options.
5. Sweet Spice Tea 155 BDT 295 BDT 425 BDT

(i) Reverse Cost plus to Value Pricing: Our new product line, ‘Danish Signature Blend
Series’ will be launched with 5 variants. The targeted market for this new premium product
ranges are people from the upper and upper middle-class segment. With the continuous growth
in income and purchasing power, customers from this segment have an increasing demand
trend for premium tea products. From our survey and interviews, we found that people are
ready to pay extra for premium tea as long as it does not seem overpriced. Our signature blend
series will be positioned as a high value product with the finest ingredients. So that, the targeted
customers will most likely pay extra to upgrade their consumption and replace the regular basic
tea with one with better aroma and quality. Price will be kept slightly lower than the current
premium brands with a much higher price range. We will reduce cost, but emphasize on the
quality and perceived value of the product.
Price
High Medium Low
Premium
High ‘Danish Signature High Value Super Value
Product Blend Series’
Quality Medium Over Charging Average Good Value
Low Rip-Off False Economy Economy

Page | 17
(ii) Value Based Pricing: We will follow 3 pricing approaches under value-based pricing.
Those are Product Line Pricing, Reference Pricing, Segmented Pricing.

Strategies Explanation with Justification

New premium product lines will be priced higher than the
regular ones. Danish Simla and Classic variants will be
targeted to urban middle class mass segments. On the other
hand, the Signature Blend series will be to upper segments.
Product Line Pricing
We will keep price differentiation of premium line and
regular variant considering the risk factors of product
cannibalization. The premium ones and the regular tea will
not be alternative products to each other based on their price.
Price of new premium blends will be slightly lower than the
high-end variants of other brands such as Halda Valley’s
but the packaging and value offerings will be more premium
compared to them. Accordingly, our products will be placed
Reference Pricing
closely to the competitor’s on purchase points so that
customers will get to see our products with better price,
better appearance and packed with more value offerings
while purchasing.
A. Customer Segment Pricing: Danish App users will
receive special prices. Premium products will be charged
lower for app-based purchases than non-users. Based on
the usage stats. of the Danish mobile app, the price offerings
will be more specialized for loyal customers.
Segmented Pricing B. Product Form Pricing: Danish Signature Blends will be
available in different packages. Loose leaf packages will
come in 3 quantity sizes (45gm, 80gm,125gm). Price will be
less with increasing quantity in price-quantity ratio. This
will offer higher value and more efficiency to customers
buying larger packs.

(iii) Price Sensitivity: Compulsive or habitual consumption of tea is very frequent in

Bangladesh. So, the price elasticity of demand is inelastic. Also, tea is less price sensitive and
insignificant part of the customer's monthly total expenditure. But there are multiple
alternatives for good quality tea and switching cost is low for this low involvement purchase.
Danish Signature Blends will be priced slightly lower with better value offerings and variants
considering this factor.

(iv) Customer Costs: To maintain a better ROI we will avoid focusing on infamous “strategic
accounts” and emphasize on Butterflies and True Friends. As the growth potential of these
groups is very high, investing more on offering them better value will be efficient for us.

(v) First vs Repeat Purchase: For the loyal customers and app users, we will have special
price offers based on loyalty points. If customers scan the product package with our app for the
first time, they will instantly receive a special discount code to redeem on their next purchase
within one month.
➔ Bundle pricing and Retail Pricing Check: For retail pricing check, here is a hypothetical
scenario for 50gm premium black tea package.

Page | 18
 Buyer Price/ Package Quantity Revenue
220 BDT First 50 packages (220×50+210×50)
A
210 BDT Second 50 packages = 21,500 BDT
220 BDT First 50 packages (220×50+210×50+190×50)
B 210 BDT Second 50 packages = 31,000 BDT
190 BDT Third 50 packages
220 BDT First 50 packages (220×50+210×50+200×50)
C 210 BDT Second 50 packages = 31,500 BDT
200 BDT Third 50 packages

In this scenario, buyer C is the most profitable buyer for us. Giving this buyer discounts on all
offered bundles will give us higher total revenue compared to the others. Buyer B is the second
prioritized buyer in this scenario. The earned revenue will be less than the buyer C for the same
quantity purchased. On the other hand, Buyer A is the least potential retail buyer for us
compared to B and C.

(vi) Emotion (Transparent Pricing): Our new product line is based on premium variants and
the price will be significantly higher than regular tea products. Premium blends will be formed
of finest ingredients and processed with advanced methods. We will clarify this information
that, why we are charging more for this better-quality product.

(vii) Price War: Being a premium product manufacturer, we will avoid price war. Danish
signature blend will be positioned as a better valued product, not as a cheaper buy.

(viii) Point of Sales: New premium tea blends are targeted to upper segment customers and
purchase points will be big retail stores, super shops, Danish signature stores and e-commerce
platforms. Many of the big retailers have their own websites so it will be easy to see the prices
they are charging. Prices will be stated on our website so that customers can check if they got
the fair price. Moreover, we will have a team to oversee if customers are charged equally in
every store.

Reason for not changing prices of the current offerings

Danish is a well-known FMCG brand in this market scenario, but they could not compete with
market leaders in the local market. The market is dominated by few big brands. Danish has a
relatively small market share and pricing of their regular tea products is very close to the market
leaders. Tea is a less price sensitive product and it is a part of habitual consumption. So, we
believe playing with prices will not be much effective in the middle-class mass market. For
this reason, we will focus on value upgradation and position as a better selection at the same
price compared to others.

Price vs Perceived Quality positions:

For current products of Danish Tea, the Price vs Perceived Quality position will be Hybrid
(3) as per the Bowman’s Clock.

Page | 19
Danish tea with its current product
line offers slightly lower price than
the market leaders in the middle-
class market. People are less price
sensitive in tea purchasing and tea is
a low significance expenditure.
People choose Ispahani or other few
leading brands because they
perceive better value for their
products. With upgrading our
current offerings, we aim to
persuade our target customers that
danish tea is offering good added
value through combining reasonable pricing and acceptable differentiation points.

For new Danish Signature Blend Series, the Price vs Perceived Quality position will be
Differentiation (4) as per the Bowman’s Clock.

New product line for the upper segment

of the urban market will be higher in
price than regular tea products. As tea is
a habitual consumption and price
sensitivity low, people perceive value
more than the price for such products.
Danish Signature Blend Tea will be
positioned to offer the highest level of
perceived added value at higher price.
Our new product-oriented promotions
will focus on creating strong brand
awareness of Danish premium tea and
building customer relationships. So,
high quality products with strong awareness and loyalty will be placed to achieve relatively
higher prices.

2.2 (D) Distribution

Distribution Structure: For our target group, Multichannel Distribution structure would be a
perfect one. By using this structure, Danish Tea will be able to make its product available in
all the urban areas and easily accessible to the customers.

As our new product ‘Danish Signature Blend Series’ is under premium category, we will
mainly sell it through different super shops- Agora, Unimart, Shwapno, Meenabazar. Our

Page | 20
products will also be available on e-commerce websites like Chaldal.com, Daraz, Evaly and
people can also get it from the newly launched ‘Pandamart’ via foodpanda app. And we will
sell the regular variants Danish Simla and Danish Classic Tea through different local shops,
distributors or wholesalers, super shops and e-commerce websites as well. We will also set up
our own mini Simla Stores in busy areas of Dhaka city where people will get to buy per cup
Simla tea at 10 BDT. The mini stores will include light snacks by Danish as well.
Moreover, all of the products will be available on Danish Tea’s website and app with digital
payment methods including cash on delivery service. People will be able to directly place an
order through these 2 online platforms and get the product at their doorstep by our own delivery
man. Or they can simply come to our Danish Tea shop and buy directly.

Distribution Strategy
As the new product line is premium, Danish Tea will not be successful if they aim to sell them
at every available outlet. Hence for the new “Danish Signature Blend Series” they will follow
Selective Distribution strategy and only sell it on different renowned super shops because
majority of the target customers usually ignore the typical local shops located just near their
house and instead go to a nearby super shop to buy premium products as their primary concern
is the premium quality rather than the accessibility.
For Danish Simla and Classic Tea we will follow Intensive distribution strategy as these two
variants are targeted for mass people. We will try to make these two products available at every
outlet possible so that it gets enough reach and people get to buy it without any hassle.
Navigation Model:

With multichannel distribution system and Intensive distribution Strategy,

Danish Tea will be able to ensure that their Danish Simla and classic tea are
always available and easily accessible by selling the products on every shop
possible. And with selective distribution strategy Danish signature blend series
will be sold mostly on super shops which are already located on convenient and
Reach core places of urban area. Also, the premium Signature Blend Series and regular
Classic and Simla tea- all of them will be sold through various e-commerce
platforms including our own website. That’s why even if one shop or website
shows the product is out stock then customers can easily go to another one and
get the product. Simla stores will also help to increase the reach by showcasing
its products and banners on different areas.
Customers will be able to get ingredients list and full product description on
Danish Tea’s website so that they can understand its product’s offerings are a
lot more than what they will be paying. No misleading picture or information
will be given to the customer and their privacy will be strictly maintained. Their
Affiliation
queries, address, credit/debit card number or any kind of personal information
will be kept on highly secured database. While ordering online from Danish
tea’s website or app, if any customer doesn’t feel like sharing their credit/debit
card information then they simply choose cash on delivery option.
On Danish Tea’s website customers will be able to customize the premium
products by changing the ingredients and packaging. By keeping track of the
customer’s data, Danish tea will provide personalized emails and offers to the
Richness loyal customers on their birthday. Customers can easily reach out regarding any
query by using the chat option available on the website, app and Facebook page
of Danish tea. Danish Tea will also promote its contents regularly through
google ad and Facebook.

Page | 21
 There will be several packaging of the products available in different sizes.
Danish signature tea blend series’ five products’ packaging can be customized
through Danish Tea’s website. They can also customize the ingredients of the
Range
five premium blends as per to their choice via Danish Tea’s website and Tea
shop. For customer’s convenience several digital payment systems, cash on
delivery will be also available on the website and app.

2.2(E) IMC campaign

IMC Objective Table: We will follow the Innovation Adoption Model to set our IMC
objectives. As we will launch a new product line under Danish Tea, we expect that our target
customers will respond in this way towards our IMC approaches. Our IMC Objective table for
1 year is given below:

Print and
Sales Digital Interactive PR/ Support
Specifics Radio TVC
Promo Marketing Marketing Publicity Media
Ads
35% 75% 35% 85% 65% 60% 50%
Awareness
5 months 4 months 3 months 12 months 12 months 4 months 6 months
25% 70% 30% 80% 50% 55% 35%
Interest
3 months 4 months 3 months 12 months 12 months 4 months 6 months
20% 65% 25% 65% 35% 35% 30%
Evaluation
5 months 4 months 3 months 12 months 12 months 4 months 6 months
15% 55% 20% 45% 25% 20% 20%
Trial
5 months 4 months 3 months 12 months 12 months 4 months 6 months
10% 30% 10% 30% 15% 15% 10%
Adoption
5 months 4 months 3 months 12 months 12 months 4 months 6 months

Estimated Coverage: 85% of the total urban target market

1-Year IMC Budget (in brief)

Promotional Tools Estimated Total Cost (BDT)
Content development 15,00,000
Sales Promotion (Discounts) 5,00,000
Sales Promotion (Gifts) 3,00,000
Sales Promotion (Trial Generation) 4,00,000
Digital content boost (weekly) 12,00,000
App Development 6,00,000
Print Ad 5,00,000
TV Ad 10,00,000
Affiliation 8,00,000
SEO 50,000
Event 2,00,000
CSR 3,50,000
Website Development 2,00,000
Grand Total = 76,00,000 BDT

Page | 22
Media Mix: Our core media mix tools are listed on the following table,

Type of Sub types Platforms Placement media Timing of Daily Time

Media vehicle airing the Frequenc Frame of
ad y the
campaign
Persona SMM FB Danish Tea Evening 90% 1year
l You tube Danish Random 75% 1year
Mobile App based Danish App Random 65% 1year
Marketin advertisemen
g t
Others Google, E-commerce Continuo 75% 1year
yahoo sites us
Type of Sub Platforms Channels Spot Placeme Timing Dail Time
Media types /publication ad nt media of airing y Frame of
timing vehicle the ad Freq the
campaign
Non- Electro TV ATN 30 Betwee Evenin 10 4
Persona nic sec n news g, months
l Night
GB 30 Betwee Evenin 10 4
sec n music g months
show
Radio Radio 15 Traffic Mornin 15 3months
Foorti sec & news g
Radio 15 Update Afterno 15 3
Today sec s on months
Print News Daily Star Front & 1/w 6
Paper Back eek months
ProthomAl page 6
o months
Magazine Economist Back 1/m 6
page ont months
h
Business Back 1/m 4
Today page ont months
h
Support billboard, Mohakhali, 80 1 year
Media walls, Motijheel, %
public Dhanmondi
property
poster)

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 Interactive and Static Content Marketing

Content 1: Interactive Facebook Ad Content 2: Static Content (Seasonal Appeal)

Content 3: Interactive Facebook Content (Seasonal) Content 4: Static Content (Humor Appeal)

Content 6: Static Content (Festive)

Content 5: Interactive Static Content (Humor)

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 Content Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1. Content-1
2. Content-2
3. Content-3
4. Content-4
5. Content-5
6. Content-6

B2C Sales Promotional Keys:

(i) Sweepstakes: customers can win gift packs by participating and posting screenshot in
comment section of our Facebook post by sweepstakes.

(ii) Coupon: Instant coupon will be rewarded on occasional and seasonal basis based on
quantity purchased. App users will also get special discount offers.

Coupon: Occasional Discount

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(iii) Sampling: We will male Trial Generation
campaigns for Simla Tea and give free sample of tea
by setting up booths on crowded office areas,
University campus booths and trade fairs.

Sample: Simla Tea trial generation

SP Tools Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1. Sweepstakes
2.Coupon (occasion)
3. Coupon (App)
4. Samples

Digital Marketing Strategies

Our digital marketing strategies will be integrated through Facebook, Instagram, Snapchat and
YouTube.

Facebook: For Facebook based promotion, we will regularly post our Interactive Contents
in our Facebook page of Danish Tea to engage audience to our page. For generating UGC we
will post interactive promotional posts where customers will have to post their contents using
our tags. Also, for affiliation, we have planned to work with Raba Khan for product
endorsement. Paid visual contents will be shared from her Facebook profile. As she is quite
recognized among young audiences and has a large follower group, this will help to gain
traction from target customers.

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Content for generating UGC

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Instagram: Instagram has gained traction rapidly within the urban youth. We will share
attractive visual contents on Danish Tea’s Instagram profile. For Instagram, we will affiliate
with Ishrat Amin very renowned photographer of our country and Instagram influencer as
well. We will also affiliate with famous food reviewer and influencer Iftekhar Rafsan to
endorse our product.

Snapchat: Popularity of Snapchat is growing. Our targeted urban upper segment includes a
good amount of snapchat users. We will launch customized Danish Go Green Filter with
discount incentives.

Pinterest: We will share artistic

visuals related to our products on
Pinterest. Creative contents
posted on Pinterest will attract
visitors.

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YouTube: YouTube is a great media to reach mass number of audiences, we will put paid
banner ads on YouTube based on areal targeting on our targeted geographic areas. We will
affiliate with Antik Mahmud for YouTube based endorsed commercial videos We will also
start a series from our own channel named ‘Danish Tea presents, Celebrity Talks’ This show
will be featured by famous celebrities who will share stories from their campus life.

Reference Marketing: We will launch Danish App and users can refer their friends to install
Danish app or to use our website. For each referred sign up, both the inviter referred friend will
get special coupons for Danish products. For each 10 reference, user will get special gift pack
of Danish Signature Blend Tea

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PR Strategies (CSR, SEO PR and Launching event)

CSR: We will run youth centric ‘Danish Go Green’ program to encourage and engage tree
plantation. This program will be executed through multiple educational institutions.

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SEO-PR: Evergreen and energetic- these are the two words that comes to everyone’s mind
when they see famous actress Jaya Ahsan. Her unique charismatic personality goes perfectly
with the soothing and gratifying Danish Signature Blend Series. Majority of Bangladeshi
people clicks every news that has Jaya Ahsan name on it. Moreover, she has a large number of
followers and fans on her social media accounts. So, we will endorse her and she will regularly
post pictures with Danish Signature Blend Series tea. As she is a nature lover too, she will play
a major role on Danish’s ‘Go Green’ campaign by posting following contents-

Launching Event: We will organize launching event for new ‘Danish Signature Blend
Series’. In this event we will invite our influencers, media partners and renowned public
figures. This event will help to generate public exposure to the new product line and increase
publicity.

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Mobile App Features
We have planned to launch ‘My Danish’ mobile app. Core features of our planned app are
listed below:
App Main Features Augmented Features
Product & Price Details: Danish app will Music Library: Customers can enjoy
include product and pricing details of all soothing music from our app based virtual
food products offered by Danish. music library.
Promotion: Promotional contents and Games: Customers can play different
offers will be available on app. Customers community based virtual board games with
will get special offers for app usage. friends and get redeemable reward points
through app.
E-commerce: Customers can order Danish Task Manager: App will include a digital
Tea and different snacks items through the task manager. It will be synced with google
app. They can also customize the tea blend calendar. They can also set ‘Tea Time’
for premium products. There will be app- alarm with this.
based payment method available.
Interactive Window: Customers can Navigator: The app will include a shop
contact us through app and write feedbacks navigator feature which will enlist area-
on products. We will also wish app users on based grocery stores. Customers can locate
birthdays and special occasions through the nearby grocery shops for required products
app and give them special offers. through the app

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Website
We will launch a full-fledged website for Danish Tea. The website will have e-commerce
functionalities and interactive windows. Customer can order their tea online and customize the
tea blend according to their wish. Initially, we will start the website with Danish Tea products
but later on we will also add tea relevant accessories such as tea infuser, tea cups, etc. can be
purchased from our website.

Our website link: https://danishtea.wixsite.com/danishteabangladesh

Screenshot from our web interface:

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Print Ad
Our print ad will be
published on famous
newspapers and magazines.
Our selected newspapers
are Daily Star, ProthomAlo
and magazine ads will be
published on Economist
and Business Today on
special editions.

Support Media

Billboard: Since we are focusing on urban market, billboard can help us to gain massive
amount of reach. We will put billboard advertisements on busy and office centric areas such as
Mohakhali, Motijheel, Dhanmondi where thousands of people pass by every time.

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2.2 (F) Relationship Marketing

1:1 marketing: Customer insight is considered to be very valuable for any brand. So, for or
1:1 communication, we’ll have demo simla store where we’ll give our customers free tea sache
pack and also instant trial option for tasting. Danish tea will mostly focus the corporate centric
areas for the trailing option. While in this trial session, we’ll interact with the customers and
ask for their suggestions about the tea, how they felt and whether they would like to have any
change or not. In this way, we’ll try to get feedbacks directly from the cutomers. To make them
feel more engaged wih the brand, we will send special birthday surprise offers specialized for
them.

Permission Marketing: By conducting

permission marketing we’ll try to get through
them as much as possible. Since we have our
own app and website, we’ll collect email
address of the customers who use these. By
collecting their email address we’ll send them
messages about our tea, and new prices and
promotion. Also, though this email
messaging, we’ll share a lot of interesting
health benefits associated with our every
premium tea variant. This, will help us to
reach our customers on a regular basis.

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Mass Customization: Mass customization is a very common and effective approach to reach
the customers. To give our TG the freedom to choose, we’ll have a feature on our app where
the individuals can mix-match their desired tea flavours and quantity to order. This will allow
them to have an experience of tasting multiple varieties at a single purchase. But, a lot of times,
consumers feel sceptical of ordering tea online without tasting it. For them, we’ll have our own
“Danish tea Experience centre” where they can taste the tea before purchasing and it will
actually give them full satisfaction. Moreover, they can buy gift pack version of the tea.

Customizable Packaging Option

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2.2 (G) Physical Evidence
We will have our own ‘Danish Experience Shop’ where customers can experience our
signature teas with elegant ambience. They can also customize their tea blend and experience
it. Along with this we will have local ‘Simla Store’ which will serve budget friendly Simla tea
in Simla store will have free Wi-Fi connectivity and hygienic environment. This will be an
upgraded version of traditional ‘Tea tong’. We will also do attractive product placement on big
retailer shops.

Danish Tea experience center

Product Placement

Simla Store

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Product Placement

Waiting Shed

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2.2 (H) Defensive and Offensive Strategies
There are lots of competitors present in the tea market right now. But considering the
importance and current market situation, we’ve made strategies for the most competitive four
tea brands. The strategies are mentioned below:

Strategy for the competitor

Offensive Defensive
Full Frontal Attack Flanking Defense
Ispahani Mirzpore is trying to grab Ispahani has the majority of share
both middle and higher segment of the in the middle-class segment of tea
Ispahani market. Since we have quite similar market. We will emphasize on
Mirzapore TG in middle- and higher-income sales promotion and PR to
segment, we will go for full frontal establish integrated
attack. As we have required resources communication with the TG and
to do so, we wil compete against all heal this gap fast.
their promotional approaches to grab
market share.
Frontal Attack Flanking Defense
We all know that Kazi & Kazi offers Danish does not have any market
fine quality flavoured tea in premium position in the premium product
packaging which is very close to our segment which Kazi & Kazi
signature blend series of danish tea. hasSince Danish tea is launching
Kazi & Kazi This time we will also introduce new the new premium tea range, we
premium variants with finest will also need to against the Kazi
ingredients to oppose them. & Kazi premium tea line with
much better quality and
packaging
Flanking Attack Mobile Defense
Though Brooke Bond Taaza is quite Although Brooke Bond Taaza is
good with their digital promotions and a very renowned brand with their
packaging, they also have some regular and premium Red Label.
problems with their packaging that is They are also good with digital
Brooke Bond not at all negligible. Their tea gets promotions. We will diverse our
Taaza affected in moisture and have storage promotional strategy for
problem (Team, 2020). If they are not premium new variants and make
stored in certain temperature, they get it difficult to target any specific
completely damaged. So, Danish will among them as they have only
look into this matter seriously. two variants.
Through our ads, we’ll show our tea
don’t have any kind of storage
problem and the tea is pretty okay to
store in any temperature.

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 Flanking Attack Counter-offensive Defense

Halda Valley Halda Valley has strong positioning in Halda Valley might attack us on
higher segment of tea market. But the premium product line of
their products are premium and too Danish tea. We will do
expensive but lacks in promotion. We aggressive promotional efforts to
will offer better pricing and product fight back this scenario. We will
benefits in our premium product line increase our social media
so that customers get offered more promotion, PR and Affiliate
benefits in better price than them. marketing approaches to hold
Dansih Signature Blend series on
the race in higher market
segment.

Conclusion
As tea brand, Danish is right now struggling in the market to be recognized by the customers.
But with all the strategies that we have come up with to rebuild Danish as a popular tea brand
will help them to capture a good share in the market very soon. All these strategies are very
feasible since they have been made after doing proper analysis of the Bangladeshi tea industry
and specifically keeping in mind of their TG preferences. Lastly, we believe that if all these
plans and steps are executed properly, a strong brand image and a successful expansion of
Danish tea will take place in the near future

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 Reference
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Bangladesh Disposable Personal Income2006-2019 Data: 2020-2021 Forecast. (n.d.).

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Chattopadhyay, S. A. (2018, October 22). It's time to seriously consider a carbon tax in
Bangladesh. Retrieved from https://www.thedailystar.net/business/news/its-time-
seriously-consider-carbon-tax-bangladesh-1650505

Decaffeinated Tea Market Size, Industry Share and Growth Rate 2019-2026. (n.d.). Retrieved
from https://www.fortunebusinessinsights.com/industry-reports/decaffeinated-tea-
market-100787

E-commerce of Bangladesh: Shaping the future of shopping. (n.d.). Retrieved from

https://idlc.com/mbr/article.php?id=136

Fidai, M. (2018, August 06). Bangladesh is a nation filled with tea-lovers and here's why!
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Focus Economics. (2015, July 19). Bangladesh Economy - GDP, Inflation, CPI and Interest
Rate. Retrieved from https://www.focus-economics.com/countries/bangladesh

Internet Subscribers in Bangladesh February, 2020. (1970, February 01). Retrieved from
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K., Caldwell. (2019). Drug of Choice: An Exploration of Coping with Caffeine. Retrieved
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(n.d.). Retrieved from https://tradingeconomics.com/bangladesh/indicators

Pankaj Chandra Das |. (n.d.). Revitalising the tea sector. Retrieved from
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1527864045?fbclid=IwAR2c3e5ZAUQ2yW92vdaurc5sCko3ZYyzblCKxjRm65LcO
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Report, S. B. (2015, March 07). Bangladesh: Second most open economy in trade in South
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Sultana, N. (2019, June 09). Intellectual Property Rights: Bangladesh has a long way to go.
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go-1754080

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Value addition: A bright future for the tea industry. (2018, February 19). Retrieved from
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industry?fbclid=IwAR0RJZCfRqOHMEpYGJvRi0xBatojoUhWmDrULZqGkIDgXC
Y78qrcBZ6Sa2s

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industry

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 Appendix
For better understanding of our target market and current market scenario we did surveys and took
interviews. Our survey questionnaires link and responses have been attached below:

Questionnaire link:
https://docs.google.com/forms/d/e/1FAIpQLSeeopsYRStlNTxE9F9xktDk6xnUcjccYEW6cL
1DvUDxkxxwfQ/viewform?usp=sf_link

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